Deregulation and Niagara Mohawk - Is There a Story?
It's just a few hours after the Northeast U.S. power outage, and facts are trickling in; as of right now, it looks like an accidental overload knocked out a large part of the Niagara Mohawk power grid. A few years ago, California went through rolling blackouts that were largely due to a poorly-executed deregulation of that state's power industry. The question that's probably occurring to many of us is, did late-'90s deregulation play a role in today's power event? I don't know the answer, so I'm turning it over to you -- moderators, please check links and up-mod the most informative, pro or con. Here is some information to get you started:
"We support deregulation 100 percent..." (N-M spokesman, 1997; notes N-M wanted to sell generators and "concentrate on the transmission and distribution of energy" -- did it?);
N-M made some bad investments and is
scheduled to request a rate hike (did it?);
and N-M's own website says:
"Deregulation [has] changed the laws and regulations governing the electricity industry to promote competition..." (how so?).
I don't see how this has to do with deregulation. It has more to do with poor design of the power infrastructure. From what I have heard, the way the power grid works is there are switching stations which link various networks together much like a router on a lan. When one switching station goes down, for whatever reason, there are fail safe systems which move affected areas over to other switches.
What can happen is, if all stations are working at or near capacity and a part of the network goes down for whatever reason (fire, or too much power being drawn for example) then when power is routed from the other switching stations they become overburdened as well and there is a ripple effect of outages across the grid.
When this occurs, power companies have to be careful when bringing power back online as they may become overburdened again as soon as they become operational. The U.S. power grid has become extremely complicated and vulnerable as it has scaled. Fail safe systems often fail in their fail safe components.
Regarding the rolling blackouts in California, they had more to do with Enron witholding power than with deregulation. I have not researched deregulation sufficiently so I can't really argue for or against it, but blaming everything on it is not helpful.
Visualize the world of wine
The rolling blackouts in California were rationing exercises. This, however, is an unplanned disaster.
This certainly sounds like the 1996 Great Northest Blackout.
http://blackout.gmu.edu/events/tl1965.html
Robert
--- If it's worth doing, it's worth doing in Perl!
...if you asked us to pass judgment on the guilt of Scott Peterson or Kobe Bryant. It's way too early to turn this into a rant against deregulation.
"California went through rolling blackouts that were largely due to a poorly-executed deregulation of that state's power industry"
l /main546097.shtml
Actually, there was a significant amount of fraud involved. Check it out here: http://www.cbsnews.com/stories/2003/03/26/nationa
The people that RUN THE FSCKING GRID do not know what went wrong and /. is posting articles asking if X caused it???
Are you insane?
But I don't think de-regulation is a major part of this. The california problems were cronic problems that went on over a long period of time.
As far as it is known now (3 hrs into the event) this is a one time deal due to equipment failure. In the summer due to Air Conditioning and other things power grids run very near the max so if something major fails then you are running much above 100%, this starts blowing breakers and shutting things down. The radio just said in 3 minutes 21 plants shut down, so once things start to fail and they can fail fast.
Erlang Developer and podcaster
Just because a politician calls it something doesn't make it true.
CA got messed up because their power system was RE-regulated with a set of stupid rules that certain less-than-ethical companies took advatage of. It was the REGULATIONS put in place that caused everything to fall apart, not a lack of them.
paintball
Yes. Let's turn slashdot into a rumour-mill.
Oh wait...
I guarantee you that if a power outage happened anywhere OTHER than New York City, the mass media outlets would barely be covering this event at ALL.
Like the Nevada power outage?
I am sick of the NYC bias we see in the media. Self-importance is so passe. Please make this story go away, I give CNN and Fox News a big "OFFTOPIC" (To their credit, Fox is now reporting the story that some terrorist mastermind yadda yadda yadda has been capture).
Sorry, this is national news. The Nevada power outtage was national news. And CNN has been reporting the Al Qaeda capture for several hours.
Dacels Jewelers can't be trusted.
I like the last bit in that title line, "Is there a story?". A friend of mine from Bangladesh recently moved back there. I was chatting with him on ICQ when I noticed every 2-3 minutes he'd go offline and come back. He told me that the power kept going out. It is a regular occurance, and the external modem he was using to connect to the net wasn't on the backup power system.
