Zacks Investment Research sent a love note to our favorite transmission-dependent electric utilities on Valentine's Day.
In a commentary about the utilities sector, Zacks advised transmission lovers that they're about to become obsolete:
The emergence of Microgrids for power generation could threaten the dominance of the age-old power distribution system in the U.S. Microgrids have evolved from simple power backup systems to small smart grids. The swift and cost effective installation of Micro grids could help distribute electricity among the masses. These rooftop solar systems meet the energy needs of the customers. In addition, the customers are allowed to sell excess power back to the utilities.
A report from American Society of Civil Engineers estimated that utilities need to spend $763 billion by 2040 to properly modernize and harden the existing grids against natural disasters. We believe that rather than going for a very costly maintenance, it will be economical to develop these Microgrids, which could lend support to the existing system.
That's right, instead of building more transmission it will be more economical to develop more secure microgrids.
A microgrid is defined as:
A microgrid is a localized grouping of electricity generation, energy storage, and loads that normally operates connected to a traditional centralized grid (macrogrid). This single point of common coupling with the macrogrid can be disconnected. The microgrid can then function autonomously. Generation and loads in a microgrid are usually interconnected at low voltage. From the point of view of the grid operator, a connected microgrid can be controlled as if it were one entity.
Microgrid generation resources can include fuel cells, wind, solar, or other energy sources. The multiple dispersed generation sources and ability to isolate the microgrid from a larger network would provide highly reliable electric power. Produced heat from generation sources such as microturbines could be used for local process heating or space heating, allowing flexible trade off between the needs for heat and electric power.
Wow! What a great idea, right?
Just one more warning shot across the investor owned electric utility bow. Transmission is a dead end. Save yourself, utility friends! After all, if my favorite utilities die, who am I going to pick on in my spare time?
Frederick County Commissioner Billy Shreve is asking Potomac Edison to donate some land for a park; specifically, the 150-acre Browning Farm, where the utility was planning to build a substation for the Potomac Appalachian Transmission Highline.
He called it a win-win for First Energy and county citizens.
Patience and I met two very delightful new friends today. Hyosil Kim, a reporter for Korean newspaper The Hankyoreh
, and her translator Brian Kim, spent the day with us touring Jefferson County and learning about PATH's spectacular, flaming failure to get its transmission project sited and permitted.
PATH's failure is interesting to the people of South Korea because they are engaged in their own furious battle with transmission developer Kepco over a 765kV line intended to export nuclear power out of the country.
The concept of social justice is being debated in Korea, just as it is here. Why should any person have to sacrifice their home and well-being to serve the energy or environmental needs of others?
We took a fond trip down memory lane with many of our fellow PATH opponents during our tour of PATH's proposed route, recalling funny and touching moments during our successful David v. Goliath struggle to take control of our own energy future.
You'll be happy to know that the story of The Coalition for Reliable Power is just as funny when translated into Korean!
The message Hyosil will take back to Korea is encouragement for the people to persevere and refuse to give up!
We'll be posting a link to Hyosil's story here when it's written...
Is the utility industry finally starting to admit that weak demand isn't strictly a product of the economy that will bounce back very soon?The utilities have been telling their investors that demand is about to skyrocket at any second, although just recently a few of them have been pondering whether slow load growth may be the permanent effect of increased energy efficiency.We've been telling them that for years, but apparently it took an equities research firm to drag the truth out of them. "Macquarie Equities Research said in a client note several days ago that energy efficiency measures really do seem to be having an impact on electricity demand, and the effect is likely to continue. It’s not just theoretical or wishful, the analysts said. “Unfortunately for investors,” the firm said, “utilities expect this demand destruction to continue or even accelerate.”PJM used "the economy" as an excuse for cancelling the PATH and MAPP projects, but yet they refuse to consider decreased demand in their rush to construct the gold-plated Susquehanna Roseland transmission project. As well, a hideous, uncoordinated snarl of new wind farms and transmission lines are proposed for the Midwest
. Is there really a market for all this new centralized generation and long distance transmission, or will hundreds of billions of dollars of new infrastructure end up rusting quietly in fields as more and more consumers decrease their usage through energy efficiency and drop off the grid altogether by deploying of their own small scale renewable generators?The utilities who continue to deny permanent change to consumer demand and stick blindly with their 100-year old business plans of centralized generation and transmission
will go belly up. Those who welcome and embrace change and seek to develop a foothold in a distributed generation, consumers-as-producers future, will thrive.
See PJM's Transmission Expansion Advisory Committee Reliability Analysis Update for July 12, 2012.PJM's PATH Project Analysis Update begins on page 9. Page 12 says PATH is not needed for reliability reasons
.Under 15 year thermal test:"
No 500 kV potential thermal overloads identified."Under
MAAC Load Deliverability Voltage:"
CETL > CETO"CETL stands for Capacity Emergency Transfer Limits and
is the actual emergency import capability of the test area.CETO stands for
Capacity Emergency Transfer Objective and is the import capability required by an area to comply with a Transmission Risk of one event in 25 Years.
