Energizing Public Safety Communications and Securing the Smart Grid

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    Energizing Public Safety Communications andSecuring the Smart Grid

    By J. Lawrence Toole, Managing Director

    lawrence.toole@edgethinkconsulting.comwww.edgethinkconsulting.com

    An Edge Think Consulting, LCC White Paper

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    Challenges and Opportunities

    The world is warming, energy dependency is rising, the economy has collapsed, and firstresponders need improved communication systems. While these challenges areseemingly disconnected, an opportunity exists to address each one through a single

    integrated, cohesive strategy. Implementation of this strategy can be jumpstarted byleveraging funding from several investments areas within the American Recovery andReinvestment Act (ARRA) of 2009, most notably broadband and energy, and futurefunding from other government initiatives, such as the pending climate bill.

    Now is the time for the U.S. to implement an integrated national smart grid public safetywireless broadband network. The return on this investment will be significant and far-reaching with benefits for first responders, the environment, taxpayers, and society as awhole.

    Here Comes the Smart GridRising greenhouse gas emissions, primarily from the burning of fossil fuels, arecontributing to global warming. Climate experts, with increased urgency, are calling forgovernments to reduce current emission rates by as much as 90% by the year 2050. Theywarn that non-action could lead to run away global warming by the end of this century,where global temperatures rise up to 5 C higher than today, 30% of the worlds landmasses become desert, and sea levels rise up to 3 feet.

    Addressing this global threat requires action on many fronts. Most importantly,significant changes to the nations energy infrastructure are required. Momentum isbuilding to transform our nations electric grid system. The term smart grid has been

    given to those collective technologies and processes needed to complete this overhaul.Implementation of the smart grid is an important component of this nations energy andclimate change abatement strategy. The smart grid will lead to improved efficiency inthe generation and transmission of electricity and reduced peak load demand. The smartgrid will also allow renewable energy production to be more efficiently integrated intothis nations energy mix. All of this translates into more efficient use of energy, whichleads to reduced greenhouse gas emissions.

    Recently, the National Institute of Standards and Technology (NIST) released the firstdraft of the NIST Framework and Roadmap for Smart Grid Interoperability Standards.This framework identifies the key components and processes comprising the smart grid.

    The figure below depicts the NIST smart grid conceptual reference model.

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    Source: NIST Framework and Roadmap for Smart Grid Interoperability Standards

    This conceptual model identifies seven domain areas (bulk generation, transmission,distribution, customer, markets, operations, and service provider) and the major people,processes, and applications within each domain. As shown in the diagram, securecommunications among and between domains is a critical layer of the smart grid.

    From a technical perspective, the smart grid communications network enablesdeployment of both an Advance Metering Infrastructure (AMI) and visualizationtechnology. Both components are critical to the smart grid.

    AMIrefers to adding intelligence to the grid to monitor the health of the system and tometer systems capable of recording and reporting energy consumption data and other

    measurements at intervals typically more frequent than a customers normal billing cycle.AMI may include several different components, including phasor measurement units(PMUs) to monitor the status of the transmission and delivery system, smart meters andsmart appliances installed at customer end points, a back-end data warehouse, and aSupervisory Control and Data Acquisition (SCADA) system. It is the smart gridscommunications layer that enables all the machine-to-machine (M2M) data exchangeoccurring across the grid.

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    The deployment of smart meters and smart appliances will enable utilities and energyconsumers to communicate real time on power usage decisions. Smart appliances can bepre-programmed with the preferences of the energy consumer. The utility cancommunicate with these smart appliances and based on the pre-established preferences,adjustments in energy consumption can be made. This can result in reduced energy costs

    for the consumer and reduced peak load for the utility. The net result is more efficientenergy use which translates to lower greenhouse gas emissions and less need to build newpower plants.

    Visualization technology is comprised of software tools and applications which supportvisualization of the grid at both the macro and micro levels. Such visualization capabilitysupports real-time state-of-the-grid analysis and can be used to better manage blackoutand power quality issues leading to better system response and quality of service. PMUsare typically installed throughout the grid to provide the necessary data to perform a real-time data analysis. Smart grid visualization can not occur without a robustcommunications layer.

