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Clean, cheap energy on agenda

By Erin Ailworth
Globe Staff / September 18, 2008
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How do you deliver electricity that is reliable, low-cost, and clean? That's the question facing Gordon van Welie, head of New England's power grid operator, and government officials.

"Many of these goals seem to be in conflict with each other," van Welie said in advance of a symposium with industry officials and others today that will explore how the grid can lower the cost of electricity while meeting requirements to combat climate change.

The two-day meeting at the Renaissance Boston Waterfront Hotel, hosted by van Welie's organization, ISO New England, follows an energy summit with government officials and ratepayer advocates held yesterday by Massachusetts Attorney General Martha Coakley. The meeting was aimed at giving consumers more of a say in what they pay, while also stressing energy efficiency.

"We need to talk about cost-effective efficiency," Coakley said. "We want to be green, but we want to keep some green in our pockets."

According to Coakley's office, in the last five years average electricity prices in the region have risen 49 percent.

Van Welie said the high prices are a result of dependence on imported fuels. He said the Northeast is increasingly vulnerable to fluctuations in crude oil prices, which ultimately affect electricity prices, too.

The region also faces other energy challenges, van Welie said.

For instance, he said, even though utilities have spent about $3 billion to upgrade and build major transmission lines since 2001, more work is needed.

"We have to make a certain level of investment just to get our grid up to par," said van Welie, adding there are plans by local power generators to spend an additional $5 billion on improvements, especially by those that use renewable energy technology.

"And then we get the next challenge," he said, "which is that a bunch of people want to connect new renewable energy to the grid."

Massachusetts already faces that challenge. By 2020, under legislation recently signed by Governor Deval Patrick, 15 percent of power purchased by utilities in the state must come from renewable energy sources.

"There is a future where we can wean ourselves off of oil, gas, and coal," van Welie said, "but we are going to need the electrical grid to do it."

Erin Ailworth can be reached at eailworth@globe.com.

'We need to talk about cost-effective efficiency,' Martha Coakley said. 'We want to be green, but we want to keep some green in our pockets.'

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