DOW JONES NEWSWIRES
Echelon Corp. (ELON) has entered a pact to supply its
smart-meter system to Duke Energy Corp.'s (DUK) smart-grid program
in a deal that could bring Echelon more than $150 million for the
first two states it's introduced in.
Duke has already received regulatory approval to roll out
smart-grid infrastructure in Ohio, including about 700,000 smart
meters, and plans to start a similar program in Indiana.
If Duke fully deploys Echelon's system in the two states, the
deal could total $150 million for Echelon. The initial order is for
$15.8 million, with deliveries expected to start at the end of the
quarter.
Duke smart-grid executive Todd Arnold said Echelon's metering
infrastructure will enable the company to achieve its plan of an
open, interoperable network that supports not only the initial
functions but also allows for additional devices to be added to the
network in the future.
Echelon's system provides electronic electricity meters accessed
via a Web-based network operating system. It provides information
about the status, operation and health of the grid that Echelon
said allows companies to cut operating costs and boost service
quality.
Smart-grid projects boost utility profits because the companies
make a return on their investments in the electric system. The
projects would allow utilities to expand their investments likely
at a faster pace.
Electric utilities have been vying for $3.4 billion in federal
funding for the upgrade of meters and other components of the
nation's power-delivery system. The billions of dollars are aimed
at speeding the installation of so-called smart-grid technologies,
moving them from test projects to widespread installation.
The grant program, which was part of the economic-recovery
package passed in February, could provide a boost to utilities at a
time when new spending faces resistance from regulators concerned
about cash-strapped consumers.
Echelon's shares closed Friday at $8.30, while Duke's closed at
$15.67. Neither has traded premarket Monday.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com
(Mark Peters contributed to this story.)
