Government Policy
Historically, local governments have exercised authority over the grid and have significant disincentives to take action that would benefit states other than their own. Localities with cheap electricity have a disincentive to making interstate commerce in electricity trading easier, since other regions will be able to compete for local energy and drive up rates. Some regulators in Maine for example do not wish to address congestion problems because the congestion serves to keep Maine rates low. Further, vocal local constituencies can block or slow permitting by pointing to visual impact, environmental, and perceived health concerns. In the US, generation is growing 4 times faster than transmission, but big transmission upgrades require the coordination of multiple states, a multitude of interlocking permits, and cooperation between a significant portion of the 500 companies that own the grid. From a policy perspective, the control of the grid is balkanized, and even former energy secretary Bill Richardson refers to it as a third world grid. There have been efforts in the EU and US to confront the problem. The US national security interest in significantly growing transmission capacity drove passage of the 2005 energy act giving the Department of Energy the authority to approve transmission if states refuse to act. However, soon after using its power to designate two National Interest Electric Transmission Corridors, 14 senators signed a letter stating the DOE was being too aggressive.
Read more about this topic: Electric Power Transmission
Famous quotes containing the words government and/or policy:
“How does it become a man to behave toward this American government to-day? I answer, that he cannot without disgrace be associated with it. I cannot for an instant recognize that political organization as my government which is the slave’s government also.”
—Henry David Thoreau (1817–1862)
“Will mankind never learn that policy is not morality,—that it never secures any moral right, but considers merely what is expedient? chooses the available candidate,—who is invariably the devil,—and what right have his constituents to be surprised, because the devil does not behave like an angel of light? What is wanted is men, not of policy, but of probity,—who recognize a higher law than the Constitution, or the decision of the majority.”
—Henry David Thoreau (1817–1862)