FERC Chairman: Stimulus Bill is 'Seed Money' at Best for U.S. Power Updates
The money that Congress has included in the economic stimulus bill aimed at expanding the U.S. electric transmission grid will be just the start of what will be a costly effort to improve reliability and deliver renewable power to consumers from remote locations, Federal Energy Regulatory Commission (FERC) Acting Chairman Jon Wellinghoff told the Platts Energy Podium on Thursday.
The stimulus bill funding would be "the seed money," Wellinghoff said. "But it really isn't [enough] money to make huge advances in the overall backbone grid that we're talking about to integrate substantial amounts of wind."
While details of the House-Senate stimulus bill compromise are still unclear, the measure could provide $10 billion or more to transmission upgrades. Wellinghoff said backbone transmission projects that would move renewable generation from remote locations to population centers would cost more than $200 billion. "And I think we'll see that money coming from the private sector," based on proposals already submitted to the agency.
Wellinghoff went on to tell the podium audience that he would push Congress to strengthen federal authority to site interstate high-voltage electric transmission lines to carry wind power to metropolitan areas.
In his first press event since being tapped by President Obama on Jan. 23 to head up the commission, Wellinghoff said he expects FERC to be heavily involved in formulation of either a comprehensive energy bill or a series of bills meant to address obstacles to increasing renewable wind, solar and geothermal energy, and other matters that fall within FERC's purview.
Wellinghoff said he recently met with top Senate Democrats, and he expects strong collaboration with Capitol Hill as Congress drafts legislation. "We'll become involved in all those matters," he said. "FERC has a very critical role to play given the authorities we've been given in the 2005 and 2007 acts and our capabilities with respect to policy and implementation of energy infrastructure."
The last two major energy bills to come out of Congress significantly bolstered FERC's policymaking authority to help jumpstart transmission tie-ins to renewable energy, smart grid technology and demand response, Wellinghoff noted.
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