Is Building Transmission Lines in the U.S. Getting Easier?

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Research by Industrial Info Resources (Sugar Land, Texas)--We take for granted that when we flip the switch, the light comes on. Ever wonder how and why it happens? The majority of our aging transmission system was built more than 30 years ago-- an outdated electricity highway that dates back to the 1950s. The lack of proper care and investment has led to major inefficiencies. Outages and power failures cost the U.S. government billions of dollars each year.

A robust transmission infrastructure is critical to the country's ability to grow and be competitive globally. Blackouts in the past have shown how critical this is to our economy. Even though the transmission permitting process is still getting bogged down by regulatory requirements, we are seeing significant improvements in new transmission lines going up across the country.

ITC Holdings Incorporated (Novi, Michigan), the largest independent electricity transmission company in the U.S., is preparing construction on its 345-kilovolt (kV) Thumb Loop Transmission Line next month, with completion scheduled by the end of the year. ITC owns and operates high-voltage transmission lines in Michigan, Minnesota, Iowa, Illinois, Missouri and Kansas. Dominion Virginia Power (Richmond, Virginia), a subsidiary of Dominion Resources Incorporated (NYSE:D) (Richmond), is constructing its 230-kV Hopewell-Prince George Transmission Line, while Electric Transmission Texas LLC (Austin) is constructing its 138-kV Uvalde-Castroville Transmission Line and 345-kV Riley-Tesla Transmission Line.

The transmission line process might have eased up a bit with the Federal Energy Regulatory Commission (FERC) New Order 1000 -- Final Rule on Transmission Planning and Cost Allocation by Transmission Owning and Operating Public Utilities. It will improve the way transmission lines are planned and paid for, resulting in hundreds of miles of new lines. FERC wants users who benefit from the line will help pay for it, and at the same time, people who get no benefit from it cannot be forced to pay for it.

And then there is the Obama administration's Fast Track Program announced last fall to speed up seven transmission lines that drew criticism from conservation groups and the National Park Service. One in particular was PSEG's 345-kV Susquehanna-Roseland Transmission Line. Even though it had received approval from utility regulators in Pennsylvania and New Jersey, PSEG Power LLC (Newark, New Jersey) must gain the National Park Service's approval to cross the park before anything can happen.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.