Electric Utilities Take Steps to Create Energy Authority for Western States
Dec 10 - The Oregonian
A better air traffic controller is needed to deliver electricity in the West, and that calls for a massive restructuring of the existing system, proponents of a sweeping plan said Thursday.
Their action merely adopts a set of by-laws for the organization, called Grid
West.
But proponents and opponents agreed that the move, after about 10 years of
discussion, sets the stage for a new way of distributing electricity throughout
six Western states, including Washington and Oregon, as well as British
Columbia. That could happen as early as 2007. The Federal Energy Regulatory
Commission has been urging creation of the organizations nationwide for at least
four years.
"We need a comprehensive solution to regional transmission
problems," said Allen Burns, Bonneville's executive vice president for
industry restructuring.
With Thursday's action, the proposed Grid West will hire a recruiter to find
interim board members. Grid West, which now has a tiny staff supported by
contributions from the nine transmission groups, also will refine proposed
solutions for electricity transmission management and infrastructure
construction.
"Grid West will be the central, independent authority that will ensure
new lines are built when and where they are needed to ensure future system
reliability," said Dave Kvamme, spokesman for PacifiCorp.
Earlier Thursday, Burns was among a diverse group of 70 participants who met
at an airport-area hotel discussing the advantages and disadvantages of the
proposed organization.
The gathering included public power representatives who oppose Grid West, an
environmentalist group that could not get consensus from its members, and
representatives for coal- and wind-power generators who joined in favor of the
new organization.
Bonneville is the dominant participant in the existing multiplayer system,
which Grid West proponents described as haphazard and inefficient.
Wind generators and new coal plants support Grid West because it's too
difficult now to get a place in line on the existing system, said Natalie
McIntire of the Renewable Northwest Project in Portland, which supports wind
energy.
But opponents, such as public power representatives, believe Grid West is an
unnecessary restructuring for a system that needs only tweaking. They said the
proposed organization, if it is created, could result in higher electricity
rates for consumers.
"Solving problems is not the real mission here," said Lon Peters,
an economist representing publicly owned generators. "Institution building
is."
Another public power representative warned that deregulation -- part of the
motivation to create Grid West -- was a failure in California.
"You got hit in California," said Steven Marshall, assistant
general manager of Snohomish Public Utility District. "You're going to get
hit now."
Electricity transmission now is left in the hands of Bonneville Power
Administration and, to a lesser extent, eight investor-owned utilities. The
utilities, who also decided to approve the bylaws include: Avista Corp., British
Columbia Transmission Corp., Idaho Power Co., NorthWestern Energy, PacifiCorp,
Portland General Electric, Puget Sound Energy, and Sierra Pacific Power/Nevada
Power.
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