Ohio-based FirstEnergy is on its way to make a transition over to smart grid and the company has signed an agreement with Department of Energy for a huge grant.

In a recent press release, FirstEnergy Corp. announced that it has been awarded $57.4 million grant by the Department of Energy (DOE) as a part of the American Recovery and Reinvestment Act. The money will be expended on the introduction of "smart grid" technologies to improve the reliability and interactivity of the electric distribution infrastructure in targeted areas of its Pennsylvania, Ohio and New Jersey service territories. 

SmartEnergy's smart grid technology program would focus on several key areas including distributed automation, direct load control, smart metering, volt control, advanced protection devices and wireless security. The smart grid initiatives would help improve system reliability and efficiency and enable customers to save money by better managing their energy usage.

The company informed that its plan involves investing a total of $114.9 million on the implementation of smart grid technologies. The initiative is going to help the region in many ways.

The new smart electrical infrastructure would enhance the operating performance of the local distribution system. The new infrastructure will also provide incentives to customers to reduce energy use and participate in demand response programs. 

SmartEnergy has already obtained funds by utility commissions in Pennsylvania and New Jersey. The DOE grants will add to the company's resource and allow it to begin implementation programs in these states.  The Ohio smart grid program is on hold, pending continuing commission review of the program proposal.

"FirstEnergy was one of 100 companies selected by the DOE to receive Smart Grid Investment Grants and we look forward to using new technologies to help our customers save energy and money. Our goal is to use these smart grid programs in targeted areas to help lay the groundwork for possible widespread deployment and implementation," said John Paganie, vice president of Customer Service and Energy Efficiency for FirstEnergy.

Smart Energy shared that DOE grants and approved utility commission funding will be used to install smart grid technology in the York, Pa., area served by Metropolitan Edison Company (Met-Ed).

Met-Ed will utilize the share of funds for a voluntary load control program for 23,000 customers in the York area. This program will help reduce peak demand through an integrated system that directly controls air conditioners and other customer appliances during periods of high usage.  In addition, deployment of distribution automation and related technologies will help enhance the reliability and efficiency of the system.  All of these smart grid improvements will be supported by two-way communications.

A share of the money will also go to expand the technology already deployed in a number of communities throughout the Jersey Central Power & Light (JCP&L) service area.

In the meantime, JCP&L will expand on smart grid technologies installed earlier this year. This project will use many of the same technologies and features being introduced in Pennsylvania.  This voluntary control program involving more than 20,000 customers in New Jersey has the potential to reduce peak load by 30 megawatts. 

Recently First Energy grabbed the headline by filing application for a merger with Allegheny Energy Inc. If the merger is approved, the companies said, the new entity would establish a regional headquarter of Potomac Edison, a subsidiary of Allegheny. Also, the merger would create a financially stronger utility providing quality service.