Electric Power Deregulation
and the IEEE
by Jack Casazza
During the past few years, the reliability of our U.S.
electric power supply has declined seriously while costs have risen drastically. Many
claim that this is the result of both federal and state government legislation and revised
regulation. Why are we in the disastrous state we’re in?
Back in 1992, discussions were under way in Washington
about electric power policy. Most recognized that the results of those discussions would
affect the United States’ electric power supply and costs for generations to come.
Some in the IEEE felt strongly that electrical engineers should get involved because many
key factors were technical. Others felt that the decisions being made were economic and
legal and engineers should not get involved, since an engineer’s role is to implement
policy, not make it.
At the time, a group of 16 IEEE Fellows, all of whom had
spent their lives in the electric power industry, felt that Congress was proceeding with
neither an adequate understanding of the technical systems with which they were dealing,
nor an adequate understanding of the potential results of their actions. This group ran a
full-page ad in the 1 October 1992 Roll Call, the daily newspaper read by Congress,
to make their concerns known. These concerns turned out to be fully justified, given the
electric power shortages experienced recently in many parts of the nation.
Our government’s political approach to policymaking
has not changed—develop a consensus among the stakeholders. The need for technical
qualifications is not recognized in making policy. And who are the stakeholders? Those who
have commercial or business interests! Doctors would never allow a committee or panel of
stakeholders to decide policies for the operation of a hospital or for treatment of cancer
or AIDS; why should engineers? With the stakeholder approach, no one represents the
general public, the small-business owner, or the residential consumer. Kirchhoff’s
laws govern the division of flow of power in the grid, not contracts or manmade schedules.
There can be no busy signals or rerouting of transactions when delivering electricity to
customers.
As IEEE members, we all need to play a role in the
decisions being made on Capitol Hill and in our own backyards. We need to provide the
coordination needed between our technical systems and our institutional systems. We need
to inform the public of the extra costs being incurred because of the changes that are
being made. Finally, we need to make sure the incentives needed for developing the
best systems and new technologies we require are in place.
The current lack of incentives has led to the blackouts
and power shortages in California, the Northwest, Midwest, Northeast, and Florida. Needed
transmission and generation capacity to keep pace with growing demand is not being
installed. Deregulation has required extra facilities over and above those that would
otherwise have been needed. In fact, in the uncertainties that relate to future generating
plant locations, future transmission needs, the ability to build and recover investments
in transmission, and the ability to use transmission by competing companies, all have
provided critical disincentives.
As we face the future, the costs and benefits of the
results of present policies need to be carefully reviewed by competent experts. While some
of the changes that have been made can never be undone, some can be. Our nation needs to
keep what is good and discard what is not.
U.S. IEEE members need to recognize their obligation to
the overall public welfare and to meet their obligation to speak out when policies they
know to be harmful are proposed. The IEEE-USA needs to play an increasing role in advising
about government appointments. Our federal government is sadly lacking in technical
competence. Congress has fewer engineers and scientists than does any other modern
nation’s governing body. The Federal Energy Regulatory Commission, which regulates
the wholesale transmission and sale of electricity, has not one single engineer serving!
The IEEE needs to represent the overall public interest.
To do this, all U.S. IEEE members must become informed of electric power policies and
developments and then speak out, to meet their obligation to protect the public, as
addressed in the IEEE Code of Ethics.
We Want to Know: Do you think U.S. IEEE members
are obligated to be active players in shaping our nation’s electric power policy? Why
or why not? Send your comments to todaysengineer@ieee.org.
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