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Smart Grid Technologies, Markets, Components and Trends
Worldwide

June 1, 2009


This research report on Smart Grid Energy Technologies presents an in-depth analysis
of the development, applications, products, manufacturers, and trends in the
deployment of the Smart Grid in the United States and around the world. The electric
grid is over a hundred years old, has changed little in the way it operates since its
inception, and will not be able to support future electric demand without substantial new
and costly infrastructure. However, technologies exist that can improve efficiencies and
moderate electric usage which will largely offset much of the need for new power plants,
transmission lines, and other electric grid components. An “intelligent” or “smart” grid
will provide improved service reliability and more stable electric rates at a lower cost
than simply building all the infrastructure that would be required to meet future demand
for electricity using the current electric utility business model. The report provides a
comprehensive analysis of the current market for smart grid enabling technologies and
projects future market size through 2014. Marketing concerns including energy demand,
environmental impacts, economic conditions, consumer acceptance, stakeholder
concerns, and government activities are discussed in relation to their impact on market
growth for the Smart Grid and its enabling technologies. The report also profiles major
manufacturers and marketers of smart grid technologies and the strategies they have
adopted to maximize growth and profitability.

A lack of standards has slowed, but not stopped, development of new technologies that
would be essential for building the Smart Grid. Regulatory considerations, electric rate
increases, government activities, and consumer acceptance are also significant factors
in developing the Smart Grid and are addressed in the report. The manner in which
these and other factors inhibit or advance deployment of the Smart Grid are described
in detail.

Scope and Methodology

This report includes both primary and secondary research. Secondary research data
have been obtained from government sources, trade association publications, business
journals, and company literature. Statistical data are included for industry revenue, both
globally and for the United States. The market size for Smart Grid technologies is
projected from 2009 to 2014. Demand in each of the following technology applications is
analyzed in terms of overall revenue for deploying the Smart Grid:

       Two-Way Communications
       Smart Meters
       Smart Sensors
       Information Technology
       Renewable Energy and Storage Systems

Potential Smart Grid applications, buying trends, environmental issues, and energy
considerations are also reviewed and analyzed. Market size estimates and forecasts
are based on government and secondary sources, and the impact of factors such as
government grants and incentive, environmental concerns, fuel and energy prices,
economic considerations, and housing and building trends.

How You Will Benefit From This Report

If your company is involved with electric service, energy efficiency, two-way
communications, information technology, home automation, or smart appliances - or if
you are starting “green” energy initiatives, constructing “green” buildings, or simply want
to determine the myriad opportunities that exist with deployment of the Smart Grid - you
will find this report invaluable, as it provides a comprehensive package of information
and insight about smart grid enabling technologies that are not offered in any other
single source. You will gain a thorough understanding of the current Smart Grid
applications and markets, as well as projected market sizes and trends through 2014.

This report will help:

       Marketing Managers identify market opportunities and develop targeted
       promotion plans for smart grid products and services.
       Research and Development Professionals stay on top of competitor initiatives,
       product applications, and demand for smart grid enabling technologies.
       Advertising Agencies working with clients in the energy efficiency, energy
       service, information technology, communications, and consumer appliance and
       electronics markets develop compelling messages and images to promote sales
       of smart grid products and services.
       Business Development Executives understand the dynamics of deployment of
       the Smart Grid, identify potential partnerships, and detect new product
       applications.
       Information and Research Center Librarians provide market researchers, brand
       and product managers, and other colleagues with the vital information they need
       to do their jobs more effectively.
Additional Information

Market Insights: A Selection From The Report



The Smart Grid Defined

Perhaps surprisingly, there is no accepted definition of a smart grid. After more than ten
years of discussion and collaboration, utilities, government, and regulatory agencies
have yet develop an overarching definition of a smart grid. However, there is
widespread agreement that a smart grid requires reliable and instantaneous two-way
communications between utilities, operators, consumers, and grid components. Utilities
would need substantially improved computing power and software to visualize and
control grid operations in real time. Security would be paramount since utilities would
be interconnected to one another as never before. Cooperation among all grid
stakeholders, including consumers, would be essential. The Smart Grid would also be
“self healing” in that it would automatically reroute electricity and reform itself to prevent
further damage and catastrophic failure.

