NERC Report Says Electricity Systems In Big Trouble

According to the North American Electric Reliability Council (NERC), North America's electricity system will decline unless changes are made soon. This is NERC's first reliability assessment since being named the Electric Reliability Organization (ERO) for the U.S. NERC's 2006 Long-Term Reliability Assessment Report analyzes the adequacy of electricity supply and transmission reliability in North America through 2015, and calls for actions to improve bulk power system reliability.

Demand for electricity is expected to increase over the next 10 years by 19 percent in the U.S., but confirmed power capacity will increase by only 6 percent. The transmission system requires additional investment to address reliability issues and economic impacts. The NERC report identifies 22 necessary actions that encompass all areas of the bulk power system including generation, transmission, fuel supply and delivery, and demand response. Specific recommended actions include:

* Addition of power generation facilities;
* New and upgraded transmission facilities;
* Stronger contracts and other arrangements;
* More "demand-side" measures; and
* Addressing aging workforce issues in the electric industry.