Angry citizens have been giving the U.S.
Department of Energy an earful, saying that they don't
want high voltage power lines built near their
properties. While those consumers are worried about
obtrusive construction and environmental damages,
federal regulators have to consider what is in the
national interest.
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Ken Silverstein
EnergyBiz Insider
Editor-in-Chief |
The Energy Policy Act gives the Federal Energy
Regulatory Commission (FERC) backstop permitting
authority as a way to get important transmission
built. Specifically, the U.S. Secretary of Energy can
designate national interest electric corridors in
those areas that have capacity constraints or
congestion. The states still have first crack at the
process. But the feds will step in if state law
precludes consideration of interstate benefits and if
the state takes longer than one year to act after an
application is filed.
The issue has been coming to a boil as regulators
seek public comment on those areas that it says are in
dire need of new transmission. That includes large
swaths from the Northeast to Virginia as well as from
Arizona to Southern California. The object is to add
reliability to a network that is overworked,
particularly in the summers.
Many state utility regulators are sympathetic to
the concerns of those citizens who would be affected.
But that support is oftentimes political, say
utilities. That's why the feds must be given final
say. The Edison Electric Institute points to a 90-mile
line owned by American Electric Power that took 16
years to get approved by both state and federal
regulators -- a line of vital interest to areas in
West Virginia and Virginia.
"There is a real risk of blackout here, in these
systems, that cannot be ignored, that cannot be wished
away," says David Meyer, senior policy advisor for the
Energy Department, who testified in New York City
regarding the so-called New York Regional
Interconnect. Advocates of the line also say that the
purpose of the national corridors - and the subsequent
line now under consideration -- is to keep the economy
humming along.
Transmission investment has declined in real terms
-- adjusted for inflation -- from 1975 to 1998. While
there have been increases since 1998, FERC says that
the level is still less than what was invested in
1975. Over the same time period, however, the demand
for electricity has doubled. That has resulted in a
significant decrease in transmission capacity,
requiring new lines get built.
In the short run, things will be okay. Electricity
capacity margins are expected to be adequate to ensure
reliable electric service throughout North America
this summer, under normal weather conditions, says
Rick Sergel, president of the North American Electric
Reliability Corporation (NERC). However, widespread
and sustained hot and humid weather could threaten
that reliability.
Taking Positions
NERC is most concerned about Southern California,
which depends on significant amounts of imported power
that is transported across heavily burdened
transmission lines. That congestion is behind San
Diego Gas & Electric's intensive lobbying efforts to
get its Sunrise Powerlink transmission up and running.
The California Public Utilities Commission "must
act now before it is too late," says Barbara Warden,
chair of a business coalition seeking to get the line
built. The region must furthermore prepare to
construct new lines to accommodate ever-escalating
power needs, she adds. Modern wires would ease that
burden as well as ensure that the local utility can
meet its obligation to provide more renewable power.
It's all part of the public hearings that the
Energy Department is holding on National Transmission
Corridors. Critics at the meeting to discuss Powerlink
said that the proposed line would be used to transport
fossil-fired electricity on the Mexican side of the
border. They also said that the sheer size of the wire
is much greater than what the authors of the law had
intended, adding that is why state regulations should
prevail here.
"This is a serious and problematic overreach from
what Congress authorized," says Laurence Chaset, an
attorney for the state public utility commission. "We
oppose the designation that you are proposing." State
utility commissioners say that they will make their
decision by January 2008 as to whether to allow the
Powerlink project, which would be a $1.4 billion, 150
million high voltage transmission line.
At a separate meeting held by the Energy Department
in Arlington, Virginia, officials heard arguments by
Dominion Virginia Power and others. The utility wants
to build a 65-mile line in Northern Virginia that is
also an area declared to be of vital economic
interests. It supports its case by noting that the
region has experienced 40 percent electricity growth
in the last decade and it expects to expand another 8
percent by 2011.
Meanwhile, Allegheny Energy is proposing a power
line that will cross West Virginia, Virginia and
Pennsylvania and is part of the Mid Atlantic region
that has been designated by the Energy Department as
"critical." That line, which would stretch 240 miles
and cost $1.3 billion to build, would be operational
by June 2011. That project coincides with one being
proposed by American Electric Power that will go from
West Virginia to New Jersey.
"Additional high-voltage transmission highways are
absolutely necessary to relieve congestion within the
eastern grid," says Michael Morris, CEO of AEP. He
adds that congestion costs in the eastern region that
AEP operates total in the hundreds of millions -- an
amount that will only get bigger unless more wires are
built.
The transmission permitting process remains among
the most arduous. The process is meant to be inclusive
and to elicit the views of all stakeholders.
Regulators should strive for reasonable compromises.
But if such deals cannot be reached, then they must
seek to achieve the greatest good for the greatest
number. Transmission planning requires it. And so does
the federal law.
More information on this topic is available from
Energy Central:
New Sheriff on Grid: Utilities Brace for New Standards,
EnergyBiz, March/April 2007
Cracking the Bottlenecks - Act Spurs Buildup of
Transmission Corridors, EnergyBiz, Nov/Dec
2006
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