Often, we are able to expertise a blackout, or what consultants name a “load-shed occasion,” – often when we have now scorching summer time temperatures on a weekday, when air conditioners are operating additional time, factories are buzzing, and companies are open.

None of those had been the case when New Orleans had a blackout on Sunday, Could 25. 

Behind the elements that didn’t trigger the blackout in Could is the basis problem: Entergy continues to dam long-range transmission planning, a obligatory a part of electrical reliability. 

As an alternative, Entergy has a historical past of utilizing its transmission system to forestall competitors and maximize earnings from its fleet of gasoline crops. That technique prioritizes Entergy’s backside line however sacrifices reliability for its prospects, as we noticed on Could 25.

The unreliability will proceed if regulators won’t step up.

Some regulators wish to blame the Mid-Continent Impartial System Operator (MISO) for the Could outage. MISO is the operator of the electrical grid for the states that Entergy provides  –Arkansas, Louisiana, Mississippi and Texas – and a dozen different states stretching all the best way as much as the Canadian border. On Could 25, MISO needed to make the decision to shed load to forestall a extra catastrophic occasion, comparable to cascading energy failures that go away extra individuals with out electrical energy for longer instances. 

MISO can also be the coordinator of long-range transmission planning (LRTP) for the electrical transmission grid. Like different nonprofit regional grid operators, MISO coordinates the move of electrical energy throughout high-voltage, long-distance energy strains inside its area. Consider it as visitors on the street. Due to unhealthy climate or roadwork, automobiles in a single place can jam up. The move of electrical energy could be equally congested in a single area on account of heavy calls for. Managing move from a regional degree helps to forestall outages and emergencies. 

Entergy joined MISO in December of 2013 after a unanimous vote by the Federal Power Regulatory Fee (FERC). I used to be one of many 5 FERC commissioners who voted for approval.  

It is very important know the context of Entergy becoming a member of MISO. On the time, Entergy had been beneath investigation for practically 5 years by the U.S. Division of Justice (DOJ) for anti-competitive practices.  The DOJ decided that Entergy had been working its transmission system in order that  house owners of low-cost gasoline energy crops couldn’t entry Entergy’s service territory. Consequently, Entergy shoppers had been paying larger costs.

Due to the DOJ’s in depth investigation, Entergy agreed to promote its transmission belongings and be a part of a Regional Transmission Group, often known as an Impartial System Operator (RTO/ISO). 

When pushed by the DOJ, Entergy had different choices, but it surely joined MISO. MISO has two components, MISO South (most of Louisiana with components of Mississippi, Arkansas and Texas) and MISO Central-North (components of Kentucky, Missouri, Illinois, Indiana, Michigan, Wisconsin, Iowa, Minnesota, North and South Dakota, Montana, and Manitoba, Canada).

The 2 components are linked by a slender connection that appears just like the Panama Canal because it runs by means of southeast Missouri and northeast Arkansas. That creates an especially restricted North/South interconnection that’s sometimes called a bottleneck, as a result of it solely permits an especially restricted skill of energy to move between MISO North and MISO South. 

Entergy by no means bought its transmission belongings to grow to be a part of the regional MISO electrical energy move.  And the DOJ by no means adopted by means of to implement the transaction. A dozen years later, not one MISO Lengthy Vary Transmission Plan (LRTP) line has been in-built Entergy’s service territory to convey energy in when wanted or ship it elsewhere. In reality, not one long-range line has even been deliberate.  

For all sensible functions, nothing has been finished to deal with Entergy’s anti-competitive practices, as decided by DOJ. 

Through the time since Entergy joined MISO, the primary wave of LRTP tasks in MISO North has been fully accomplished. The subsequent two phases of LRTP in MISO North have been deliberate and are in numerous phases of approval by state commissions and the subsequent part of LRTP plans in MISO North are set to launch subsequent yr. 

Even for individuals who plan optimistically, it takes 10 years to plan, approve and construct an LRTP line. 

Whereas the New Orleans Metropolis Council and the Louisiana Public Service Fee had been searching for solutions and options on the latest public listening to on the blackout, MISO’s finest response was they’d begin planning LRTP for MISO South in 2026. Nobody talked about that which means the earliest an LRTP transmission line with a optimistic cost-benefit ratio for shoppers could be in place is probably going 2036, practically 1 / 4 of a century since Entergy joined MISO.

Any transmission line deliberate by means of MISO’s LRTP course of will need to have a optimistic cost-to-benefit ratio to make sure that shoppers profit from the funding. Entergy will let you know they’ve invested billions in transmission. However none of these tasks have gone by means of MISO’s LRTP course of, to make sure there may be broad regional profit and there’s a optimistic cost-benefit ratio for shoppers. In reality, MISO just lately estimated Entergy’s $3.3 billion transmission funding in 2023 had a .01 internet profit. 

The 2 LRTP tasks now within the approval course of for MISO North common nicely over a 2-to-1 internet profit for shoppers and people strains had been deliberate throughout the area for everybody’s profit by means of the MISO stakeholder course of.  

Entergy’s strains had been deliberate by and for who? You guessed it, Entergy.

All through Entergy’s membership in MISO, I’ve witnessed and heard of quite a few efforts by Entergy and its workers or consultants to the Public Service Commissioners and NOLA Metropolis Council to stall, block, intervene – or throw up obstacles of any kind, all to cease efforts to conduct LRTP in MISO South. 

You’ll be able to blame MISO but it surely received’t do a lot good.  MISO and all RTO/ISOs are a creation of FERC meant to open our electrical grid for competitors, plan effectively for the long run, and improve reliability. The place RTOs have been embraced, they’ve labored and labored nicely. 

However RTO/ISO membership is voluntary. MISO is basically toothless to demand full participation within the LRTP course of.

I’m not even suggesting you blame Entergy for the blackout and a dozen-plus years of blocking makes an attempt to deal with the trigger. 

Entergy is simply doing what they’ve at all times finished, maximize earnings for shareholders. If they’ll block competitors and nook the marketplace for their gasoline mills by designing the transmission system that advantages them first, they may do it – and they’re good at it.

The state public service commissions and New Orleans Metropolis Council, who regulate Entergy, should require Entergy to completely take part in MISO’s LRTP course of. That is the important thing to planning and constructing a transmission system that may convey better reliability for New Orleans and all of Entergy’s service territory, together with extra competitively priced electrical energy and extra numerous electrical era.  

Entergy have to be held accountable for working with MISO to plan for the transmission wants of tomorrow, in the present day. 

You recognize what they are saying about when is the perfect time to plant a tree – it’s in the present day. Every day you wait is one other day with out shade.  The identical goes with lengthy vary transmission planning. Every day you place it off you’re paying larger costs and risking blackouts. 

John Norris served as a Commissioner on the Federal Regulatory Fee and as Chairman of the Iowa Utilities Board (PSC). If he knew what he is aware of in the present day in 2012 when he voted for Entergy to affix MISO, he would have voted no. He would like to see a greater transmission connection between MISO South and North in order that Louisiana might construct and supply low-cost solar energy all through the MISO area.  

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