AES Ohio seeks regulatory approval of new settlement for next phase of smart grid

Regional energy provider AES Ohio said Friday it has reached a settlement that, if approved by state regulators, would lay the groundwork for the rollout of its next smart grid phase.

Specifically, the settlement would allow the deployment of the company’s Smart Grid Phase 2, which would continue the customer benefits and grid modernization enabled by Smart Grid Phase 1.

If approved by the Public Utilities Commission of Ohio (PUCO), the settlement would help AES Ohio, a subsidiary of The AES Corp., move forward with plans to invest $240 million in capital projects over a four-year period following Smart Grid Phase 1, the company said.

“We have a commitment to our customers and community to ensure the reliability and resiliency of our grid,” said AES Ohio President Tom Raga. “In Smart Grid 1, we successfully deployed smart meters and reclosers, equipment to automatically restore power. Our customers are already benefiting from fewer outages and decreased restoration times.

“The Smart Grid Phase 2 settlement is the next step to advancing the benefits of smart grid and realizing the tangible improvements bringing value to our customers every day,” Raga said.

AES Ohio said a residential customer receiving its Standard Service Offer using 1,000 kWh a month initially would see an increase of $1.72 per month, or about 1 percent, under the settlement.

Over the course of the four-year settlement, that monthly increase would be $5.91 a month, according to the utility.

Thus far, Smart Grid 1 improvements have already reduced Customer Minutes Interrupted (CMI) by 28.5 percent and lowered the need for estimated meter reads by 96 percent, according to AES Ohio.

In Smart Grid Phase 2, the company said customer benefits would include the continued expansion of automation of substation and distribution operations; a new online hosting capacity map tool to support distributed energy resources and economic development; and an enhanced telecommunication network.

AES Ohio also proposes in the settlement to expand its Disadvantaged Communities Energy Initiative, which currently provides an annual budget of $2.7 million benefiting low-income customers in qualified communities.

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