    Current estimates suggest a fully deployed smart grid can improve the efficiency ofelectricity use by 5% to 10%. Given the magnitude of the electricity use in the U.S., a5% to 10% efficiency improvement provides significant cost savings and environmentalbenefits. For example, in 2008 the U.S. federal government consumed 55.6 TWh(terawatt-hours) of electricity. If the smart grid produced a 5% efficiency improvement,2.78 TWh of electricity will be saved. Assuming the 2008 average U.S. price for a kWhwas $.1024, the savings of 2.78 TWh of electricity translates into an energy cost savingsfor the federal government of $284.8 million per year. The reduced use in electricitywould also result in a reduction of carbon dioxide emissions of 1.64 million metric tonsor the equivalent removal of almost 300,000 vehicles from our nations highways.

    Cost savings and reduced greenhouse gas emissions are even greater if the smart gridefficiencies are applied to the annual electricity consumption of the entire U.S., not justthe federal government. With a 5% efficiency gain, over $21 billion would be saved atthe 2008 electricity consumption levels and carbon dioxide emissions would be reducedby 120.9 million metric tons or the equivalent removal of almost 22 million vehicles fromour nations highways.

    Smart grid benefits can only be realized if a robust, ubiquitous communications network,both wired and wireless, is implemented. The Utilities Telecom Council (UTC), which isa global trade association dedicated to creating a favorable business, regulatory, andtechnological environment for companies that own, manage, or provide criticaltelecommunications systems in support of their core business, has advocated that 30 MHzof dedicated spectrum be allocated to the industry by the FCC to support smart grid andother critical infrastructure industry (CII) purposes. UTC argues that without suchallocation there is insufficient spectrum available to their industry members to meet theirlong term wireless communications needs.

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    Cost estimates to build the smart grid nationally vary widely. The current U.S. EnergySecretary, Dr. Steven Chu, recently estimated the cost to be over $100 billion. Anindustry study completed in 2004 estimated the cost at $165 billion. On the high end,there have been estimates up to $2 trillion. Benefits attributed to building the smart gridhave also been estimated. A study completed by the U.S. Department of Energy in 2003,

    estimated the potential financial benefit of implementing smart grid technologies over thenext 20 years at a present value (PV) of $75 billion.

    To jumpstart the process of building the smart grid, $4.3 billion in funding from ARRAhas been made available. Additional government investment is expected when the U.S.passes a climate bill sometime in 2009 or 2010. Private investment by technologycompanies and utilities is occurring now and anticipated to continue in the future,especially if momentum to build a green economy continues.

    Wireless Broadband for Public Safety

    The events of September 11, 2001 serve as a constant reminder that public safety and

    homeland security is a critical national issue. The urgency of implementing wirelessbroadband services for public safety users has steadily increased. New networktechnologies and emerging standards are creating a delivery framework which can host avariety of applications which will support and improve public safety field operations andemergency response.

    The technology standard of choice for these emerging networks is Long Term Evolution(LTE). Recently, the Association of Public Safety Communication Officials (APCO), theNational Public Safety Telecommunications Council (NPSTC), and the Public SafetySpectrum Trust (PSST) have endorsed LTE as the preferred technology standard formobile broadband services for public safety. Additionally, several of the larger network

    providers of commercial mobile broadband services have indicated that LTE will be usedin the construction of their 4th Generation (4G) commercial networks.

    LTE is an all IP-based network which can support a full suite of mobile services,including voice, data, and video. The architecture is scalable, allowing for dramaticincreases in the number of direct connections to user terminals, orders of magnitude ofbandwidth increase, and dynamic terminal mobility configuration. Key systemcomponents include licensed radio frequency spectrum to support the wireless serviceand the Evolved Packet System (EPS). EPS includes all the network components,services, and radio interfaces needed to deliver a complete fourth generation (4G) mobilebroadband solution.

    An LTE network can support a variety of public safety applications, including streamingvideo (surveillance, remote monitoring), digital imaging, automatic vehicle location,computer aided dispatching, e-mail, mapping/GIS, remote database access, reportmanagement system access, text messaging, telemetry/remote diagnostics, and webaccess, both Intranet and Internet.

