Gwen Schwenck

In the April 2011 edition of "Electrical Contractor" was an "IndustryWatch" article, “Study:  Utility Smart Meter Benefits Outweigh Costs”. 

“A smarter grid promises savings on consumer electric bills, but it appears that utility companies will also reap large benefits. According to a study The Brattle Group prepared for the Edison Foundation’s Institute for Electric Efficiency, the net benefits of smart meters could be more than $96 million over a 20-year period for a U.S. utility serving a million residential customers. “

Am I understanding this correctly?

The Utility Companies will benefit $96 million over a 20-year period.

Divide one million (the amount of residential customers mentioned) into the $96 million they expect to save = $96 each residence.  Divide that number by 20 years (the time period in discussion) comes to $4.80 a year savings from each residential customer.  This does not take into consideration the cost of installing a Smart Meter. Where are the savings?

The Article sites a report by “The Brattle Group”.

"Even a five percent drop in peak demand can yield substantial savings in generation, transmission and distribution costs. We estimate that this five percent reduction would eliminate the need for installing and running some 625 infrequently used peaking power plants and associated power delivery infrastructure. At the national level, this translates into a savings of $3 billion a year or $35 billion over the next two decades." Taken from Page 7 of the paper.

The article indicates the large amount five percent represents. Are you aware that there is an economical way to reduce 10% of electrical consumption in homes, and even more reduction in industry?  Installing Kvar will give financial benefit to the customer, and reduce electrical consumption for the Utility Companies.

Kvar National. Power Factor Correction, for homes, businesses, and industry.