NC utilities win big in Smart Grid stimulus

North Carolina's electric utilities came out the biggest winners in President Obama's $3.4 billion nationwide investment in Smart Grid technologies. The federal stimulus package announced today will go to 49 states as part of the American Reinvestment and Recovery Act.

This state's two biggest power companies -- Progress Energy and Duke Energy -- both qualified for maximum awards to upgrade their electricity delivery and power management systems. But much of the money awarded today will be spent by the utilities in other states where they operate.

A Smart Grid is a computerized electricity network with real-time data that operates more efficiently than a standard electro-mechanical grid. The U.S. Department of Energy said that Smart Grid upgrades could reduce electricity use by more than 4 percent by 2030.

Progress, based in Raleigh, is slated to receive $200 million to speed up development of technologies like advanced meters and plug-in cars. The power company will also use the money to develop a system that can isolate feeder lines to help the grid's self-healing capacity during outages and accidents.

The $200 million from the feds will be used in the Carolinas and in Florida, and will offset the electric utility's own investment of $520 million.

Duke, based in Charlotte, qualified for $200 million for a comprehensive grid modernization project in the Midwest, where the utility operates in three states.
Additionally, Duke will receive $3.9 million to upgrade substations and other infrastructure. Duke is investing about $860 million in the projects.

In all, North Carolina's share of the Smart Grid portion of the stimulus package is nearly $404 million. Power companies and municipal utilities in Florida, the state with the next-biggest allotment, will get about $267 million in stimulus funds.