STOP THE POWER STRUGGLE. Thanks to deregulation of the energy markets over the last 10 years, which allows local utilities to sell electricity anywhere they can find a buyer, electrons produced in Michigan now power microwaves in New York. But the grids are still administered on a state-by-state basis. That’s because states don’t want to give up control to the Feds–they worry about big towers in their communities and new plants sullying their environment–which stops new transmission lines from being built. State and federal commissions ought to meet jointly to consider upgrades of the grid across state lines. The Federal Energy Regulatory Commission (FERC) should step in to mandate the construction of reliable new lines, like the proposed Arrowhead-Weston line between Wisconsin and Minnesota. “If the highway system is planned on a federal level, why shouldn’t the Feds also direct expansion of the power grid?” asks Elliot Roseman, a principal at energy firm ICF Consulting.
FORK IT OVER. Even as our economic output doubled between 1975 and today, investment in the grid fell from $5 billion to about $2 billion annually, according to industry association Edison Electric Institute. Why doesn’t anyone want to build new lines? Blame what economists call the “tragedy of the commons.” In a deregulated world, utilities are allowed to use each other’s networks–so nobody wants to pay for an expensive improvement program that would also benefit competitors. Congress should create a Marshall Plan for the grid, funding big upgrades of the system with federal dollars. And as it recently proposed, FERC should offer financial incentives for power generators to build transmission lines for new plants. When a firm builds a plant and connects it to the grid, the investment would be repaid by small rate increases over five years.
POWER UP TECHNOLOGY. Even the most sophisticated computer draws juice from a 1950s-era infrastructure. In a recent report, the Palo Alto, Calif.-based Electric Power Research Institute envisioned digital sensors along the grid and in homes, sending timely information about electricity loads back to central computers. Sophisticated software would then analyze usage patterns and reroute electricity within seconds to prevent outages. Such technology may not be quite ready for prime time, which is why the industry needs to recommit to R&D. The blackout last week showed that the current grid technology lags behind even the antiquated air-traffic-control network, says UC Berkeley Prof. Shmuel Oren: “When airlines have a storm in one part of the country, they don’t shut down the whole airline.”
PLUG IN CONSUMERS. Electricity experts dream of a system that would inform customers of real-time fluctuations in electricity prices. With prices rising on a hot afternoon, for example, factories might decide to save money by turning off machinery. That, in turn, would reduce grid load and bring prices down–a self-correcting system that helps satisfy demand for affordable electricity.
TURN IT OFF. And finally, how about a word we haven’t heard for a long time–conservation? During the California blackouts of 2001, parts of the state cut energy consumption by 20 percent. When they have to, consumers know how to shut off the lights and refrain from using the washing machine during peak hours. Maybe it’s time our power gurus reiterated that wisdom.
