Naperville signs up for $22 million 'smart grid'
Naperville has inked a deal with the federal government for what it calls a cutting edge energy project.
City councilmen on Tuesday gave their approval to creating a $22 million Smart Grid officials say will lower energy costs for itself and residents.
Half of the project cost will be funded by the city and the other half will come from a federal stimulus grant from the U.S. Department of Energy.
Councilman Kenn Miller on Tuesday said the Smart Grid will have long-term benefits for the city and residents alike.
"This is an excellent project and I think it shows the reward for the foresight and vision and smart engineering and planning that the city provides to its electric, water and wastewater," Miller said.
The city is one of 100 nationwide to receive federal stimulus funds to create a Smart Grid.
Councilmen voted 7-0 on Tuesday in favor of a detailed agreement with the U.S. Department of Energy and the first project award of $347,400 to West Monroe Partners.
Through the project, Naperville will purchase more than 57,000 "smart meters" that will let both the city and residents track their energy use. Officials hope the ability to monitor usage will encourage residents to use less energy and to use energy during nonpeak hours.
During a workshop to discuss the project in December, consultant Tom Hulsebosch said residents could save an average of 5 to 15 percent on their electric bills by adjusting their usage habits.
Although the project has an $11 million price tag, the city had already planned to make about $8.4 million in upgrades to its electric system over the next five years. Councilman Jim Boyajian has challenged the electric department to modify or delay other projects to absorb the extra $2.6 million.
Hulsebosch has said the system could ultimately lower costs for the city as it purchases wholesale bulk power. Stated in today's dollars, he estimated the city could see net benefits of $52 million during a 15-year span.
Aside from the fiscal implications, officials say the Smart Grid also will help the city reduce it's impact on the environment.
Councilman Bob Fieseler called the project a "bold step" and said it will help the city make more informed decisions about using electric vehicles in the future.
"This is a great step forward," Fieseler said. "We're in the forefront here."
He confirmed with West Monroe Partners on Tuesday that the city will have the intellectual property rights for the project.
The Smart Grid will be constructed in four phases that will be complete in April 2013. Councilman Richard Furstenau called on staff to make sure the project stays on time so the city does not risk losing any of the federal dollars attached to it.