:)
Here in New Orleans, we lose power about once a week for 10-20 minutes (more frequent if it rains, also depends on where in the city you are). Sometimes, power is out for a few hours. It's just a way of life.
I realize that it's impressive that such a wide area recieved a blackout, but really, is this such a big deal? Everything should be fixed soon. People just need to relax. Maybe GO OUTSIDE!!!
----
Squirrel
In March, 1998, Auckland - New Zealand's major city (though not the capital, that's Wellington, in case you need to know) - had a FIVE week blackout.
This was after the system was privatised. They cut back on maintanance and instead of three main feeds, they had one. It blew up.
Five weeks with no power. In a major(-ish - hey, I live in Sydney) city. Incredible.
If any city NOT privatised has suffered such an indignity I have not heard about it.
So I blame privatisation - the accountants tend to outrank and overrule the engineers (heard that one before? Remember Challenger?)
"Cats like plain crisps"
How can I steal data if all the computers are off?
Ohhh, you mean stealing in real life.
That ain't gonna happen, there's natural light out there. You know what natural light does to a well CRT-baked skin.
In case people are wondering how the power grid works, here is an article on howstuffworks.com on how
The power grid works
Erlang Developer and podcaster
Maybe regulation/deregulation is not as much the issue as redundancy in the power grid. I would think that it would make sense for there to be enough reduancy and backup systems in a power grid as large as the one described so that black outs such as this one do not occour.
On the other hand, the need for redundancy, or possibly for areas to draw power from other sources is expensive, and does not fit the model of a profitable buisness. Regulation could help by fueling money into redundancy and requireing a certian ammount of backup systems in place so that major black outs occour. Also, as far as I understand, the power grids is large cities have not grown to keep up with demand in said cities making blackouts or atleast brown outs more plausable.
Then again, this is only news because black outs of the magnitude happen so rarely. In all likelyhood this was a freak accident on the level that will not happen again for another 30 years or so. Hopefuly the people in charge of both the power grid in most areas as well as most major metropolitan areas have backup plans for when events such as this one occour. One can only hope.
I just saw the first political spin on this mess. Bill Richardson, the Former Energy Secretary, was on CNN saying we have a "third world power grid". What he didn't say and the CNN sycophant wouldn't bring up is that while he was in office the Clinton administration turned down every request to build new or upgrade existing power stations. The theory of the grid is that when one part of the grid needs power it can be shunted from areas with excess capacity. Just as in California (who also refused to build new capacity) THERE IS NO EXCESS CAPACITY! When one part is at capacity, they all are.
Quite frankly, we're a living in a tech world now. We need the power. Until we stop politically cowtowing to "eco-nuts", "consumer advocates". and other neo-luddites this is going to keep happening.
It doesn't matter what you wrap your emotions around, Reality is a brick wall specifically designed to scramble eggs
Well, as an ex-patriate New Yorker, I am sick of the middle America bias we see in the media's coverage of culture. This is news and, whining aside, it's bigger news because it happened in NYC. Tough. New York is the financial capital of this nation and incidentally of the world, too. What's there? Hmmm, ignoring the 8 million residents and 5 million daily commuters, we also have the New York Stock Exchange, and NASDAQ, and one of the Fed Reserve Banks, and, oh yeah, the United Nations. These make it news.
If a power outage had roiled through London and an equivalent land area, it would also be news. Losing power in the desert -- not so much news.
The Mongrel Dogs Who Teach
Sorry everyone, this one was my fault... I accidentally plugged my toaster oven in the same outlet as my microwave. :(
NO CARRIER
So let's see... you think these "less-than-ethical companies" would be better behaved with fewer rules? That makes a lot of sense. You're blaming the regulations because companies found ways to abuse them. How about a little blame for the companies that abuse them?
Last theory from Canadian governement is a thunderstorm near the border of canada-us, US-side, that cause the blackout.
At this point in time...the situation is still being evaluated. *we don't know*
More importantly, the people that run the power grid *do not know*.
Some poor schmuck on the front lines probably knows...but he ain't talking yet.
They used to point at the airline industry - remember? "Oh, look how great the airline industry did after it was deregulated!" Yeah, well, so now the taxpayers get to bail them out to the tune of tens of billions of dollars. Might as well have subsidized them from the beginning...
