Law or no law FERC can aid reliability, Wood observes
Federal
legislation setting electric reliability requirements is the best fix for grid
problems but FERC can act to boost reliability if Congress fails to pass a
bill, Commission members were told.
Regulators were advised to respect state and
Canadian interests in any action they take and to be mindful of the
contributions evolving technology may offer.
FERC got that advice during its conference on
ensuring grid reliability after the Aug 14 blackout.
"We've got a lot of work ahead, with the
bill, hopefully, or without it," Wood observed.
NERC officials briefed the commission on the
reliability regime that evolved over the past 35 years, initiatives to
strengthen the grid and the grid's inherent limits.
NERC Senior Vice President David Nevius intends
to put more emphasis on regional programs, he noted, reporting on a new
standards development process.
NERC General Counsel David Cook wants to see
FERC given the authority to create an organization that would set and enforce
standards but without needed legislation NERC will gear up auditing efforts.
NERC's compliance program is "a good
one," Nevius offered, but "we've gone as far as we can to push
industry in a voluntary environment."
Cook agreed, telling Commissioner Suedeen Kelly
that while peer pressure among firms worked well in the past it likely would
not be good enough in the future considering changes in the industry.
NERC is trying to foster an expanded WECC
arrangement, said Cook, making compliance with key operating rules enforceable
by contract with other regions.
Control areas representing 88% of load -- 23 of
33 areas -- voluntarily joined in the program, WECC CEO Louise McCarren
reported, and the WECC staff is working with the others to convince them to
take part.
FERC and state commissions can use their
considerable leverage to encourage such cooperation, she noted.
The WECC's system isn't considered final, but is
an intermediate step until mandatory standards are adopted, McCarren pointed
out.
Reliability standards need to be mandated, New
Jersey Commissioner Connie Hughes urged. She chairs NARUC's Ad Hoc Committee
on Critical Infrastructure.
"I don't believe in over-regulation, but
our business really is about reliability," Hughes asserted.
Federal and state commissions could do a better
job of monitoring which firms meet standards, she added.
She wants NERC to be more forthcoming with that
data.
The feds and states "both have
responsibilities," she cautioned.
How heavily interconnected the grid is was
illustrated by the August blackout, noted Hans Konow, CEO of the Canadian
Electricity Association.
He made a similar plea for inclusion.
CEA agrees that the present system of voluntary
reliability standards has to change but international solutions are needed.
The group favors the reliability language in the
pending energy bill, Konow reported, but worries about unilateral action by
the US.
Technology is vital to boosting grid
reliability, said DOE's William Parks, deputy director of the Office of
Electric Transmission & Distribution.
Some technologies are available today to assist
in this regard, he reported, while others are to emerge over the next decade.
"As you think about rules and regulations,
be sure you don't exclude new technologies in coming years," he advised.
For Parks, standardization of protocols and
procedures to ensure reliability are key.
Airlines and other industries have been able to
do it but not the power sector, he observed.
New technologies such as real-time sensors need
to find applications regardless of market structure, noted Commissioner Nora
Brownell.
The industry has focused less on the future and
more on "keeping the lights on" in recent years, Parks noted,
lacking the incentives and capital to look at new technologies.
(Story originally published in Restructuring
Today 12/3/03)