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Page 2: Infrastructure challenges >> By Jesse Berst
Utilities should determine where they want to fit along the continuum from pure "commodity" electrons to value-added services
Infrastructure examples
The Infrastructure role is most likely to appear in regions with retail competition. Houston-based CenterPoint Energy, for instance, is underway on a top-to-bottom transformation of its network. One of its stated goals is to provide a platform on which retail providers can innovate. Nor is the deregulated Texas market the only place utilities are moving in the wires-only direction. Similar roles are evolving in Pennsylvania, the mid-Atlantic, and portions of Canada and Europe, where a single infrastructure provider services multiple energy retailers. Those retailers and other third parties are the ones that conceive, create and manage energy services and the ones that interact directly with customers.
In a similar fashion, when it announced Smart Grid Miami in spring 2009, Florida Power & Light and its partners Cisco, GE and Silver Spring Networks talked in terms of an open applications development platform. Their hope was that developers would create apps for that platform the way they create apps for the iPhone.
Similarly, New England's Northeast Utilities (NU) is providing a technology platform for its smart grid pilot program. Customers purchase power from retail suppliers, but NU is sending the price signals, while providing a home energy monitor, an "energy orb" that glows red when prices are high, and a web site with additional services.
Page 2: Infrastructure challenges >>
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