Why do you imagine Xcel agreed to invest $100 million in this risky experiment?
One of the benefits of investing in this $100 million project includes rerouting power around bottlenecked lines. This allows Xcel Energy to deliver electricity to areas in Boulder that have a very high demand that the previous conventional electrical grid was unable to service effectively. This smart-grid system also enables Xcel Energy to detect and reduce power outages, identify false alarms more quickly and read customer meters remotely. This in return will lead to a reduction in the number of times the service crews are sent out to those locations, thus making the service crews more productive. Combining the efficiency of the smart-grid electrical system and the reduction of outages will allow Xcel Energy to capture cost-savings more appropriately.
Additionally, this electrical smart-grid allows customers to monitor their individual power use reducing household usage by up to 30% in some cases, thereby enhancing customer satisfaction. Although this may lead to a decrease in revenue for Xcel Energy, the smart-grid system enables integration of renewable generation, an increase in overall system efficiency, a more robust electrical system and an ability to recover under-utilized and wasted energy. We can’t say for sure, but this may actually benefit Xcel Energy in the long-run as they will recover lost revenue through their decreased operational costs using the smart-grid electrical system.
What conflicts do you suspect might have occurred between all the different stakeholders in this project?
In any project there are four main stakeholders. This includes Client, Parent Organization, Project Team and the Public. In the case of Xcel Energy’s smart-grid project, both the client and public would be the population of Boulder, CO. The Parent Organization is Xcel Energy and the project team includes representatives from