How Smart is the Smart Grid?Susan L. Lyon - Of Counsel

Spring 2009

The smart grid plan offers the hope that it “will save us money, protect our power sources from blackout or attack, and deliver clean, alternative forms of energy to every corner of our nation.”

- President Barack Obama

§ What is the Smart Grid ? § Who's Building/Funding

It? § Privacy§ Cybersecurity§ Intellectual Property§ Regulations

How Smart is the Smart Grid?

§ Massive one-way freeway§ Thousands of

off-ramps onto one-way streets§ One line down,

everything downstream affected§ Knowledge lo-tech

Current Grid

Smart Grid

§ Electric grid + digital communication§ Efficient§ Decentralized§ Collaborative§ Reliable§ Greener§ Secure

Who's Building the Smart Grid?

§ Government & Academic Institutions§ Alliances &

Coalitions§ Private Industry

Smart Grid Legislation§ Energy Policy Act of 2005§ Tech loan guarantees/tax cuts;§ Daylight savings time changes; § Commercial building energy

deductions§ Energy Independence &

Security Act of 2007§ Modernize electricity grid; § Increased mpgs; § Hybrid and biofuel incentives;

§ American Recovery & Reinvestment Act§ $11 billion - Smart Grid; § $50.3 billion - other energy

Smart Grid & Privacy

§ Monitor hourly and daily energy activity§ Reach into home to

adjust energy use§ Smart appliances§ Share usage data

Smart Grid & Security

§ Spies/Hackers§ NERC (North American

Electric Reliability Corporation)

§ Cybersecurity Act of 2009 (S.773)

§ Critical Infrastructure Protection Act (H.R. 2195 & S. 946)

Intellectual Property

§ Avoid Patent "Hold-Up" Problems§ Identify Patents

Subject of Standards adopted as Regulation§ Obtain Broad License

Agreements

FERC – Federal Energy Regulatory Commission

§ Cyber security§ Communications § “Wide-area situational

awareness” monitor & operate§ Coordinate operation of bulk

power system with new & emerging technologies for§ renewable resources, § demand resources, § electricity storage and § electric transportation systems.

Electric Regulations

Communications Regulation§ FCC Regulation§ Two-Way

Communications§ Radio frequency

interference,§ Non-discrimination, § Network

management regulation, § Privacy concerns

Questions?

slyon@perkinscoie.comdigestiblelaw.com • Twitter @susanlyon

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