As Google says, “the wind cries for transmission.” But the opposite is true as well: without new wind and solar energy projects, we would not need to build so many new transmission lines. Each side needs the other, yet neither dares declare too soon, and risk weakening its bargaining position. That is, until one utility in California found a way to break the impasse, with each side scratching the other’s back — thus putting to rest the age-old question, “Which came first, the . . . ?”

In light of all the excitement created by smart-grid regulatory initiatives and stimulus funding, three clever tech startups have come forward with proposals for novel grid projects. In California, Western Grid Development proposes to install energy storage devices ranging in size from 10 to 50 MW at various discrete and strategic locations in PG&E’s service territory where the California ISO has identified reliability problems. Second, a company called Primary Power proposes to deploy a total of four advanced, 500-MVAR static VAR compensators (SVC) at three separate locations within the PJM footprint. Third, in Clovis, N.M., Tres Amigas plans to allow power producers to move market-relevant quantities of electric power and energy between and among the nation’s three asynchronous transmission grids: ERCOT and the Eastern and Western Interconnections.

The Senate’s deadlock over carbon cap-and-trade legislation has not deterred FERC Chairman Jon Wellinghoff from an agenda bent on promoting renewable energy and fighting climate change. Last fall, even as Congress dithered, FERC launched a landmark initiative that likely will lead to sweeping new rules for expanding the nation’s electric transmission grid, grounded on Wellinghoff’s belief in wind, solar, and green power resources.

FERC proposed a new set of regulations, under the new section 219 of the Federal Power Act, explaining in broad outline how it might approve generous financial incentives for new investments in transmission—incentives once dubbed as “candy.” As of mid-January, the new NOPR had spawned more industry comment than just about any other FERC proposal in recent memory.

The repeal of the 1935 Public Utility Holding Company Act has attracted a surprising amount of attention in the business and consumer press. But while some analysts predict a wave of utility M&A activity, others are more sanguine about the change.

(August 2005) President Bush nominated Joseph Kelliher to chairman of the Federal Energy Regulatory Commission. Xcel Energy named Richard C. (Dick) Kelly CEO. And others...

People

New Opportunities:

Allegheny Energy named Max Kuniansky director of investor relations. He previously held the position of vice president of investor relations for B/E Aerospace and investor relations specialist for FPG Group Inc.