PR 69 05
BONNEVILLE POWER ADMINISTRATION
FOR IMMEDIATE RELEASE:
TUESDAY, AUGUST 9, 2005
Contact:
Ed Mosey |
, BPA (503)-230-5131
Potential major reorganization of interstate power lines in the offing;
utilities consider alternative approaches
PORTLAND, Ore. -
How electricity gets delivered to every utility in the Pacific Northwest comes under close scrutiny in the next month. Customers of the Bonneville Power Administration will be considering next steps in a potential major reorganization of power grid operations in four states and British Columbia.
"Northwest utilities have spent more than a decade talking about the need for greater efficiency and reliability," said Steve Wright, BPA administrator. "Now we need to choose a path and take action."
Utility groups are considering three options for addressing the needs of a bulk power transmission system that most admit is sagging under the weight of growing demand:
Grid West, which would unite multiple transmission systems under a single entity governed by an independent board of directors. While existing utilities would retain ownership of their assets, the control, operation and expansion of the system would be handled by Grid West.
Transmission Improvements Group proposal, which would leave existing utility owners in control of their assets and address operations and expansion issues through multiple contracts. This approach would provide many of the services of Grid West but not all. It also seeks to avoid the creation of a new transmission entity that some believe might reduce accountability to regional transmission users.
Continue to operate each transmission system separately, as is now the case. Improvements and expansion would depend on the good will and cooperation of each owner-operator.
"The Bonneville Power Administration owns and operates 75 percent of the region's high-voltage transmission grid, and we are asking our customers which approach they prefer," said Wright. "While the status quo is an option, we believe it will not produce the best outcome for the region's electricity consumers."
If BPA chooses the Transmission Improvements Group approach, it would continue to work with TIG participants to refine and complete the contract coordination approach, analyze costs and benefits, develop contracts and then decide whether to execute the contracts and implement the proposal.
If BPA chooses the Grid West path, it will join with other participants in seating an independent developmental board. This board's primary responsibilities would be to develop the final business plan for the organization and develop and offer contracts to the region's transmission owners to implement the proposal. BPA and the other regional transmission owners would then decide whether to execute the contracts and implement the proposal. BPA would take its participation in Grid West transmission agreement out for public review before making a final decision.
A public comment period on the alternatives will run through Sept. 9. BPA expects to announce its decision about which path to pursue by Sept. 30. For more information, see the following web sites:
Grid West - www.gridwest.com/DP2Info.htm
TIG - www.tig-nw.kristiwallis.com
BPA - Industry Restructuring - www.bpa.gov/coporate/business/restructuring
Submitted for distribution on 08-09-2005 at 3:14 PM
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