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February 11, 2010

Potential Renewable Energy Three Power Grid Substation Receiving Criticism, CEO Responds



There’s been a lot of controversy stemming from talk and events in the renewable energy and smart grid markets. And now, an opposition stemming from the United States’ attempts to link three power grids to open up the renewable energy market is the latest news hitting the industry.
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Phil Harris, CEO of Tres Amigas, of which owns the three power grid Tres Amigas SuperStation, apparently isn’t worried about the flak the project is catching from opponents who are claiming the project may cost consumers more and stifle the competition.
 
The evolution of the three powered station is essential in the development process of bringing renewable energy to the smart grid. If the United States continues to run into potholes and problems of this nature, it won’t be long before China and Europe are more than just a few steps ahead of our country’s smart grid efforts.
 
In October 2009, plans for the superstation were announced, and subsequently after Tres Amigas filed from regulatory approval from the Federal Energy Regulatory Commission, or “FERC,” in December.
 
After the submission of approval, Occidental Petroleum, a major oil and gas supplier in the United States and internally, went directly to the FERC and requested the organization terminate the Tres Amigas process arguing that there’s no proven reliability of the project.
 
But for Harris, Tres Amigas’ CEO, the opposing commentary is no sweat off his back. In a recent release, he said that it was no more than business as usual and that it’s not surprising that the fourth largest oil and gas company in the United States – Occidental that is – does not want renewable energy developed.
 
“We're actually glad they came out... we wish they would have supported us because there are a lot of advantages,” Harris said in the recent press release. “We think everyone wins with Tres Amigas, including gas and oil [companies].”
 
Located in Clovis, New Mexico, the three grid station would have the capability to transfer thousands of megawatts of power between the country’s three power grids, thus expanding the smart grid capabilities to the United States’ neighboring southern country.
 
Arguing parties are reportedly claiming that the three grid power superstation will hinder small local power companies from competing with the larger enterprise, forcing consumers to succumb to higher fees they believe will be associated with Tres Amigas.
 
What’s more, the Public Service Electric and Gas Company of New Jersey filed a request for clarification with FERC contending that Tres Amigas made false, conflicting and inappropriate statements in its request for negotiable rates.
 
While approval has not been received yet, Harris claims that – to date – the filings are 56 in favor and five against.

If Harris is correct and, in fact, the reason behind many disgruntled companies and individuals is simply a ploy to hold on to the oil and gasoline monopoly and prohibit the induction of renewable energy into the economy, Tres Amigas may be up and running before we know it.
 

Kelly McGuire is a TMCnet Web editor, covering CRM and workforce technologies, and anchor of its daily TMC Newsroom video broadcast. Kelly also writes about eco-friendly 'green' technologies and smart grids, compiling TMCnet's weekly e-Newsletters on those topics, as well as the cable industry. To read more of Kelly's articles, please visit her columnist page.

Edited by Kelly McGuire
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