The design phase is complete, equipment is ordered and construction has started on SmartGridCity, Xcel Energy announced last week.

In April, Xcel Energy and its Smart Grid Consortium partners completed their study of Boulder, Colorado's electricity infrastructure, and developed a scope and design plan for implementing the changes. The company then placed equipment orders, including an order for 15,000 smart meters. In May, the company began implementation of the smart grid network and construction on the SmartGridCity Control and Operations Center.

SmartGridCity is a multi-phase project, which is expected to be complete in December 2009. The advanced, smart grid system – when fully implemented – will provide customers with a portfolio of smart grid technologies designed to provide environmental, financial and operational benefits.

“We’re on our way toward building the grid of the future and making SmartGridCity a reality,” said Dick Kelly, Xcel Energy chairman, president and CEO. “This is a forward-thinking project that will transform the way we do business. In SmartGridCity, our customers will have more information, including the tools to communicate directly with us, and will choose when and how they use their energy based on price, generating resource or convenience.”

Phase I, which runs from March 2008 to August 2008, is the demonstration phase, and initial installations will take place to test capabilities and gauge customer reaction. Phase II, which runs from September 2008 to December 2009, will be a full deployment phase to a broader customer base. Xcel Energy and its partners will dedicate up to 115 people to SmartGridCity, to install and monitor more distribution as well as in-home equipment, and work with customers to begin using the new technology.

Phase I: March 2008 - August 2008

• Includes full-system automation, monitoring and smart meters for the first group of SmartGridCity customers. Involves upgrades to two substations, five feeders and nearly 15,000 meters (representing both residential, commercial and light industrial customers) in Boulder.
• Web portal will provide consumers with insight into their energy use and information for better home energy management.
• A dedicated customer service phone number (1-877-887-3339) and e-mail address (SmartGridCity@xcelenergy.com) for SmartGridCity customers.
• Some customers can choose to have in-home automation tools, allowing increased control over home energy use and costs.
• By mid-August, initial capabilities should be demonstrated.

Phase II: September 2008 - December 2009

• Complete the installation of a distribution and communication network for remaining areas within Boulder (an additional two substations, 20 feeders and smart meters for an additional 35,000 premises).
• Expanded in-home automation installations.
• Enable Web portal access to all SmartGridCity customers.
• Begin initial integration of plug-in hybrid electric vehicles, solar and wind co-generation sources onto the grid in Boulder.

Xcel Energy and its partners have started installing the high-speed communications network and smart grid sensing equipment necessary for deploying SmartGridCity, which will enable two-way communication between customers and the company.

The company has ordered approximately 15,000 Landis+Gyr smart meters, which will be installed by August 2008. In June, crews will begin installing them, at approximately 2,500 meters each week. The new smart meters provide detailed usage history and automated meter reading. The meter installation will be at no charge to the customer.

The potential benefits of SmartGridCity include operational savings, customer-choice energy management, better grid reliability, greater energy efficiency and conservation options, increased use of renewable energy sources and support for plug-in hybrid electric vehicles and intelligent-home appliances.

Xcel Energy anticipates funding only a portion of the project, and plans to leverage other sources including government grants for the remainder of what could be up to a $100 million effort.

In December 2007, Xcel Energy established the Smart Grid Consortium, bringing together leading technologists, engineering firms, business leaders and IT experts. Consortium members include Accenture, Current Group, GridPoint, Schweitzer Engineering Laboratories and Ventyx. The group will provide guidance, products and services needed to bring Xcel Energy's smart grid vision to life.