Senator Johnson Announces $9.6 Million for Smart Grid Technology in Rapid City, Colman

Stimulus funding moving to local communities

October 27, 2009 -- Washington, DC – U.S. Senator Tim Johnson (D-SD) announced today that two South Dakota electric utilities will receive a total of $9.6 million to implement Smart Grid technology across the state. Black Hills Power of Rapid City will receive $5,592,602 and Sioux Valley Energy of Colman will receive $4,016,368. Funded by the American Recovery and Reinvestment Act of 2009, the projects will give the companies the ability to update and expand their innovative electricity technologies.

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Today’s funding was part of the largest single public energy grid modernization investment in U.S. history. President Obama announced a total of $3.4 billion in grant awards, which will spur the development of a more efficient electrical system.

“For South Dakota to become a leader in renewable energy, we need to make sure the infrastructure is in place to efficiently produce and distribute energy to consumers,” Johnson said. “Today’s funding will not only modernize our energy system, but also put many South Dakotans to work in jobs that cannot be outsourced. In a speech today, President Obama remarked on South Dakota’s potential of becoming an energy leader and I believe it’s time to make that potential a reality.”

Black Hills Power will install 69,000 smart meters, communications infrastructure and the technology needed to operate a smart grid system for its service area. Sioux Valley Energy will install 23,000 smart meters. The meters allow for automated electric readings and additional monitoring functions, which will help manage energy consumption and prevent outages.

Smart Grid references enhanced technologies designed to improve the reliability of the electricity system, empower consumers with better information to control energy use and allow utilities to optimize generation and transmission of electricity nationally in order to reduce energy demand. The projects funded through the Recovery Act for Smart Grid technologies will expand opportunities for producing more renewable energy and will employ tens of thousands of Americans by leveraging an additional $4.7 billion in private sector investment spread across dozens of regional projects.

A member of the Senate Energy Committee, Johnson has long supported energy efficiency initiatives. The Energy Committee earlier this year passed the American Clean Energy Leadership Act of 2009, which will also help South Dakota expand energy development and increase the production of low-cost electricity.

Source: Senator Tim Johnson