Electric Utilities Launch Grid Assurance Initiative to Enhance Grid Resiliency

Strategic Insights -

Eight major electric utilities have joined forces to establish Grid Assurance, a company aimed at providing cost-effective solutions to enhance grid resiliency and protect customers from prolonged transmission outages. The initiative, led by American Electric Power and Berkshire Hathaway Energy, will give transmission-owning entities access to a domestically warehoused inventory of long-lead-time critical equipment, reducing the time it takes to restore the grid in the event of a major disruption.

Key Takeaways:

  • Grid Assurance, a limited liability company, has been established by affiliates of eight major electric utilities to provide a cost-effective solution for enhancing grid resiliency and protecting customers from prolonged transmission outages.
  • The company plans to own and provide subscribers with timely access to an inventory of emergency spare transmission equipment, which can take months to acquire, reducing the time it takes to restore the grid in the event of a major disruption.
  • Grid Assurance will charge cost-based subscription fees, similar to FERC-regulated transmission formula rates, facilitating subscribers' ability to recover expenses.
  • The company will own and maintain equipment at secure, strategically located warehouses to expedite equipment placement in service faster than traditionally possible.
  • Grid Assurance will offer additional logistics support to accelerate transportation of equipment to impacted sites.
  • Subscribers can call on equipment in response to certain events, such as physical attacks, electromagnetic pulses, solar storms, cyberattacks, earthquakes, and severe weather events.
  • Grid Assurance complements existing programs and industry initiatives, like the Spare Transformer Equipment Program (STEP) coordinated through the Edison Electric Institute.
  • The company expects to begin accepting subscribers and identifying inventory in 2016, contingent on regulatory approvals.

Statistics:

  • Eight major electric utilities have joined the Grid Assurance initiative.
  • The company plans to own and provide an inventory of emergency spare transmission equipment.
  • Grid Assurance expects to reduce the time it takes to restore the grid in the event of a major disruption.
  • The company will charge cost-based subscription fees, similar to FERC-regulated transmission formula rates.
  • Grid Assurance will own and maintain equipment at secure, strategically located warehouses.
  • The company will offer additional logistics support to expedite transportation of equipment to impacted sites.
  • Grid Assurance expects to begin accepting subscribers and identifying inventory in 2016.

Sources:

  • American Electric Power
  • Berkshire Hathaway Energy
  • Edison Electric Institute
  • Federal Energy Regulatory Commission (FERC)