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Utility nets $32 million

Published: Wednesday, November 18, 2009 10:43 AM CST
Thelma Grimes/San Pedro Valley Neews-Sun

Benson Southwest Transmission Cooperative, Inc., is the recipient of $32,244,485 in federal stimulus funding from the U.S. Department of Energy.

U.S. Rep. Gabrielle Giffords, D-District 8, announced earlier this month President Barack Obama had approved the grant.

The cooperative is among 100 utility projects that will share $3.4 billion to spend on technology to cut energy use and make the electric power grid more robust.


President Obama announced the awards during a visit to a solar array in Acadia, Fla.

Giffords, of the House Science and Technology Committee, has promoted the use of solar energy.

"This critical investment by the federal government will be key in the large-scale use of solar energy," Giffords said. "We need a 21st century distribution system to bring the full benefits of solar and other renewable energy sources to as many people as possible. Domestic renewable energy, such as solar, is essential to helping us reduce our dependence on imported foreign energy."

Southwest Transmission will use the money to upgrade and automate its transmission, distribution and customer service systems.

As part of the project, smart meters will be installed for more than 44,150 customers.

The funding is also expected to pay for installation of communication and digital infrastructure to support a two-way flow of information between the utility and its customers.

The funding will go toward building more than 6,400 miles of transmission and distribution power lines in Arizona and is expected to create 11 jobs directly related to developing and installing the smart grid system and an additional 400 jobs in related and support business.

Smart meters deliver detailed usage to customers, including the addition of displays in homes that provide customers with information on their electricity use. Smart meters allow customers to view electric use in real time and take advantage of reduced utility prices when there is less demand on the system.

However, the grant does not pay 100 percent of the cost of the Southwest Transmission project, which is $64,488,970.

"We've been investing in this technology and upgrading the grid from our own funds since 2005 and had planned to continue doing so through the year 2013," said Bill Riley, SWTC manager of transmission, operations and maintenance. The grant means we can now match those dollars, do more, and do it quicker.

Riley said the upgrades will save customers money through an enhanced ability to manage peak demand times, reduction of power system maintenance and operation costs and improved reliability and stability.

The DOE and the cooperatives will now negotiate details of the grant, and money could be awarded with work based on those dollars beginning in the first quarter of 2010.

Two other Arizona electric utilities received more than $60 million under the program endorsed by Giffords.

The Salt River Project in Tempe will receive more than $56 million to add 540,000 smart meters, and the Navajo Tribal Utility Association in Fort Defiance will receive $4.9 million for 38,000 customers.



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