Mr. Chairman, thank you for calling this hearing today on national transmission policy. The electricity grid is of vital importance to our nation; we all, however, know that it is an area that is often overlooked. As evidenced by the fact that there was only minor mention of transmission in the Waxman-Markey Climate bill and the fact that today – weeks after the climate bill has been passed out of committee – we're having our first transmission hearing.
We have a long and distinguished panel today. I would like to thank all of our witnesses for joining us. I would like to give special recognition to the heads of two Michigan based-companies - Dave Joos and Joe Welch. I know that ITC and CMS do not exactly see eye-to-eye on this issue, but I know they have Michigan's interests at heart. And I would hope we can all work together on this issue as we move forward.
This committee passed a sizable renewable electricity mandate without any consideration to the question of getting this "renewable" electricity to population centers. The strongest winds are concentrated in low-population areas. The strongest sun exposure is found in low-population areas as well. Existing transmission lines are centered in areas of high-population and there are inadequate high-voltage lines to the areas with the most abundant sources of renewable power.
If we're serious about renewable power, we must revamp the grid. To properly do so, we'll have to block the lawsuits from environmental groups that have increased costs and blocked much needed transmission lines. But let's put it in perspective. According to DOE, it would cost $60 billion - yes, "B" as in "Big" - in new transmission lines to reach the 20 percent mark for wind power. Al Gore's lofty goal of fossil-fuel-free electricity would cost perhaps as much as $400 billion in transmission lines. If we're serious, we must block the lawsuits and make real investments in the needed infrastructure.
A good example of these lawsuits is found in California. The proposed Sunrise Powerlink in Southern California will connect the region to existing and proposed renewable energy sources whether they be wind, solar or geothermal, located east of San Diego. Energy experts estimate that there are 2000 megawatts of geothermal power and tens of thousands of megawatts of solar available in this area. However, without new power lines this clean, green energy could not be delivered to its customers. Studies show the line will reduce greenhouse gas emissions by as much as 1.3 million tons each year in San Diego. Yet various environmental groups like the Sierra Club are inexplicably fighting it – which has been well documented in publications like The Wall Street Journal. The areas that are best for wind power and solar, are often in remote areas away from population centers. Transmission lines are needed to get electricity from wind and solar farms to consumers. I feel it is a mistake to legislate a costly renewable mandate without addressing the transmission issue.
With all of that said, we must also recognize that many renewable energy sources are unreliable and can bring instability to the grid. Transmission lines cannot distinguish between the "green electrons," and the "brown" ones. So we can't just be planning a transmission system for renewables. We must take all sources into account – wind, solar, nuclear, hydro, coal, and everything else. Changes need to be made to the current regulatory system, FERC can provide a backstop, but we must not completely abandon the state and local process. We also, must be mindful of costs. Renewable power isn't free. Transmission lines aren't free. Customers deserve to know what the real costs are of any policy and understand exactly what they're going to pay for and what they're getting for their hard earned money.
Consumers are already going to be saddled with massive rate increases. And these costs increases will only go up under the Waxman-Markey bill. Transmission policy should not add to these burdens.
I yield back.
