Google on Tuesday unveiled PowerMeter, a software-based service that when ready for commercial launch will allow consumers to track how they are using electricity in their homes.

Google’s PowerMeter is still in test mode, but the search leader is already in talks with power utilities and complementary product suppliers to gain early market leverage for its service.

Google’s sense of urgency is undoubtedly being stoked by the $4.5 billion the federal government has budgeted in the stimulus bill for the launch of a so-called smart grid.

Adding two-way digital communications technology to the creaky electricity delivery network, or grid, has long been a goal of the scientific community.

But such a monumental upgrade, while the grid is running, is an expensive and tricky proposition that unlike the building of cell phone networks never attracted significant commercial funding.

Much of the available funding went to expanding the grid to keep up with population growth.

Another obstacle was the fact that highly regulated power utilities are notoriously slow to make even small changes in the power delivery system. (Bill Puts BPL in Ham's Way)

But with the government now voting on the injection of billions into the upgrade, tech firms such as Google and IBM are lining up to provide the digital pieces to support 300,000 miles of power lines.

Ed Lu, a member of Google’s engineering team said in a blog that to succeed PowerMeter will require the combined efforts of all levels of government, power utilities, and the tech industry. (U.S. City Lights up BPL)

The company filed a letter with the California Public Utility Commission urging the group to develop smart grid capabilities and to make access to data culled from the grid free to consumers.

Google is no stranger to the smart grid business.

Back in 2005 Google along with Goldman Sachs and Hearst Corp. invested $100 million in Current Communications, a player in the broadband-over-power-lines (BPL) market. (Current Gains BPL Currency)

BPL drives digital communications along power lines offering consumers commercial broadband service and utilities two-way communications with their power meters.