Can American utilities avoid summer blackouts?
“THIS IS THE highest-risk cautionary warning.” That is how John Moura, an official at the North American Electric Reliability Corporation (NERC) recently described the dangers facing America’s power grid this summer. In May the expert group predicted an unusually scorching one in the west and south-west, with a worsening drought and wildfires. This witch’s brew of forces, it warned, threatens a power grid that is already “vulnerable”.
The boffins were quickly proven right. A dramatic heatwave has struck large parts of the American west. The prospect of power cuts is unpleasant for everyone. For electric utilities in the hot zone, it is a nightmare. The meteorological uncertainties wrought by climate change are compounded by the human factor, as people preparing for the scorchers buy air-conditioning units that, if switched on, will hugely increase demand for power.
If that were not complicated enough, electricity providers face retroactive penalties if regulators decide they did not do enough to keep the lights on. Pacific Gas & Electric (PG&E), whose customers suffered blackouts as wildfires raged in northern California in the past two years, may need to pony up fines and legal-settlement fees of nearly $150m for alleged mishandling of those outages. Utilities in New York are threatened with $140m in penalties…
Read More
