Expanding the Pacific Northwest/Southwest Intertie--Benefits and Impediments

GAO reported on the expansion of the high-voltage transmission lines (interties) which allow for an exchange of electricity between the Pacific Northwest and California to: (1) determine the status of previous recommendations that the Secretary of Energy take a more active role in expansion proposals; (2) examine factors affecting the expansion; and (3) determine what the Federal Government could do to accelerate the expansion.

GAO found that both regions have benefited from the interties. California has saved billions of dollars in fuel costs, while Pacific Northwest utilities have earned about a billion dollars from the sale of surplus power. In addition, the purchase of hydropower displaced oil- and gas-fired generation which lessened the Nation's dependence on foreign countries for fuel sources. GAO found that projected power deficits for the Northwest have changed to a projected surplus. Further, a consistent energy supply is available to be marketed in California if the existing interties can be upgraded. The utilities agree that an addition to the interties would be beneficial, but several problems are hampering utility decisions to proceed with development. There is some uncertainty concerning the amount of firm surplus that will be available, when an intertie addition could be built, how nuclear powerplant development will affect the market, the availability of Canadian surplus power, and energy costs. Another problem concerns legal restrictions that are designed to protect regional customers but which inhibit California utilities from expanding interties. Finally, many California public utilities have been unable to obtain access to the interties from the controlling private utilities.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: John W. Sprague Team: General Accounting Office: Resources, Community, and Economic Development Division Phone: (202) 512-7783