Washington (Platts)--5Oct2009/553 pm EDT/2153 GMT

State utility regulators want the US Federal Communications Commission to avoid getting too far along in promoting utility smart grid efforts as part of a national broadband plan and recommended more federal-state regulatory cooperation in comments filed with the FCC on Friday.

Investor-owned utilities, meanwhile, are supporting a call for the FCC to increase the amount of broadband spectrum that can be dedicated to smart grid deployments.

The Edison Electric Institute, the National Association of Regulatory Utility Commissioners and hundreds of other companies and groups filed comments with the FCC last week in response to its early September notice seeking input on smart grid efforts.

Congress, as part of the American Recovery and Reinvestment Act of 2009, charged the FCC to come up with a national broadband plan, including ways to use broadband infrastructure to advance energy independence and efficiency.

Among the questions the FCC asked in its notice were whether current commercial communication networks are sufficient for deploying smart grid technologies.

Prior to the notice, the Utilities Telecom Council asked the FCC to set aside more broadband spectrum for utilities' use in their smart grid efforts.

Utilities are using various communication systems as part of their smart grid plans, including public and private wireless systems, along with fiber-optic and broadband-over-power line technologies.

But utilities are facing broadband spectrum constraints in the use of private wireless networks, "and find that commercial systems generally are not able to provide for all utility communications requirements, which will increase with the deployment of smart grid technology," EEI said.

It supports the UTC request for more spectrum, and it asked the FCC to make licensed spectrum available to utilities and other critical infrastructure industries.

At the regulatory level, NARUC told the FCC that consumer groups remain unconvinced of the benefits of smart grid plans, or they fear utilities will raise their rates to put the plans in place without a clear demonstration of consumer benefits.

In seeking more federal/state cooperation, NARUC said the FCC and other federal agencies should use their resources to explain to consumers that smart grid plans, which can include advanced meters, time-of-use rates or other dynamic pricing plans, will be worthwhile.

"Let's ready the cart to be pulled before asking the horse -- or consumers -- to pull it," because new utility rate structures can be disruptive and produce public backlash, NARUC said.

"The federal government has resources the states do not; the states have expertise in the development and implementation of programs the federal government lacks. This technology calls for a true partnership," NARUC said, highlighting a smart grid collaborative it has with the Federal Energy Regulatory Commission as a good example of federal/state cooperation.