From a high level perspective, the Smart Grid is a powerful command and control
system that is composed of the following components:

       Smart sensors and devices outside a home or business
       Smart sensors and devices inside a home or business
       Two-way communications between utilities, grid operators, consumers, and grid
       components
       High speed computing, software, and display devices to monitor current and
       anticipated future grid conditions and control and protect the grid

Smart Grid Technologies

Any technology that assists the intelligent control of electricity over the grid can be
considered a smart grid enabling technology. Under this definition, any communication
technology that allows data to be transmitted to and from utilities, grid operators,
consumers, and smart devices on the grid and in the home is an enabling technology
for the Smart Grid. A communication technology that transmits data in only one
direction does not enable the capabilities inherent in the Smart Grid and is not a smart
grid enabling technology. In a similar fashion, back-office software that can account for
real-time electric usage and bill customers accordingly is a technology that enables the
Smart Grid. Billing and accounting software that cannot account for real-time pricing do
not enable the Smart Grid.

In the News
Smart Grid Technologies Market to Reach $17 Billion by 2014, New SBI Report
                                     Finds

New York, May 26, 2009 - An aging electric infrastructure, increasing demand for
electricity, and increased reliance on foreign fuel sources have exposed the need for a
more effective electric energy system, both nationally and abroad. The revelation will
propel the U.S. market for smart grid technologies to a projected total of almost $17
billion by 2014, according to Smart Grid Technologies, Markets, Components and
Trends Worldwide, the latest report from leading industrial market research publisher
SBI.

“Continuing demand for electric power is placing such enormous strain on the current
electric grid that nuclear energy is resurgent globally and the ongoing use of coal and
other fossil fuels will extend for at least the next thirty years despite climate change and
the clamor for clean energy,” says Shelley Carr, associate publisher of SBI. “Smart Grid
technology would supply electricity more efficiently with higher reliability while also
permitting and encouraging consumers to use electricity more wisely.”

The market for smart grid enabling technologies in the U.S. is currently estimated to be
more than $6 billion. SBI’s forecast includes the market growing at a compound annual
growth rate (CAGR) of almost 21% through 2014.

Future growth of the smart grid market will be partly driven by the utilization of the
technology to provide better sensing and control systems that maximize the use of
electricity from renewable energy sources, which produce power that is highly variable
and subject to intermittent operation. Wind, solar, and other forms of renewable power
are expected to be widely distributed across the U.S. However, the country’s current
electric grid is not equipped to realistically maximize the potential of such energy
sources.

Smart Grid Technologies, Markets, Components and Trends Worldwide provides
an in-depth analysis of the development, applications, products, manufacturers, and
trends in the deployment of the smart grid in the United States and around the world.
Included are projections for future market size through 2014, a comprehensive analysis
of the current market for smart grid enabling technologies, and profiles of major
manufacturers and marketers of smart grid technologies and the strategies they have
adopted to maximize growth and profitability. Marketing concerns including energy
demand, environmental impacts, economic conditions, consumer acceptance,
stakeholder concerns, and government activities are discussed in relation to their
impact on market growth for the Smart Grid and its enabling technologies.

About SBI

SBI (Specialists in Business Information) publishes research reports in the industrial,
energy, building/construction, automotive/transportation and packaging markets. SBI
also offers a full range of custom research services.
TABLE OF CONTENTS

Chapter 1: Executive Summary
     Scope
     The Need for a Smart Grid
     Figure 1-1: Electricity Production Estimates, 2005-2030 (trillion Kilowatt hours)
     Distributed Power Sources
     Aging Infrastructure
     Electric Rate Containment
     Figure 1-2: U.S. Residential Electric Rates, 2008 (cents per KwH)
     Energy Abatement
     The Smart Grid Defined
     Smart Grid Technologies
     Smart Grid Costs
     Figure 1-3: Global and U.S. Market Size for Smart Grid Enabling Technologies,
     2008-2014 ($ Billions)
     Smart Grid Drivers
     Figure 1-4: Sources of U.S. and World Electric Production, 2006 (percent)
     Smart Grid Inhibitors
     Electric Utilities
     Figure 1-5: Types of Electric Utilities, United States Percent by Number,
     Capacity, and Customers Served
     Summary

