Last summer, Shirley Norlem of Annapolis joined 1,000 other Baltimore Gas and Electric Co. customers in testing new "smart grid" technology that promises to transform the way Marylanders consume - and conserve - energy in our increasingly carbon-constrained world.
In exchange for significant rebates on her bill, Ms. Norlem shut down her plasma television, computer and other household electronics on the hottest summer afternoons. The efforts of Ms. Norlem and other participants in the pilot program helped reduce strain on the electric grid, lessening the need for BGE to draw additional power during times of peak demand, when electricity in the wholesale market is most expensive.
After the peak demand period ended at 7 p.m., Ms. Norlem resumed her normal activities. She described the inconvenience of postponing things like doing dishes and laundry as "no big deal." But the savings were. She earned $183 in rebates over the course of the summer.
In all, 93 percent of the participants in our smart grid trials said they were highly satisfied with the program and would sign up again if given the chance. For the first time, they had the tools and clear financial incentives to manage their energy consumption and costs. Participants reduced their peak energy usage by 22 percent to 37 percent and earned more than $100 in rebates.
That's real savings at a time when the financial sting of rising global demand for natural gas, coal and other fuels used to produce electricity is still fresh in the minds of consumers. Though the recession has caused electricity prices to dip recently, long-term trends suggest the return of normal economic growth will again put upward pressure on electricity prices. No one likes these higher costs. They hurt our economy and contribute to rising greenhouse gas emissions and global warming.
That's why BGE wants to empower a million Shirley Norlems. This week we unveiled a comprehensive smart grid program designed for all of our customers, creating one of the most ambitious programs of its kind in the nation. This effort has the potential to reduce the need to build costly power plants, to cut greenhouse gas emissions and to save our customers an estimated $2.6 billion over the life of the program.
