Rebuilding the Power System for the 21st Century in a Post-Katrina World

There is a tremendous opportunity at hand to rebuild the electric and related infrastructures in a post-Katrina era. While the destruction this natural disaster wrought is unimaginable, so too are the incredible possibilities. These opportunities are both technical and economic and are available to us by taking advantage of this occasion to rebuild for the 21st Century.

 

The electric utility industry has rallied gallantly as it always has done in times of great need. Witnessing the armies of bucket trucks streaming southward to help systems devastated by the storm was awe inspiring. The sacrifice of the workers racing to restore power - where power can be restored - is a continuing testament to the proud history of an industry that has flourished for more than a century in a spirit of collaboration and cooperation.

But, unlike the majority of past disasters, the erasure of entire parts of service territories brings a chance that could never occur under “normal” conditions where the cost and difficulty of revamping infrastructure can be great. In many areas, the reconnection of electrical service is far more than restringing lines, replacing power poles and reattaching meters given the depth of the devastation and temporary abandonment of areas by the population.

Although the priority is correctly placed on service restoration to meet the needs of devastated communities, the industry should take a longer view of the process and the possibilities it offers. It is critical to the success of this industry and the country that we take this opportunity to build out new infrastructure for the 21st Century - not just replace the system “as it was”, but rather rebuild “as it should be.”

Even absent such a disaster there are a multitude of reasons for bringing the electrical grid into the 21st century by incorporating the latest in communications and computing. Now there is the chance to do this on a large scale, in an integrated fashion while making a huge on the future. This is also a chance for the industry to put its dreams into reality creating a highly evolved, technically integrated and more efficient system. This is a chance to do it right the first time in the areas that need it most, Whether advanced meters and portals, self-healing grids, uninterruptible substations, distributed resources linked into the grid or smarter distribution networks.

The financial component must be managed, but should not be allowed to prevent the placement of advanced technology. In fact, the ability to reach into new and differing pools of capital such as economic development funds, federal disaster monies as well as customer participation (especially for industrial and commercial loads) make this the ideal time to build to the future rather than recreate the past.

We know from past research and experience that advanced technologies create benefits that go far beyond simple paybacks. Those benefits range from more efficient system operations and flexibility to the creation of new business opportunities. Specifically, an advanced system can allow for enhanced productivity, lowered operation costs, increased security, a reduction in carbon and improved power quality.

What will it take? Vision, leadership and a commitment to doing what is right for the longe term while recognizing that payback may take years to achieve. Because of the complex nature of the investment, we will need support from government and regulators as well as public power agencies. It will also take a unified industry to justify the advanced technology expenditures. And, most importantly, it will take engineering talent to make this all real.

As the region and nation comes to grips with the disaster and looks to the future, several specific actions need to occur:

• Disaster recovery and mitigation practices and technologies need to be added into the mix in planning for the grid and energy system of the future, as opposed to being viewed as a potential secondary benefit. These can be a driver in rationalizing the decision to make the additional investment necessary.
• Utility planners should take this opportunity to model rebuilding the system of the 21st century, aided by engineers who can look at how the system would have acted had modernization been in place (such as advanced communications, bolstered substations, self-healing grids) and use this to develop an action plan for the future.
• The entire electricity sector - from regulators and IOUs to equipment suppliers to public power — should join together in a cooperative model for both education and understanding of what it will take to build the infrastructure as it should be. Many current forums exist and can be expanded.
• Utilities should take a “no regrets” approach to system rebuilding even if it means additional cost. Regulators should encourage this type of thinking with increased rates of return.

The slate has been wiped clean. Let us use this opportunity to write the future for the benefit of all.

Mark Gabriel is President of Positive Energy Directions, a management consulting firm focused on the electricity and gas industry. Prior to founding Positive Energy Directions, Mark was a senior officer at the Electric Power Research Institute where he led the nationwide effort known as the Electricity Sector Framework to the energy industry. Copies of Mark’s presentations and papers can be found at www.positiveenergydirections.com