July 1, 2009

Too Many Fingers in the Smart Grid Pie?

Brian Gish

State Public Utility Commissions (PUCs)

Many smart grid technologies will be deployed at the local distribution level, which is subject to state PUC jurisdiction. The EISA instructed states to consider smart grid issues. The PUCs have made clear that they do not intend to relinquish their jurisdiction over advanced meters, rate recovery, pricing structures, and other issues affecting utilities and retail customers under their domain. State-federal turf battles are possible.

Other Players

The Federal Communications Commission will likely play a role in issues of wireless data transmission, broadband infrastructure expansion, and the potential for radio frequency interference. The EISA also designates the Department of Homeland Security as a consultation agency for grid security issues. The recently announced White House coordinator on cybersecurity issues may have responsibilities to address cyber vulnerabilities of smart grid equipment. And the North American Electric Reliability Corp. will necessarily be involved in reliability aspects of the transmission system.

Team Captain Needed

This quick overview of the disparate players involved in regulating the development of the smart grid clearly demonstrates the potential for balkanization of responsibilities with the possibility of overlapping and conflicting efforts. The relationships become much more complicated when the numerous hardware and software suppliers and consultants vying for a piece of the action are added to the mix.

While ensuring technology interoperability, perhaps we should also enable organizational interoperability by naming a single smart grid "czar" with implementation authority over all smart grid activities.

—Brian R. Gish (briangish@dwt.com) is of counsel in Davis Wright Tremaine's Energy Practice Group.