NEW RULES FOR NEW ENERGY

Rulings May Help Alternatives
Hil Andersen, April 30, 2007 (UPI)
April 2007 could go down as a milestone in the development of alternative power in the

WHO
U.S. Department of Energy (DOE) (Secretary Samuel Bodman), Federal Energy Regulatory Commission (FERC), California Independent System Operator (Cal-ISO)
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WHAT
Rule changes by regulatory agencies allowing the construction of more electrical transmission lines and facilitating the transmission of wind-generated electricity to population centers.
1. DOE declared high-priority "energy corridors" in the Southwest and mid-Atlantic regions;
2. FERC approved Cal-ISO’s new rule allowing cost for new transmission lines to be shared between smaller wind generators and other main-line users.

WHEN
Rule changes were ratified in April.

WHERE
The high priority corridors:
1. A Southern California-Las Vegas-Phoenix triangle.
2. District of Columbia and parts of Delaware, Ohio, Maryland, New Jersey, New York, Pennsylvania, Virginia and West Virginia.

WHY
The existing transmission development system was unable to expand in a timely manner due to states rights squabbles and regulatory snafus. The high priority energy corridor concept protects new transmission from being overwhelmed by traditional providers or bogged down in permitting and red tape. The new measures demonstrate the intentions of regulatory and federal agencies. This attitude incentivizes wind and solar investors.

QUOTES
- Michael G. Morris, chairman of American Electric Power: "If we develop a truly functional interstate transmission grid ... the wholesale market will be more robust, and consumers will benefit from lower electricity costs and expanded access to renewable electricity that can be transported from the areas where it is viable to areas where it is needed…"
- Rob Gramlich, policy director for the American Wind Energy Association: "…several hundred gigawatts of cost-effective clean wind power…The transmission system that worked to interconnect (natural) gas generation over the last decade simply doesn't work for wind and solar…The California ISO and now FERC have given the wind industry a fair hearing on this barrier and have now adopted this pro-active solution."
- Bodman: "I fully understand that this is sometimes difficult to do in practice, particularly when individual landowners or perhaps a local community feels adversely impacted…I won't minimize those concerns and they must be taken into account. But, when viewing this situation from a broad perspective, it is clear that grid modernization is an urgent national problem."