Chapter 2: Energy Demand and the Electric Grid
     Scope
     The Smart Grid - An Introduction
     Smart Grid Definition
     Grid Visualization and Control
     Distributed Electric Generation
     Smart Grid Savings and Costs
     Electricity Demand
     Table 2-1: Organization for Economic Co-operation and Development (OECD)
     Countries
     Figure 2-1: Electricity Production Estimates, 2005-2030 (trillion Kilowatt hours)
     Figure 2-2: U. S. Electricity Growth Rates, 1950-2030 (percent)
     The Electric System
     Figure 2-3: The Electric Grid
     Power Generation
     Table 2-2: Electric Fuel Sources for Steam Turbines and Efficiency (percent)
     Table 2-3: Electric Fuel Sources for Non-Steam Electric Generation (percent)
     Figure 2-4: Sources of U.S. and World Electric Production, 2006 (percent)
     Power Transmission
     Power Distribution
     High Voltage DC (HVDC) Transmission
Peaking Power Plants
      Interconnected Power Grids
      North America Interconnected Power Systems
      Figure 2-5: North American Interconnected Systems
      Other Global Interconnected Power Systems
      Electric Utilities
      Figure 2-6: Types of Electric Utilities, United States Number, Capacity, and
      Customers Served (percent)
      Electric Deregulation
      Retail Electricity Competition
      Table 2-4: Status of Energy Deregulation Efforts, July 2006
      Federal Energy Regulatory Commission (FERC)
      Electric Transmission Infrastructure
      Table 2-5: North America ISOs and RTOs
      Summary

Chapter 3: The Smart Grid and Market Growth
     Scope
     The Need for a Smart Grid
     Table 3-1: Standby Power Draw of Electronic Products (Watts)
     Table 3-2: Power Plant Costs (estimated), 2008 (in million $)
     Table 3-3: Residential Electric Lighting Power Usage, in the United States,
     Lighting Equivalents
     Table 3-4: Electric Lighting Power Requirements, All Sources, United States
     The Smart Grid
     Smart Grid Market Size
     Figure 3-1: Smart Grid Market Size, 2009-2014 (in billion $)
     Smart Grid Technologies Market Size
     Integrated Communications
     Figure 3-2: Smart Grid Integrated Communications Market Size, 2009-2014 (in
     billion $)
     Figure 3-3: Broadband Over Powerline Market Size, 2009-2014 (in billion $)
     Figure 3-4: Zigbee Market Size, 2009-2014 (in billion $)
     Figure 3-5: WiMax Market Size for the Smart Grid, 2009-2014 (in billion $)
     Sensing and Measuring - Smart Meters
     Figure 3-6: Smart Metering Hardware and Software Market Size, 2009-2014 (in
     billion $)
     Sensing and Measuring - Smart Sensors
     Figure 3-7: Smart Sensors and Devices Market Size, 2009-2014 (in billion $)
     Information Technology Hardware and Software
     Figure 3-8: IT Hardware and Software Market Size, 2009-2014 (in billion $)
     Grid Visualization - Command and Control of the Smart Grid
     Demand Response
     Benefits of the Smart Grid
     Societal Benefits
     Operational Efficiencies
     Job Creation
Smart Grid Killer Apps
      Transitioning to the Smart Grid
      Regulatory Considerations
      Utility Disincentives
      Network Security Threats
      Energy Security
      Summary

Chapter 4: Smart Grid Technologies & Operations
     Scope
     Smart Grid Demonstration Projects
     GridWise™ Demonstration Project
     Boulder, Colorado Smart Grid
     Austin, Texas Smart Grid
     Republic of Ghana Smart Grid
     Stuttgart, Germany Smart Grid
     Home Area Networks
     Smart Grid Technologies
     Communications Technologies
     Table 4-1: Selected Smart Grid Communication Technologies
     Information Technology
     Smart Appliances
     Smart Appliance Tests
     Summary

Chapter 5: Smart Grid Facilitators and Inhibitors
     Scope
     Government Activities
     Stimulus Funding
     Standards Development
     Environmental Concerns
     Renewable Energy Mandates
     Taxes and Incentives
     Table 5-1: Energy Efficient Tax Credits for Homeowners, 2009
     Utility Type
     Investor Owned Utilities (IOUs)
     Public Power Utilities
     Electric Cooperatives (Co-ops)
     Electric Rates
     Table 5-2: Top Ten “Smartest” States and Associated Electric Rates, 2008
     Venture Capitalists
     Cyber Security
     Consumer Acceptance
     Privacy Issues
     Ease of Use Concerns
     Equipment Costs
     Electric Rates
Home Electric Power Generation
       Summary

