Keith's Corner

Let’s Not Get Ahead of Ourselves!

Recently, there have been stories in the trade press from time to time which talk about calls for delaying or deferring transmission projects because of load reductions related to the current reduction in economic activity. While such moves can superficially make sense since the demand for gas and electricity is undeniably related to economic activity which has taken place, when one looks at the time frames involved, these moves may not. As we were painfully reminded not long ago, economic activity can turn around very quickly. This is not to suggest that the recent downturn is likely to turn around very quickly, quite the contrary, but that turnaround is still likely to take place in a timeframe significantly shorter than that required for the planning, approval and construction for many power plants and electricity and gas transmission lines. When the economy does turn around it will need sufficient capacity to meet not only the returning demand but also the demand growth that has occurred in the meantime. The time required for siting the necessary facilities often approaches a decade or more, and so we slow down at our peril.

Last updated Mar 24, 2010