NEW YORK
(CNNMoney.com) -- Some 18 million smart
meters are set to make their way into
American homes as part of the economic
stimulus plan focusing on energy
efficiency, Energy Department officials
said Tuesday.
The
meters, which are designed to more
effectively communicate with utilities
and appliances, and help consumers
manage their electricity more
efficiently, are being distributed by
utilities around the country with
partial funding from the federal
government that was allocated under the
stimulus plan.
The 18
million meters represent roughly 13% of
all electricity meters nationwide.
Ultimately, the administration hopes to
distribute 40 million smart meters over
the next few years.
The smart meters
are part of a wider government effort to
upgrade the nation's aging utility grid.
The government announced $3.4 billion in
funding Tuesday to help move the country
toward a so-called
smart grid.
Utilities are putting in another $4.7
billion in matching funds.
According
to the White House, these investments
could reduce U.S. electricity use by 4%
a year.
The money
is part of nearly $100 billion in
spending and tax cuts the government
authorized under the stimulus plan for a
variety of energy projects.
Other
projects announced Tuesday include the
modernization of electric substations
and transmission centers.
All told,
100 projects were announced Tuesday in
49 states that are expected to create
tens of thousand of jobs across the
country. The White House billed it as
the largest single energy grid
modernization effort in the country's
history.
Experts
have long said the country needs to
update its electricity grid, much of
which was built during the early part of
last century, if it is to deliver power
more efficiently and handle electricity
generated from sources such as wind and
solar.
The
funding announced Tuesday is just a
fraction of what experts say is needed
to build new transmission lines,
computerize substations and meters, and
build storage devices for a modern
utility grid.