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    In 2007, the Federal Communications Commission (FCC) established a plan to promotethe implementation of a nationwide interoperable broadband network for public safety.The plan had several elements. First, the FCC assigned a single nationwide Public SafetyBroadband License (PSBL) in the 700 MHz spectrum range to the Public SafetySpectrum Trust (PSST). Next, the FCC developed a framework to auction a 700 MHz

    commercial license in the Upper D Block range subject to stipulations that the winningbidder would enter into a Network Sharing Agreement (NSA) with the PSST, the holderof the PSBL, to build a nationwide network for combined public safety and commercialuse. The arrangement, touted as a public/private partnership, gives public safety priorityaccess to the commercial spectrum in times of emergency, while the commercial licenseegets preemptible, secondary access to the public safety broadband spectrum.

    In early 2008, the FCC auction of the D Block spectrum failed when only one biddermade an offer well below the auction reserve price of $1.3 billion. Since then, noadditional auctions have been conducted and implementation of a nationwide networkremains a goal not yet realized. With the uncertainty associated with the auction process,

    many public safety organizations and officials have expressed dissatisfaction with thepublic/private partnership idea and have suggested that the FCC abandon this idea infavor of a new strategy. At least two alternative proposals have recently emerged.

    One proposal, backed by a large segment of the public safety community, throws supportbehind a strategy which would allocate the D-Block spectrum directly to public safetyorganizations on a state, local, and regional basis. This spectrum would be combinedwith spectrum currently held by the PSST to build a public safety-only broadbandnetwork across the nation. A total of 24 MHz of bandwidth would be available to publicsafety. The new model would leverage existing commercial network infrastructure andwould not be beholden to a single technology provider, although adherence to LTE wouldbe required. Such a proposal would need to be approved by Congress since the originalD-Block allocation strategy was mandated by Congress.

    Another alternative proposal, with the backing of the National Emergency NumberAssociation (NENA) and wireless providers, such as Leap Wireless, MetroPCS, and T-Mobile U.S.A, calls for the auction of the D-Block spectrum to a commercial entitywithout the subsequent stipulation for the bid winner to form a public-private partnership.The proceeds from the auction would then be used by public safety to help fund theconstruction of a public safety-only broadband network.

    Critics of this proposal have expressed doubt that proceeds from the auction would comeclose to covering the costs needed to construct a national public safety broadbandnetwork. This funding issue would also apply to the other alternative proposal. SteveZipperstein, Verizons Vice President for Legal and External Affairs, in a speech onApril 17, 2009 to the National Press Club, put the cost of constructing the nationalnetwork between $15 and $20 billion.

    Recently, four states and a dozen cities have submitted petitions of waivers to the FCCfor authority to deploy local and regional public safety networks in the 700 MHz

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    spectrum planned for the nationwide network. The petitioners claim that if granted thewaiver, they can immediately begin deployment of a public safety network in their regionwithout the need to wait for a successful auction. Should the auction be successfullycompleted sometime in the future, these local or regional networks can be incorporatedinto the larger nationwide network implementation.

    But how will the petitioners fund their initiatives? Traditionally, funding public safetycommunications networks has always been an issue. Today, most state and localgovernments are strapped to come up with adequate funding to just maintain and upgradeexisting land mobile radio (LMR) systems for public safety voice communications, muchless build a new public safety broadband network. In fact, the FCCs original strategy topromote a public/private partnership to build a national public safety broadband networkwas partly to offset the significant costs associated with network construction. A viablereplacement funding strategy with national scale has not yet emerged.

    Initially, there was some hope in the public safety community that the passage of ARRA

    earlier in 2009 could be a potential funding source to jumpstart the public safety wirelessbroadband network. ARRA allocated $7.2 billion for advancing broadband accessthroughout the United States and the language of the bill denoted public safety as a corepurpose for broadband funding. Unfortunately, when the application requirements for thefirst funding round were released, the program administrators tied restrictive pre-conditions to the public safety core purpose. Any proposed service area for public safetybroadband had to first be in an area that was unserved or underserved from a publicaccess broadband perspective. This effectively relegated areas eligible for public safetybroadband funding to very remote and under-populated areas with little, if any, existingpublic access broadband in place. Since it makes little sense to deploy fragmented publicsafety systems that only partially cover service areas, the first broadband funding roundhad minimal benefits for the public safety community.

