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and substations in the grid need to
<br /> be able to communicate with one /
<br /> another when any part of the sys-
<br /> It
<br /> i"
<br /> •m is breached, so they can collec- s.,r.
<br /> .vely decide which circuit breakers -
<br /> should be tripped and which can ' - _ ..' 'k, •�•$
<br /> r,.
<br /> safely remain intact," Strogatz , «
<br /> '-',3,;;L.'•wrote. Lr = -._-
<br /> "The technology necessary to er.:
<br /> achieve this has existed for about a ®,� +may
<br /> decade. It relies on computers, sen-
<br /> sors and protective devices tied �' . •.r
<br /> together by optical fiber so that all s i '
<br /> parts of the grid would be able to , !
<br /> talk to one another at the speed of «t
<br /> light -fast enough to get ahead of
<br /> an onrushing blackout and contain ilk,
<br /> it," he wrote.
<br /> The technology exists. The
<br /> costs of an upgrade - spread over Ohio Gov., Bob Taft, left, holds up a map of the U.S. as Michigan Gov.Jennifer
<br /> our economy and its enormous Granholm, center, and Detroit Mayor Kwame Kilpatrick, right, look on as they
<br /> power system - are manageable. So testified on Capitol Hill Wednesday, Sept. 3, 2003 before the House Energy
<br /> Committee hearing. (AP Photo/Pablo Martinez Monsivais)
<br /> what obstacles must be overcome
<br /> for needed system improvement? leaders interviewed for this article. ization of consumer protection
<br /> The answer lies in Washington. Legislations should eliminate laws.
<br /> the negative tax impact of divest- "We want responsible investors
<br /> . New Laws,New ment of transmission assets on util- in the field," Raba said. "We want
<br /> t. .Regulatory Outlook ities, Delgado said. strong consumer protection laws.
<br /> There is nothing like a multi- Consensus also has emerged We support expansion that pro-
<br /> .
<br /> . tiay power outage affecting SO mil- around the position that the Public vides access to books and records.
<br /> • lion people to get the attention of Utility Holding Company Act `Open up your business, guys.—
<br /> politicians. In coming days, politi- should be repealed. Holding act The Edison Electric Institute,
<br /> cal careers will be made and restrictions hinder evolution of which represents investor-owned
<br /> unmade as lawmakers attempt to multi-state transmission compa- utilities, wants regulators, policy-
<br /> deal with a white hot issue that is nies, Delgado said. makers and Congress to take prat-
<br /> the focus of widespread public John Weisgall, MidAmerican tical steps that would spur trans-
<br /> attention. Energy Holdings Co. vice presi- mission investment.
<br /> However, it is not entirely clear dent, legislative and regulatory The FERC needs to review the
<br /> where Congress is headed with affairs, in Washington, agreed that 10-12 percent transmission rates to
<br /> energy legislation. Republicans are PUHCA must be repealed to spur make them "competitive with other
<br /> holding out for a sweeping energy needed investment in transmission. segments of business," said Bill
<br /> bill that would include allowing MidAmerican's financial backer Brier, EEI vice president of policy 1
<br /> for oil exploration in Alaska and Warren Buffett stands ready to and public affairs.
<br /> other initiatives that would spur invest S10 billion to S15 billion in "In addition, legislation should
<br /> creation of a new "hydrogen econ- the energy arena once PUHCA is allow transmission assets to be
<br /> omy" and lessen American depen- repealed, he said. depreciated in 15 years instead of
<br /> dente on foreign oil. Democrats in Todd Raba, MidAmerican 20," he said.
<br /> the remaining months of the year Energy Co. senior vice president, In event that a needed line can-
<br /> do not want to squander time delivery services, said, "You'll see not win state approval, Brier said, k
<br /> debating huge environmental the Microsofts,Shells,Bechtels and "The federal government should ,
<br /> issues. Instead, they want to work others looking at buying a utility. have backstop siting authority
<br /> on the passage of an energy bill About 2,500 utilities in the United Out in the states, too many util-
<br /> Fncused closely on fixing transmis- States sell electricity. There is room iry regulators are paralyzed with
<br /> a system failings. for consolidation." fear. "One reason is that profound, .
<br /> What provision must be includ- While the outdated federal complex changes that have taken
<br /> ed in any energy legislation? holding act should be repealed, place in the industry. One Midwest
<br /> Reliability rules must be obliga- certain protections must remain. utility board member observed,
<br /> tory, agreed virtually all industry Specifically, there must be modern- "We're in the middles of a transi-
<br /> 4th Quarter 2003 I I3
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