An array of digital technologies (controls, computers, and automation) that record in real time customers' electricity usage and allow for two-way communication between a utility and its customers. The information submitted to the utility can be used to:

The information collected by recording devices or the smart meters is also available to consumers who can use it to manage their electricity usage.

Although it is generally accepted that smart grid technology will result in increased efficiencies in electricity transmission and distribution, privacy advocates have expressed concerns that the collected customer information may be sold or otherwise misused.

For more information on smart grids, see Practice Note, Local Government's Role in Rate Regulation and Article, Biden Administration Energy and Climate Change Policies and Regulations: 2023 Tracker.