Federal regulators proposed the beginnings of a standardization process for a “smart grid.” That is, a transmission and distribution system that can send electronic signals between consumers, utilities, and other developers to increase energy conservation as well as pinpoint where capital investment may be useful. However, utilities with current systems that may be usurped in building a smart grid are on the Federal Energy Regulatory Commission’s mind. A “key consideration is the potential for stranded costs with legacy systems,” said FERC spokesperson Mary O’Driscoll. Utilities, in other words, have capital invested in their current meter, transmission, and distribution systems. That payback is guaranteed over time. Yet, if those systems are not paid off--like a mortgage--then utilities and their ratepayers have a remaining debt, creating “stranded assets.” Despite that, FERC chair Jon Wellinghoff intends to get the national smart grid standards rolling within a year and a half. California started its version of the “smart grid” in 2007. The California Public Utilities Commission approved putting “smart meters” on customer premises as part of its strategy. It approved Pacific Gas & Electric’s request to spend $1.7 billion, Southern California Edison’s to spend $1.6 billion, San Diego Gas & Electric’s to spend $600 million. As early adopters of “smart meters” California utilities are buying meters that have no common standards--just the thing the FERC is trying to develop and adopt. For instance, if there’s an iPhone, a Treo, and a Blackberry, they can communicate, but not directly. At this point there needs to be an interim technology, such as the Internet. The FERC appears to be working on standardization that would take out that extra layer of communication to allow direct information to be transferred between customers, utilities, and grid operators. Federal regulators did not respond to direct questions about harmonizing technology across the nation, however. “Prioritizing the development of key standards will speed up the process of achieving an interoperable smart grid,” commissioner Suedeen Kelly stated. “Also, our proposed policy will require the sharing of information associated with smart grid deployments with the Smart Grid Clearinghouse being developed by the Department of Energy. This will help to demonstrate the real benefits that investing in a smart grid can bring to the public.” DOE is striving to invest $1.2 billion a week in such new energy technology, a utility industry source in Washington said.