Time to Power-up Grid Safety

Even as the investigation continues into the direct cause of the recent power failure in the Northeast, several things appear clear.r

The so-called power grid is far more fragile than most Americans realize. We can’t help but wonder how susceptible to terrorist attack it might be now that its vulnerability has been exposed.r

The blackout, which affected between 50 million and 60 million people, twice the size of the great blackout of 1965, brought immediate cries to overhaul the system, which some estimate could cost $150 billion.r

It also led to calls for Congress to pass the administration’s energy bill.r

One likely result of the blackout will be to give more enforcement power to the North American Electric Reliability Council, a now-voluntary industry group that oversees electrical transmission standards.r

The simple reason for the problem, although it’s not a simple problem, is that demand for electricity has grown at twice the rate at which transmission capacity has increased in the past decade, according to the Electric Power Research Institute. The biggest problem seems to be on the transmission side.r

While everyone knows the need for additional power exists, no one wants a power plant or transmission lines in his backyard; environmentalists run power companies crazy with lawsuits, many on bogus grounds; and regulators, trying to keep the consumers happy, have put caps on rates of return so that power companies have no incentive to invest in an upgraded system.r

The country will have to invest more in electrical infrastructure to meet its growing demand. Will more money make it 100 percent failsafe? Of course not, but actions can be taken to prevent another widespread meltdown like that which occurred in August.r

The downside is that it will mean more government intervention in the market because utilities will need to be guaranteed a higher rate of return on their investments in the power grid.r

It may also mean giving the Federal Energy Regulatory Commission the right of eminent domain so it can solve right-of-way problems with transmission lines. Most states will oppose that move.r

The power problem may be too massive, too complex and too vital for the states to handle on their own. We rarely advocate giving the federal government additional powers, but Congress may need to adopt legislation or regulations to address the problem.