Smart Meters, also known as Advanced Meters, take the place of conventional electric meters. Through a series of wired and/or wireless networks, consumption information and data can be sent directly to utility companies. This eliminates the need for monthly visits by a meter reader, which saves us the gas that would have been burned to visit all of those meters. More importantly, however, this means that utility companies will be able to closely monitor rates of consumption as it rises and falls throughout the day, therefore allowing them to introduce dynamic pricing that is based on simple supply and demand economics. Customers will then be able to track these variable rates and their consumption, with the hope that this will encourage homeowners to use less power during peak periods.

Many major utility companies are now experimenting with the Tendril Residential Energy Ecosystem, or TREE, introduced by the Tendril company based out of Boulder, Colorado. In this automated energy management system, homes are outfitted with items such as smart thermostats, power supplies, and other electronic equipment that are connected to each other and their power supplying utilities through a series of networks. These appliances can then be monitored by both the individual and the utility so that their power usage can be scaled back accordingly. It is a win-win situation for business or home owners and the utilities that supply them with power. Check out Tendril here: www.tendrilinc.com