Direct Testimony of Thomas M. Hildebrand - Consumer Advocate ...

The Transmission system was buil? over the past 1 QG years bv verticaliv integra:&
uriiriies
that produced and transmitted elect,rici?y localiy. Srnaii i!mco:lnections betweefi neighboring
utilities existed, but they were crea?ed to increase reiiabiiity and share excess generarion. Over
the past 10 years! ive have introdi;ced corngetition into iljhoi@s& electricity inarketj tc ioi;fe:
cosis to consumers by spiirrina needed investments in generation and increasing the ef.:iciei?cY
of operatms. Today, our transmission s!:stem acts as an imrmte highlay system for whcksale
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There is growing evidence that the U.5. transmission system is in I;rgeiit need of noderniza-
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tioii. The system has become csng~sted tecause growth ic electricity demand a
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io new generation faciiities have nor been matched by irivemien: in new transrrticsion faciiiriei.
Transmission ~foblems have been compounded by the incomplete transition io fair arrd effl:;ent
competitive whdesaie electricity markets, Because the existing crammission system was not
designed :o meet present demand, daily traixmission consmints or "battlenecks'. increase eiec-
uicq costs to co~sumcrs and increase th? risk of blacknu?s.
Eliminating transmission csnstraints or boxienecks is ejjenrial ti; ensuring reliable and
affordable eiectricity now and ig the Future. 'The Depamrnt of Energy (DOE) c~?nduct:i! an inde
pendent assessment of the U.S. electricity transmiSsion system and found that:
* Qur $.S. transmission system facilirates h iejde eiectxity markets that lower ionsurners'
electricity bills ky. nezrly $1 3 billion annuail)).