FERC Says Incentives Needed to Upgrade
Power Grid
Wed September
03, 2003 09:52 AM ET
WASHINGTON (Reuters) -
The head of the Federal Energy Regulatory Commission on
Wednesday urged Congress to adopt financial incentives to
attract more investment in the nation's aging electricity
transmission lines.
Changing the accelerated depreciation to 15 years from the
current 20 years for electric transmission assets would help
attract more investments, said Pat Wood, the chairman of FERC.
Wood also said Congress should give his agency the right of
eminent domain to approve sites for "backbone transmission
lines" needed to improve reliability of the power grid. Under
current law, transmission lines that cross state lines must be
approved by each state.
"Regardless of the rate incentives for investment in new
interstate transmission, I suspect that little progress will
be made until there is a rational and timely method for
builders of necessary transmission lines to receive siting
approvals," he said.
Wood made his remarks in testimony prepared for the House
Energy and Commerce Committee, which held a hearing on
Wednesday to investigate the Aug. 14 blackout that left about
50 million people in the dark.
Senate and House negotiators are expected to soon begin
work on a broad energy bill, which could include electricity
provisions endorsed by the FERC chairman.
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