Easing restrictions on backup emergency generators and implementing real-time and time-of-use pricing for all customers with electric demands that exceed 200 kW are steps the Electric Power Research Institute (EPRI) says need to be taken immediately, along with a host of other short-term actions, in order to mitigate the impact of blackouts and reduce the likelihood of a widespread power outage in the West over the next two summers.

EPRI yesterday unveiled “The Western States Power Crisis: Imperatives and Opportunities,” a white paper that details a set of actions to help resolve the current power crisis out West, as well as the technological means to put the electricity infrastructure back on a solid foot. Since actions that involve capital equipment could take six to 18 months to implement, EPRI said that it is critical that work start on them immediately.

In EPRI’s view, top priority action items over the near-term (through the first half of 2002) are:

Looking further out, EPRI laid out its vision for what should be done over the mid-term (2002-2003) to address specific needs in the generation, delivery and use of electricity. Specifically, the institute called for repairing what it called dysfunctional wholesale power markets and accelerating the automation of distribution systems to improve service and reduce the severity of rolling blackouts. Also, EPRI argued for expanding the ability of retail customers to engage with the marketplace by introducing an array of pricing options, from flat rates to time-of-use tiers to real-time pricing. And EPRI also proposed upgrading existing power plants to increase their capacity by 5% or more through advanced diagnostic and maintenance procedures, plus cost efficient retrofits of key components.

EPRI said that long-term objectives beyond 2003 include transforming the current electricity infrastructure so that it is fully capable of supporting the rapid growth and diversification of the U.S. economy based upon the new knowledge-based industries. Among other things, EPRI called for a risk assessment of long-term, U.S. reliance on gas-fired generation, along with an analysis of the value of risk management through greater fuel diversity. In addition, EPRI argued for the establishment of a regional transmission agency with the authority for siting and installing new lines, upgrading lines and allocating costs.

As for the price tag on creating a sound electricity infrastructure, EPRI’s white paper makes it clear that such an endeavor won’t come cheap. EPRI said that the cost of bringing the regional transmission system back to a stable condition is estimated at $10 billion to $30 billion. An annual expenditure of between $1 billion and $3 billion will then be needed to maintain this condition in the face of continued demand growth. But EPRI said that broad-scale implementation of flexible AC transmission systems could reduce these costs by approximately 10% to 30%. Generation expansion in the West will be upwards of $20 billion over the next 6 years based upon current plans for 40,000 MW of new capacity, according to EPRI.

The EPRI white paper can be downloaded from the institute’s Web site at www.epri.com.

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