'Smart Grid' Gets $3.4 Billion Jolt

President Obama will announce today $3.4 billion in grants to help build a "smart" electric grid aimed at reducing blackouts and cutting utility bills. The grid, as envisioned, would do a better job incorporating wind and solar energy into the nation's electricity supply.

The existing power grid is a patchwork of often antiquated systems that, under stress, can fail to deliver electricity where it's needed. The grants will pay for better transformers at utility companies and also smart meters to help consumers manage their energy use.

"It is fair to say that the current (grid) system is certainly outdated. It's dilapidated," said Carol Browner, the president's top adviser on climate change and energy issues. The new plan is expected to created tens of thousands of jobs, Reuters reports.

What's a smart grid and why do we need it? Find out in these two videos: