Now is a great time for us to invest in CVPS SmartPower^®.

Federal stimulus funding for statewide smart grid technologies has accelerated the pace at which improvements make sense for Vermont.

For several years, Vermont's utilities have been moving forward with smart grid system improvements, such as planning and installing new smart meters where analysis indicated they would be most cost-effective and beneficial.

In early 2009, under the American Recovery and Reinvestment Act (ARRA), the U.S. Department of Energy established a $3.4 billion grant pool to accelerate the adoption of smart grid technologies throughout the country. A grant application known as eEnergy Vermont was filed by VELCO, on behalf of Vermont's 20 distribution utilities, with the support of the Department of Public Service, Efficiency Vermont, the Office of Economic Stimulus and Recovery, and Vermont's congressional delegation.

In October of 2009, Vermont's electric utilities were awarded approximately $69 million in ARRA funds to cover half of the cost of modernizing the electric grid over the next three years, ending in 2013. These grid updates will lay the foundation for a fully integrated CVPS SmartPower^® system.

Overall, the cost of implementing CVPS SmartPower^® is not expected to have a noticeable effect on our rates. Cumulative rate increases related to the project are expected
over the first five years totaling less than 1 percent. Due to the operational and maintenance savings CVPS SmartPower^® will make possible, our rates are projected to be lower than they otherwise would have been over the life of the project .