May 03, 2006 | send story
ISO warns Congress that energy needs must be addressed
Operator of regional grid warns Congress of electricity shortages

These two satellite images were taken Aug. 13 and 14, 2003, during the massive power outage across the Northeast. Only the areas in white had power. Click image to enlarge. Source.
By Jack Coleman
The Independent System Operator of New England is warning Congress of "a need for significant new generation resources ... " - such as Cape Wind - " ... by 2008 to avoid supply shortages - also known as blackouts by.
The warning came in the form of a letter sent yesterday to Senators Ted Stevens and Daniel Inouye, chairman and ranking Democrat on the Commerce Committee, and Congressmen Don Young and James Oberstar, chairman and ranking Democrat on the House Transportation Committee.
Young and Stevens were the sponsors of amendments to a Coast Guard reauthorization bill that targeted the Cape Wind project. The language from Stevens, to give veto power over Cape Wind to the governor of Massachusetts, was approved by a conference committee last month and awaits approval by both chambers as part of the full Coast Guard bill.
The letter begins - "On behalf of the Independent System Operator of New England, I would like to register our concern with the provision in the Coast Guard Reauthorization Act of 2006 that would authorize the veto of the proposed Cape Wind project," wrote Stephen Whitley, ISO NE's chief operating officer.
Cape Wind is part of the region's solution to a power shortage
In addition to being responsible for day-to-day and long-term service reliability" for all six states in New England, Whitley wrote, "we oversee and administer the competitive wholesale electricity markets."
"Our most recent Plan indicates a need for significant new generation resources by 2008 to avoid supply shortages.."
- Stephen Whitley
"As a function of our important role to ensure adequate, reliable, and efficient supply, we annually prepare a Regional System Plan ("Plan") that details anticipated needs for new electricity transmission and generation resources such that solutions can be in place before costly reliability issues arise," Whitley wrote.
"Our most recent Plan indicates a need for significant new generation resources by 2008 to avoid supply shortages. We expect our updated Plan to move that date to 2007," Whitley stated. "Additionally, the Plan warns of a perilous over-reliance on natural gas as the primary fuel for power generation. This is important for both the economy and electric system reliability. To the extent we continue to rely on natural gas, we will continue to see higher costs for the region and a less reliable system." (emphasis added)
"The Cape Wind Project, and any other large alternative renewable energy project, offers a significant contribution to that end," Whitley wrote. "The Cape Wind Project has been thoroughly reviewed as it has progressed through years of permitting at the federal, state and local level and we believe that the project should be allowed to continue through the final siting process.
"We therefore urge you to reconsider the inclusion of this provision in the final legislation," Whitley wrote in closing.
Note how ISO New England is not endorsing Cape Wind with this warning to Congress that the law of supply and demand for electricity will soon make its presence felt; instead, "we believe that the project should be allowed to continue through the final siting process."
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