No quick and easy fix to power grid, industry insiders say

 

The Record, Hackensack, N.J. --Aug. 12

Aug. 12--One year after a power failure in Ohio left much of the Northeast and parts of Canada in the dark, partisan politics are blocking reforms needed to bring the power system up to 21st century standards, industry insiders say.

Electric utilities in New Jersey and elsewhere have poured millions of dollars into their facilities since the massive blackout, lessening chances for a repeat, regulators, consultants, and utility officials say.

Even so, as 50 million people discovered last Aug. 14 when the lights went out, utilities are interconnected through 200,000 miles of transmission lines, and one breakdown can produce widespread outages.

As Saturday's anniversary nears, the power grid remains antiquated. A so-called nationwide "smart grid" that would use computers to reduce human error is considered unlikely in the short term because of the high cost. And reforms needed to improve reliability are bogged down in Congress, victims of election-year politics, the insiders say.

In its 134-page report, a joint U.S.-Canadian task force that investigated the blackout called on Congress to authorize federal energy regulators to enforce mandatory standards. This would require utilities to boost employee training, have sufficient reserve capacity, and improve maintenance.

But doing so would take a push from Washington, and that's not happening this year, said Ralph E. Fehr, a consulting electrical engineer to power companies and an adjunct instructor in power systems at universities in Florida and Pennsylvania.

"They're not even acting on the 9/11 stuff; why would they act on the energy stuff?" Fehr said.

A stand-alone bill to strengthen regional operating systems has been pending since the end of the Clinton administration, said Jeanne Fox, president of the New Jersey Board of Public Utilities and a member of the joint task force.

But the legislation was folded into the Bush administration's wide-ranging -- and controversial -- energy bill, and remains stalled in Congress over issues such as drilling for oil in the Alaskan wildlife refuge, mandates for corn-derived gasohol, and carbon dioxide standards.

"Everyone agrees that mandatory reliability standards have to be developed," Fox said, but legislation to do so "is held hostage to the rest of the bill."

The blackout, the biggest power outage in U.S. history, came without warning on a hot, humid afternoon. In just seven minutes, the blackout cascaded from Ohio to Michigan, Ontario, upstate New York, New England, and the New York metropolitan region, knocking out 260 power plants in an area of 9,300 square miles serving more than 50 million people.

The task force cited multiple causes, including falling branches from trees that should have been trimmed because they are near power lines.

But the No. 1 factor cited was human error. Utility workers could have prevented the blackout from spreading had they recognized the problem promptly, the task force said. But the workers lacked training, computers were not working, and the Midwest utilities did a poor job sharing data with regional independent operating systems.

"Things go wrong. But it is the responsibility of the people who operate the system to keep the small problems from getting bigger," Energy Secretary Spencer Abraham said when the report was released in November.

Abraham, who led the task force with Canadian Natural Resources Minister Herb Dhaliwal, said FirstEnergy Corp. of Ohio violated several voluntary reliability standards the industry has imposed on itself.

"This blackout was largely preventable," Abraham said.

The big question is, can it happen again?

"You can never say never, but the likelihood decreases every year as we get smarter and make investments in the system," said Ralph LaRossa, vice president for electric delivery at Public Service Electric and Gas Co., New Jersey's largest utility.

PSE&G has spent more than $500 million on infrastructure upgrades over the past 12 months, and has started full-time helicopter patrols to spot potential problems from trees interfering with power lines, LaRossa said.

"Shame on us if we don't react from this," said Jim Tarpey, vice president of operations for Orange and Rockland Utilities, which is completing a two-year, $22.5 million upgrade of facilities in Bergen County. "The best thing we can do as an industry is really learn from everything that went wrong on that day."

With more utilities interconnected, quality-control practices at each company can have a direct impact on others, Tarpey said.

"When we were all integrated utilities, we sort of took care of ourselves," he said. "Now there is a group of generators, a group of utilities, and they look to the regional master to take care of things. We want to make sure they're looking in the same light we did.

"You look at the tree that hit the line [in Ohio] and ask how well do we maintain that vegetation. The practice out there is going to affect our system back East."

That's why mandatory reliability standards are needed, Fox said. They would replace voluntary standards developed by the industry-funded North American Electric Reliability Council (NERC), based in Plainsboro.

The Federal Energy Regulatory Commission "is trying to do what it can, but it apparently doesn't have strong statutory authority to mandate," Fox said. "And NERC is voluntary, and has not been as strong as it should be."

NERC is among those calling on Congress to make compliance with reliability standards "mandatory and enforceable," said Michehl Gent, its president and chief executive.

"Until that occurs, we will work with the government and the industry to do everything we can to ensure that all entities whose operations affect the operation of the bulk electric grid comply with NERC standards, but that is not a substitute for legislation," Gent said.

The concept of NERC is a good one, and it was working well until recently, Fehr said. But budget crunches have prompted utilities, figuring they won't be caught, to "push the limits," leading to "substantially more" lapses in meeting the standards, Fehr said.

That's why federal leadership is needed, Fox said.

"The major problem is we have an electric system from the Eisenhower era, when Ed Sullivan was the king of TV," she said. "Think of the power demands, how much more electricity you use then when you were a kid. Whoever wins the election, hopefully action will be taken."

Since the blackout, many critics have called for investing in a "smart grid," a system using cutting-edge technology to monitor patterns and make adaptations as needed. But that comes with a huge price tag -- possibly in the billions -- something financially pressed utilities cannot afford, Fehr said.

Even so, utilities are "clearly" better prepared to prevent a recurrence, Fox said. Even in the PSE&G and Orange and Rockland areas, where reliability has generally been excellent, the companies have changed policies, improved some systems and procedures, and invested heavily in upgrading their systems, Fox said.

"They are way far ahead of where they were a year ago," she said. "I think New Jersey is in very good shape." One reason is that utilities were able to see how theoretical emergency game plans worked in a real-time situation, LaRossa said.

Nearly half of PSE&G's 2 million customers were affected by the blackout, with Bergen, Passaic, Hudson, Union, and Essex counties hit hardest. And all Orange and Rockland customers lost power, including 70,000 in New Jersey.

Only about 5,000 of Jersey Central Power & Light's 1 million customers were affected, even though a large part of the blame was placed on JCP&L's parent, FirstEnergy.

Still, JCP&L -- which had committed to upgrade its system in response to a July 2003 power outage at the shore -- invested an additional $250 million after the August blackout, Fox said.

-----

To see more of The Record, or to subscribe to the newspaper, go to http://www.NorthJersey.com .

(c) 2004, The Record, Hackensack, N.J. Distributed by Knight Ridder/Tribune Business News. For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com. FE, PEG,