Center for Business and Economic Research - Ball State University


CBER Data Center
Projects and PublicationsEconomic IndicatorsWeekly CommentaryCommunity Asset InventoryManufacturing Scorecard

About

Commentaries are published weekly and distributed through the Indianapolis Business Journal and many other print and online publications. Disclaimer

RSS Feed

Disclaimer

The views expressed in these commentaries do not reflect those of Ball State University or the Center for Business and Economic Research.

Recent

Two Key Economic Lessons in One BillHoosiers face trade-offs and opportunity costs in the wake of SEA1.

Time to Fix Economic Development PolicyAllocating tax dollars to land development won’t cause economic growth.

The Unanticipated Effects of SB1Businesses, governments and households may all feel the effects.

The Stupidest of PoliciesThis whipsawing of tariff rates has unnerved financial markets, which on Wednesday, were toying with a liquidity crisis.

View archives

Top Tags

jobs and employment 261
economics 201
state and local government 188
education 186
economic development 171
indiana 171
budget and spending 145
taxes 144
law and public policy 142
workforce and human capital 139
Browse all tags
Reporter / Admin Login

August 22, 2003

Action at Last on the Power Grid

Imagine that you get up one morning to the sight of trucks and cars cutting across your front lawn, carving a new short cut on their way to the city.  Their new route is a few feet shorter, but your yard is in ruins.  Of course it's far-fetched -- cars and trucks need concrete.  And besides, there are laws to protect your property rights.

But as stories go, it comes surprisingly close to describing the world of electric power transmission.  That’s because electrons obey the laws of physics, not the laws of man.

That's a simple truth that few of us give much thought to when we flick our light switches up as we enter a dark room.  Until we experience something like what just happened to the 50 million people and millions of businesses between Detroit and New York who lost power, that is.

It’s a pity that it has taken this dangerous, frightening disruption in something we have always taken for granted to get us to focus on the issues confronting our electric power transmission grid.  And given its complexity and size, the sudden avalanche of attention and calls for action pose a new danger -- that the cure might be worse than the disease.

But thus far the new attention has been a breath of fresh air, providing a much-needed dope-slap to the regulators, activists, and various utilities and transmission operators who have participated in an arcane debate, mostly outside the public eye, effectively holding up much needed improvements that might have headed off the debacle of mid-August.

Ever since George Westinghouse's alternating current system of power generation prevailed over Thomas Edison's direct current network in the nineteenth century, we've had the ability to site power generation facilities hundreds of miles away from where their output is consumed.  In the decades that followed, this has produced a situation where the eastern part of the country does not generate all of the power it consumes, whereas the Ohio valley generates a surplus.  Power transported over high voltage wires, a ubiquitous part of the modern landscape, makes up the difference.

But adding load at one end and generation at the other puts a strain on the wires in between.  That's brewed a situation that everyone in the industry has known about for years -- the need for more transmission capacity, particularly between the east and the Ohio valley. 

Yet the pursuit of other agendas has frozen efforts to do anything more than simply wish the problem away.  It’s been almost twenty years, for example, that American Electric Power, the nation's second-largest investor owned electric utility, has been trying to build a new high-capacity line across the Appalachians into Virginia.  During that time, the new line's approval has been held hostage to an ever-growing list of demands by those with the power to stop it.

When you consider that transmission lines are typically of very little value to those who lie in their path, and that any regulatory obstacle that blocks even a few miles of wire renders the entire line useless, it seems remarkable that they are built at all.  AEP's line is finally under construction, but many of the engineers who planned it have long since retired.

That regulatory bottleneck might start to clear, if the warning shot fired on August 14 served any useful purpose at all, and it’s not a moment too soon.  The electrons that flow overhead will always take the path of least resistance, whether our political system or our power grid is ready or not.

 

Link to this commentary: https://commentaries.cberdata.org/357/action-at-last-on-the-power-grid

Tags: environment


About the Author

Pat Barkey none@example.com

Patrick Barkey is director of the University of Montana Bureau of Business and Economic Research. He served previously as Director of the Bureau of Business Research (now the Center for Business and Economic Research) at Ball State University, overseeing and participating in a wide variety of projects in labor market research and state and regional economic policy issues. Note: The views expressed here are solely those of the author, and do not represent those of funders, associations, any entity of Ball State University, or its governing body.

© Center for Business and Economic Research, Ball State University

About Ball State CBER Data Center

Ball State CBER Data Center is one-stop shop for economic data including demographics, education, health, and social capital. Our easy-to-use, visual web tools offer data collection and analysis for grant writers, economic developers, policy makers, and the general public.

Ball State CBER Data Center (cberdata.org) is a product of the Center for Business and Economic Research at Ball State University. CBER's mission is to conduct relevant and timely public policy research on a wide range of economic issues affecting the state and nation. Learn more.

Terms of Service

Center for Business and Economic Research

Ball State University • Whitinger Business Building, room 149
2000 W. University Ave.
Muncie, IN 47306-0360
Phone:
765-285-5926
Email:
cber@bsu.edu
Website:
www.bsu.edu/cber
Facebook:
www.facebook.com/BallStateCBER
Twitter:
www.twitter.com/BallStateCBER
Close