Electric firms will pay to reduce power use

Luther Turmelle, Register Business Editor

April 25, 2002

 

 

STAMFORD — Connecticut electric utilities and the operator of New England's power grid are so worried about the potential for blackouts in Fairfield County and parts of New Haven County this summer, they are offering to pay businesses thousands of dollars to reduce their power usage during peak periods.

 

ISO-New England, the Holyoke, Ma.-based operator of the grid, says conservation — especially by large commercial customers — could be all that prevents blackouts this summer. That's why it's looking to get between 1,000 and 2,000 businesses to reduce their use of electricity this summer.

So far, it has only signed up 180 companies. But the incentives being offered are attractive: commercial energy users in southwestern Connecticut would get 166 percent of the wholesale price of any energy they save.

"It can be quite substantial," said Stephen Whitley, chief operating officer of ISO-New England, who said that for some companies, the incentives could shave "tens of thousand of dollars" off their annual energy bills.

ISO expects power demand in Fairfield County to reach between 2,800 and 3,500 megawatts this summer and only 2,000 megawatts can be generated locally, Whitley said.

The conservation measures are needed because demand for electricity in southwestern Connecticut has increased dramatically over several years. But the power lines used to carry electricity into the region aren't equipped to handle the amount of power needed to slake the area's energy thirst.

"We're using the equivalent of a country road when what we need is a super highway," Whitley told Fairfield County business leaders and government officials in Stamford Wednesday.

Northeast Utilities — whose Connecticut Light & Power subsidiary serves much of Fairfield County — has proposed an upgrade of transmission lines so they could carry four-to-six times the amount of power they carry. But that plan, which originally was slated to come online sometime late next year at the earliest, has been met with significant opposition in several Fairfield County communities.

ISO-New England's call for conservation Wednesday had an important new supporter — Connecticut Attorney General Richard Blumenthal.

When Whitley warned of the threat of blackouts in February, Blumenthal said at the time he wasn't convinced of the severity of the problem. But on Wednesday, Blumenthal said the problem is real, but manageable.

"We have an obligation, an opportunity to deal with this," he said. "We need to reach out to large businesses and urge them to act in their own self-interest and that of the community. There is no reason the lights should go out if we are responsible consumers."

But if high levels of demand threaten to damage the existing transmission system, Whitley said ISO-New England won't hesitate to call for controlled temporary blackouts across the region.

While the grid operator will try to give homes and businesses in the affected areas advanced warning of the so-called "rolling blackouts" it is possible they might have to be implemented at a moment's notice, Whitley said.

 

Luther Turmelle can be reached at lturmelle@nhregister.com or at 789-5751.