I often get asked by regulators what the difference is between smart meters and Smart Grids. The short answer is that, just as meters are part of the power grid, smart meters are a part of Smart Grids.

Smart meters have six primary features: two-way communications, recording of interval data on energy usage, delivery of data to the utility at least daily, a disconnect switch, power quality sensing (voltage), and a two-way communications module to talk to smart thermostats, in-home displays, smart appliances and smart equipment in customer homes and businesses. These features empower consumers with time-based pricing options, such as Peak Time Rebates and Time-of-Use prices, and detailed energy usage, cost, and carbon information, including monthly usage and bill to date. These features also enable utilities to manage better their line voltage and line losses.

Smart Grids start by automating meters and continue with automating the power delivery system. The latter means adding automated sensors and devices on power lines and in substations (the transmission and distribution grid). This automation allows for remote monitoring and control of the grid, more efficient operations, greater reliability through automatic restoration after outages (“self-healing”), and other benefits. In using the term, “Smart Grid,” many people are focusing on the wires, transformers, and other devices on the power delivery side.

While automating the power system sounds impressive, automating the meters actually delivers more benefits to both consumers and utilities. Something for policymakers to keep in mind.