Proposed Stimulus Package a Critical Step to
Ensuring Electric Reliability
PRINCETON, N.J., January 28, 2009
Provisions encouraging the development of electric transmission, renewable
power, and the “smart grid” included in H.R. 1, the American Recovery and
Reinvestment Act of 2009 are a critical first step to ensuring a clean and
reliable energy future for North America, announced the North American
Electric Reliability Corporation (NERC) today. The bill, which includes
provisions for $8 billion for loan guarantees for transmission and renewable
energy projects and additional funds to advance the “smart grid,” is the
strongest support for electric infrastructure development to be considered
by lawmakers in recent years.
“We applaud the Obama Administration and Congressional lawmakers for their
leadership in working to resolve the national transmission crisis and
support needed infrastructure development,” commented Rick Sergel, president
and CEO of NERC. “We strongly support the smart grid and loan guarantee
provisions in the proposed stimulus package and look forward to further
discussion on addressing barriers to the development of this needed
infrastructure, including siting and cost allocation for transmission
projects.”
NERC flagged the escalating need for transmission as critical to a clean and
reliable energy future in its 2008 Long-Term Reliability Assessment and
Special Report on Reliability Impacts of Climate Change Initiatives,
highlighting the integration of new renewable resources as a key driver for
transmission development. Typically located outside the transmission grid’s
present footprint, these remote resources will require more transmission to
move power from where the wind blows, the sun shines, and the waves roll to
where customers need it.
Transmission development has significantly lagged behind generation
development for the last decade, leading to situations where the grid is
operated closer to the edge than in the past. Operating performance
statistics collected in recent years increasingly suggest the grid is in
need of significant investment.
NERC’s 2008 Long-Term Reliability Assessment (October 2008) and Special
Report on Reliability Impacts of Climate Change Initiatives (November 2008)
are available at: http://www.nerc.com/page.php?cid=4|61.
The North American Electric Reliability Corporation (NERC) is an
international regulatory authority for electric reliability of the bulk
power system in North America. NERC develops and enforces reliability
standards; assesses adequacy annually via a 10-year forecast and winter and
summer forecasts; monitors the bulk power system; audits owners, operators,
and users for preparedness; and educates, trains, and certifies industry
personnel. NERC is a self-regulatory organization, subject to oversight by
the U.S. Federal Energy Regulatory Commission and governmental authorities
in Canada. Learn more at www.nerc.com.
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