California put some rather peculiar rules in place regarding how much should be paid to move power at certain times. What ended up happening is that companies were able to take advantage of these fees by moving power around unnecessarily and at peak times, forcing the state and other consumers of the power to pay more. It was the rough power equivalent of having your cab driver take you from O'hare to the Loop via Milwaukee.
So yes, in this case, eliminate the rules that dictated that the price of power was based on the competition for transmission lines at a particular time (something the people controlling the transmission lines could easily inflate by moving power around unnecessarily) and the companies would not have been able to misbehave. The regulations gave the power companies the ability to set the prices for what they were selling.
paintball
Private-entreprise zealots quickly lose steam whenever you point Hydro-Quebec at them as a shining example of profitable State ownership.
If the damn Sims would simply accept paying more taxes, I could build the nuclear plant and maybe get a stadium too. It would make them all happier too!
Why Is My Power Plant Aging So Quickly?
Hmm. Night approaches....
Why Am I Getting Riots?
"I may be Love's bitch, but at least I'm man enough to admit it."
Look, people. There isn't anything or anyone to blame for this.
The Niagra Mohawk power grid serves the area in question. The way a power grid works is that there is a mesh of generation stations that are all interconnected by high-voltage transmission lines, 480kV on up. Each generation station has a primary service area and one or more (usually more) entry/exit stations where energy can either enter or exit the primary service area, depending on what they're telling the control system to do.
A network of generation stations makes up a grid, and at the boundary of a grid, there are similar entry/exit stations.
All generators, whether they be nuclear, hydro, wind, or whatever, have TONS of safety interlocks that engage at various points during abnormal conditions to prevent catastrophic failure. One of these interlock behaviors is to shut down and remove the generator from the grid in the event of an overload.
The likely sequence of events in this situation is that there was a failure at one of the generators in the N-M grid that resulted in the shutdown of that generator. What happens when a generator shuts down is that all of the entry/exit points flip to "entry" mode to allow neighboring generators to take up the slack. Most generator companies have agreements with their neighbors to buy however much electricity they need at whatever the current price is, without acknowledgement, when one of these shutdown events happens.
Anyway, once the initial generator shut down and the entry/exit stations flipped to entry mode, the neighboring generators were unable to take up the slack, so they in turn shut down as well. Then, a domino effect set in until it reached the boundary of the N-M grid, or when someone at the operator station woke up and hit the red button that prevents the transfer stations from automatically flipping to "entry" mode.
Keep in mind that it didn't necessarily have to be an overload that caused it - a generator can shut down for a number of reasons.
This all could have been a control system failure, an operator error, or some other unfortunate combination of events that happened to lead to a catastrophic grid failure.
I posted this in the ealier article about the power crisis. This thread didn't exist then, but it seams more appropriate here.
I live in British Columbia, west coast of Canada, and we have a publicly owned power company called BC Hydro. However our provincial government, which is very pro business, has been making moves to privatize this public utility by selling off portions to private companies.
The most recent branch to be sold off was to Accenture, a Bahamas based (i.e. tax shelter) spin off of Enron. If you don't remember Enron, here are some highlights: one of the biggest bankruptcies in US history, massive corporate crime, a major contributor to the California energy crisis due to power brokering, a major political contributor to one George W. Bush's election campaign and one of the script writers of Bush's current US Energy policy.
One of the major arguments of our provincial government's privatization campaigns is that companies can run these utilities far better and at lower cost to the consumer than can public institutions.
Well, I'm wondering, how many of you the east cost have seen your power bills going down. Don't every one raise there hands at once.
Now the reason I point this out is I see a direct coloration between the movement to have Open Source Software being deployed in public infrastructure Vs. Closed Source, and Public run utilities, such as water and electricity, Vs. Private Market Driven Operation.
I think most people who frequent Slashdot don't need an explanation in why an OSS solution should be the only standard for a democratic government. Just as I think they can see the rationale for publicly accountable organization running the fundamental utilities that support society, consisting of both Business and the People. However I think no one really understands the extent that Business now has in dictating government policy, and shifting that policy from serving the people to creating profit at the expense of the People, You and Me, whether we are American, Canadian or any other nationality. Health care is a prime example. The Struggle between Linux and Microsoft in India is another.
Let's all have a moment of silence for all the linux and *bsd boxen whose legendary uptimes were mercilessly snuffed out by this service interruption. Some clung to their UPS's bravely until every ampere of juice had been drained.
