A smart grid system, method, and apparatus for powering, controlling, and communicating with light emitting diode (LED) lights using Modified Power over Ethernet (M-PoE), which includes capabilities such as the added capability for PoE ports to be turned on-off in response to a signal, and to be have a PoE port's output voltage regulated in response to a signal. M-PoE equipment includes PSE and PD equipment configured such as, but not limited to, midspans, end-spans, etc. The smart grid is a digitally enabled local electrical power distribution grid that is enabled to gather, distribute, and act on information about the behavior of all attached devices, including schedules, time of day, season, occupancy, etc., in order to improve the efficiency, reliability, and economics of electricity services. In addition, the smart grid may also communicate with the larger smart grid, and also may be controlled by the larger smart grid.