• The express package you ship or the item you order
online—You can track the package from the beginning to
the end of its journey.
• Purchasing your airline tickets—airlines today are able to
adjust pricing structures, almost in real time, in response to
supply and demand and a number of other variables too
numerous to mention. As travelers we are able to check in
online or get an alert on our mobile phone if a flight is
delayed, even before the gate agent knows.
From finance to delivery services to a vast range of products,
nearly every industry around the globe has been transformed
and revolutionized by information technology. The electric
power sector—not to offend anyone—is a laggard in fully
adopting information technology. For the most part, it still
bills customers—or ratepayers in many places—based on
monthly or quarterly volumetric consumption times a flat
rate, with a few exceptions, of course. Most consumers are
not aware of how much they are consuming or how much it is
really costing them—or the service provider.
A typical electric utility's knowledge of the state of its
distribution network is minimal. In many places, customers
call to report that the lights are out, and then someone has to
be sent to the field to figure out what happened, when, and
why. In short, the industry has yet to embrace the information
age.
The smart grid, a catch-all term, promises to change this.
Taken as a whole, it has the potential to usher the electricity
sector into the information age. As the chapters of this book
explain, the smart grid, along with smart meters, smart
devices, and smart prices, can catapult the electric power
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