NEWS

February 8, 2007

Contact:        
Andy Bowen
877-251-0400

U.S. approaching a 'national crisis' in power transmission;
States, generators must act now to avoid power shortages

BEAVER CREEK, CO – America’s failure to have a national policy supporting ongoing, coordinated construction of interstate electric power transmission corridors has left large pockets of the population at risk of being without economical, reliable electricity in the future, according to experts at the 6th Annual Beaver Creek Energy Conference.

“It is way past time. We are reaching a point of national crisis,” said Trudy Harper, President of Tenaska Power Services of Arlington, TX. “There are pockets of the country that cannot get power delivered from existing economical sources.”

The Beaver Creek Energy Conference, attended this year by more than 70 experts in energy and finance, is co-sponsored by Calyon Corporate and Investment Bank and E3 Consulting LLC, of Denver. Ms. Harper was one of 15 experts providing their viewpoints during the three-day conference on the status and future challenges of the energy sector in America.

While acknowledging that policies adopted by the Federal Energy Regulatory Commission in 2005 provided for some financial assistance and guidance in planning, siting and construction of interstate electric power transmission systems, Ms. Harper said that it is really still up to the states to act. Because some states are uncooperative with others and such projects take up to eight years to bring on line, the need is critical.

One bright spot is the fact that some large utilities and leading merchant power developers have begun plans for major transmission projects providing power to areas with heavy demand.

John E. Buehler Jr., Managing Partner of Energy Investors Funds, said private equity firms are being attracted to the power transmission sector, and major investments are only now beginning to become reality.

“Capital likes the opportunities it sees,” said Buehler. “Capital likes the 3,000 utilities and power companies, 600,000 miles of wires and 125,000 miles of transmission lines.”

Harper and other experts at the conference said public utility commissions in the states could jump start the transmission corridor construction process if they would allow transmission customers to recover costs in the rates paid by consumers, as is done in ERCOT in Texas today. As little as 5 percent of a rate-payer’s power bill would be enough incentive to get more transmission corridors under construction, they said.

 “Once the small rural utilities start becoming vocal, we will really see some change,” Ms. Harper said.

For more information, visit www.calyon.com or www.e3co.com.