Nix to reliability rules to fix outage concerns, says Pepco: Platts Energy Week
Washington - August 23, 2010
Also featured: Buildings Go Green; Nat. Gas Supplies Up & Prices Lower
Proposed legislation in Maryland that would establish reliability standards for electric utilities is not necessary to address difficulties Pepco had responding to widespread, storm-related outages in the Washington, D.C. area in recent weeks, a company executive said Sunday on Platts Energy Week, an all-energy television program.
Pepco Regional President Thomas Graham said on the program that a five-year, $256-million plan prepared by the utility would address customer concerns about reliability not only following storms but also under normal conditions.
"We feel that once we're complete with that project, we will be able to increase reliability for our customers," Graham said. To watch the full interview, click here.
But Roger Berliner, a member of the Montgomery County Council, said Pepco customers need improvements in electric-power service sooner.
"This five-year plan needs to be accelerated," Berliner said. "We can't wait that long."
Berliner said he has drafted electric-power reliability legislation for the Maryland legislature to consider. The measure, similar to requirements in other states, would set standards for utilities to meet.
Berliner also called for performance-based rates for utilities that would cut their rate of return on power sales if they do not meet state standards for reliability.
Asked if the proposed bill would help Pepco raise its reliability performance, Graham said, "Not really."
"It's a marathon. It's not a sprint," Graham said. "There are a lot of recommendations we can implement immediately. Some are going to have to take place over time."
Pepco's five-year plan, unveiled last week, followed three violent storms since late July that left several hundred thousand customers without power, some for several days.
The plan includes more tree trimming, some underground cables and expanded evaluation of the need to improve upgrade feeder lines.
Pepco has come under sharp criticism from customers and officials of Maryland and the District of Columbia, who say the utility took too long to restore power to many homes and businesses after the storms, and communicated poorly on the timing of its efforts.
As he had previously, Graham acknowledged Pepco's shortcomings in explaining the situations that followed the storms.
"We're not walking away from that," he said. "We're completely accountable for that. And it's something ... we're going to improve."
Also on Sunday’s Platts Energy Week, Nicholas Holt, technical director of the architectural firm Skidmore Owings & Merrill, and Harvey Bernstein, vice president of McGraw-Hill Construction Analytics, explained why green buildings are popular, even in an economic downturn, and why energy efficiency is becoming a trademark of many of the world's iconic new skyscrapers, like the Burg Khalifa in Dubai, and the planned One World Trade Center in New York City.
Analyst Andrew Weissman, a partner with the law firm Carter, Ledyard and Milburn, joined Bill to discuss the rising supplies of natural gas and the corresponding decline in prices for gas producers, which is due in part to recent discoveries of shale formations from which gas can be extracted.
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