I have to chuckle every time I read/hear about "smart grid" products or implementing "smart grid" technology. As someone who has worked in the utility industry for 20 years, the cost to upgrade the electric delivery infrastructure is extremely cost prohibitive and would require a complete overhaul of the entire infrastructure as well as define new business models for utility companies to follow.
The bottom line is that gas and electric delivery companies are a business that answer to the stockholders and are concerned with maintaining good credit ratings so they can borrow capital to make delivery and support systems improvements. However, that capital money ultimately is subsidized and recouped by the delivery company from the rate payer. So, who really, in the end, will be paying for a "smart grid"? Not the local delivery company...
As a result of deregulation, gone are the days where the government or Public Utility Commissions could regulate the "how" and "why" local delivery companies spent their money on asset improvements. Advocates for deregulation were short sighted and did not care that the consumer would only be able to save money on the generation of electricity due to the need to maintain a rate paying base for the local delivery companies. And, even if a "smart grid" were to be implemented by local delivery companies, the said grid would be to the benefit and cost efficiency of the local delivery company, to maximize their assets and reduce their costs, with minimal savings past on to the rate payer.
Unless local delivery co-ops or community based generating stations become the mainstream the great vision of a national or state wide smart grid will remain a red herring.