Appendix: Selected Corporate Addresses


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Smart Grid Technologies, Markets, Components and Trends Worldwide

  • 1. Get more info on this report! Smart Grid Technologies, Markets, Components and Trends Worldwide June 1, 2009 This research report on Smart Grid Energy Technologies presents an in-depth analysis of the development, applications, products, manufacturers, and trends in the deployment of the Smart Grid in the United States and around the world. The electric grid is over a hundred years old, has changed little in the way it operates since its inception, and will not be able to support future electric demand without substantial new and costly infrastructure. However, technologies exist that can improve efficiencies and moderate electric usage which will largely offset much of the need for new power plants, transmission lines, and other electric grid components. An “intelligent” or “smart” grid will provide improved service reliability and more stable electric rates at a lower cost than simply building all the infrastructure that would be required to meet future demand for electricity using the current electric utility business model. The report provides a comprehensive analysis of the current market for smart grid enabling technologies and projects future market size through 2014. Marketing concerns including energy demand, environmental impacts, economic conditions, consumer acceptance, stakeholder concerns, and government activities are discussed in relation to their impact on market growth for the Smart Grid and its enabling technologies. The report also profiles major manufacturers and marketers of smart grid technologies and the strategies they have adopted to maximize growth and profitability. A lack of standards has slowed, but not stopped, development of new technologies that would be essential for building the Smart Grid. Regulatory considerations, electric rate increases, government activities, and consumer acceptance are also significant factors in developing the Smart Grid and are addressed in the report. The manner in which these and other factors inhibit or advance deployment of the Smart Grid are described in detail. Scope and Methodology This report includes both primary and secondary research. Secondary research data have been obtained from government sources, trade association publications, business journals, and company literature. Statistical data are included for industry revenue, both globally and for the United States. The market size for Smart Grid technologies is
  • 2. projected from 2009 to 2014. Demand in each of the following technology applications is analyzed in terms of overall revenue for deploying the Smart Grid: Two-Way Communications Smart Meters Smart Sensors Information Technology Renewable Energy and Storage Systems Potential Smart Grid applications, buying trends, environmental issues, and energy considerations are also reviewed and analyzed. Market size estimates and forecasts are based on government and secondary sources, and the impact of factors such as government grants and incentive, environmental concerns, fuel and energy prices, economic considerations, and housing and building trends. How You Will Benefit From This Report If your company is involved with electric service, energy efficiency, two-way communications, information technology, home automation, or smart appliances - or if you are starting “green” energy initiatives, constructing “green” buildings, or simply want to determine the myriad opportunities that exist with deployment of the Smart Grid - you will find this report invaluable, as it provides a comprehensive package of information and insight about smart grid enabling technologies that are not offered in any other single source. You will gain a thorough understanding of the current Smart Grid applications and markets, as well as projected market sizes and trends through 2014. This report will help: Marketing Managers identify market opportunities and develop targeted promotion plans for smart grid products and services. Research and Development Professionals stay on top of competitor initiatives, product applications, and demand for smart grid enabling technologies. Advertising Agencies working with clients in the energy efficiency, energy service, information technology, communications, and consumer appliance and electronics markets develop compelling messages and images to promote sales of smart grid products and services. Business Development Executives understand the dynamics of deployment of the Smart Grid, identify potential partnerships, and detect new product applications. Information and Research Center Librarians provide market researchers, brand and product managers, and other colleagues with the vital information they need to do their jobs more effectively.
