History teaches us that the most successful American businesses emerge from the crucible of competition.
Important challenges still confront the development of a coherent strategy to create an efficient modern transmission system. Assuming FERC and Congress are earnest about creating a 21st century grid, new ideas, projects, and technologies need to emerge.
The models and motives behind tomorrow’s transmission expansion.
Major transmission projects based on two distinct models are showing signs of life. What can these projects teach us about future transmission investment?
Incentives for transmission investment could boost postage-stamp pricing over license-plate rates.
FERC proposed a new set of regulations, under the new section 219 of the Federal Power Act, explaining in broad outline how it might approve generous financial incentives for new investments in transmission—incentives once dubbed as “candy.” As of mid-January, the new NOPR had spawned more industry comment than just about any other FERC proposal in recent memory.
The absence of long-term transmission rights could exclude potential competition—and cause higher electricity costs.
Power-industry restructuring redistributed financial uncertainties that discourage generation investment and ultimately raise the price of electricity to consumers.
Jacob Williams, VP Generation Development, Peabody Energy: While transmission built to “compete” with generation capacity is an interesting notion, it generally misses the real value of transmission. In today’s high energy-price world, delivering “affordable” energy to consumers is very important. I believe we need higher standards in the electricity market similar to transportation, where we value reliability and affordability (time).
We must efficiently deliver wholesale power within competitive regional markets.
When President Eisenhower was growing up in Kansas, he saw America’s byways and back roads develop to meet point-to-point needs, eventually forming a loosely connected national interstate highway network. The U.S. electric transmission system has similar roots, and it needs a similar vision to meet the needs of the 21st century.
The benefits and future challenges of regional transmission organizations.
Ten years after the initial Notice of Proposed Rulemaking that set in motion the establishment of RTOs, it is hard to dispute that the mature organized markets with independent management of the grid have achieved tangible benefits for all customers. It is important to remind ourselves of the accomplishments and challenges ahead.
Recent attrition raises the question: Consolidation or death spiral?
Despite some setbacks, the transco business might be ready to turn the corner toward a new phase of growth. Will the remaining barriers roll away and allow the industry to grow beyond three companies?
A forecast for California on Aug. 16, 2006
Gary L. Hunt and Richard Lauckhart
Transmission congestion affects both the cost and the efficiency of the power grid. Global Energy's Market Analytics LMP along with PowerWorld Corp.'s OPF Simulator and Energy Visual's graphical interface solution provides a richly textured visual representation of Global Energy's forecast of transmission congestion in California for Aug. 16, 2006.
Where Entergy leads, will Wal-Mart follow?
Everyone is talking about Entergy's move to form a single-company RTO-lite across its service territory in Arkansas, Mississippi and Louisiana.