The Electrical Grid:

America’s Funnest Crisis

History of the Power Grid: Overview

Historical Perspective Materials Capacity Regulations

Early Transmission: 1900-1935

Electrification was largely a project of private industry

Due to transmission expenses, early electrification was confined to cities

1917: American Gas and Electric created first long-distance high-voltage transmission line

By 1930s, 90% of urban America had electricity

Transmission Takes Off: The 1930s

• Early 1930s: 90% of rural America without electricity

• 1935: Roosevelt creates Rural Electric Administration

• 1937: REA helps bring electricity to 1.5 million farms

• 1939; Price of one mile of rural line dropped from $2000 to $600. 25% increase in rural homes with electricity

REA Success

1942: 50% of rural areas had electricity

By the 1950s, electrification was brought to virtually 100% of rural areas

Materials: Early Transmission

Initially, transmission lines were supported by porcelain pin-and-sleeve insulators

Insulators were similar to those used for telegraph and telephone lines

Low practical capacity limit of 40 kV

Materials: 1900-1950

1907: Harold W. Buck invents a new disc insulator

Buck's invention allows practical insulators of any length to be constructed

These insulators allow for the use of higher voltages

Materials: 1900-1950

Side note: Increasingly present hydroelectric power is transmitted via power transmission lines

First US hydroelectric generator to supply the grid: Niagra Falls

Voltages increase throughout the 20th century to support the increasing hydroelectric supply

Materials: 1950-present

The trend toward flexibility - connected cap and pin insulator strings - began to distinguish Hi-Lines as we know them today. Insulators appeared in many forms as higher line voltages, heavier conductors, and wider tower spacing became common practice.

Underground Innovations: Literally!

Half of the capital expenditures for new transmission and distribution wires between 1993-2002 has been invested in underground wires

BUT: Underground transmission lines account for only .2% of total transmission lines installed in 2001

Underground lines cost approximately $1 million per mile

Capacity Factors:

1. Capacity of individual transmission lines

2. Capacity of the national grid

High-voltage transmission technology has improved

High-voltage transmission lines in the 20th century

0

200

400

600

800

1000

1200

1400

1900 1920 1940 1960 1980 2000

kV

Source: www.wikipedia.org, “Electrical Power Transmission”

Transmission capacity has grown in the last three decades

Source: Edison Electric Institute (www.eei.org)

But not as fast as demand

Source: Edison Electric Institute (www.eei.org)

Transmission Investment, 1975-2003

Source: Edison Electric Institute (www.eei.org)

Regulatory History

1935: Public Utility Holding Company Act

(PUHCA) 1978 – Public Utility

Regulatory Policy Act (PURPA)

1992 – Energy Policy Act (EPACT)

1935: Public Utility Holding Company Act (PUHCA)

The Problem:

-Huge holding companies control nation’s electricity

-Stock watering, fraudulent accounting

The Solution:

-Allow SEC to break up huge interstate companies

-Promoted smaller, vertically integrated companies in single geographic areas

1978: Public Utility Regulatory Policies Act (PURPA)

Helps non-utilities enter energy markets– Co-generators

– Small renewable energy facilities

1992: Energy Policy Act (EPACT)

Federal Energy Regulatory Commission (FERC) can order utilities to provide access to their transmission lines

This power expanded in 1996, so that utilities provide a fair rate for all users of transmission lines

The future - ?

Can we update the grid?

How will it be regulated?