1. Reporting the Economics of Reliable Energy Ralph Fehr, P.E. Engineering Consultant r.fehr@ieee.org Reliability of the U.S. Power Grid

2. Basic Electric Power System 1.Generation 2.Transmission System 3.Transmission Substation 4.Industrial Customers 5.Distribution Substation 6.Distribution Feeder 7.Underground Distribution 8.Residential Customers Deregulation

3. North American Electric Reliability Council (NERC) Not-for-profit company formed after 1965 Northeast blackout to promote the reliability of the bulk electrical system that serves North America

4. North American Electric Reliability Council (NERC) Divided into 10 regional reliability councils Each council monitors utilities within its area

5. North American Electric Reliability Council (NERC)

6. U.S. Transmission Grid – History Over the past 25 years, investments in electric transmission have been declining at a rate of $103 million per year. Transmission investment in the year 2000 was more than $2.5 billion less (in $2001) than the level of investment in 1975. Over this same period, electricity sales nearly doubled. Data courtesy of Edison Electric Institute

7. U.S. Peak Demand 2002-2011 Projection Data courtesy of North American Electric Reliability Council

8. U.S. Transmission Grid The U.S. electric transmission grid consists of nearly 160,000 miles of high voltage (230 kilovolts and above) transmission lines. In 1999, America’s electric utilities spent over $3 billion maintaining and operating these links to customers and $2.3 billion for construction expenditures (including replacements, additions, and improvements). Federal Energy Regulatory Commission Form 1, 1999. (Data for investor-owned utilities only.)

9. U.S. Transmission Grid Expansion By 2010, the Energy Information Administration projects that electricity consumption will increase by 22 percent. Energy Information Administration, Annual Energy Outlook 2002, DOE/EIA-0383 (2002), December 2001.

10. U.S. Transmission Grid Expansion Transmission grid expansions, meanwhile, are expected to be slow. According to NERC, about 10,500 miles of transmission facility additions (230 kilovolt and above) are planned throughout North America over the next 10 years—only a 5.2 percent increase in total installed circuit miles. NERC Reliability Assessment 2001-2010, October 2001.

11. These handouts are available at: http://web.tampabay.rr.com/usfpower/facs.pps Thank you!