was not among the 100 projects across the country to receive federal stimulus funds to support the development of its smart grid technology.
The Jackson-based utility was seeking $174 million from the
to help offset some of the cost of its $900 million project.
The Consumers application received support from several key state officials, including Gov. Jennifer Granholm, U.S. Sen. Debbie Stabenow, D-Mich., and U.S. Rep. Mark Schauer, D-Battle Creek.
Two weeks ago, while Stabenow was touring a Consumers facility to demonstrate how the smart grid works, she said the utility's grant application had made it to the final round, which meant it is a good proposal.
The department had $3.4 billion available through the stimulus bill, and awarded funds to projects in every state but Alaska.
Two Michigan firms received funding totaling $103 million. Detroit Edison received $83 million and Benton Harbor-based Whirlpool Corp. received $19 million.
The funds Consumers applied for were to be used for pilot programs, meter deployment, and system and infrastructure improvements, according to the utility.
"The company would have found that grant of great value," Consumers spokesman Dan Bishop said.
Bishop said they do not know why their application was rejected.
"The team that worked on that effort is exploring reasons behind this decision," Bishop said.
A department spokeswoman did not return a message seeking comment.
The stimulus funds would have helped offset the amount the utility could ask state regulators to let it recoup from customers.
Regardless, Consumers will begin deploying the meters around the state in 2011. By 2015, all of Consumers' customers will have a smart meter on their homes.
Smart meters allow residents to see exactly how much energy they are using on a real-time basis, allowing them to adjust usage to cut monthly bills. The smart grid technology also has the capability to alert the utility the power is out without the customer having to report the outage.