Senior decision-makers come together to connect around strategies and business trends affecting utilities.

Post

Your Utility Should Expect the Unexpected, It’s on the Way

image credit: CPS Energy Gold-Williams: Gas indusrry should shoulder social responsibility
Llewellyn King's picture
Executive Producer White House Media, LLC

Llewellyn King is the creator, executive producer and host of “White House Chronicle,” a weekly news and public affairs program, airing nationwide on PBS and public, educational and government...

  • Member since 2018
  • 58 items added with 61,579 views
  • Sep 4, 2021 9:46 pm GMT
  • 348 views

The flooding in New York City, the high winds in New Orleans, and the winter Freeze in Texas usher in a new reality for the electric industry, showing how outdated its infrastructure has become and how it has to expect the unexpected.

Resilience is the word used by utilities to describe their ability to speedily restore power, to bounce back after an outage. This year, resilience has been put to the test with major challenges affecting electric utilities from coast to coast. Mostly, the results have been disappointing to catastrophic.

It is reasonable to believe that resilience means that if there is an outage power will be back on forthwith or within hours, and that is often the case.

Your access to Member Features is limited.

But as the attacks on the system from aberrant weather have become more frequent and severe, the bounce-back has been closer to struggle back slowly.

Two cases tell a tale of catastrophe. Recently, the complete loss of electricity to New Orleans during Hurricane Ida, much of which is still in the dark and with people suffering without water, light, air conditioning, or the ability to charge a cell phone.

Even before Ida tore into the Gulf Coast, teams from other utilities were on their way to help. ConEd in New York was one of many utilities that had trucks rolling to the scene before Ida hit. That kind of quick, fraternal response is often what is meant by resilience. Bold and well-coordinated though it may have been, it was not nearly enough. Entergy, which supplies the power to the area, failed the resilience test.

The other standout was in the failure of the Texas grid when Winter Storm Uri struck in the middle of February. It froze much of Texas for five days and more than 150 people died, some by freezing to death in their homes. The unfortunately named Electric Reliability Council of Texas (ERCOT), which operates the electric grid of Texas, abominably failed the resilience test.

Some of the natural gas supply was cut off during the deep freeze because the system hadn’t been weatherized, but the gas that did flow also flowed money.

Gas operators made enormous profits, including Energy Transfer, which made $2.4 billion. Not only had the gas operators not signed on to the concept of resilience, but the idea of commonweal was absent.

While electric utilities — there are a few large electric utilities and more than 80 small ones in Texas — struggled to honor their mandate to serve, the gas suppliers, according to those in the electric utility industry, served their mandate only to their shareholders.

Rayburn, the electric cooperative which has a service area near Dallas, spent what it had budgeted for three years in just five days on gas purchases, CEO David Naylor told me.

On the PBS show “White House Chronicle,” Paula Gold-Williams, president and CEO of CPS Energy, the large, municipally-owned gas and electric utility in San Antonio, said she thought the suppliers of gas to electric generators should be regulated in the same way Texas utilities are.

Wildfires in the West, storms in the East, and up the center of the country have put a huge strain on the electric utilities. What is clear is that “resilience” needs to be defined in a much broader sense. That whole infrastructure of the electric utility industry needs to be re-examined with a view to surviving monstrous weather. The cost in lives and in treasure is very high when electricity, the essential commodity of modern life, fails.

This new imperative comes at a bad time for the electric utility industry, which is struggling with daily cyber-attacks, converting from fossil fuels to alternatives, and straining to find new, durable storage systems.

One of the trends to greater security is to encourage microgrids – small, self-contained grids which can store and generate electricity, often from renewables like solar. These can disengage from the grid in times of stress and continue providing power to the microgrid.

Other suggestions include undergrounding electric lines. California’s Pacific Gas and Electric has proposed undergrounding 10,000 miles of lines to counter wildfires sparked by downed cables. The cost might be insupportably high — over $1 million a mile in level ground, according to one estimate.

Entergy, according to The Energy Daily, has 2,000 miles of lines down in New Orleans. Burying just the most vulnerable lines in the nation would be a massive civil engineering undertaking at a daunting cost. Other ideas, please?

Llewellyn King's picture
Thank Llewellyn for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member
Discussions
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.
Dr. Amal Khashab's picture
Dr. Amal Khashab on Sep 5, 2021

To expect what is not expected, one has to walk backward with unbundle the bundle. Simple is beautiful. Rather than weak interconnected electricity networks extending thousand of kilometers, go back to areas control regions with supply balanced with its own demand. For more reliable operations consider the interties between adjacent areas. Microgrids and mini-grids are the modern translation of what I mentioned.

Michael Keller's picture
Michael Keller on Sep 14, 2021

I doubt that investment company shareholders received much from the exorbitant energy prices. Rather, the largess was pocketed by the management.

The push for more and more green energy will create more grid instability for a number of reasons, including because the green resources are generally not near the load centers. That means the long supply (transmission) lines are subject to greater risk than locating generating resources near load centers, as has been traditionally the case. Many of the generating stations that were located close to cities have been torn down.

Also, more and more of the population is concentrating in areas that are prone to suffer various disasters (fires, hurricanes). Couple that with long transmission lines and the impact on reliability is magnified.
 

Seems to me the reliability solution lies, in part, with putting generating (and storage) resources closer to or at the load centers while minimizing reliance on generating resources that are distantly located.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »