The GridWise® Alliance sent a letter to state regulatory commissioners urging them to continue their support of Recovery Act Smart Grid Investment Grant proposals that were not funded by the DOE in October.
The Energy Department awarded $3.4 billion in Smart Grid Investment Grants to 100 applicants on Oct. 27. The total number of applications for grant funding was roughly 400, so the great majority of applicants received no federal funding.
The open letter, written by Katherine Hamilton, GridWise president, was sent prior to this week's National Association of Regulatory Utility Commissioners (NARUC) convention in Chicago. In her letter, Hamilton noted that many utilities worked closely with their state commissions to ensure that regulators supported the grant applications and project proposals. She also noted that some state commissions gave their support with the condition that projects received stimulus funds. State commission approval of project applications was considered a plus by DOE in its application evaluation process.
Hamilton reminded commissioners that DOE had reserved the right to choose applications of "lesser merit" if dictated by program and policy factors—and that the Energy Department's decision to not fund a project was no indication that the proposal was inferior.
"We would like to recommend that your state commission continue supporting these crucial projects, regardless of the federal award. We believe strongly that the public interest can be served by implementing Smart Grid projects based on potential savings to consumers, increased reliability, enhanced security, and a cleaner, more efficient electric system, " Hamilton wrote.
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