The Smart Grid Newsletter popped BPL's bubble last week with an article entitled "One bogus and two real BPL opportunities."

Analyst Jesse Berst of the Center for Smart Energy says it's naive to predict that broadband over powerlines has major potential as a way to provide internet access to consumers. He cites unresolved technical issues, installation hurdles, and high costs that will prevent BPL from being a high-speed success in the U.S.

In an article about BPL last year, I suggested that utilities weren't ready to become business ISPs, noting that there was still potential for BPL in automated meter reading to enable time-of-use billing and demand response.

But a year ago, a Business 2.0 feature positioned BPL as an internet access method of last resort for rural customers, teachers and doctors.

As for consumer internet access, any attractive market will be snatched up by the cable and telecom providers long before utilities get around to serving them. Other markets, not densely populated enough to justify the cost, may have to take matters into their own hands.