Western governors warn against federal intervention on electricity
By the OGJ Online Staff
HOUSTON, Aug. 7 -- Federal electric transmission legislation should focus on cooperation not federal usurpation of state authority, Arizona's Republican Gov. Jane Hull said Friday at the Western Governors' Association meeting.
In a letter to the US Senate Energy and Natural Resources Committee, the western governors' group said it opposes "unwarranted and inappropriate" proposals to preempt state authority over transmission line siting. Meeting in Denver, the governors said legislation the energy committee plans to markup in the coming weeks should reflect a cooperative approach with states to assure consumers have adequate and reliable electricity supplies.
They also said decisions on and enforcement of reliability standards should be made by the affected region, not the Federal Energy Regulatory Commission. Hull, who chairs the organization, said she will discuss the states' position in meetings with Sec. of Energy Spencer Abraham, and with FERC Chairman Patrick Wood, and Commissioner Nora Brownell.
On the issue of transmission siting, the governors said no western state has ever denied a permit for an interstate transmission line. They noted the major challenges in siting long distance transmission lines have typically involved those crossing federal lands.
The governors said a memorandum of understanding signed by the governors and five federal agencies last month should lead to more coordination of transmission line applications.
"Western states, collectively and individually, have been very aggressive in addressing a wide range of energy issues, from extensive conservation measures to the siting and permitting of new generation," Hull said. "We have agreed to move forward on a plan for streamlining the permitting of interstate transmission by next June. We have clearly demonstrated that decisions on these issues are best made at the smallest, most appropriate geographic area."
Transmission siting decisions do not require federal preemption of state authority and do not require unilateral FERC authority to set and enforce reliability standards in the West, the governors said.
"We oppose any schemes to empower FERC or the [Department of Energy] and relegate the states to an advisory role to those distant federal agencies," they said. "The agency [FERC] does not have the expertise, resources, or local knowledge to successfully execute such responsibilities.''
Western states and Canadian provinces that are part of the Western Interconnection are working with industry to develop a Western Electricity Coordinating Council, which would set and enforce standards. The governors have asked FERC for its approval of the council.
In addition, they said federal reliability legislation must require deference by FERC to decisions made in the West and enable the establishment of regional bodies, consisting of gubernatorial appointees, to oversee reliability issues.
Twelve of 18 governors signed the letter to the senate energy committee, and all but Alaska share the same electric grid known as the Western Interconnection.