The McDonnell Group

Part I:  Toward a Smart Grid "Easy Button"

Nancy Broe (NB): How would you define smart grid?

Clark Howard (CH): When you talk about smart grid are you talking about the grid that can cogenerate --where if I have solar at my house I sell my energy back to the utility -- or are you talking about a grid that can handle wind power or solar power?  Or are you talking about smart meters?

NB: All of the above could be part of the definition, I’d say. How do you think smart grid should be defined?

CH: To me the smart grid is what China is doing, where the government there is building a grid that can handle any source of power and greatly reduce the amount of energy lost in transmission. The problem with our “dumb” grid is that we can’t get power when we need to.  Also, there’s so much energy lost over distance in transmission.

NB: A common consumer misconception is that smart meters define the smart grid.

CH: Smart meters, which are used on the west coast…?

NB: Exactly. Have you followed consumer reaction to projects there?

CH: Yes. Some people fear they’re getting cheated.  Also, smart metering brings more responsibility on people than most people need or want to take on. When it comes to variable pricing based on time of day and that kind of stuff, the average consumer finds it really hard to get their arms around it.

People need a "smart button."  I have an idea that a smart meter connected to smart appliances, such as energy star appliances, could have a red, amber, and green light to show (high, medium, and low) cost for using that appliance based on current time-of-day rates.  So the consumer can decide when to use their power for that appliance.  It would be ideal to use smart metering to have a signal on all energy star appliances.  First, it would encourage people to use more efficient appliances.  Second, it would give the consumer the ability to -- without even having to think about it -- go green right now.  People associate green with "go" and also with environmentalism.

NB: How would you rank the importance of smart grid initiatives for the American electric grid?

CH: From home meters to the whole electric grid, smart grid is desirable and essential. If we don’t fix our power grid, which is in terrible condition, it will affect our ability to compete in the global market.  Especially when you consider that third world countries that have never had a great power system, that have unreliable electricity, are moving ahead with new  technology as they develop.  If we just sit there, they’re going to kill us economically.

I’d like to see us federalize the process for approval for running power lines. The current process can lead to fifty different power systems.  National leadership, from the president down, is needed to make us a little more competitive.

NB: What are your personal energy priorities as a consumer and citizen?

CH: Innovation and conservation are most important to me.  I use a solar hot water heater in my home.  In my vacation home in the Appalachian Mountains, we have a whole house solar power program. I’m very interested in alternative energy and put into place every retrofit for conservation.  I use foam insulation around ducts and in the attic. My doors and windows are weather-stripped; I use foam seals.  We renovated with ultra efficient Canadian windows which have virtually no heat transfer. And I drive a Prius which I am converting to a plug-in hybrid so 90 percent of the time it will ride on electricity only -- no gasoline.

NB: So you’re personally interested in innovations that drive conservation?

CH: Yes, completely.  Particularly alternative energy.

NB: Are your listeners asking questions about smart grid initiatives like smart metering or integrating renewables into the grid?

CH: The most frequently referenced question is about solar water heaters. The only time I’ve ever had a question about smart meters was a California caller who thought she was getting cheated.  I’ve never had questions like "Hey, I’m thinking about getting a smart meter!"

NB: Do you think there are gaps in consumer knowledge about smart grid?

CH: Consumers don’t know about this stuff, except for people who are really into energy. In general, the public doesn’t know and doesn’t care.

End of Part One. In Part Two, we will discuss "Incentives, Apathy, & the True Costs of Energy."

 

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About Clark Howard

Every day across America, Clark Howard's voice is heard on more than 200 radio stations advising consumers how to save more, spend less and avoid getting ripped off. The Clark Howard Show airs on HLN (formerly the Headline News channel) in a weekend program, including the best calls from his daily national radio. He is also a TV reporter on Atlanta's ABC affiliate WSB-TV. Clark has published eight books in total -- with 2002's Get Clark Smart and 2003's Clark's Big Book of Bargains both charting on The New York Times' "Best Sellers" list (No. 6 and No. 7, respectively). 2007's Clark Smart Real Estate addresses issues in today's mortgage crisis.