The New York Independent System Operator (NYISO) announced on August 8 that it will construct a smart grid project involving the installation of capacitor banks and phasor measurement units on the bulk transmission system throughout the state. The project will cost a total of $74 million. Half of the cost is funded from a smart grid grant from the U.S. Department of Energy. The project will help save $9 million in energy costs per year when completed. Capacitor banks will enhance the efficiency of the transmission system by reducing the amount of electricity that is lost when carried over long distances. Phasor measurement units (PMU), which help detect abnormal waveforms in the transmission system, will strengthen the visualization capabilities and situational awareness of grid operators. The federal funding for this NYISO project and others is allowing for the opportunity for independent system operators, transmission companies, and other utilities throughout the country to install more than 800 networked PMUs. As a result of the funding, operators and utilities are getting a better sense of the status of the grid infrastructure allowing them to respond more rapidly when unintended disruptions take place. The smart grid plan was established along with an announcement of the development of a new NYISO control center near Albany.