Many organizations live in constant trepidation of competitors or new entrants potentially poaching their customer base by offering a better value proposition. Since electricity is an integral part of daily human life, the utility industry is exempt from being in this constant state of anxiety. Customers simply cannot live without their product!<\/p>\n
Owing to a regulatory compact agreement in the early 20th<\/sup> century, utility companies were monopolies in their respective areas with regard to electricity supply. Customers are charged whichever rates utilities deem necessary to cover operating costs\u00a0as well as\u00a0provide a nice return on their investments [1]. The Public Utilities Commission (PUC) approves these rates as long as utilities can justify them. In return, utility companies build power plants to facilitate supply and distribution of electricity. Utilities are essentially incentivized to keep investing\/ building power plants since the guaranteed returns on said investments represent majority of their revenues.<\/p>\n Today, the emergence of smart technologies and digitization is seriously disrupting utilities. Opportunities for increased efficiencies exist at every step of the value chain, from energy generation to customer service. Utility companies are overhauling their business and operating models to transform themselves ahead of the curve and Florida Power\u00a0& Light is no exception.<\/p>\n Florida Power & Light is the third largest electric utility in the United States, serving more than 10 million people across nearly half of the state of Florida [2]. FPL is transforming its business by putting the customer first through the introduction of smart meters and smart grids\u00a0and its Energy Smart Florida Initiative<\/em> to increase reliability and transparency to customers.<\/p>\n Energy Smart Florida Initiative<\/u><\/p>\n Through this initiative, FPL is investing in smart grid technologies to build a smarter, more reliable electric infrastructure for its service area [3]. FPL\u2019s investments in this initiative include intelligent devices on the electric grid, enhancements to grid performance monitoring centers and smart meters for about 4.5 million customers [3]. Energy Smart Florida represents an $800M investment from FPL and a $200M stimulus grant from the US Department of Energy [3]. The size of this investment shows FPL and the US Government\u2019s dedication to adapting to the digital transformation happening in utilities.<\/p>\n Smart Grid<\/u><\/em><\/p>\n By including intelligent devices on their electric grid, FPL ensures reliability for their customers. By analyzing data from the smart grid, FPL performs predictive maintenance to prevent minor problems from becoming disruptive problems [4]. A few smart grid devices and systems include:<\/p>\n In addition, improving their grid performance monitoring center increases productivity and efficiency for FPL employees. Continuous analysis of smart grid data enables prevention of service interruptions or outages. In the case of outages, the smart grid facilitates quick response and restoration to affected areas. (See Exhibit\u00a01 for overview of\u00a0a Smart Grid)<\/em><\/p>\n Exhibit 1: Smart Grid Overview<\/em><\/p>\n\n