A study of smart appliances shows that cutting back demand on non-essential functions such as hot water heat and clothes washing could save utilities up to $70 billion.

The Pacific Northwest GridWise Demonstration Project, funded by the Department of Energy and conducted by the Pacific Northwest National Laboratory, showed that consumers could cut their electricity bills by 10 percent. The one-year test required new meters and smart controllers in the clothes washers, dryers, and hot water heaters at the cost of about $500 per household, but that cost cold shrink to $200.

Per the PNNL: "The software let homeowners customize devices to a desired level of comfort or economy and automatically responded to changing electricity prices in five-minute intervals. To reduce usage in peak periods, when electricity is most expensive, the software automatically lowered thermostats or shut off the heating element of water heaters to the pre-set response limits established by individual homeowners."

IBM provided the technology known as a service oriented architecture (SOA), and peak power demand was lowered by up to 50 percent. Controlling energy draw during peak times is known as demand response, and it is one of the biggest issues that utilities are contending with. The technology could avoid adding new transmission lines or new coal or natural power plants.

This program proves that the utilities have economic incentive to implement the technology, and hopefully they will do so without the government having to mandate it. Perhaps Congress will provide additional incentive through tax breaks.

Preventing more power plants from being built is a huge win, but the study highlights the bigger issue of wasted energy. Many other appliances -- consumer electronics, microwaves, chargers, printers, etc. could likewise be powered down or automatically controlled. Plenty of energy is also being needlessly used off peak, and giving consumers the tools to easily cut their energy cost would reduce demand and curb greenhouse gas emissions. If we are serious about climate change all appliances would be required to have some intelligence for automatically powering down. New construction could also be required to have intelligent outlets throughout the building.

The savings will help offset price increase and can pay for the new equipment which will add to the economy. Few technologies seem so obviously positive with nearly zero downside.