    There will be at least one more funding round for the ARRA broadband program and anopportunity exists for the program administers to change application requirements so theyare more favorable to the needs of public safety. Nevertheless, its doubtful that enoughfunding will be allocated to public safety to make significant progress on building anational broadband network and so a big question mark remains as to how this initiativewill be funded.

    Convergence of Parallel Paths

    In many important ways, initiatives to advance both a national public safety broadbandand smart grid network are on similar, albeit parallel, paths. The public safetycommunity needs spectrum, technology, and a build and funding model to realize theirgoals and objectives. The critical infrastructure industry (CII) needs similar elements todeploy the smart grid. Both initiatives have significant overlap in both need andrequirement, especially related to wireless communications.

    From a national policy perspective, there is an opportunity for the federal government toinfluence the future direction of both initiatives and to nurture a convergence of need,

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    where appropriate and practical. This makes both national policy and practical sense.Done correctly, this nation can simultaneously address homeland security, climatechange, and energy security using a strategy that exploits natural synergies inherent topublic safety broadband and the smart grid. While there is always a tendency fororganizations to perpetuate stovepipe thinking, this pattern can be broken with creative

    solutions that exploit existing interconnections among issues and strategies. Recentactions suggest this is now occurring at some levels within the federal government.

    Climate change is no longer considered a threat to just the environment. Increasingly, theeffects of climate change are seen to have significant national security implications.Recent war game exercises conducted by the Pentagon conclude that climate change canprecipitate humanitarian crises around the world. Areas, such as the sub-Saharan Africa,the Middle East and South, and Southeast Asia are particularly vulnerable to the climatechange domino effect, where drought or flooding can lead to food shortages anddisease, which can lead to the collapse of governments and social systems creatingthousands of environmental refugees. While Hurricane Katrina cant be linked

    specifically to global warming, the havoc caused by the storm, especially in NewOrleans, demonstrated how extreme weather can disrupt society, even in a developedcountry like the United States.

    The Obama Administration has made climate change and national security a centralpolicy focus. Both the Pentagon and the State Department are now considering theeffects of global warming in their long-term planning strategies and documents. Moreand more, the interconnectedness among climate change, national security, energy,homeland security, and public safety are becoming apparent. Funding initiatives whichaddress this intersection point is crucial.

    Even in the private sector, corporate leaders are calling for more forward thinking,coordinated solutions to our most pressing problems. Jeffery Immelt, the CEO ofGeneral Electric, argues that business needs to move away from protecting the status quo.He points out that in order for the nation to successfully invest in massive infrastructureprojects, like the smart grid, government and business need to work closely together toalign technology, government policy, capital markets, and execution skills.

    The FCC is one such government agency that can play a pivotal role in aligninggovernment policy with technology and encouraging the business sector to make thenecessary investments in areas like wireless communications for public safety and thesmart grid. The FCC regulates the allocation of radio frequency spectrum crucial forpublic safety and smart grid wireless communications. The FCC has also been given theresponsibility, as part of ARRA, for creating a National Broadband Plan. In preparationfor the plan, the FCC sponsored a series of broadband workshops on a wide range oftopics, including Public Safety and Homeland Security and Smart Grid, Broadband,and Climate Change. While these separate workshops did not overlap, the opportunityis now there to more fully pursue smart grid and public safety communicationsintegration and incorporate such strategies into the national plan.

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    Now may also be the time for the FCC to thoroughly revamp its approach to auctioningthe 700 MHz D Block spectrum and to establish a public-private partnership to build andmaintain a commercial/public safety broadband network. A new strategy, whichintegrates smart grid and public safety communications infrastructure, should beseriously considered. Such strategy leverages technology and resources in creative ways

    to create breakthroughs in efficiencies and cost savings. Unlike the FCCs originalproposal and the recent alternative proposals, an integrated smart grid public safetybroadband network has a sustainable funding model and an extremely attractive valueproposition.

    Strategy Key Elements

    The framework for this new strategy includes the following key elements:

    Public Safety and Utility Radio Spectrum Linkage- Just as the FCC attemptedto couple the 700 MHz D Block spectrum to public safety spectrum to promote

    the implementation of a national broadband network, spectrum allocated to theutility industry for smart grid applications should be linked to the public safetyspectrum to promote an innovative public-private partnership to build anintegrated smart grid public safety wireless communications network.

