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Rate Incentives Will Not Solve Blackout Problems
Washington, D.C. -- The Pennsylvania Consumer Advocate told Congress
today that billions of dollars of ratepayer money for higher profit incentives
for transmission owners will not necessarily solve the problem that caused
the August 14 blackout.
“If the events that gave rise to the August 14 catastrophe were
operating failures and communication failures, then building more power
lines or increasing utility profit levels is not the solution,”
said Sonny Popowsky, who serves on the Executive Committee of NASUCA
but was testifying on his own behalf.
“I do not agree that the events of August 14 demonstrate that
America is served by an antiquated or ‘third world’ transmission
grid,” Popowsky said testifying before a House committee investigating
last month’s blackout. “NERC (North American Electric Reliability
Council) has stated on countless occasions that the North American bulk
electric system is the ‘most reliable in the world’.”
Popowsky said that some additional investment in transmission is needed
and that the current levels of return on investment authorized by the
Federal Energy Regulatory Commission is adequate to attract sufficient
capital. He urged Congress to pass mandatory reliability rules supported
by NERC, NASUCA and many other groups.
A copy of Popowsky’s testimony can be found on the NASUCA website
at www.nasuca.org.
NASUCA is a national organization comprised of 42 offices of ratepayer
advocates in 40 states and the District of Columbia. Members are designated
by state law to represent mostly residential ratepayers before state
utility commissions, federal agencies, and state and federal courts.
National Association of State Utility Consumer Advocates
8380 Colesville Road, Suite 101, Silver Spring, MD 20910
Phone: (301) 589-6313 Fax: 589-6380
e-mail: nasuca@nasuca.org |