US will take extra step before naming transmission corridors

Washington (Platts)--9Nov2006

In advance of a controversial decision on electricity transmission, the
Department of Energy said Thursday that it would take an additional step to
consider the public's concerns before designating "national interest" power
corridors being sought by utilities and regional grid operators.

In the 2005 Energy Policy Act, Congress said DOE could make the corridor
designations in an effort to streamline the permitting of key interstate
lines -- potentially with a federal eminent domain ruling -- after issuing a
study on transmission bottlenecks.

DOE issued the study in August, finding that Southern California and the
area between New York and metropolitan Washington both suffer from "critical
congestion" that jeopardizes the reliability of their grids.

DOE said Thursday that if it makes a designation, it would do so in a
preliminary form and seek public comment before finalizing the decision.
"Because the Department recognizes the broad public interest in this process
... the Department will first issue any designation that it is considering in
draft form, so as to allow additional opportunities for review and comment by
affected states, regional entities, and the general public," DOE said in a
statement, noting the additional step was not required by EPAct.

State regulators have urged DOE to proceed cautiously before making any
corridor designations; they are concerned their decisions could be preempted
by the decision. A designation would allow the Federal Energy Regulatory
Commission to issue a construction permit for an interstate line within the
corridor, paving the way for the permit holder to acquire from a court the
right-of-way by exercising eminent domain.

DOE officials have said they expect to make a handful of designations,
possibly by the end of the year.

--Mike Schmidt, mike_schmidt@platts.com

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