An area passes the deliverability test if its CETL is equal to or greater than its CETO.So, how about it PJM, can we toss PATH onto the great scrap heap of failed transmission projects that have cost consumers millions without providing any benefit now?Oh no, not yet! PJM still has one more test to run, the N-1-1 power flow modeling test, which they say will be completed before the next TEAC meeting on August
N-1-1 means they look at every combination of two separate – one after the other - transmission line outages throughout PJM to make sure PATH really isn't needed after all. Not only are PJM's N-1-1 scenarios highly unlikely to ever occur, but they defy common sense. If a grid-killing disaster happens (derecho, anyone?) that takes out two separate transmission lines, who's to say that said disaster won't also take out the PATH Project, or any other transmission line they propose as a backup? As we've all found out over the past couple of weeks, a "robust" transmission system is only as good as the distribution system that brings the power to your home or business. And as a group of Consumer Organizations pointed out to FERC last month
, transmission incentives are pulling investment away from the distribution system.The good news from today's TEAC meeting is that
if the analysis continues to show that the PATH and MAPP lines are not needed, the TEAC will recommend to the PJM Board that the projects be dropped from the RTEP (and no longer held in abeyance).Thank you, PJM Magic 8 ball!
The Atlantic off-shore wind transmission backbone moved one step closer to reality yesterday
when The Bureau of Ocean Energy Management issued a finding of "no competitive interest," granting the project needed right-of-way.Unfortunately for AWC, they still need PJM's approval. Good luck there, fellas! :-)So why doesn't Obama add this to his er-tit, instead of trying to ram through an unneeded transmission line designed to ship coal-fired electricity to the east coast? Susquehanna-Roseland is going to be obsolete in about 10 years, although we'll still be paying for it for another 60 years after that.Bob Mitchell is a bit disturbing with his idiotic plans to use the project
to transport "low cost" power from Virginia to New Jersey. Has he been drinking Dominion's Kool-Aid?Meanwhile, a New Jersey blogger gets up on his predictable soap box to complain about the project's $5B cost and the fact that they were awarded CWIP in rate base by FERC.
Guess what, Tom? The development of land based wind to serve New Jersey's RPS is predicted to cost ratepayers over $2 TRILLION
, according to transmission line building AEP CEO Nick Akins."The electric utility industry needs to spend about $2 trillion over the next two decades just to refurbish the existing grid," new American Electric Power CEO Nick Akins said last month at his company's annual shareholders meeting in Tulsa."
(Don't pay any attention to the rest of that article, it's chock full of propaganda I just don't feel like dealing with right now.)Off-shore wind makes both financial and engineering sense for east coast load centers.
The Maryland Public Service Commission ordered the construction
of a new 661 MW natural-gas fired generation plant in Waldorf yesterday. The PSC also requires Pepco, BG&E and Delmarva Power to buy power from the plant. Construction of the plant is expected to save
Maryland electric consumers 49 cents per month in current congestion and capacity payments. Construction of the PATH project was expected to cost
Maryland electric consumers somewhere in the neighborhood of 80 cents per month.This is a huge victory over the PJM cartel, who has attempted to limit the building of new generation on the east coast in order to preserve the transmission and capacity revenues of their favored incumbent generators of dirty, coal-fired electricity in the Ohio Valley, the "PJM Power Providers Group."A similar power struggle over new generation is occurring in New Jersey. The two states are currently faced with some of the highest electricity costs in PJM. PJM, on behalf of the "power providers," has been fighting the states at FERC, insisting that their markets are working to stimulate new generation. PJM's farce is no longer working.So, with both New Jersey and Maryland building new, cheaper, generation, there's absolutely no "need" for PATH or other Project Mountaineer transmission lines (not that there ever was). Just one more nail in the moldering corpse of PATH's coffin.
I was going to just update my previous post, but you simply shouldn't miss reading CAKES's 2012 National Electric Transmission Congestion Study Comments
.'Nuff said. Go. Read.
The National Park Service is reviewing and accepting public comment on Dominion's proposed MSD rebuild on Harpers Ferry National Park and Appalachian Trail property. You can access the NPS's project website here.This is not the same full-blown EIS process that was triggered by the PATH Project. Looks like there won't even be any public scoping meetings for the Dominion guys to creep on, like the PATH guys did back in 2010.
Too bad, I would like to ask my Dominion buddies why I've been getting complaints in light of their promise to treat landowners fairly. I'm sure they didn't tell the NPS that they were going to build a temporary bridge that was going to flood their property and that there was nothing they could do about it. It also looks like they DID notify the NPS before just trespassing on their property and working on their project without any prior contact. Hopefully they've learned their lesson.If you've been wondering about the MSD project and how it will affect the parks, here's the place to get information.Feel free to submit your comments related to how the project may affect park property. (Click on "Open for Comment" and follow directions.)