News Releases for July 2005
July 16, 2005
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Hoeven, Midwestern Governors Promote Electric Transmission Investment
BISMARCK, N.D. - Gov. John Hoeven, and 14 other Governors, mostly in the Midwest, are working to support additional investment in a reliable electric transmission grid. Further, they have committed to regional cooperation in permitting and locating interstate and international electric transmission lines. North Dakota is the sixth largest energy producing and exporting state in America, and recently adopted Hoeven's initiative creating a North Dakota Transmission Authority to accelerate construction of transmission infrastructure .
Standing before a banner reading "Building the Energy Highway," Hoeven and the participating state governors announced the regional electric transmission protocol during the Midwestern Governors Association meeting in Des Moines on July 16. The premier of the Canadian province of Manitoba was also on hand pledging support.
"Transmission infrastructure by its nature is a transborder enterprise, involving cooperation and collaboration among states and nations to bring the product to market," Hoeven said. "This project will attract financing and enhance our ability to build power lines throughout the region, which is of mutual benefit to all the states and Canada, as well."
Iowa Governor Thomas Vilsack and Ohio Governor Bob Taft pushed for the regional electric transmission agreement. They approached the other governors and Manitoba's premier about the reliability and economic development benefits of additional investment in electric transmission. Construction of new electric transmission facilities has not kept pace with increases in electric generating capacity.
"This is clearly a watershed development to have 15 governors and Manitoba's premier agree to collectively plan for transmission grid expansion and improvement," said Federal Energy Regulatory Commissioner Nora Mead Brownell. "I commend them for exercising far-sighted leadership that will support and enhance economic development in North America's heartland. I'm very excited and FERC will do everything it can to support this effort."
Nationwide, annual transmission investment fell from more than $5 billion during the mid 1970s to less than $1 billion in 2002. Generation capacity has grown significantly both nationally and in the Midwest, particularly since 2000, but transmission investment has failed to keep pace. The result has been a more congested Midwest transmission grid as curtailment of scheduled transmission transactions more than tripled from 2000 to 2004.
The Midwestern United States and Manitoba, Canada, currently generate more than 200,000 megawatts of low-cost electricity and the potential for environmentally friendly wind power generation in the Upper Midwest is enormous. A robust electric transmission grid is essential to deliver low-cost and renewable power to customers.
In addition to Hoeven, publicly supporting the Midwest electric transmission protocol are the Governors of Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, Wisconsin, Montana, and Pennsylvania, and the Premier of Manitoba, Canada. Those supporting the protocol recognized the need for a reliable and efficient electric transmission system, additional investment in the transmission grid when it is warranted, and improved coordination and cooperation in the planning and processing of applications for electric transmission projects that cross state and national boundaries. Those not present have pledged their support.
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