    Currently, the utility industry seeks 30 MHz of bandwidth. The opportunity toclosely link this spectrum to the 24 MHz of bandwidth sought by the public safetycommunity should be thoroughly investigated.

    With this linkage established, the private sector can begin to consolidate aroundcommunication standards and frequencies for smart grid machine to machine

    communications. As the recent consolidation in the public safety area hasoccurred around 700 MHz LTE, a similar consolidation can be positioned tohappen in the smart grid area.

    Public-Private Partnership- The FCC should consider an auction, either nationalor regional, of the 30 MHz of bandwidth requested by the utility industry forsmart grid applications. Such auction should be tied to a Network SharingAgreement that requires the winning bidder to concurrently build out theinfrastructure to support a dual purpose smart grid and public safety networkutilizing frequency allocated for both purposes. In this case the combined 24MHz of bandwidth, which includes the 700 MHz D Block, would be used to serve

    public safety and the 30 MHz allocated to CII would be used for the smart grid.The end result would be the implementation of a private network dedicated tosupporting both smart grid and public safety communications.

    This approach eliminates criticisms directed at the FCC by many in the publicsafety community today who did not believe a public safety network should shareinfrastructure with a commercial network. Coupling public safety and smart gridcommunications on a private network is more compatible than a public safety and

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    commercial network coupling. Both public safety and the smart grid have morerigid security and reliability requirements. These needs can be more effectivelyleveraged by sharing infrastructure such as communication towers, redundantpower supplies, and communications equipment.

    Funding and Sustainability- This partnership model supports a funding strategythat should attract auction bidders and provide a long term solution for fundingpublic safety broadband. Winning bidder(s) of the smart grid spectrum wouldhave access to a huge market of soon to be installed smart grid devices, like smartmeters, smart appliances, and PMUs, which will continuously use theimplemented wireless network to exchange data crucial to the function of thesmart grid. As with cell phone users, the network provider(s) would charge theutility companies or owners of the smart grid devices a monthly communicationsfee. Revenue generated from smart grid communications fee would also offsetcosts associated with the public safety communications network.

    Adjustments to the revenue model could be applied, if necessary. For example, aportion of the energy cost savings derived directly from implementation of thesmart grid, could be used to support the ongoing maintenance and operations ofthe dual purpose network. This approach could be further refined by introducingperformance contracting, much the way energy service companies (ESCOs)derive revenue by receiving a portion of the energy cost savings incurred fromimplementation of a customer project. In this case, the network provider mightderive a revenue stream when the smart grid meets certain efficiency performancemetrics.

    Alignment with ARRA Investment Areas and Pending Climate Bill- This new

    strategy is directly consistent with the goals and objectives of the ARRA. Itprovides an integrated solution within two key investment areas of ARRA,broadband and energy.

    The pending climate bill, the American Clean Energy and Security Bill of 2009, isan area of opportunity for further integrating the smart grid and public safetybroadband. This bill has passed in the House with the Senate vote pending.Passage of the bill will mean that for the first time this country will regulatecarbon dioxide emissions through the formation of a cap and trade system.Other components of the bill include funding for renewable energy and otherenergy and energy efficiency technologies, including the smart grid. Passage of

    the bill should be seen as an opportunity to further leverage technologies for dualpurpose making the reality of an integrated public safety broadband networksmart grid solution possible.

    In some of the less populated areas of the country, it could be more cost effective to justdeploy the public safety portion of the network and utilize public safety spectrum only forboth smart grid and public safety communications. Yet, some may question whether it is

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    permissible to use radio frequency spectrum allocated for public safety to communicatedata associated with the smart grid.

    Section 337(a) (1) of the Communications Act required the FCC to allocate the 700 MHzspectrum in question for public safety services. Section 337(f) (1) of the Act defines

    public safety services as services- a) the sole or principal purpose of which is to protectthe safety of life, health, or property b) that are provided by state or local governmentagencies or nongovernmental organizations that are authorized by the government entitywhose primary mission is the provision of such services, and c) that are not madecommercially available by the provider of such service.

    In April 2009, the Environmental Protection Agency (EPA) found that six types ofgreenhouse gases, most notably carbon dioxide, endangered the public health and welfareand could be regulated under the Clean Air Act. Since the smart grid contributes to thereduction of these greenhouse gases and since the EPA considers such gases dangerous,the use of radio spectrum allocated for public safety to support smart grid applications

    would be an appropriate and permissible public safety service under Section 337.

