Four forces are creating convergence among diverse utility services: digital information technology, energy utility economics, deregulation, and consumer demand.
* In the near-term, for example, this means that electricity and gas services may merge aspects of common infrastructure, including operations, maintenance, customer service, and billing. Further in the future, communications technologies may be added to this mix.
* Ultimately, the converged utility infrastructure may, in turn, help facilitate other urban services, such as high-speed transportation networks.
This trend toward convergence was recognized recently by a forum of the Consumer Energy Council of America, which stated:
The potential of a nationwide broadband network and all of its advanced capabilities will be bringing together some of the largest communication concerns in the world as telephone, cable, satellite and wireless converge to transform the information superhighway into a high-speed communications vehicle delivering advanced Internet applications.
For those who have access to the network, broadband technology promises to drastically alter and enhance the way people live their lives and how the nation’s business is conducted.
Similarly, the Morgan Stanley Dean Witter Global Electricity Team has concluded:
In our view, a natural union exists between electric utilities and telecom industries due to electrics’ existing infrastructure, primarily related to their rights of way (ROW) and internal communication systems. Specifically, by using these assets, the utilities’ average network construction costs are 14% below those of new entrants and 58% below private market purchases of ROW access. Achieving even a 0.1% share of the long-haul telecom market would increase annual revenue by $100 million.
In the digital society, consumers will likely purchase energy as part of an integrated service package.
Currently, consumers have an electric meter, a gas meter and pay for gasoline at a metered pump. In the future, consumers will be able to pay for all energy and other essential community services with a single identification number, regardless of the point source of the energy or resource.
Delivery of power and information (telecommunications) will become completely interwoven. Finally, just as telecommunications are delivered in a two-way setting, power will increasingly be delivered two-way, as households and industrial enterprises are increasingly able to sell power back to the grid.
Part I: Transformative ERA of Digital Society and Power Requirements I
Part II: Requirement of Electricity in Digital Society II
Part III: Creating the Needed Electrical Infrastructure for Digital Society III
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