Grid investements could reduce power costs by

Grid investements could reduce power costs by $12.5-bil, ICF says

Washington  (Platts)--18May2004


Strategic investments in the US electric transmission systems could lower the
wholesale power costs by $12.5-bil or more, according to an ICF Consulting
study projecting the amount of new transmission capacity needed to ensure
continued reliability. Investments of about $8-bil over the next 26 years
could lower wholesale power costs by $12.5-bil, and if lower reserve margins
are factored in because of a more integrated system, the benefit would be
$18-bil in lower power costs, ICF said Tuesday. The average savings per
customer would be at least $30, based on a net present value, the consultant
said. The study was sponsored by Kohlberg Kravis Roberts & Co., which has
investments in transmission systems, including International Transmission Co
in Michigan.

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