Four western governors have announced plans to build up to 1,700 miles of electrical transmission lines, setting the stage for a more reliable power grid.

The "Frontier Line" could deliver 12,000 MW of power, or enough electricity for 10 million homes, starting in 2011. It would follow a route that originates in northeastern Wyoming, near the Powder River Basin coal fields, and travel through Idaho, with branches in Nevada for southern and northern California. Much of the high-voltage infrastructure could cross federal land or follow existing transmission routes, says Joseph Desmond, California's deputy energy secretary.

Schwarzenegger

The program, unveiled April 4, does not reveal any specifics of construction, but eventually could be worth up to $15 billion. California Gov. Arnold Schwarzenegger (R), Nevada Gov. Kenny Guinn (R), Utah Gov. Jon Huntsman Jr. (R) and Wyoming Gov. Dave Freudenthal (D) signed a memorandum of understanding that will speed governmental and regulatory approvals for new transmission lines and powerplants.

Under the plan, the governors will act as surrogate developers to unlock the Rocky Mountain states’ vast energy resources, which include coal and wind. They want to coax utilities, independent operators and industry groups to produce and wheel more power around the West, Desmond says.

The four governors also have created a committee to hire consultants, define project scopes, recruit developers and work out financing, which is expected to come from the states and matching federal funds. Other states could participate in the future.

"It’s a recognition by the states that there is essentially an 11-state electricity grid and what happens in California is going to have an impact on everyone else," says Jim Owen, spokesperson for the Edison Electric Institute, a Washington, D.C.-based trade group. "There are still a lot of questions that need to be answered. The precise contours of the regulatory framework, financing, permitting, construction, siting and environmental issues are fairly complex."

Freudenthal

"This will allow some of the surplus regions in the upper Northwest with coal-fired resources to transmit their excess power down to high-demand growth regions like southern Nevada and California," says Jack Hawks, spokesman for the Electric Power Supply Association, Washington, D.C. "This line could attract billions worth of new competitively based powerplant development."

Electricity consumption in the West has grown 60% over the past 20 years, but the region's transmission system has expanded only 20%. Declining investment in new transmission facilities has resulted in grid congestion and power outages, costing the economy $25 billion to $180 billion annually, according the U.S. Dept. of Energy, Office of Electrical Transmission and Distribution.

Backers of the Frontier Line estimate that the Rocky Mountain states could see an annual benefit of more than $1 billion from revenue produced by the project and electricity cost savings. California, alone, could save $325 million to $400 million a year in electricity costs, they say.

Power demand in California is growing about 4% annually, or double the national average. The state was forced to order rolling blackouts during its energy crisis in 2000-01, a move that escalated electricity prices across much of the western U.S. California needs an estimated 1,000 MW of new power capacity annually to keep pace with demand, state officials claim.