As the electric utilities industry in the U.S. is working to strengthen the power grid in the face of extreme weather events and man-made threats, six major U.S. utilities have initially joined together to advance a grid recovery system that would quickly give them access to critical transmission replacement equipment.
This equipment includes an inventory of transformers and circuit breakers, as well as secure warehouses to store them in select locations and the pre-planned transportation and logistics to transport the equipment where they need to go, reports Daily Energy Insider.
Thus far, American Electric Power, Berkshire Hathaway Energy’s MidAmerican Energy Co. and NVEnergy, Eversource, FirstEnergy, Kansas City Power & Light and National Grid have signed on to participate in the grid resilience option and have access to the transmission equipment.
These six companies formed the company Grid Assurance, according to which, sharing access to inventory will cost three to five times less than utility companies investing in maintaining an inventory of spare transformers on their own.
Grid Assurance charges cost-based subscription fees, which will facilitate subscribers’ ability to recover their expenses through the Federal Energy Regulatory Commission (FERC) regulated stated or formula rates.
Source: Daily Energy Insider