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38 MICROPOWER: THE NEXT ELECTRICAL ERA RUNNING THE DIGITAL ECONOMY cost the economy up to $30 billion annually in lost produc- tion, argues that the electricity system is in its worst condi- tion since 1965.85 Even as it is celebrated as a pinnacle of 20th century engineering, the modern electricity network is revealing vul- nerabilities that call into question its ability to meet the needs of 21st century society. The 1999 power equipment failures highlighted several decades of utility underinvest- ment in local distribution relative to generation. “The out- ages revealed a number of weaknesses...in the system,” explained David Helwig, a senior vice president at Common- wealth Edison in Chicago. But the issue is not about gener- ating enough power so much as being able to deliver it.86 In the modern world, the main threat to power relia- bility is the disruption of local supply, usually from weather damage to distribution lines or overloading of lines due to excessive demand. Distribution system failures account for 95 percent of the electricity outages in the United States. While heat waves can cause power demand from air condi- tioning to overwhelm electricity distribution systems, other weather extremes such as floods, ice storms, and hurricanes can knock down lines and cause widespread outages. In December 1999, a quarter of France’s grid network was impaired by the nation’s worst storm in a decade, leaving nearly 3 million people without electricity.87 The weakness of local distribution systems points not merely to the need to spend more on upgrading power lines and transformers, but also to the value of small generators that, by producing power within the local system, can lighten loads on distribution equipment. U.S. transmission and distri- bution expenditures have exceeded those of generation since 1994, and now stand at more than $10 billion annually. According to a report prepared for the Energy Foundation, between $800 million and $2.5 billion of these expenses could be profitably diverted to small-scale generators and improved energy efficiency given the financial benefits of avoiding power outages and spending more on grid upgrades.88 At the same time that old equipment and strained 39 Running the Digital Economy In February 2000, the prestigious U.S. National Academy of Engineering released its ranking of the top 20 engineering achievements of the 20th century. Topping the list was elec- trification, or, more precisely, “the vast networks of electric- ity that power the developed world” and the innovations that made them possible. Electricity, the release read, “...runs the smallest electric appliances in homes and offices, the mammoth computers that control power grids and telecommunications systems, and the machinery that produces consumer goods...it is hard to imagine our lives without it.”83 Yet life without electricity had been a costly if tempo- rary reality the previous summer, as a string of power distur- bances and outages disrupted the lives of millions of people and thousands of businesses across the United States. Heat- related power equipment failures in New York City led to a 19-hour blackout of 200,000 residents of Washington Heights and ruined refrigeration-dependent cancer and AIDS research experiments at Columbia Presbyterian Medical Center. Power demand during a heat wave in Chicago caused three outages that left 100,000 customers without power and cut off 2,300 businesses and the entire Board of Trade one mid-week afternoon.84 In April 2000, Energy Secretary Richardson announced that the threat of blackouts would be even greater in the coming summer, noting, “We’re worried as a nation, despite a hugely booming economy, about problems in our electric- ity grid.” His department had just released a study warning that increased electricity usage and an aging infrastructure were stressing the system to the point of disrupting service; the report recommended on-site systems as one way to help utilities meet growing power demand. Utilities responded that they had made new investments and would be ready for the hot weather. But the Electric Power Research Institute, which estimates that power outages and fluctuations alreadyPDF Image | Micropower: The Next Electrical Era
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