At the a meeting of the Western Governors'Association in Washington, DC, Federal Energy Regulatory Commissioner Suedeen Kelly told the group that "We are no longer flying solo on our electricity supply and demand in this country." She said that we are all dependent on each other, citing the example that 44 percent of wind energy potential is generated in areas where adequate regional transmission systems exist.
Governor John Hoeven (R-ND) said that states should be able to issue tax-exempt bonds to build new transmission lines. Kelly responded by saying that local politics will make the creation of any regional system difficult and added that there is significant "not in my backyard" (NIMBY) sentiment with transmission lines.
Last month, Arizona regulators rejected a proposed 231-mile, $581 million transmission line which was supposed to run from natural gas plants near Phoenix to Palm Springs, California. Governor Janet Napolitano (D-AZ) thought that the line would drain power from Arizona and the Arizona Corporation Commission failed to approve it.
Kelly responded that states should be able to work together to overcome current disputes and negotiate solutions. She said that in the past the states have been able to negotiate compromises on various issues, so this situation should be no different.
Kelly believes the Hinchey-Wolf legislative effort (see related article on NIETC) to block funding for the NIETC program will fail. Kelly said "we need transmission lines today to provide a backbone for our system."