Many utility companies and tech companies are anticipating a bright future thanks to a $4.5 billion federal stimulus package that is going towards the funding of smart-grid projects.

Among other things, a smart grid will take power grids from mechanical operations into digital operations, ideally making it easier to buy, sell, and deliver electricity. Today, state utility regulators are encouraging that utility companies go after the federal money in order to expedite the development of smart grids while getting government funding to do so.

Companies including Cisco Systems (CSCO) and Tendril Networks are increasing staff in order to take on new smart grid projects, according to a report in The Wall Street Journal.

Tendril Networks, the Boulder, Colo.-based appliance maker, has provided legal help for 12 utility companies that are applying for stimulus money, while PG&E (PCG) has contracted with Cisco and IBM (IBM) to design displays that will help consumers learn how to use less energy. Microsoft (MSFT) has already introduced a system that allows users to read on-screen how much energy they are using.

But getting the grants isn’t easy. Last month alone the Department of Education reported 570 stimulus money applications that asked for more than $14 billion in smart grid funding. Grants go up to $200 million each.