Frequently Asked Questions About BPL

The primary attraction is that it enables high speed data communications over the existing electrical infrastructure. This communication capability allows Utilities to monitor, control and maximize the efficiency of one of their key assets, the power line infrastructure. BPL offers data transmission speeds between 3 and 5 Mbps, allowing Utilities to also offer broadband Internet services to customers along their infrastructure using the excess bandwidth.

What specific opportunities does BPL open up for the utility owner?
As BPL adds a high-speed communications capability to the distribution grid, a wide variety of applications are opened up for the utility ranging from various consumer products and services, services for government and industry and internal operational improvements.

Aren't many of the BPL applications already available via alternate existing technologies?
Many applications enabled by BPL are available via alternate existing technologies, but other technologies lack the economy of BPL which can bundle services that would require multiple alternatives to perform the same variety of applications. BPL can offer consumer broadband, video surveillance, automated meter reading and load management all through the same BPL medium at no additional cost.

Utilities have been promised cost-effective BPL for many years - what is taking so long?
The electric system, with its high current flows and numerous devices, had been a very unfriendly place for high-speed electronic communications. The BPL industry has been working for a number of years to design systems and equipment that will allow the BPL signal to peacefully coexist with the distribution grid's primary function. Trial programs over the past few years indicate that the major challenges have been solved. The equipment design is being optimized for cost-effective manufacture and installation and utilities are actively pursuing new BPL programs. Several organizations including the Institute for Electrical and Electronics Engineers (IEEE) are working to create standards for the BPL industry. We believe this will help drive the desire for utilities to invest in BPL. Many states’ Public Utility Commissions (PUC) and Public Service Commissions (PSC) are encouraging the use of BPL. Some are even writing legislation regarding its use.

Are large-scale BPL installations now technically and economically feasible?
The volume of Requests for Proposals (RFPs) received by BPL Vendors from utilities has increased considerably, suggesting that utilities have gained confidence in the technical and economic feasibility of BPL. Furthermore, development efforts, including design of equipment and systems as well as field verifications, have progressed to the point where the initial planning and design for a large-scale roll-out is practical at this time.

If large physical installations are expected to be feasible, what about the supporting infrastructure, such as consumer services and internal utility applications?
Basic consumer products, such as Internet service, are available. In addition, there is widespread development work underway throughout the industry in other supporting products and services. For example, BPL vendors are working with vendors on communications approaches for meters. Also, we are helping develop appliance monitoring and control devices for the home. In addition, we have demonstration projects underway on industrial monitoring and surveillance cameras.

Is the regulatory framework also developing suitably fast?
The Federal Communications Commission achieved a major milestone in October 2004 with the publication of the Report & Order governing BPL. These rules eliminated a considerable amount of regulatory uncertainty and have provided the industry with a great deal of momentum. Major BPL vendor technologies are fully compatible with the new requirements. In addition, state utility regulators, as they learn about the applications and prospects of BPL, are also formulating policies for how BPL fits within their regulatory framework. For more information on the Federal Communications Commission's "Report & Order," please view the report at: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-245A1.pdf

Is there political support for BPL?
There have been many indications of political support in recent months both directly and indirectly. BPL technology received a major boost in early 2004 when the federal government established a policy in support of expanding the availability of broadband service throughout the country by 2007. BPL was specifically noted as a technology to be supported in achieving this goal. Many states’ Public Utility Commissions (PUC) and Public Service Commissions (PSC) are encouraging the use of BPL. Some are even writing legislation regarding its use.

How have utility needs and expectations been included in vendor design efforts?
The majority of BPL vendors have worked closely with the electric utility industry to assure that its systems and equipment match the requirements of its potential utility customers. Such input has included every element of the development work, such as equipment design, installation considerations, equipment appearance, cost factors, customer expectations and regulatory issues. In New York City, Ambient's largest demonstration project is operating in Con Edison's service area. Con Edison, an Ambient partner, has provided invaluable input in assuring that Ambient's products and services align with utility needs.

In planning a BPL installation, is the total distribution system targeted for BPL capabilities?
This of course depends on the types of applications desired by the utility, but in general, the answer is no. Ambient's "Smart Build" strategy allows BPL installations to be targeted to those segments of the system that are most cost-effective. For example, if consumer broadband capability is the primary targeted product, BPL would be installed initially in those areas where this product would prove to be the most desirable and competitive. This approach minimizes the overall size of the investment while maximizing the return on that investment.

Utilities have become increasingly reluctant to move beyond their core business. Does this work against BPL?
As entering a new line of business is simply one entry strategy for implementation of BPL, this does not work against it. For example, the utility can sell consumer products and services directly, in which case it has indeed moved into a new business. On the other hand, a utility with a "stick to what you know" strategy may choose to rent the BPL capability to a third party and have that third party market to the end-use customer. Other options include strategic partnerships with service vendors.

Is the Majority of BPL technology solutions compatible with all distribution systems?
For all practical purposes, yes. In the US and Canada, all systems are essentially the same from a BPL perspective. In other countries, differences in voltage, frequency and configuration (specifically, the number of customers on each distribution transformer) can impact equipment and system design. In general, the higher density of customers per transformer in Europe and other countries works in favor of BPL.

What is the first step in planning an installation?
The selected vendor works closely with potential utility customers to first create and evaluate the BPL business case; i.e., the costs of installation versus the benefits from that utility's anticipated applications. Next, a conceptual plan for installations within the "Smart Build" framework is developed. At that point, the vendor and the utility are well positioned to develop more detailed design information and cost estimates for formal project evaluation and approval.