News Releases for September 2004
September 22, 2004
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Hoeven Recommends State Transmission Authority
Industrial Commission To Have Oversight
BISMARCK, N.D. - Gov. John Hoeven today called for the establishment of a North Dakota Transmission Authority within the state Industrial Commission to promote investments in new transmission lines in North Dakota. The commission today unanimously approved the proposal and directed Executive Director of the Commission Karlene Fine to draft the appropriate legislation.
“Our single greatest challenge in developing North Dakota’s coal and wind generated energy capacity is the ability to move power to markets outside our state,” Hoeven said. “A transmission authority could jump start the process and expedite the kinds of large investments we need to expand the grid and build new power plants and wind facilities.”
As a state entity operated by the North Dakota Industrial Commission, the authority would help the state meet the transmission challenges. The authority would:
- Serve as a catalyst for new investment.
- Provide low cost financing to help North Dakota’s generation be competitive with local generation in surrounding states.
- Serve as a partner to investors, providing access to public sector financing not available otherwise.
- Help develop right-of-way for transmission.
- Serve as a transmission developer itself by building, operating, or leasing all or part of a system if others are unable to do so.
- Could offer long-term contracts with fixed rates of return outside the usual rate setting process that could attract new investment for transmission and for large power customers for North Dakota power.
- Would help keep North Dakota competitive in the region. (The Wyoming Legislature has adopted an authority and created a competitive advantage in doing so.)
The basic structure of Transmission Authority legislation would include the following features:
- Establishment of the North Dakota Transmission Authority under the administration of the Industrial Commission.
- The authority to study, plan, build, lease, operate, sell, rent and all things necessary to develop transmission.
- The authority necessary to finance, construct and operate facilities in and outside North Dakota.
- Authorization would be granted only after public notice of intent to construct transmission facilities and only if no private entity indicates a commitment to fill the need identified by the transmission authority. The Authority, however, may act at the request of a developer to assist in meeting the identified need.
“A Transmission Authority gives us an important tool to realize our energy potential,” Hoeven said. “It increases our ability to meet transmission needs in North Dakota and beyond.”
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