Study urges upgrade of power grid in western U.S.

The Salt Lake Tribune --Sep. 30

Sep. 30--Without the addition of new transmission lines, electric utilities in Utah and other Western states increasingly will be forced to rely on natural gas-fired power plants to meet the growing demand for electricity, according to the Rocky Mountain Area Transmission Study group (RMATS).

Organized by former Utah Gov. Mike Leavitt and Wyoming Gov. Dave Freudenthal, RMATS on Wednesday unveiled the results of its yearlong study that identified major additions to the transmission grid that could reduce reliance on natural gas, with its volatile prices, and enhance the movement of electricity throughout the region.

RMATS' initial recommendations involve three projects estimated to cost nearly $1 billion.

They include:

--The addition of a new power line to allow additional electricity to flow between northwestern Wyoming and Colorado.

--Construction of a new transmission line originating in southeastern Wyoming that eventually would separate into two lines extending into Utah and Idaho.

--Upgrading an existing line that runs across Montana to enhance delivery of power to the Pacific Northwest.

Expansion of the electric power transmission system in the West is a critical issue for all states, Utah Gov. Olene Walker said. "We've ignored that critical resource for too long."

Yet the electric power industry in the West remains reluctant to invest in new transmission infrastructure.

"We can get new [interstate natural gas] pipelines built but we can't get new [interstate electric] transmission lines constructed," said Nora Brownell of the Federal Energy Regulator Commission (FERC).

With natural gas pipelines there is one regulatory body -- the FERC -- that oversees the licensing process, Brownell explained.

The construction of electric transmission lines that skirt state borders is more problematic. Development can involve several states, each with their own set of regulations. And those differing regulations can make it hard for companies to feel comfortable that they will be able to recover their transmission line construction costs and earn a decent return.

"I can't blame them," Montana Gov. Judy Martz said.

The RMATS group, which brought together regulators and utility representatives from Utah, Wyoming, Montana, Idaho and Colorado, is recommending that state public utility commissions strike an agreement that spells out how they will handle the allocation of multistate transmission expansion costs so that those interested in building new transmission lines will no longer have to deal with regulatory uncertainties.

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