Q&A

Q. What is a smart grid? A. “Smart grid" is a term used to describe a modernized electric transmission and distribution system – utilizing digital technology -- that provides the utility, and ultimately all customers, with real-time information about the status of the transmission and distribution system and customer energy use.

This enhanced communication capability may be used to continuously monitor the electric system to reduce outage times, operate the system more efficiently, and support renewable energy technologies, energy-storage devices and electric vehicles. It may also be used to provide customers real-time information about their energy usage and allow them to adjust their electricity usage accordingly.

Q. What is EnergyWiseSM? A. Progress Energy’s smart grid initiative is called EnergyWise, and will include the existing residential load-control program of the same name.

Q. What is the smart grid grant? A. The smart grid grant is funding made available through the U.S. Department of Energy as part of the federal economic stimulus package. Progress Energy applied for a $200 million grant, on behalf of its two utilities, through this program in August 2009. The grant award was originally announced in October. Funds will be distributed by the DOE as project work progresses over the three-year period of the grant.

Q. How much will each utility receive as part of the grant? A. Progress Energy Carolinas and Progress Energy Florida will each receive $100 million from the grant.

Q. What types of projects will be funded if the grant is accepted? A. In the Carolinas, the grant will accelerate projects such as the distribution feeder segmentation initiative, which will help to isolate power outages and equipment problems faster, ultimately driving fewer and shorter outages for customers. In Florida, the grant will fund equipment upgrades that will accelerate the Distribution System Demand Response program, which provides greater flexibility for managing customer usage during periods of peak demand. Reduced consumption helps to delay the need for new power plants and ultimately saves customers money.

The grant will also fund the installation of 160,000 “smart” meters in the Carolinas and Florida. The meters will be capable of two-way communication, enabling many future options for customers to monitor and control their energy use.

Progress Energy’s utilities will also invest in additional public infrastructure for plug-in electric vehicles (PEV). Progress Energy is a utility partner in several PEV grants awarded by the federal government in 2009. Progress Energy currently operates a fleet of 10 plug-in hybrid electric vehicles in the Carolinas and Florida, including the Southeast’s first plug-in hybrid bucket truck.

Q. Are there other benefits to Progress Energy? A. Progress Energy’s utilities and our customers will save nearly $250 million in fuel and operational costs as a result of the initiatives funded by the grant. In addition, enhancements to the distribution system will help to isolate power outages and equipment problems faster, meaning fewer and shorter outages for customers. Smart metering advancements will enable many future programs to help customers monitor and control their energy usage.

Q. Has Progress Energy already been investing in the smart grid? A. Progress Energy’s two utilities are already investing more than $300 million in smart grid projects. The total investment, including the grant, could create up to 500 jobs. The utilities have already begun structuring their workforces to best support the transition to a smart grid.

Q. How can I find out more about available jobs related to smart grid work? A. Progress Energy will post smart grid-related positions, as needed, on the company Web site at http://progress-energy.com/aboutus/employment. Additional positions may also be available through contractors hired to support smart grid projects.

Q. Why is Progress Energy investing in the smart grid given these challenging economic times? A. Although it has served its purpose well for decades, the electric grid must be modernized to reap the benefits of new energy technologies and more engaged energy consumers. The smart grid will give customers greater choice about how and when they use electricity, give utilities more flexibility in meeting energy demands with new technologies and energy sources, and improve power quality and service reliability.

Our company is committed to a balanced solution strategy to meet the future energy needs of our customers at a time of rising energy costs and concerns about climate change. This balanced approach includes aggressive energy efficiency, investments in renewable and alternative energy, and a state-of-the-art power system. The smart grid is a fundamental tool to help us meet these objectives.

Q. When will the grant projects be completed? A. Projects funded by the grant must be completed by April 2013.

Q. I am currently enrolled in the EnergyWise program. Is that program going away? A. The EnergyWise residential load-control program will not be changing. Those enrolled will continue to receive incentives for participating in the program. As the program will be part of Progress Energy’s smart grid initiative, it will now be called EnergyWise HomeSM.