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Seth Kaplan Senior Attorney & Director Clean Air and Climate Change Project

Avoiding a post-blackout rush to judgment (and new wires): an Integrated Approach to Electricity System Improvement. Seth Kaplan Senior Attorney & Director Clean Air and Climate Change Project Conservation Law Foundation. Tools for managing the electricity system. CONSERVATION. GENERATION.

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Seth Kaplan Senior Attorney & Director Clean Air and Climate Change Project

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  1. Avoiding a post-blackout rush to judgment (and new wires): an Integrated Approach to Electricity System Improvement Seth Kaplan Senior Attorney & Director Clean Air and Climate Change Project Conservation Law Foundation

  2. Tools for managing the electricity system CONSERVATION GENERATION TRANSMISSION The Three Legs of a Stool

  3. Truths and Solutions • Need for a more DECENTRALIZED power system, efforts and rulemaking in progress can further this goal • Electricity regulators - new interconnection standards for “Distributed Generation” (DG) • Environmental regulators - new air pollution standards to assure that new DG is clean • Alternative/Renewable Energy Incentives Critical Need to Harmonize these Efforts

  4. Truths and Solutions • Strategic investments in the TRANSMISSION system SOMENew Wires • Must be targeted to achieve better utilization of newer, cleaner and more efficient power plants • Right projects = cleaner air + electricity reliability • Fix It First – Understanding and maintaining current system needs to first priority Expansion Projects need to be carefully assessed to determine if they are the best solutionto identified “problem” - analysis needs to consider all options and impacts

  5. Truths and Solutions • Smart and Effective REGULATION • Inept “Regulation” is not real Regulation • Keystone Kops of FirstEnergy in Ohio • “Deregulation” in California • Enron trading and gaming • Massachusetts: The Restructuring Path • Dual supervision of state regulators and independent system operator who oversees and manages the entire regional system

  6. Truths and Solutions • Energy EFFICIENCY • MA Programs alone SAVED$20 M • Slated to rise to $295 M as full value of Energy Efficiency equipment is realized over time • EE Programs + overhaul of appliance standards + municipal and state codes = reduction of load + $ savings + cleaner air • Post Crisis CA has lessons to teach us also

  7. EPRI recipe for “Creating the Infrastructure for the Digital Society” – not a bad summary Power Quality Events Electromagnetic Compatibility Problems Power Quality Interface End-UseDevices Distributed Resources Transmission Distribution Assure Grid Adequacy Develop Advanced Distributed Resources Develop Codes and Standards Develop Enhanced Interface Devices Make End-Use Devices Compatible and Less Sensitive Issues Solutions Reproduced, with permission, from March 14, 2003 presentation by Kurt Yeager, President of theElectric Power Research Institute

  8. No Spotted Owls Here • Nearly perfect overlap between environmental, consumer protection and reliability agendas • EFFECTIVE REGULATION • EFFICIENCY, EFFICIENCY & EFFICIENCY • HONEST ECONOMICS • Internalization of all costs • Prices that reflect societal values including protection of vulnerable citizens, environment and public health

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