Electric Utilities Eye Broadband Rollouts

Electric Utilities Eye Broadband Rollouts

Nov 19 - Computerworld

Weigh IT, business benefits against technology risks

Executives at some electric utilities pointed last week to a variety of potential IT and business benefits that could be gained from emerging broadband over power line (BPL) capabilities, including improved support for applications such as load forecasting.

But uncertainties surrounding technical challenges and customer adoption left other attendees at the Platts Energy Information Technology Conference here questioning the viability of BPL installations.

Tim Frost, director of corporate planning at Consolidated Edison Inc., said the New York-based utility is about to launch application trials using BPL technology in Manhattan. Frost is hopeful that BPL will help Consolidated Edison forecast power loads, manage demand and predict electrical equipment failures before they occur. "It's like having a real-time asset management system," he said.

Potential business gains cited by BPL proponents include the ability to tap existing power distribution infrastructures for new services and a steep reduction in equipment costs.

One of the earliest BPL adopters is the electric utility for the city of Manassas, Va. Manassas signed an agreement in July with Chantilly, Va.-based Communication Technologies Inc. (ComTek) to extend BPL services across the city's power lines to 15,000 potential residential and commercial locations, said John Hewa, an assistant director within the local government.

ComTek began installing the BPL equipment in September. Walter Adams, a ComTek vice president, said he expects to achieve 10% penetration of the Manassas broadband market by July. Under the agreement, the city draws 10.5% and 25% of the revenue generated by consumer and commercial BPL, respectively. Adams said ComTek expects a three- to seven-year return on investment from its $1.5 million outlay for BPL equipment.

Equipment at Risk

Some utility executives voiced skepticism about the financial returns BPL investments can generate, partly because of the environmental risks that power lines routinely face.

For example, since the four hurricanes that hit Florida in August and September, Florida Power & Light Co. has replaced 2,000 miles of power lines and 13,000 poles, said Phil Slack, BPL project manager at the Juno Beach-based utility. "You have to factor that into your thinking," he said.

Slack has other concerns, too, such as the chance that above- ground power equipment may rust within months because of exposure to salt-water and humidity along the coast. "The technology isn't ready yet for Florida, but it's getting close," Slack said.

Still, other factors support the potential viability of BPL installations. Last month, the Federal Communications Commission issued a ruling allowing utilities to provide BPL services as long as they adhere to power-line radiation emission restrictions and follow consistent and repeatable measurement guidelines.

"The FCC has essentially given us the green light to go forward," said Brett Kilbourne, director of regulatory services and associate counsel for the United Power Line Council, a Washington-based alliance of utilities and technology companies involved in BPL. * 50716

BY THOMAS HOFFMAN

ORLANDO