Developing a national smart grid is such a high priority for the Obama administration that regulators plan to let power providers who pioneer the technology pass their costs on to their customers – before national standards are approved and before analysts have determined the most cost-effective technologies.
The Federal Energy Regulatory Commission adopted its official Smart Grid Policy last night, setting priorities for the grid’s development that emphasize such areas as cybersecurity, dynamic pricing, and the need for technology that can facilitate off-peak charging for electric vehicles.
Most of FERC’s priorities were expected, but the commission also added a controversial piece: It strayed from standard practice and approved an interim rate policy for early adopters.
Normally, utilities are only allowed to raise their rates to recover expenses involving technologies that have been proven to be cost-effective. The Massachusetts attorney general, among others, had argued in hearings before the commission that no smart grid costs should be eligible for rate recovery until guidelines had been developed to determine which technologies were cost effective.
via FERC Adopts Smart Grid Policy with Rules for Raising Rates | SolveClimate.com.
