Izzo Calls for Transmission Policy That Gives Equal Access for all Renewables and Minimizes Transmission Costs
Sep 30, 2009 - PR Newswire
Ralph Izzo, chairman, president and CEO of PSEG, today called for transmission policy that gives equal access to all renewable projects and minimizes cost. He also warned that the proposal for a subsidized national build out of a transmission superhighway to move renewable energy from the center of the country to the coasts is economically unjustified and environmentally self-defeating.
"We need a national energy and transmission policy that maximizes the growth of renewables while minimizing the costs," said Izzo. He further called for a national renewable energy portfolio standard, a cap on greenhouse gas emissions and a transmission policy that does not favor one type of renewable project or location over another.
Izzo also outlines his opposition to transmission superhighway proposal. "A subsidized national build out of transmission is economically unjustified and, since it will be utilized significantly to also transport energy from coal plants, environmentally self-defeating," said Izzo. "While purporting to help move green energy, the new lines would more often be moving electricity from coal plants to new markets in the East."
Izzo made his comments as a featured speaker at Energy Daily's Transmission Siting Policy Summit held today in Washington D.C. Other speakers included Interior Secretary Salazar and Federal Energy Regulatory Commission Chairman Wellinghoff.
"I come to this debate as a strong supporter of expanding transmission to improve the reliability of our electric grid and a strong promoter of renewable energy. But it doesn't take much scratching of the surface to realize that a subsidized national build out of transmission is bad economics, bad public policy, and could have serious negative unintended consequences for the environment," said Izzo.
Izzo pointed out that a subsidized transmission superhighway build out would pick winning technologies, projects and locations. He added that renewable investments being made elsewhere in the country would be disadvantaged if Midwest renewables received this exclusive subsidy privileged by legislative action and priority funding.
"Renewable energy should be encouraged everywhere, not just in one particular area or region. Midwest wind is a great resource, but we need to factor in the cost of shipping it. Sometimes the best approach may include a longer transmission line, a shorter one, or none at all - but the only way to find that out is by weighing the all-in costs versus other options that may prove better, greener or less costly," said Izzo.
Izzo also noted that investments in renewables could be paralyzed during the years that it would take to plan, site and build national transmission lines. Instead, what is needed to boost investment in renewables is Congressional action to establish a national renewable portfolio standard and a limit on greenhouse gas emissions.
The white paper, "The Role of Transmission in the Clean Energy Economy," and the complete text of Izzo's speech are available at PSEG's Web site (www.pseg.com).
Public Service Enterprise Group (NYSE: PEG) is a publicly traded diversified energy company with annual revenues of more than $13 billion, and three principal subsidiaries: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Energy Holdings.
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SOURCE Public Service Enterprise Group (PSEG)