CONSUMER GROUP SURVEYS TRANSMISSION EXPERTS

ON EFFORTS TO MODERNIZE GRID

 

Energy Policy Act of 2005 Does Not Provide Certainty

 

 

May 3, 2006 Contact: Peggy Welsh

FOR IMMEDIATE RELEASE (202)-659-0404

 

WASHINGTON, D.C. - The Consumer Energy Council of America (CECA), the nations senior public interest energy policy organization, conducted an extensive survey of transmission experts to ascertain how the Energy Policy Act of 2005 has impacted plans to modernize the nations electric power delivery system. Approximately 150 responses were received and the responses were tabulated on a blind basis.

 

It is vitally important to listen to the experts since modernizing the nations grid is of critical importance to consumers so that their needs are met said Peggy Welsh, Senior Vice President of CECA and author of the survey. Clearly the experts believe there is much more to be done to assure consumers that a robust, reliable electric power delivery system exists.

 

Key findings of the survey on modernizing the nations electric power delivery system include:

 

          There is a decided lack of certainty among the respondents that passage of the Energy Policy Act of 2005 will result in increased investment in the transmission grid.

          Two-thirds of respondents believe that the roles of FERC and state utility regulators need to be further clarified after passage of the Energy Policy Act of 2005.

          The majority of respondents believe that the lack of certainty regarding organization and jurisdiction creates a significant impediment to transmission investment.

          A clear majority of respondents agree that an independent reliability organization be established in regions where applicable which has the authority to establish and enforce reliability standards.

          There is no agreement among respondents as to whether RTOs should be mandated or regions should decide their own market structure.

          The vast majority of respondents agree that clear cost allocation rules are needed in each region and that the costs to upgrade the system should be paid for by user of the system.

          Half of respondents feel there is an urgent need for clearly defined policies and rules for cost recovery while 1 in 8 feel that clear cost recovery rules are already in place.

          Nearly 9 in 10 of respondents believe that transmission planning that addresses reliability and economic upgrades should be undertaken at a regional level.

          Half of respondents do not believe that performance based incentives and metrics for transmission operation are necessary.

 

The CECA survey was based on the recommendations made by the CECA Transmission Infrastructure Forum. The CECA Forum was a consensus-based study conducted in 2004/2005 comprised of a group of senior executives and leading experts from industry, government, and the public interest sector to improve the nations electric transmission system. Participants in the CECA Transmission Infrastructure Forum included federal policymakers, members of state public utility commissions, and leaders from investor-owned utilities, rural electric cooperatives, municipally-owned utilities, independent transmission companies, independent power producers, state consumer advocates, state energy officials, state legislators, engineering firms, industrial consumers, national laboratories and academia.

 

AUS Consultants, Inc. and its subsidiary International Communications Research (ICR) conducted and tabulated the survey for CECA. AUS, Inc. provides its utility clients with a wide range of sophisticated market research and consulting services including accounting, cost of service, depreciation, financial planning, rate design, rate of return, valuation of tangible and intangible assets.

 

ICR, a subsidiary of AUS, is a leading marketing research firm specializing in problem definition, study design, data collection, analysis and reporting, and multivariate support for the energy industry. Its professional staff has extensive experience in utilizing a variety of research methodologies to aid energy companies in enhancing customer satisfaction. Our services also include designing and implementing research programs that assist with market assessments and strategic planning in the energy industry.

 

A copy of the full survey and report of the CECA Transmission Infrastructure Forum can be downloaded from CECAs website at: www.cecarf.org.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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