You can’t power a 21st century city by using 19th century technology. Yet, Con Ed is doing just that by using outdated infrastructure as the city moves into the second decade of the 21st century. New York is facing steep competition from London and other cities to be the global financial capital, and Con Ed needs to take immediate steps to upgrade its technology.

Relief could be on the way. Digital technology—Smart Meters—has allowed customers in other cities to cut their bills by as much as 10 percent. This is why I have proposed mandating that Con Ed install Smart Meters in new buildings, and by 2011 have all meters in New York City be Smart Meters.

Smart Meters take the place of the older meters and work by using digital technology to help streamline service in real time. The U.S Department of Energy’s Pacific Northwest National Laboratory found that consumers in the Smart Meter system saved 10 percent on their power bills and cut their power use by 15 percent during peak hours during a year-old study. For New York City’s consumers, the ability to know when prices are high because of demand will help consumers save money on their bills by adjusting their consumption. If you want to wash your clothes and avoid peak hour rates, you can simply check the meter and adjust your schedule according to the peak hour charges. 

The Smart Meter is part of the larger “Smart Grid,” system, which fully digitizes the power grid by expanding the communication between the consumer, the regulator, and the power plants. By having the three principals in constant digital communication, utilities better regulate the power their stations put out based on need.

Smart Meters will help prevent blackouts and will help to green the city, as New York’s power grid suffers the strains of an aging infrastructure. The national power grid remains generally unchanged since it was first erected at the end of the 19th century. Large power plants deliver power in an inefficient system, which requires investment in infrastructure that is often not used to its full capacity, and wastes fuel. Smart Meters help customers relieve the stress on the grid, since the power plants run more efficiently, and since consumers can regulate their own power, less energy is used, and there’s less waste.

Con Ed is falling behind the rest of the world. Last April, the British government announced plans for every household to acquire a Smart Meter. Italian utility Enel SpA undertook the largest Smart Meter implementation with over 27 million being given to customers between 2000 and 2005, with an average saving of $500 per year, effectively paying back the $2 billion investment in a four-year period. Other nations using Smart Meter technologies include Turkey, Canada, Norway, Sweden and Finland.

Smart Meter technologies are also currently being deployed in the United States. In Boulder, Colorado, the Minneapolis-based utility Xcel launched a $100 million program to implement the Smart Grid. The project, announced in May 2008, will be completed in 2009, and will include Smart Meters in all homes. In Austin, Texas, 200,000 meters are currently Smart Meters, and by the first quarter of 2009, Austin Energy will have 500,000 Smart Grid devices.
Mandating Smart Meters in new buildings, and by pushing for Smart Meters in all buildings by 2011, will help New Yorkers lower their bills, help the environment, and prevent blackouts. Smart Meters are precisely the kind of infrastructure that Con Ed needs to invest in as New York moves into the 21st century in order to ensure New York does not fall further behind the energy technology curve. Installing Smart Meters will ensure that New York remains a global capital and leader in green technologies, along with leaving a cleaner, more sustainable city for our children.

Eric Gioia is a Democrat representing parts of Queens in the City Council.