Jul 1 - McClatchy-Tribune Regional News - Rod Walton Tulsa World, Okla.

The cost of burying all of Oklahoma's electrical lines to protect power from ice storms and wind damage would be about $16,664 per every person in the state and tack on a $260 charge to every monthly utility bill for the next 30 years, according to an Oklahoma Corporation Commission report released Monday.

Instead, commission staffers recommended a more measured response that includes aggressive vegetation trimming around power lines, updating the best "smart grid" technology available, encouraging backup generators and, ultimately, putting many lines underground at a cost that could still dig into the billions.

"That's the $64 question," Commissioner staffer Jim Jones, who spearheaded the OCC effort, said. "How do we financially pay for all of this?"

Commissioners Jeff Cloud, Jim Roth and Bob Anthony did not take action Monday. They asked the OCC staff to come up with estimates on realistic

projects and may begin making decisions as early as August.

"We obviously agree that we cannot afford to do everything," Roth said, later comparing any future actions to an insurance policy against ice damage.

"We're trying to insure against future loss," he added. "We need to know that investment point."

The state study was undertaken earlier this year after a December ice storm severed power to more than 600,000 homes, racked up $780 million in damages and resulted in 29 deaths. A January 2007 ice storm also knocked out power to tens of thousands of residents in the eastern part of Oklahoma.

Surviving days and even weeks without power inspired many residents and media editorialists to call for a comprehensive look into the underground option. Buried lines would not be susceptible for outages brought on by ice accumulation that brings down overhead lines.

Developers in many new neighborhoods already have lateral distribution lines buried.

The commission staffers looked at similar studies in five other states and determined that burying lines, depending on the type of line, could cost between $435,000 and $2.5 million per mile. Since Oklahoma has more than 42,000 miles of main and lateral distribution lines, just burying those lines could cost $30.5 billion alone.

The state's 7,500 miles of transmission lines would push the total burial costs to $57.5 billion.

And the commission has doubts that the majority of Oklahomans would be willing to pay such a hefty price.

"Residential customers place a value on undergrounding their utilities and are willing to pay an incremental cost," the report read. "It appears, however, that there is a large gap between the public's perception of what it should cost for undergrounding and what it actually costs."

AEP-PSO, Tulsa's primary electric utility company, indicated that about 434 customers request underground lines annually, but only 100 keep asking after the cost is quoted, according to the report.

In addition, Edmond Electric tried a buried lines project four years ago and found that half of the residents did not even want to pay $400 for meter base conversion, the OCC noted.

"When faced with the real cost of undergrounding, it appears many individuals prefer to keep their overhead service and their money in their pockets," the report added.

The OCC staff's top recommendation was decidedly low-tech: vegetation be cut back from around lines more aggressively to withstand ice and wind damage. It also approved of burying most new lateral distribution lines and also existing lines if a majority of customers in a neighborhood requested it.

Utilities also should bury main and lateral lines when relocating for major road and highway projects, the report suggested. Poles that hold the overhead lines also should be "hardened" by replacing wood with sturdier metal and concrete supports.

"Smart grid" technology, currently being tried in Houston, could quickly rerout power around damaged areas and back to customers who normally would suffer losses, staffers said.

Another innovation would allow falling lines to come loose from service entrances and avoid expensive damage to heads, according to the report.

Commissioners, however, seemed to take issue with Jones' contention that aesthetics was the top advantage to underground lines. "There's a lot less clutter," he said.

Safety, cost and reliability were more important factors, Roth and Cloud pointed out.

Another advantage to underground lines was that they suffered fewer outages, although those mishaps took significantly longer to fix. Overhead lines, meanwhile, boast a longer life span and are less costly to operate and maintain. Underground lines are a danger, too, if digging work is done nearby.

Cloud contended that all customers would need to share in the costs of any major underground projects done by the utilities and state. "I think we're all in this together," he said.

Rod Walton 581-8457

rod.walton@tulsaworld.com

Require more aggressive vegetation trimming.

Bury all new lateral distribution lines except where low population density makes it impractical.

Bury existing lateral lines when requested by most customers in a neighborhood.

Identify urbanized main lines and require burial when wire is replaced.

Require that utilities bury lines when relocating for major road projects.

Harden all highway-crossing electric-line poles susceptible to collapsing on roadways.

Replace wood poles with concrete or metal in targeted areas.

Replace and harden circuits proven more prone to outages.

Bury drop lines (going directly to customers) and/or create a program to test new service entrance disconnect systems.

Create incentives for "smart grid" installations.

Encourage or offer incentives for purchasing backup generators.

Require backup generation for vital services such as hospitals.

(ED:  Choose Alternative Energy Solutions.  Pay certain amount as grant for purchase of alternative energy based at home.  No grid necessary!)