National Energy Markers Association

Advanced Energy and Power Line TechnologiesCommissioner Laura Chappelle

Michigan Public Service Commission

March 31, 2004

Broadband over the Power Lines (BPL)

Promising, new technology. Potential for ubiquitous, affordable service. Wires are already there. Third mode of BB access to homes/bus. Close the BB gap: U.S./foreign countries. Means of service to rural, underserved

areas.

Description of BPL

Non-technical definition: BPL uses power lines to transmit digital data in addition to electricity.

Every electric distribution line has the potential to provide a last-mile BB connection to homes/businesses served by electric utilities

FCC description: – “couple(s) (radio frequency) energy onto the existing

electric power lines to provide high-speed communications capabilities.” (ET Docket No. 03-104, ET Docket No. 07-37)

Functionality

Transfers digital data from fiber optic nodes to medium-voltage lines

The digital signal reaches the Internet end-user, either through an electrical outlet or short wireless link from a nearby electric pole

Bypass or Wi-Fi at transformerBypass or Wi-Fi at transformer

Customer plugs modem into any outlet

Fiber backhauls to the POP

Powerline-fiber interface at substation

PLC Network

Diagram from Brett Kilbourne Presentation. United Powerline Council

NARUC Task Force

Convened in January, 2004

PUC members:– Commissioner Laura Chappelle (chair; Michigan)– Commissioner Bob Nelson – Commissioner Julie Parsley (Texas)– Commissioner Thomas Dunleavy (New York)– President Tony Clark (North Dakota)– Chairman Denise Bode (Oklahoma)– Commissioner Connie Hughes (New Jersey)– David Tobenkin (FERC)– Rodger Woock (FCC)– Chuck Gray, Brad Ramsey, Brian Atkins (NARUC)

NARUC’s BPL Task Force

Preliminary stages – information gathering.

Eventual objective – explore opportunities for state regulators to become involved:

– How can we, as states, encourage a promising technology?

Open to suggestions of others, including NEMA and its membership.

Why are state commissions seeking to address BPL?

Answer: There is a public interest in making broadband widely available.

– BPL presents economic and educational opportunities.

Internet: prospered, government left it alone.– But, Internet rode the back of the public switched telephone

network with the encouragement of state regulators.– Still uses telecom. Services that are at least partially

regulated.– Role for government to nuture promising technologies(?)

Policy Issues

Technology– Examine the state of BPL technology as a guide to assessing its

implications for state regulators. Security

– Interference w/other authorized users of radio frequencies.– FCC’s recent NOPR suggests that the proposed rules will resolve the

interference concerns, but this is controversial Regulatory

– Cost recovery and revenues– Should cross-subsidization be allowed (or encouraged?)– Pole attachments– Universal Service funding.– Municipal Providers.

Concluding Thoughts

Is there a role for regulators? Is there a role for non-utility marketers? Electric utilities’ business models may invite

partnerships.– Many electric utilities do not want to become

communications companies.– Task of managing customer relationships with a

BPL-based Internet service.