Green Power Presents Transmission Challenges for Utilities
Credit Sights looks at the challenges facing utilities in “going green” in a pair of new reports. Despite those challenges, there are some signs of progress, CreditSights notes.
CreditSights visited the recent Shields & Co./Berenson & Co. transmission conference in New York. “Much is happening on the transmission front as access to green power is becoming a viable business model for utilities and transmission developers. However, it is not easy to get these projects built. Not only must transmission line routes be sited and approved, but the method of cost allocation must be determined as well. Siting lines has proved very difficult for utilities even along existing rights-of-way and no utility customer wants to pay for these projects, despite the limited impact on the customer’s bill.”
The reports discuss transmission projects involving American Transmission, Arrowhead Weston, Northwestern Energy, Westar Energy, NSTAR and Consolidated Edison.
Although execution risk is large with transmission given challenges with respect to siting, utilities are having some success as evidenced by the completion of the SW Connecticut projects at NU, for example.
For details see: Utilities: It’s Not Easy Getting Green Power Part I and Part II.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