    Putting It All Together

    By combining smart grid and public safety communication technologies, an integratedsolution materializes which provides advanced communications capability for mobilefirst responders and energy management for widely dispersed building facilities andcritical infrastructure. The size of the network deployment determines how extensivebenefits are for public safety and energy management. For example, a nationaldeployment of the network could bring widespread benefits to public safety users at thenational, state, county, and local level and provide comprehensive energy managementopportunities for all energy assets across the U.S. A lesser network deployment, for

    example in a region or state, provides the same benefits but on a smaller scale.

    The figure below depicts the main system components of the solution. The wirelessbroadband network is based on the LTE standard and the Evolved Packet System. EPSincludes the required network components and resulting two-way wirelesscommunications to support mobile services for public safety users and all installed smartgrid components, such as smart meters and smart appliances. Part of the EPS is theinstalled network of communication towers across the coverage area supporting the radionetwork. Each communication tower typically includes a base station and all supportingradio components to support both smart grid and 700 MHz public safety two-waycommunications. The final configuration for required communications hardware andsoftware will be dependent upon how radio spectrum is ultimately allocated to smart gridand public safety use.

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    Office Building

    Gov Building

    ApartmentBuilding

    Shared Public Safety MobileApplication Services

    Gov Building

    2-waycommunications

    Smart GridIntegrated BuildingControls

    Comm Protocols

    Base Station

    Base Station

    Base Station

    Base Station

    Base Station

    Base Station

    Smart Meter

    CommTower

    CommTower

    CommTower

    CommTower

    CommTower Comm

    Tower

    Evolved Packet Core

    Power Plants

    Smart Gird Monitoringand Control Applications

    (SCADA System)

    Integrated Smart Grid/Public Safety WirelessBroadband Network

    Phasor

    Measurement

    Unit (PMU) to

    monitor health of

    electric grid

    Access to mobile services tosupport incident

    management and fieldoperations

    Critical Infrastructure

    Shared CommunicationInfrastructure

    First responders, such as law enforcement and emergency medical services, will utilizenetwork services by installing laptops with air interface cards in their vehicles. Buildingfacilities and other energy distribution and consuming assets, which fall within thecoverage area of the wireless network, can be equipped with smart meters, PMUs, smartappliances, and integrated building controls for lighting and HVAC. Machine-to-

    machine communications among and between these devices and the backend SCADAsystem is supported by the wireless network leading to greater energy efficiency, reducedcost, and reduced peak load demand. If the network covers a large enough area withenough energy assets on the network, the reduction in peak load demand can besignificant, delaying the need for utilities to build more power plants. This would lead tosubstantive reductions in greenhouse gas emissions from the burning of fossil fuels.

    Value Proposition Summary

    The integrated smart grid public safety wireless broadband network provides a multitudeof benefits across several major national policy initiatives. Successful implementation ofthe network will result in tangible benefits for public safety, the energy sector, the

    environment, and society at large. The value proposition for this proposed solution issummarized in the table below.

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    Value Proposition Summary for Integrated Smart Grid

    Public Safety Broadband Network

    Public Safety/Homeland Security

    Value Provided:Improved and expanded data communications

    More mobile servicesBetter protection and service to communitiesMore secure network infrastructureSustainable funding strategy

    Energy

    Value Provided:Improved energy efficiencyReduced peak load demandImproved potential to integrate renewable energy sourcesEnergy cost savingsMore secure network for smart grid communications

    EnvironmentValue Provided:Reduced greenhouse gas emissionsClimate change mitigation strategyGreater ability to move away from fossil fuels

    Society

    Value Provided:Cost effective strategy for addressing key national prioritiesReduced greenhouse gas emissionsVital homeland security infrastructure implementedEffective leveraging of federal stimulus money and use of taxpayer money

    Promotes effective alignment of government and business sector to achieve national good

    Conclusion

    A confluence of events begs for more innovative solutions to our most pressing problems.Integrating the smart grid with public safety communications is a winning combination.The smart grid gains a secure communications network from public safety and publicsafety gains a funding source from the energy cost savings incurred from the smart grid.Both initiatives gain critical components needed for success and society and theenvironment wins on all fronts.