Inpo: a Good Model for Blackout Fix

Aug 28 - Power Engineering

A year after the blackout of 2003 knocked out 62 GW of load in seven states for as long as four days, the industry is still struggling for a fix. The major accomplishment ' so far is a government report that blames the whole thing on a transmission line in Ohio sagging into a tree. That's OK for public consumption, but everyone in the industry knows the problems go a lot deeper. Significantly reducing the probability of another multi-state, cascading blackout is going to be difficult.

It reminds me of the aftermath of the Three Mile Island nuclear power plant accident in 1979, which, according to the Nuclear Energy Institute, "was due to a combination of equipment failure, inadequately designed instrumentation, and the inability of plant operators to understand the reactor's condition." Substitute "control area operators" for plant operators and "transmission grid condition" for reactor's condition and you have a pretty good description of the cause of the blackout.

The investigation into TMI showed the nuclear industry it had fundamental problems not limited to one company or one valve design and that it needed to make some serious changes. To its credit, the nuclear power community honestly acknowledged those problems and took action. A lot of things changed. The Nuclear Regulatory Commission got a lot tougher with operating reactors. Many utilities cleaned up their own houses.

The most interesting development, and the most applicable to today's transmission problems, was the creation of the Institute of Nuclear Power Operations. INPO was created to be a utility self- policing operation aimed at improving reactor performance. Still in operaton today, it sets performance criteria, evaluates individual plant performance, and judges the results. These ratings are not publicized, but the insiders know who's letting down the industry and they don't tolerate it. The financial stakes are too large. In a few cases critical INPO ratings have been leaked to the public to the extreme embarrassment of utility managements.

Since the creation of INPO and the other steps taken in the aftermath of TMI, the improvement in U.S. nuclear power plant performance has been impressive. There has been no serious accident since 1979. Average capacity factor is now 90%, almost twice what it was. The rate of significant equipment malfunctions is one thirtieth what it was, at a miniscule 0.03 events per reactor per year.

That's not to say there have been no serious problems at nuclear plants. Davis Besse just restarted after a two year shutdown due to a deep corrosion-caused hole in the reactor vessel head. Ironically, Davis Besse is owned by First Energy, same utility that owns the transmission line that sagged into the tree, starting the blackout. But there was no accident at the nuclear plant. They found the problem in time and it was fixed. The lesson was shared with everyone else.

I don't mean to imply that the transmission community is blind to the INPO model. At the recent Edison Electric Institute annual meeting, Michehl Gent, president of the North American Electric Reliability Council, reported that NERC is working on INPO-like training standards for transmission system operators. NERC is a utility-run, self-policing agency somewhat similar to INPO, but not as active. NERC makes "policy statements" for transmission control area operation, but does not enforce them. In fact, NERC appears to tacitly admit that its transmission operating policies were not being followed. Its assessment of bulk electricity supply for this summer says, "If all entities comply with NERC reliability standards, there should be no uncontrolled blackouts." Since the blackout, NERC has campaigned to make its policies mandatory, but as we all know, Congress has failed to act. Since NERC is voluntarily financed by utilities at present, it may not be the ideal enforcement agency unless the finance model is changed. Some form of mandatory operating standards and enforcement is clearly needed.

Another EEI speaker, a utility CEO, said that transmission system operators must have the authority to drop load to maintain system stability without having to get anyone else's approval. That's a bold move and lot of responsibility to give one person, but the alternative is worse. He noted that last year one of his company's operators dropped 500 MW of load on his own for two hours and prevented a larger, longer term outage.

In the wake of the TMI nuclear accident the federal government authorized an independent group to investigate and report on it. The resulting Kemeny Commission Report was blunt, forceful, and excrutiatingly embarrassing to many parties. It named names. It identified the initiating event, but went way past that. It ruthlessly exposed deep-rooted problems in the nuclear industry, particularly the "cover up any bad news" mentality that got in the way of sharing experiences and lessons learned. That report was instrumental in the creation of new institutions like INPO and revamping existing ones like the NRC.

I hope we don't need more large-scale blackouts and a painful investigation to stimulate needed changes in our transmission system design and operations.

And I hope that Power Engineering's readers don't get too comfortable because this problem is on the transmission side of the industry. The blackout caused chaos in power plant operations. Worse, there are those who say the blackout was aggravated by power plant managers who were too quick to take their units offline. You're part of this, too.

Editor's Note: Power Engineering proudly welcomes Will McNamara to the masthead as a Contributing Editor. Will is widely recognized as a leading energy industry trending analyst. Since 2002, he has managed Sempra Energy's state legislative and regulatory affairs. Prior to joining Sempra, Will served as director of energy industry analysis for SCIENTECH, Inc. where he gained national recognition due in large part to his daily column, IssueAlert, in which he analyzed and provided commentary on emerging energy issues.

I am certain the insight Will provides in his articles-starting this month with a feature on emissions trading - will benefit you greatly.

-Brian Schimmoller, Managing Editor

ROBERT SMOCK, VICE PRESIDENT AND GROUP PUBLISHING DIRECTOR, GLOBAL ENERGY GROUP

Copyright PennWell Publishing Company Aug 2004