Energy Team Readies Major Transmission Study Continued
By Barbara Klein and Bill Sweet
First Published February 2002
The big picture will be the focus of the Energy
Department's National Transmission Grid Study, which
took off from Vice President Dick Cheney's National
Energy Policy report of 17 May 2001. The new study was
to "examine the benefits of establishing a national
electrical grid, identifying major transmission
bottlenecks and remedies to remove them."
Task forces, involving many of the experts who took
part in the POST study, were set up to evaluate the
issues in detail. Planning and the need for new
capacity, plus siting and permitting, were areas of
investigation. Others were business models for
investment and operation, the operation of
interconnected transmission systems, reliability
management and oversight, and new transmission
technologies.
Study participants have been unusually tight-lipped
about what the report will say, but several issues came
to the fore during the process. State governors, for
example, howled at the idea of the federal government
gaining the power to site transmission lines without
state approval. Sensitized, the Energy secretary's
office took a draft of their department's report and ran
it by representatives of the governors' organization,
while DOE staffers are talking about cooperative,
coordinated efforts. FERC will establish regional panels
to "strengthen its relationships with the states."
One proposal floated would require federal
legislation to give local and state authorities a year
for a first try at siting and then allow FERC to
override them with a certificate of public convenience
or necessity. But permitting is not the only problem:
also to be taken into account are uncertain returns on
transmission investment; an unclear regulatory climate;
and reluctance to host power lines mainly benefiting
other states.
Regional differences and questions of who ultimately
should pay for the added transmission also are cans of
worms. Lower-cost power areas and some traditional
utilities, notably in the Southeast, are resisting a
fast march to more nationalized electricity markets.
Why are study participants holding their cards so
close to their chest? They are under strict instructions
not to talk till the report is officially released.
Asked if this is because the Bush administration is
looking to get the biggest bang for the buck, or whether
it's just its general operating style to clamp down on
leaks, one participant said, "No. I think they just want
to assure that when the study is reported, it will be
reported accurately."
To get the story straight from the horse's mouth,
watch for the release of the NTGS 2001 study on the DOE
site: http://www.doe.gov.
To Probe Further
The Department of Energy transmission report, when
it is released, will be accessible at
http://www.tis.eh.doe.gov/ntgs.
Background on how the report was prepared and some
preliminary findings are already available at the site.