Renewable group says bill doesn't set right standard for who pays for power lines

Renewable energy is good, most everyone agrees. But a fight is looming over who should pay for the transmission lines to carry the power from the remote areas where the wind blows the hardest and the sun shines the brightest to more populated areas that need the electricity.

Renewable energy developers, labor groups and environmental organizations sent a letter Thursday taking issue with how energy legislation from the Senate Energy and Natural Resources Committee handles transmission development. It's a reminder that there are more hurdles to be overcome in comprehensive energy and climate legislation than finding the right formula for greenhouse gas emissions cuts. (Here's a post about another one.)

Transmission pricing is a complicated issue, but basically the groups want costs to be spread over a broader ratepayer base. Theoretically, ratepayers in one state could pay higher electric bills even though a line starts and ends outside of their state's borders. 

The Senate energy bill sets the costs to a standard that is “reasonably proportionate to measureable economic and reliability benefits,” according to the letter, which was sent by the Energy Future Coalition. That is, whoever benefits the most should pay most of the tab.

But Bill White, who handles renewable and transmission issues for the coalition, said the standard sets up an “analytical gridlock” because it is hard to pinpoint with any precision who benefits from a transmission line. Everyone benefits from cleaner air, after all, even if a transmission line isn't bringing electricity to their homes.

The coalition also objects to the language that seems to not allow for consideration of environmental and energy security aspects of a new power line.

The letter calls for "meaningful reforms" in policies that dictate power line development "to support development of domestic renewable energy resources."