Honeywell and City of Duncan Use Stimulus Funds to Make Utility Systems Smarter

Smart Metering Network Part of Broad, Stimulus-Backed Energy Retrofit Program

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Jun 15, 2010, 09:00 ET

MINNEAPOLIS, June 15 /PRNewswire-FirstCall/ -- Honeywell (NYSE: HON) today announced it is implementing a smart metering network for the City of Duncan, Okla., that will allow the municipality to automatically collect electricity and water usage data from residents and local businesses. The smart grid deployment is part of a broader energy-efficiency and public-safety program funded by a 15-year, $14.2-million energy savings performance contract and backed in part by the American Recovery and Reinvestment Act (ARRA). The program will help the city improve meter accuracy, reduce its energy and operating costs, and enhance public safety services.

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Through the comprehensive program, the city is expected to decrease electricity consumption by 2.2-million kilowatt-hours per year - enough energy to power more than 200 homes annually. The program is also projected to cut annual carbon dioxide emissions by nearly 1,600 metric tons. According to figures from the U.S. Environmental Protection Agency, this is equivalent to removing more than 300 cars from the road. Honeywell expects to install the smart meter network and complete the upgrades by the end of 2010.

"We're adding the infrastructure that's going to allow our city to improve efficiency and reduce spending across several departments," said City of Duncan Mayor Gene Brown. "The smart metering system in particular will help us better manage our municipal utilities, and ensure that the citizens of Duncan are billed accurately and fairly."

The city will pay for the entire program through the energy and operational savings, and improved revenue generation the smart meter system and infrastructure upgrades produce. Honeywell guarantees approximately $1.7 million in savings per year as part of the performance contract so the work will not increase city operating budgets or require additional taxpayer dollars. Duncan will use more than $2 million in ARRA stimulus grants through the Oklahoma Department of Environmental Quality and an Energy Efficiency and Conservation Block Grant from the U.S. Department of Energy to help fund the program at the outset.

To create the smart metering network, Honeywell will replace existing utility meters across the city with more than 9,000 electric meters and 12,000 water meters from Elster Integrated Solutions. The new meters will be connected via a Tropos wireless mesh network that builds on the city's existing broadband service. Every meter will come equipped with a digital register - instead of the traditional rotating dials - as well as wireless technology that allows the meters to send readings to nearly 700 "collector" meters located throughout the city, which will then transmit the data to the utility systems.

The electric meters also feature two-way communication capabilities that will provide the city greater visibility into, and control of, the electrical grid. Instead of simply collecting usage data, for example, utility employees can pinpoint specific houses affected by a power outage or remotely shut off power if a resident is moving. The new meters will also further reduce costs by detecting water leaks or other problems almost immediately.

The smart metering system will allow the city to generate timely, accurate usage and billing information for residents, and it will eliminate the need for meter readers to visit properties every month. The system also provides a platform for future energy management strategies like demand response that help minimize the need for additional generation capacity.

In addition to the utility improvements, Honeywell will implement energy conservation measures at several city facilities and public areas. This includes:

Upgrading heating, ventilation and cooling (HVAC) equipment and building controls at the court building, main fire building, main library, police station and City Hall.
Installing energy-efficient induction fixtures on all street lights, and installing light-emitting diode (LED) traffic signals for improved safety.
Adding variable frequency drives at the city's waste water treatment facility to reduce energy consumption and costs.

The city will also use the wireless network for police, fire and utility applications, including remote connectivity for officers and closed-circuit security cameras for high-traffic public areas. The technology upgrades will allow law-enforcement personnel to access programs, files and information from anywhere in the city, which will help improve safety and security by expediting reporting and allowing police to spend more time on the streets. Utility employees will have mobile access to the network as well.

"Duncan and other cities across the country are leveraging the powerful combination of performance contracts and stimulus funding to develop comprehensive programs that will have a lasting impact in the community," said Paul Orzeske, president of Honeywell Building Solutions. "Honeywell has the resources and experience to help municipalities find the most effective combination of technology and funding to meet their long-term goals."

Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com. Honeywell Building Solutions is part of the Honeywell Automation and Control Solutions business group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Building Solutions: www.honeywell.com/buildingsolutions.

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements.

SOURCE Honeywell