The funds, which are part of the American Recovery and Reinvestment Act, would help cover the cost of programs focused on smart metering, intelligent communication infrastructure, renewable energy connections in a downtown setting, and distribution automation. The $28 million grant would represent half of the total cost of these enhancements, the maximum allowed under the program.

“All of these projects meet the goals of the stimulus funding – to create jobs, spur the development of clean energy technologies, and modernize and enhance the reliability of the electric grid,” said Tom May, NSTAR Chairman, President and CEO. “Every dollar of stimulus money that is used for these innovative developments helps offset the cost to our customers and we applaud the federal government for recognizing the need for Smart Grid investments.”

NSTAR’s smart meter pilot program will utilize advanced technology to pair its existing automated meter reading equipment with broadband Internet service to provide two-way communications directly to a customer’s computer. One aspect of the pilot will be to test the effectiveness of rates that vary based on the time of the day, allowing customers to reduce electric bills by shifting consumption away from high-cost hours.

Distributed automation technology enhances the reliability of the electric system with new intelligent switches and sensors enabling NSTAR to greatly improve system efficiency as well as reduce outages, while also providing real-time information on grid performance. The company also hopes to use the funds to lay the groundwork necessary to study and facilitate renewable distributed resources into urban grids, such as those in major metropolitan areas across the country.

“Our experience and commitment to industry-leading Smart Grid applications make us uniquely qualified to take a leadership role in developing the electric grid of the future,” May added.

NSTAR will be filing the applications with the Department of Energy this month. The company will know by November if its requests are approved.