$6B investment should yield about 10,000 megawatts of new electrical generation
DUSTIN BLEIZEFFER Star-Tribune energy reporter | Posted: Thursday, December 18, 2008 12:00 am
Despite the economic downturn, three key "Gateway" electrical transmission upgrades in the West are moving forward, setting the stage for the largest U.S. electrical grid upgrade in 20 years, according to officials.
The total $6 billion investment will move forward based not only on future growth expectations, but to handle electric demand growth that has already occurred in the Rocky Mountains and in the West.
For example, Rocky Mountain Power, Wyoming's largest utility, has been notified of 800 megawatts of expected load growth by 2012 among industrial customers in the state, according to the company.
"A lot of people ask if, in this economic downturn, this is still needed. It is still needed," said Aaron Gibson, customer and community manager for Rocky Mountain Power.
The Gateway West, Gateway South and Gateway Central electrical transmission upgrades will enable some 10,000 megawatts of new electrical generation in Wyoming and surrounding states. Each is a stand-alone project, but they're designed to enhance a triangular area of the Western grid from Casper to Las Vegas to Oregon.
Part of the reason the $6 billion projects are still viable is the corporate structure of Rocky Mountain Power, which is part of the MidAmerican Energy Holdings Co. owned by Warren Buffet's Berkshire Hathaway Inc. That means there's limited exposure to the currently ailing credit markets.
Rocky Mountain Power officials are wrapping up a tour of several cities along the proposed corridor for Gateway West, a joint proposal between Rocky Mountain Power and Idaho Power. The companies are encouraging the public, and landowners in particular, to get involved in the federal permitting process so that any concerns can be worked out.
In addition to town meetings, the companies have issued more than 10,000 letters to landowners within the proposed 2-mile-wide corridor spanning from Glenrock to Medicine Bow and all the way to Boise, Idaho.
"We encourage people to comment and get involved," said Leslie Blythe, spokeswoman for Rocky Mountain Power.
Gateway West would consist of 1,150 miles of new 230-kilovolt and 500-kilovolt transmission lines linking the planned Windstar substation near Glenrock to the planned Hemingway substation near Murphy, Idaho.
Idaho Power and Rocky Mountain Power must obtain rights-of-way easements from the Bureau of Land Management and U.S. Forest Service for areas where the power lines cross federal lands. To do so, the BLM is heading National Environmental Policy Act review of the project, which provides several opportunities for the public to comment.
Company officials say the NEPA review could be complete by mid-2010. That would allow for construction to begin in 2011 and portions of the new transmission to go into service by 2014.
Much of the need for new transmission is to provide low-carbon based electrical generation for Western states with renewable portfolio standards. However, the facilities will also serve new load growth here at home.
This year, Rocky Mountain Power officials testified to the Wyoming Public Service Commission that if all their industrial customers' plans go into place, its Wyoming electric load would reach 2,000 megawatts by 2012 - only 100 megawatts shy of Oregon's load forecast.
"So far, people we've been talking to seem to understand the need for the project," said Jeff Hymas, spokesman for Rocky Mountain Power.
Hymas noted that several Wyoming landowners are interested in developing wind resources, while others would like the transmission facilities well away from their properties.
Contact energy reporter Dustin Bleizeffer at (307) 577-6069 or dustin.bleizeffer@trib.com.