CITIZEN POWER ALLIANCE

The U.S. Department of Energy will give the New York Independent System Operator, which operates the state's power grid, $37.8 million to deploy smart grid technologies to enhance the reliability and efficiency of the power grid.

To implement the project, expected to take about three years to complete and cost about $75.7 million, the NYISO said in a release Monday it signed agreements with all eight of New York's transmission owners.

The transmission owners include CHG Holding Inc's (CHG.N) Central Hudson Gas & Electric, Consolidated Edison Inc's (ED.N) Consolidated Edison of New York and Orange and Rockland, Long Island Power Authority, National Grid (NG.L), Iberdrola SA's (IBE.MC) New York State Electric & Gas and Rochester Gas and Electric, and New York Power Authority.

The project involves the creation of a statewide Phasor Measurement Network and installation of capacitor banks.

The NYISO said the 39 Phasor Measurement units will enhance the grid's ability to detect vulnerabilities and avoid potential blackouts by transmitting system data 60 times a second. Current monitoring systems sample conditions every two to six seconds.

The capacitors meanwhile will provide voltage support on certain transmission lines in areas where there is not enough generation to do the job. (Reporting by Scott DiSavino; Editing by John Picinich)