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Fortnightly Magazine - July 1 1997

consultant known for his expertise in zonal pricing for electric transmission, point out the problem:

"Transmission engineers sleep well at night. That should indicate the transmission has a lot more capacity in it than we now use. We haven't pushed it to the margins."

But how exactly to "push" T&D to the limit? Regulators expect that the wires business will somehow become more efficient even while continuing with cost-of-service regulation.

Notes Pravin Varaiya, Ph.D., professor of electrical engineering and computer sciences at the University of California at Berkeley: "The current regime is very reliable, but that reliability has been achieved through redundancy, not innovation."



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