Case Study: Puget Sound Energy Leverages Real-Time Data From Wireless Fixed Network

Sound Energy (PSE), Washington state's largest utility, delivers electricity, natural gas, and energy solutions to 1.26 million customers in the Puget Sound area.

The Challenges
Serving the state's commercial and technology center, PSE's consumer base is growing by almost twice the national average. And, while other utilites grapple with how to define themselves, PSE is at the forefront of the industry, proactively pursuing strategies to succeed in the midst of massive changes being driven by technology, deregulation, and privatization.

Historically, utilities have charged fixed prices for energy regardless of how demand affects the cost of service. In a move to give consumers more control and choices, PSE levereged real-time data from the Cellnet wireless fixed network to launch a program called Personal Energy Management™ (PEM) which provides online consumption and cost information for managing electricity use. PSE, known for its visionary approaches, is the first utility in the nation to implement such a far-reaching initiative to enable market price response.

For years, fixed rates charged by utility companies have insulated consumers from the volatility of wholesale energy pricing. Most consumers are unaware of how sharp peaks in demand dramatically affect the cost of service, and therefore, they make few attempts to conserve. PSE recognized that to avert future energy shortages such as those at other West Coast utilities, and protect the environment by reducing the need for more power plants, consumers must be actively engaged in energy management.

The Solution
PSE's vision was to arm consumers with the information and technology tools they need to make informed energy-buying decisions and in turn, positively impact wholesale electricity prices. PSE created the Personal Energy Management program leveraging real-time data from the Cellnet wireless fixed network Web-based energy management application expertise. This advanced technology enables PSE to make real-time consumption information available to consumers via secure portals on the internet.

Consumers can view their consumption and time-of day (also known as time-of-use) rates for electricity and gas on a daily, weekly, and monthly basis, and compare usage patterns over an entire year. Knowledge of how pricing varies based on demand at different times of the day allows them to shift usage to hours when electricity is in less demand and therefore less expensive.