Oct. 31--NORTH GREENBUSH -- National Grid may have lost out on the $3.4 billion in "smart grid" funding announced Tuesday by President Barack Obama.

But the news wasn't all bad for the Capital Region. New York Independent System Operator, the North Greenbush nonprofit that oversees the state's high-voltage transmission system, was awarded $37.4 million to help pay for a $75.7 million smart grid project it plans to coordinate with all the utilities in the state.

The money will pay for expensive equipment called phasor management units, or PMUs, as well as capacitor banks that will be installed on both the bulk transmission system and the smaller distribution system that provides power to homes and businesses.

NYISO President Stephen Whitley says the PMUs will go a long way toward helping NYISO detect problems with the grid and prevent blackouts.

A total of 39 PMUs -- computer-like boxes that measure electrical waves -- will be installed throughout the state. They will transmit data to NYISO 60 times a second. The current monitoring systems in place take samples only every two to six seconds.

Whitley said the PMUs could have alerted NYISO to the conditions that caused the blackout in 2003.

"If these devices would have been out there, we could have seen the problems that were happening in Ohio," Whitley said. "We can see a wide area view of what's going on in the grid."

The capacitor banks, large pieces of industrial equipment that help control and coordinate voltage on the grid, could help save 48.7 gigawatt hours of electricity annually -- at an expected savings of $9.7 million a year.

"It will be very useful in managing the grid and reducing losses," Whitley said.

Although half the money will come from federal stimulus program funding, the other half will be paid for through retail electric rates. Back in July, the state Public Service Commission gave preliminary approval for this funding structure, and NYISO will have to go back to the PSC to get final approval, which is expected to be granted.

U.S. Congressman Paul Tonko wrote Secretary of Energy Steven Chu in support of the NYISO project.

"This announcement is a huge leap toward advancing bold, progressive energy policy in our country," Tonko said in a statement.

Meanwhile, National Grid has vowed to press on in the search for funding for its own smart grid demonstration project, which would focus on Syracuse as well as Saratoga County and part of Glenville in the Capital Region. National Grid is seeking $200 million in stimulus funding for projects in both upstate and New England.

Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.

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