Grid Limitations Increase Prices of Electricity


According to the New York Times, the Department of Energy warns that more transmission lines are needed to meet escalating energy demand. Installing new transmission lines can require 10 years or more. Supporters of deregulation hoped implementation of the new policies would put downward pressure on energy prices but are frustrated with the results. Energy industry observers say deregulation works best when the transmission network is able to take cheap power to areas of high demand. The North American Electric Reliability Council also believes emphasis should be placed on developing an effective transmission system for delivering electricity.

The Energy Policy Act of 2005 is designed to hasten the process for building new transmission lines by limiting the ability of state and local leaders to thwart proposed projects. Nevertheless, community opposition to several proposed transmission projects—including one that would install a high-voltage line in the Allegheny Mountains—face strong community opposition.    EC

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