Power firms want to compete with cable, DSL

cablewithaview

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Apr 18, 2005
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They're experimenting with delivering access to Web

As beginnings go, it doesn't get much humbler than this.

In the basement of a home in Douglasville, near stacks of boxes, a treadmill and a lawn mower, GreyStone Power Corp. is conducting its first test of a technology that delivers high-speed Internet service over the same lines that provide electricity.

Glenn Purcell has spent hours in this home on Hardwick Court in a subdivision called Chapel Hills. The space, volunteered by a staffer in GreyStone's marketing department, is where Purcell gazes at two computers set side-by-side to compare Internet services delivered via BellSouth and GreyStone lines. He's been working in the basement on and off since December.

"This is not something we're going to jump into until we know exactly what to expect," said Purcell, GreyStone's manager of information systems. But like dozens of power companies around the nation, GreyStone is very interested in the prospects for what is known as broadband over power line, or BPL.

For consumers, BPL could become another way — and maybe a cheaper way — to get access to the Internet, providing an option beyond phone companies and cable providers. People in areas with limited or no options for high-speed service, especially rural spots, could be among those who benefit.

A deeper look, however, also shows power companies are intrigued with the ability to use BPL to manage their own grids more efficiently and cheaply.

As some power companies decide BPL is feasible — TXU, a big utility based in Dallas, is moving ahead with a major rollout — the technology stands a better and better chance of emerging on a widespread basis.

"It seems to be the industry trend," said Brett Kilbourne, director of the United Power Line Council.

For the uninitiated, BPL sounds like an alien concept. But the simple version is that BPL uses power lines to transmit data via radio frequency signals. The waves don't interfere with transmission of electricity. For homeowners, having BPL means they could get high-speed Internet access simply by plugging a special modem into an electrical outlet.

Having a broadband-enabled power grid also would enable highly detailed monitoring by power companies themselves. With BPL, they could find outages quickly and read meters automatically. Eventually, companies could use BPL to measure demand so well they could tailor electricity production as needed, thus saving money.

BPL has been tested successfully in many places and already is in use in parts of the United States, notably Cincinnati, which is served by Cinergy.

A Clark Howard mention

Although power companies tend to look at what advantages BPL offers for their own internal grid management, many consumers are asking for it. When WSB Radio bargain hunter Clark Howard mentioned BPL on his show a few weeks ago, GreyStone received dozens of calls about it, Purcell said.

The company anticipates charging $25 per month, aiming to be cheaper than rival high-speed Internet services. Participants in the trial do not have to pay.

Yet BPL, while seen by some as a promising competitor to broadband delivered via cable or phone lines, is still a tricky technology.

The equipment involved remains pricey, too, leaving some power companies wary. Southern Telecom, a unit of Atlanta-based Southern Co., tested BPL about a year ago in Hoover, Ala., just outside Birmingham. For the time being, Southern has cooled on the idea of investing in it.

"While the technology clearly works, we didn't feel it was at a level of commercial viability that we would consider deploying it," said Leif Ericson, business development manager for Southern Telecom.

GreyStone, on the other hand, is a nonprofit, member-owned cooperative. It doesn't face the same kind of regulatory or investor concerns as Southern Co., which is a publicly traded utility holding company.

Indeed, there are three BPL tests under way in Georgia, all involving member-owned co-ops: Habersham EMC, Jackson EMC and GreyStone. The co-ops are sharing information with each other.

Habersham EMC expanding its test

Rodney Pugh, director of information technology at Habersham EMC, which is based in Clarkesville, said the company is expanding an existing test to include about a dozen homes. Customers like it, he said, and the company favors the prospect of using BPL as a tool to manage its grid.

What Pugh's watching closely, however, is whether the price of equipment needed for BPL will fall, making it more affordable.

Kilbourne, the United Power Line Council director, said TXU's decision to move ahead with BPL could be a watershed event. It could help drive down prices for equipment and, if successful, could spur other publicly traded power companies to get into the game.

TXU is working on its project with Current Communications, a company that specializes in BPL.

"TXU is going to be pretty important," Kilbourne said. "That's the first real significant commercial rollout."

In Charlotte, Duke Power is moving ahead with a sizable market test of BPL. Bob Gerardi, manager of power line communications at Duke, said a previous technical trial was very successful.

Duke, which is in the process of merging with fellow BPL proponent Cinergy, is primarily interested in using the technology to make its own system more efficient. But the secondary benefit — being able to make money by offering Internet access to consumers — is important.

Duke, however, is like many other companies in that it isn't interested in becoming an Internet service provider itself. Instead, it will sell Internet service on a wholesale basis, letting companies — including Atlanta-based EarthLink — handle the details of actually marketing and managing the service.

The possibilities of using BPL as a way to reach consumers is of great interest to EarthLink. "We are talking to quite a few companies about things bigger than trials," said Kevin Brand, EarthLink's vice president of access services.

While there's much enthusiasm for BPL, Southern Telecom's Ericson cautioned that it remains "very much an emerging technology," with only about half a dozen power companies among 2,000 in the United States announcing commercial deployments so far.

"We don't believe the technology is completely 100 percent there," he said.

Purcell also believes BPL might not be the only kind of technology that power companies use to provide broadband service. He thinks companies like GreyStone may choose a mixture of systems to deliver Internet to customers, including BPL, fiber or wireless.

Customers, meanwhile, will probably just care whether it works and what they'll get charged.

GreyStone plans to study consumer demand as it expands its trial in Douglasville. Already, Purcell has found plenty of interest in the upscale suburban homes of Chapel Hills.

"We went door-to-door, asking if anybody would be interested," he said. Of 24 houses, 17 owners said yes to GreyStone's trial and will soon start testing the service.

Interference bugs ham radio users

Given that it's an old technology, the future of ham radio already looks mighty uncertain to some.

Now the dwindling number of ham adherents are worried the potential growth of broadband over power line, or BPL, will hurt their small world even more.

As power companies continue to pursue BPL, ham radio devotees are lobbying to make sure they aren't tuned out.

The problem: Some BPL systems use radio waves within the same frequency range as amateur radio, causing interference.

"Hams are not against BPL in general. We're against interference," said Allen Pitts, a spokesman for ARRL, the National Organization for Amateur Radio. "It's a very big topic."

The Federal Communications Commission has said it supports the development of BPL systems, but the agency also wants to protect licensed radio users from interference.

Bob Gerardi, manager of power line communications for Duke Power in Charlotte, said there were some early problems with BPL's interference with amateur radio. "The new generation of the technology really has addressed that issue," he said.

Nonetheless, those in amateur radio are watching closely. Pitts said there are still about 660,000 licensed ham radio operators in the United States. He guesses around 450,000 are active users.

http://www.ajc.com/business/content/business/stories/0210bizpower.html
 

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