  • 3. Additional Information Market Insights: A Selection From The Report The Smart Grid Defined Perhaps surprisingly, there is no accepted definition of a smart grid. After more than ten years of discussion and collaboration, utilities, government, and regulatory agencies have yet develop an overarching definition of a smart grid. However, there is widespread agreement that a smart grid requires reliable and instantaneous two-way communications between utilities, operators, consumers, and grid components. Utilities would need substantially improved computing power and software to visualize and control grid operations in real time. Security would be paramount since utilities would be interconnected to one another as never before. Cooperation among all grid stakeholders, including consumers, would be essential. The Smart Grid would also be “self healing” in that it would automatically reroute electricity and reform itself to prevent further damage and catastrophic failure. From a high level perspective, the Smart Grid is a powerful command and control system that is composed of the following components: Smart sensors and devices outside a home or business Smart sensors and devices inside a home or business Two-way communications between utilities, grid operators, consumers, and grid components High speed computing, software, and display devices to monitor current and anticipated future grid conditions and control and protect the grid Smart Grid Technologies Any technology that assists the intelligent control of electricity over the grid can be considered a smart grid enabling technology. Under this definition, any communication technology that allows data to be transmitted to and from utilities, grid operators, consumers, and smart devices on the grid and in the home is an enabling technology for the Smart Grid. A communication technology that transmits data in only one direction does not enable the capabilities inherent in the Smart Grid and is not a smart grid enabling technology. In a similar fashion, back-office software that can account for real-time electric usage and bill customers accordingly is a technology that enables the Smart Grid. Billing and accounting software that cannot account for real-time pricing do not enable the Smart Grid. In the News
  • 4. Smart Grid Technologies Market to Reach $17 Billion by 2014, New SBI Report Finds New York, May 26, 2009 - An aging electric infrastructure, increasing demand for electricity, and increased reliance on foreign fuel sources have exposed the need for a more effective electric energy system, both nationally and abroad. The revelation will propel the U.S. market for smart grid technologies to a projected total of almost $17 billion by 2014, according to Smart Grid Technologies, Markets, Components and Trends Worldwide, the latest report from leading industrial market research publisher SBI. “Continuing demand for electric power is placing such enormous strain on the current electric grid that nuclear energy is resurgent globally and the ongoing use of coal and other fossil fuels will extend for at least the next thirty years despite climate change and the clamor for clean energy,” says Shelley Carr, associate publisher of SBI. “Smart Grid technology would supply electricity more efficiently with higher reliability while also permitting and encouraging consumers to use electricity more wisely.” The market for smart grid enabling technologies in the U.S. is currently estimated to be more than $6 billion. SBI’s forecast includes the market growing at a compound annual growth rate (CAGR) of almost 21% through 2014. Future growth of the smart grid market will be partly driven by the utilization of the technology to provide better sensing and control systems that maximize the use of electricity from renewable energy sources, which produce power that is highly variable and subject to intermittent operation. Wind, solar, and other forms of renewable power are expected to be widely distributed across the U.S. However, the country’s current electric grid is not equipped to realistically maximize the potential of such energy sources. Smart Grid Technologies, Markets, Components and Trends Worldwide provides an in-depth analysis of the development, applications, products, manufacturers, and trends in the deployment of the smart grid in the United States and around the world. Included are projections for future market size through 2014, a comprehensive analysis of the current market for smart grid enabling technologies, and profiles of major manufacturers and marketers of smart grid technologies and the strategies they have adopted to maximize growth and profitability. Marketing concerns including energy demand, environmental impacts, economic conditions, consumer acceptance, stakeholder concerns, and government activities are discussed in relation to their impact on market growth for the Smart Grid and its enabling technologies. About SBI SBI (Specialists in Business Information) publishes research reports in the industrial, energy, building/construction, automotive/transportation and packaging markets. SBI also offers a full range of custom research services.
