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Utilities and Electricity TransmissionOverviewChanges in energy policy at every level –federal,state and local – have changed the face ofutilities across the nation. With a majority ofstates already establishing a renewable portfoliostandard (RPS) and the possibility of a federalRPS lurking in the future, the industry has begunto ramp up investment in renewable energy andsupporting technology. Leaders from across theelectric utility industry convened to discussrecent trends, technological developments, andmajor issues facing the industry.ConsensusA common theme that emerged among thespeakers was how utilities can meet the energychallenges of the 21 st century. Solutionsincluded in the discussions were: addressingenergy reliability and security; updating archaichardware and energy storage technology;investing in power generation and gridinfrastructure, and constructing energy policy tostimulate renewables. In the end, the answerwas that no single approach or technologicaladvancement alone can solve the challenges.Rather, the speakers concluded, it will take acombined effort of federal and state policybacked with support from a responsiveconsumer base.Infrastructure and TechnologicalDevelopmentThe United States needs a reliable power systemthat provides electricity 24 hours a day, 365days a year.The United States must not rely on 20 thcentury infrastructure to meet 21 st centuryenergy demands. The grid is operating veryclose to capacity and is dangerously vulnerableto physical and cyber attack. It is designed tolink specific generators with specific distributors,with no larger national vision. Over the next 20years, investments must be made to replace andmodernize electricity production, transmissionand distribution infrastructure.Inadequate transmission investment is theprimary obstacle to delivery of renewable energyto customers.As it is, the grid is ill-equipped to handle a large percentageof renewable power. Transmission developmentneeds to remain ahead of the renewable supply in order topromote new entry in resource-rich areas. To overcomethese obstacles we need a well functioning regionalplanning process, clear cost allocation and recoverymechanisms and adequate incentives for new transmission.There is a need for transmission policies to movelarge scale renewable resources to market.Competitive regional electricity marketshave a proven track record of improvingoperating efficiency, which allows us to domore with less.– William Massey, Partner, Covington & Burling, Counsel toCOMPETE Coalition<strong>American</strong> <strong>Council</strong> <strong>On</strong> <strong>Renewable</strong> <strong>Energy</strong>Executive Summary Report 58

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