By Jesse Berst 

When Mani Vadari recently mentioned his notion that we're over-obsessing about customer benefits, I knew I had to make it a topic for a Tuesday discussion. Mani previously worked for the company now known at Alstom Grid, where he was one of their leads in the energy deregulation area. He then launched the Accenture smart grid practice before joining Battelle Energy to lead several important initiatives. Today he heads up Modern Grid Solutions, a consulting company, and serves on the Board of the GridWise Alliance.

Mani has been working on smart grid as long as anyone and from several perspectives. He believes the ARRA's funding overwhelmingly focused on smart meters, leading to a distortion. "The smart grid is not just about the smart meter," he says. "The smart meter is but one dimension. For all the other dimensions, the main focus is still on the utility being able to deliver power reliably and cheaper. That mandate is only becoming more important and now utilities have more opportunities for improvement than ever."

 Mani makes a further and very important point – we already have a mechanism in place to support and finance that mandate. "There is already an established regulatory process for approval based on system (utility), business and societal benefits," he says. The regulator is also keeping the customer’s interest in mind as they approve or decline a rate case.

It's not that customers should be ignored. It's that they should be treated as one of several different stakeholders. And that we don't have to obsess about putting money instantaneously in customers' pockets. When we provide benefits to the system, to business, and to the environment, those benefits still reach the customer.

I'm with Mani on this one -- in fact, I remember a similar debate at the start of the stimulus funding process, but the smart meter advocates won out. They used the argument that metering projects would be more visible and more "shovel ready." 

Where do you stand? Join the discussion.

Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.