  • 5. TABLE OF CONTENTS Chapter 1: Executive Summary Scope The Need for a Smart Grid Figure 1-1: Electricity Production Estimates, 2005-2030 (trillion Kilowatt hours) Distributed Power Sources Aging Infrastructure Electric Rate Containment Figure 1-2: U.S. Residential Electric Rates, 2008 (cents per KwH) Energy Abatement The Smart Grid Defined Smart Grid Technologies Smart Grid Costs Figure 1-3: Global and U.S. Market Size for Smart Grid Enabling Technologies, 2008-2014 ($ Billions) Smart Grid Drivers Figure 1-4: Sources of U.S. and World Electric Production, 2006 (percent) Smart Grid Inhibitors Electric Utilities Figure 1-5: Types of Electric Utilities, United States Percent by Number, Capacity, and Customers Served Summary Chapter 2: Energy Demand and the Electric Grid Scope The Smart Grid - An Introduction Smart Grid Definition Grid Visualization and Control Distributed Electric Generation Smart Grid Savings and Costs Electricity Demand Table 2-1: Organization for Economic Co-operation and Development (OECD) Countries Figure 2-1: Electricity Production Estimates, 2005-2030 (trillion Kilowatt hours) Figure 2-2: U. S. Electricity Growth Rates, 1950-2030 (percent) The Electric System Figure 2-3: The Electric Grid Power Generation Table 2-2: Electric Fuel Sources for Steam Turbines and Efficiency (percent) Table 2-3: Electric Fuel Sources for Non-Steam Electric Generation (percent) Figure 2-4: Sources of U.S. and World Electric Production, 2006 (percent) Power Transmission Power Distribution High Voltage DC (HVDC) Transmission
  • 6. Peaking Power Plants Interconnected Power Grids North America Interconnected Power Systems Figure 2-5: North American Interconnected Systems Other Global Interconnected Power Systems Electric Utilities Figure 2-6: Types of Electric Utilities, United States Number, Capacity, and Customers Served (percent) Electric Deregulation Retail Electricity Competition Table 2-4: Status of Energy Deregulation Efforts, July 2006 Federal Energy Regulatory Commission (FERC) Electric Transmission Infrastructure Table 2-5: North America ISOs and RTOs Summary Chapter 3: The Smart Grid and Market Growth Scope The Need for a Smart Grid Table 3-1: Standby Power Draw of Electronic Products (Watts) Table 3-2: Power Plant Costs (estimated), 2008 (in million $) Table 3-3: Residential Electric Lighting Power Usage, in the United States, Lighting Equivalents Table 3-4: Electric Lighting Power Requirements, All Sources, United States The Smart Grid Smart Grid Market Size Figure 3-1: Smart Grid Market Size, 2009-2014 (in billion $) Smart Grid Technologies Market Size Integrated Communications Figure 3-2: Smart Grid Integrated Communications Market Size, 2009-2014 (in billion $) Figure 3-3: Broadband Over Powerline Market Size, 2009-2014 (in billion $) Figure 3-4: Zigbee Market Size, 2009-2014 (in billion $) Figure 3-5: WiMax Market Size for the Smart Grid, 2009-2014 (in billion $) Sensing and Measuring - Smart Meters Figure 3-6: Smart Metering Hardware and Software Market Size, 2009-2014 (in billion $) Sensing and Measuring - Smart Sensors Figure 3-7: Smart Sensors and Devices Market Size, 2009-2014 (in billion $) Information Technology Hardware and Software Figure 3-8: IT Hardware and Software Market Size, 2009-2014 (in billion $) Grid Visualization - Command and Control of the Smart Grid Demand Response Benefits of the Smart Grid Societal Benefits Operational Efficiencies Job Creation
  • 7. Smart Grid Killer Apps Transitioning to the Smart Grid Regulatory Considerations Utility Disincentives Network Security Threats Energy Security Summary Chapter 4: Smart Grid Technologies & Operations Scope Smart Grid Demonstration Projects GridWise™ Demonstration Project Boulder, Colorado Smart Grid Austin, Texas Smart Grid Republic of Ghana Smart Grid Stuttgart, Germany Smart Grid Home Area Networks Smart Grid Technologies Communications Technologies Table 4-1: Selected Smart Grid Communication Technologies Information Technology Smart Appliances Smart Appliance Tests Summary Chapter 5: Smart Grid Facilitators and Inhibitors Scope Government Activities Stimulus Funding Standards Development Environmental Concerns Renewable Energy Mandates Taxes and Incentives Table 5-1: Energy Efficient Tax Credits for Homeowners, 2009 Utility Type Investor Owned Utilities (IOUs) Public Power Utilities Electric Cooperatives (Co-ops) Electric Rates Table 5-2: Top Ten “Smartest” States and Associated Electric Rates, 2008 Venture Capitalists Cyber Security Consumer Acceptance Privacy Issues Ease of Use Concerns Equipment Costs Electric Rates
  • 8. Home Electric Power Generation Summary Appendix: Selected Corporate Addresses Available immediately for Online Download at http://www.marketresearch.com/product/display.asp?productid=1926639 US: 800.298.5699 UK +44.207.256.3920 Int'l: +1.240.747.3093 Fax: 240.747.3004