In one of the largest investments in company history, PECO this week announced ambitious plans to install more than 1.6 million residential and commercial smart meters, deploy advanced communications networks, and utilize the latest in digital smart grid technology.

The $650 million plans, to be filed this month with the U.S. Department of Energy and Public Utility Commission, could save customers about $1.5 billion during the life of the project, improve service and benefit the environment.

The company’s plans include building an advanced metering infrastructure, providing smart meters for 600,000 customers by 2012 and all 1.6 million customers in 10 years, and upgrading the company’s electric transmission and distribution system with the ability to identify and correct certain system problems before they impact customers.

The first plan, filed with the DOE, seeks $200 million in matching funds through the federal stimulus grant program. Included in the submission are letters of support from nearly 100 organizations including: members of Congress; city, county and state officials; chambers of commerce; and vendors. A stimulus grant would allow for a faster, wider smart meter and smart grid deployment.

“PECO is making long-term investments in critical infrastructure that will deliver significant benefits to our customers, the communities we serve, and the environment,” said Denis O’Brien, PECO president and CEO. “Our smart meters and smart grid will make a meaningful difference to our customers through reduced energy costs and enhanced operational performance, and they also will position our region to attract new energy-related businesses and jobs.”

“We imagine a day coming soon in which customers can get real-time information about how they use energy and energy costs. They will be able to remotely control appliances, save money and help the environment. We envision a more modern, highly reliable energy delivery system that will not only keep the lights on, but better accommodate electric vehicles, energy storage facilities, and renewable energy,” O’Brien said.

The stimulus application also includes several private-public partnerships that would:

-- support low-income customers involving the Philadelphia Housing Authority as well as suburban county housing and social service agencies;

-- fund advanced energy management systems, and related applications and research at Drexel University and the University of Pennsylvania;

-- allow for technology demonstrations at 10 commercial office buildings owned and managed by Malvern, Pa.-based Liberty Property Trust;

-- sponsor job-training opportunities to support rapid smart-meter installations; and

-- pursue targeted customer deployment and renewable energy applications with Ben Franklin Technology Partners, Delaware Valley Regional Planning Commission and others.

PECO’s smart meter plan – to be submitted to the PUC on August 14 – will seek approval to install the advanced metering infrastructure, backbone communications network and information systems to integrate customer energy usage with utility operations. The communications networks – fiber optics and wireless – will enable two-way communication between the smart meters and the smart grid.

In further support of the company’s efforts to help customers save money and help the environment, the PUC unanimously voted to tentatively approve an early launch of a widespread compact fluorescent light bulb program.

Part of PECO’s recent $342 million energy efficiency filing, the CFL program would feature discounts and rebates to encourage customer use. PECO’s remaining proposed conservation programs are expected to be approved this fall, with all programs available to assist customers in early 2010.

These efforts support a broader environmental initiative at PECO and also are a component of Exelon 2020: A Low-Carbon Roadmap, the comprehensive environmental strategy of PECO’s parent company.

Exelon 2020 sets the goal of reducing, offsetting or displacing more than 15 million metric tons of greenhouse gas emissions per year by 2020. This is more than the company’s current annual carbon footprint and is equivalent to taking nearly 3 million cars off American roads and highways.

More information is available at the PECO Smart Grid webpage.