Not long ago, several important companies with interests in the utility and energy businesses created the GridWise Alliance. The group, which recently added fifteen new members (still no CA Edison), announced a meeting next week in Washington D.C. to discuss smart grids, how they can help us reduce our carbon footprint and how they are affected by the Energy Act of 2007.

According to their website, the Gridwise alliance aims for "an electric system that integrates the infrastructure, processes, devices, information and market structure so that energy can be generated, distributed, and consumed more efficiently and cost effectively; thereby achieving a more resilient, secure and reliable energy system." For us, this means that electric networks need to be adapted for plug-in cars. As we pointed out, our current electricity grid is dumb and does not distinguish what we plug into our socket walls - and there are serious concerns about the capacity of power plants to feed new electric demand. Smart meters should allow EVs to purchase electricity at certain times, such as during the night, when there's less electricity demand.

[Source: Gridwise]

Last week, Pennsylvania Governor Edward Rendell announced his Energy Independence Strategy. The EIS calls for more ethanol production in the state, lots of smart meters in homes and an Energy Independence Fund.

The ethanol news is not too surprising. Lots of ethanol plants are being built in the state totaling 340 million gallons of annual production. This, on top of 60 million gallons of biodiesel made in the state each year, is what the Governor is hoping will bring Pennsylvanians to make and use one billion gallons of biofuels a year by 2017.

The smart meter plan, good for energy producers to spread generation throughout the day and for reducing consumer costs, is also key to widespread PHEV adoption. Rendell said power companies would have to "prove they have aggressively pursued [smart metering] before getting approval to build new generating plants." Consumers would get the right to have smart meters installed in their homes. It may not seem like a big deal, but I'm sure the EDTA is watching this new closely.

As for the Energy Independence Fund, it's a charge on each kWh of electricity used by individuals, and commercial and industrial businesses. The funds collected ($0.0005 per kWh, or about 45 cents a month for most residential customers) would go to fund:

• $244 million - Household appliance rebates and PA Sunshine Grants
• $106 million - Venture capital, grants and loans for expansion of energy companies
• $500 million - Clean energy projects and development or equipment costs for specific energy economic development projects

All that for less and two quarters a month? Sounds like a plan. If you're hungry for details, go here.

Related:

• Pennsylvania announces $3 million in Alternative Fuel Incentive Grants
• Pennsylvania governor announces Biofuels Leadership Awards, looks to China
• Two political green car battles in Pennsylvania and Michigan

[Source: State of Pennsylvania]

It's not all rides and photo-ops at the Alt Car Expo in Santa Monica this weekend. There are two full days of discussions going on as well. These are not as detailed as the EDTA Conference sessions from D.C. the other week, but they're well-attended and get out more information to another group of people.

Edward Kjaek, of Southern California Edison, was one speaker who talked on Saturday about the powerful potential of plug-in hybrids. SCE has been a supporter of plug-in cars for a long time, and Kjaek said SCE just passed 13 million overall EV miles, and the company fleet adds over 100,000 EV miles each month. The room was filled to overflowing during Kjaek's talk (part of a panel on various alternative energy sources for vehicles) and he recognized the value the people in the room have played and will continue to play in the changes ahead. He called hybrid drivers the "21st century test pilots" and said, "I can't pass up the notion that says that the activism in this country has been one of the core drivers of energy self-sufficiency in this country."

The biggest challenges to full-scale acceptance of PHEVs are the batteries, Kjaek said, but since two major automakers (GM and Toyota) have announced intentions to make PHEVs in the last six months, these challenges will likely be overcome. For its part, Edison will be deploying 4.7 million smart meters by 2012, and all customers in California will be converted by 2013. Smart meters allow real-time pricing and communication between appliances and the grid.

"We [SCE] expect a carbon constrained future, not too far away actually," Kjaek said.