1. The Electrical Grid: America’s Funnest Crisis

3. History of the Power Grid: Overview Historical Perspective Materials Capacity Regulations

4. Early Transmission: 1900-1935 Electrification was largely a project of private industry Due to transmission expenses, early electrification was confined to cities 1917: American Gas and Electric created first long- distance high-voltage transmission line By 1930s, 90% of urban America had electricity

5. Transmission Takes Off: The 1930s Early 1930s: 90% of rural America without electricity 1935: Roosevelt creates Rural Electric Administration 1937: REA helps bring electricity to 1.5 million farms 1939; Price of one mile of rural line dropped from $2000 to $600. 25% increase in rural homes with electricity

6. REA Success 1942: 50% of rural areas had electricity By the 1950s, electrification was brought to virtually 100% of rural areas

7. Materials: Early Transmission Initially, transmission lines were supported by porcelain pin-and-sleeve insulators Insulators were similar to those used for telegraph and telephone lines Low practical capacity limit of 40 kV

8. Materials: 1900-1950 1907: Harold W. Buck invents a new disc insulator Buck's invention allows practical insulators of any length to be constructed These insulators allow for the use of higher voltages

9. Materials: 1900-1950 Side note: Increasingly present hydroelectric power is transmitted via power transmission lines First US hydroelectric generator to supply the grid: Niagra Falls Voltages increase throughout the 20th century to support the increasing hydroelectric supply

10. Materials: 1950-present The trend toward flexibility - connected cap and pin insulator strings - began to distinguish Hi-Lines as we know them today. Insulators appeared in many forms as higher line voltages, heavier conductors, and wider tower spacing became common practice.

11. Underground Innovations: Literally! Half of the capital expenditures for new transmission and distribution wires between 1993- 2002 has been invested in underground wires BUT: Underground transmission lines account for only.2% of total transmission lines installed in 2001 Underground lines cost approximately $1 million per mile

12. Capacity Factors: 1. Capacity of individual transmission lines 2.Capacity of the national grid

13. High-voltage transmission technology has improved Source: www.wikipedia.org, “Electrical Power Transmission”

14. Transmission capacity has grown in the last three decades Source: Edison Electric Institute (www.eei.org)

15. But not as fast as demand Source: Edison Electric Institute (www.eei.org)

16. Transmission Investment, 1975-2003 Source: Edison Electric Institute (www.eei.org)

17. Regulatory History 1935: Public Utility Holding Company Act (PUHCA) 1978 – Public Utility Regulatory Policy Act (PURPA) 1992 – Energy Policy Act (EPACT)

18. 1935: Public Utility Holding Company Act (PUHCA) The Problem: - Huge holding companies control nation’s electricity -Stock watering, fraudulent accounting The Solution: - Allow SEC to break up huge interstate companies -Promoted smaller, vertically integrated companies in single geographic areas

19. 1978: Public Utility Regulatory Policies Act (PURPA) Helps non-utilities enter energy markets – Co-generators – Small renewable energy facilities

20. 1992: Energy Policy Act (EPACT) Federal Energy Regulatory Commission (FERC) can order utilities to provide access to their transmission lines This power expanded in 1996, so that utilities provide a fair rate for all users of transmission lines

21. The future - ? Can we update the grid? How will it be regulated?