Local leaders push for reliable energy infrastructure, secur

By Michael Bradwell

Observer-Reporter

 
For years, state Sen. Barry Stout has helped launch highway infrastructure projects - from a dedicated exit at Southpointe to expanding the Mon Valley Expressway and the Southern Beltway - to ensure that traffic flows smoothly on Western Pennsylvania roads.

On Monday, Stout, D-Bentleyville, was among several people who met at Consol Energy headquarters in Southpointe to make a pitch for another type of infrastructure he said is equally vital for the continued economic progress of the region.

Stout and several business leaders who are members of Pennsylvanians for Reliable Energy, a coalition of industry, business, labor and community groups, stressed the need to enhance and secure the reliability of energy infrastructure.

The coalition supports electric grid improvement projects such as the collaborative agreement between Allegheny Energy and Washington County stakeholders that was filed in July with the state Public Utility Commission.

"Washington County has benefited from strong transportation, water, sewer and electric infrastructure that has helped the area prosper," Stout said during a brief news conference. "It's important that we continue this forward thinking and planning to make sure our infrastructure continues to grow to meet the county's demands into the future. We need to have a good, dependable and reasonably priced power supply."

The Allegheny Energy and Washington County collaborative agreement does not include the construction of any new lines, but instead would split one of Duquesne Light's transmission lines to be connected to an existing Allegheny energy line. As part of the $11.6 million project Allegheny Energy will also install capacitors to improve power quality at five of its existing substations in North and South Fayette townships, Houston, Manifold and Smith.

The agreement is currently before an administrative law judge who will determine whether it will be recommended to the PUC.

Allegheny Energy spokesman Doug Colafella said Monday that the agreement addresses some near-term liability issues forecast for the area, especially in northern Washington and southern Allegheny counties.

On Monday, representatives of Consol, Mark West Energy and the Mon Valley Progress Council stressed the importance of developing all types of traditional and alternative energy sources to ensure that the area will have ample power in the years to come.

"We realize how much electricity is being consumed out there and across Pennsylvania," said Jim McCaffrey, senior vice president of sales for Consol. "In Pennsylvania, we're lucky to live in a hotbed of energy development," he added, noting that while some of his company's power customers are currently down in electricity production by 4 percent to 13 percent because of the economy, Consol expects to see some growth in 2010.

McCaffrey noted that Consol is seeing growth in the coal production side of its business, driven by markets in Asia and Brazil. Its CNX Gas division has increased natural gas production from 2 million cubic feet per day three years ago to 70 Mmcf presently.

"We can no longer take for granted the energy production in the region and that's why we support improvements to the grid," he said.

Joe Kirk, executive director of the Mon Valley Progress Council, who noted that Southwestern Pennsylvania did not experience the freefall of real estate prices that occurred in other parts of the country, added that continued growth of office and commercial space in developments like Southpointe, Southpointe II, Starpointe and Alta Vista, as well as the past decade's residential growth "are adding more demand from our power grid."

Stout pointed to the recent addition of the permanent casino at The Meadows, Tanger Outlets and other commercial developments that also put greater demands on the grid.

On an energy production level, Greg Sullivan, Pennsylvania plant manager for operations at Mark West Energy and Range Resources, explained that the expansion of both low-power and high-power gathering systems for natural gas from the Marcellus Shale strata over the past 19 months have created an accelerating demand for electrical power.

"Everything we do is directly affected by us not having the required electricity," Sullivan said, explaining that the companies use a variety of gas-operated compressors because often no electricity is available for many of their operations.

He said the companies currently require 6.1 megawatts of electricity, but by the end of the year, will need 11.5 megawatts. By the end of 2010, the demand will grow to 18.1 megawatts.

If natural gas production continues at its current pace, Sullivan said, electricity demand is projected to more than double to 46.5 megawatts by the end of 2012.

"And that's just one company," he said. "There are a lot of companies coming to this area that are planning to do the same thing we're doing," he said.

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