www.msnbc.com/news/354266.asp

Power grid is stressing out, U.S. says

Federal report finds competition has degraded reliability

Jan. 7  Next time you turn on the lights, think about this: A new federal study of power outages last summer has concluded that the reliability of the U.S. power grid has been considerably eroded. A big factor, it found, is that utilities that used to cooperate are now fiercely competitive.

THE FEDERAL government opened up competition in 1996, the idea being to lower electricity prices and save consumers money. Today, some 163 million Americans in 24 states have what proponents call the power of choice.

Unfortunately, an Energy Department task force said in its interim report on power outages, that has also meant some utilities have adopted a strategy of cost cutting that involves reduced spending on reliability.

Moreover, competition has also meant that its harder to figure out whos responsible for reliability.

The overall effect, the report noted, has been the infrastructure for reliability assurance has been considerably eroded.

The report also suggested the problem will get worse unless corrective action is taken. Power quality and reliability are increasingly important in a society that is ever more dependent on electricity, it noted.

Aging infrastructure and increased demand for power have strained many transmission and distribution systems to the point of interrupting service ... (and) stressing the electrical system, the report added.

TRANSMISSION ISSUE TOO

While the task force focused on distribution of electricity from utilities to customers, the industry has been ringing alarm bells over another reliability issue that could disrupt the nations electricity flow.

The North American Electric Reliability Council, an industry group, last month wrote to the House Commerce Committee, stating that last summers power outages show we are facing a real and immediate crisis.

The council, whose members operate the transmission of power across the country, warned that we may not be able much longer to keep the interstate electric grids operating reliably.

Utilities who used to be cooperate voluntarily under the regulated model, it added, are now competitors without the same incentives to cooperate with each other or comply with voluntary reliability rules.

LEGISLATION, INCENTIVES

On both transmission and distribution issues, federal legislation is seen by many as the solution to the downside of unbridled competition.

After receiving the interim task force report Tuesday, Energy Secretary Bill Richardson urged Congress to enact legislation aimed at increasing the reliability of the power grids.

The task force itself suggested states and the federal government provide incentives so that utilities maintain and upgrade their reliability infrastructure.

The problem is not that we have not learned from past outages, the task force wrote. Rather, it is that in many instances, we have not taken the necessary steps to design and implement the solutions.

Rep. Tom Bliley, R-Va., is a key player as chairman of the House Commerce Committee. An Electricity Competition and Reliability Act has been stuck in committee even though hes warned that without measured comprehensive federal restructuring legislation, all the benefits of competition will not accrue and those benefits will not reach all consumers.

The key, he added, is to pass legislation that improves reliability and ensures open and robust competition.

But the complexity of the bill might have kept some lawmakers from focusing on it, and its also embroiled in the traditional controversy of state vs. federal rights.

ENERGY EFFICIENCY

Joining the call for legislation is the Natural Resources Defense Council. Ralph Cavanagh, codirector of the conservation groups energy program, calls the reliability issue a major problem because theres no central authority to control the flow of power on the nations grid.

The fundamental problem, he said, is that we have reliability policemen around the country who dont have the authority to issue speeding tickets and people are starting to speed.

The NRDC favors a central authority, along with a stronger role for the Federal Energy Regulatory Commission, to keep grid users in line. Competitors all have an incentive to maximize their own benefit, he says, and that means gridlock and power outages unless someones there to monitor the grid.

The group also argues that incentives for utilities to be more energy efficient would ease gridlock, reduce power outages and even save money.

Up until 1994, energy efficiency funds were required by state regulators but restructuring has eliminated that, Cavanagh notes.

Federal legislation could address that, Cavanagh argues, but whats been missing is a risk associated with doing nothing.

If lawmakers dont act, he adds, they should be held collectively accountable for what happens to the grid.

PUBLIC INPUT VIA WEB

The Energy Department task force, made up of government and academic experts, looked at problems in Chicago, New York City, Long Island, New Jersey, the mid-Atlantic and southeastern areas.

The department is taking public comments on the issue through the end of January on its Web site at
tis.eh.doe.gov/post/comments.html

The interim report is available at tis.eh.doe.gov/post.

-- Roland (nottelling@nowhere.com), January 07, 2000

Answers

VERY interesting timing ...

-- you don't suppose? (hhmmm@leaking.out), January 07, 2000.

Thanks Roland, More things that make one go hmmmmmmmm

-- consumer (shh@aol.com), January 07, 2000.

As I was saying to Meno just this morning, "is it true that Y2K was never really any-'thing' in itself or could it be that we don't understand our technology well enough to determine what was-or-is Y2K?"

Meno replied, "O Socrates, indeed, what really is a 'thing'?

I said, "Meno, stop asking your usual stupid questions and listen up. A 'thing' is anything that .gov choose to regulate. 'I regulate, therefore I am.' Someone who comes after me may make some use of that wise saying .....

(to be continued)

-- Socrates (Gymnasium@Eidos.Org), January 07, 2000.

This is only being aggravated by the numerous Y2K problems happening in the electrical industry. This is not good at all. It could go down pretty bad.

-- (rony@hempmill.net), January 07, 2000.

[Object lesson on how to infuriate polly:]

Summer very well may turn out to be the Y2K for the South, particularly in Texas, where even last summmer we were warned about possible outages.

Losing juice in January here is one thing, if it happens in July, we go Beirut. No, take that back. Hard to riot in 105o weather. We'd all just faint.

Thanks, Roland. Not good at all. Well, if anybody remembers, fuel cells were scheduled to be mass-produced sometime in 2000.

I'm ready for one.

-- lisa (lisa@work.now), January 07, 2000.

Programming us to have something else to blame for grid failure besides y2k?????

-- Sheri (wncy2k@nccn.net), January 07, 2000.

There have been numerous articles in the industry mags about the grid degradation due to decreased capcity margins, etc. Of course, you weren't interested then, and will not be interested next year.

If you can't blame it on Y2K, its not a problem, is it?

Regards,

-- FactFinder (FactFinder@bzn.com), January 07, 2000.

Disinformation tactics. Simply and blatantly. Very coincidental timing in lieu of the failures. Though not many, they must be anticipating more yet to come. "It's not Y2K though..."

-- Rob (maxovrdrv51@hotmail.com), January 07, 2000.

FactFinder:

For someone so smug, you forgot the links or substantiation...

-- (Kurt.Borzel@gems8.gov.bc.ca), January 07, 2000.

No, FF, I ain't kidding. Texas is short of power at peak shed, has been for two years.

And we're not bringing any new capacity online this year, as far as I know. Correct me if I'm wrong.

Whilst we import Californians by the Explorer-load.

-- lisa (lisa@work.now), January 08, 2000.

It certainly stressed out on Thursday...

-- (bump@to.top), August 17, 2003.