They will be missed, and we will build even longer uptimes to replace them.
microsoftword.mp3 - it doesn't care that they're not words...
One of the costs in getting power is that power's distribution - transmission lines cost money, and moving power over transmission lines thus costs money. California, as part of their "deregulation", put in place a system where the price of wholesale power was affected by not only the amount of power, but how the power got from point A to point B. The real pitfall with the rule was that it ALSO took into account supposed congestion on transmission lines - prices were set higher for wholesale power delivered when there was apparently a lot of people wanting to transmit power over given lines.
The obvious pitfall being that power line congestion could be artificially created - Enron (and others) took to moving power around more than necessary, creating more congestion, and thus artificially inflating the prices local power providers had to pay to get power over transmission lines.
Even worse, not only did the "deregulation" regulations allow Enron et. al. to artificially inflate the price of wholesale power, they ALSO prevented local power providers (the guys who actually delivered the power to your house) from raising the prices to make up for it, forcing them to sell power at a loss.
This could only go on so long before the local power companies started to run out of money, at which point they just said "Screw it", and instead of delivering power at a loss that they couldn't pay for anyway, they just stopped delivering power at all.
paintball
It USED to be that people thought ahead. It was normal to keep the electrical capacity at 30% above usage peaks. This way parts of the system could go down for planed and unplaned maintenence and there would not be black outs. It USED to be very well planned.
:(
In the last 30 or so years. It has become harder to build new plants, coupled with a lazy engineering and planning malaize that has come over nearly every part of the civil engineering branches of local and federal government. This left the west with less than 5% of capacity over peak usage (It's still about that today).
Obviously the same back east. So a single failure anywhere cannot possibly be taken up by anyone else.
A complete lack of far range thinking/planning over the last 30 years has brought us to this. Here in the west we have a similar crisis involving water that is very close to blowing up in our faces.
We had it too good for too long. Everyone "forgot" what it took to make it that good in the first place
Oh well.
Contrary to popular belief, coding is not all free blow-jobs and beer. Those things cost MONEY!
Enron pushed through electric power deregulation in 24 state legislatures, which made it possible for them to create the "markets" they needed to rip off consumers. They also had personal contacts and meetings with George W. Bush and probably most congressional and state legislators. By removing the accountability factor of government oversight it makes you wonder. Congress investigating themselves? Do you think they will find themselves guilty of any wrong doings? What a sweet deal.
-- Ted tsikora@powerusersbbs.com
I moved to Alberta from BC, to the left of Alberta on a map for those that don't know Canada, where the power is generally supplied by two companies, BC Hydro or West Koutenay Hydro (recently changed their name to something I can't remember). BC has abundant supplies of energy in the form of hydro electric power and depending on where you live you are supplied by one of these two companies.
My electrical cost in BC was more than half the KWh rate it is in Alberta, somewhere around 4.5 cents/KWh. On top of the KWh rate, I pay a consent fee and a storage rider and a whole host of bullshit fees that I did not see in BC because of REGULATION. I paid usage in KWh and that was it. I could even look on the meter and calculate my KWh usage and get a rough idea of what my bill was going to be (if you remember this from High School). You sure as hell can't do that here, who knows what the "storage rider" will be this month.
I have never understood the deregulation mentality; electricity is a necessity and business, especially high technology sectors, require and are attracted to cheap, reliable power. Deregulation has done none of that here in Alberta, costs are up and generation is down to maximize profit. I know several companies that locate themselves in BC due to the high demand they place on electricity, power that cannot be supplied by other provinces at such an attractive rate.
Now they are talking about partial deregulation of the BC market. Once again businesses small and large will get the shaft and the electrical producing companies will reap the rewards. Talk about robbing Peter to pay Paul.
Right now, numerous stargazers are pulling out their dusty telescopes for some clean astronomy. Something not possible unless you drove out into the boonies where the light interference and pollution is minimal.
Think of them all pulling their fist and going "YES! Mars here we come!".
As at this time it has not been determined exactly why the Northeast Blackout of 2003 has occurred, there has been much speculation that it is due to Niagara Mohawk's grid failure.
Being an "insider", I would just like to say that the thought that is running through my mind about this is that several years ago, when the original Niagara Mohawk wanted to sell the company, suddenly all the engineering employees were told that they were no longer to perform preventative maintenance work on tranmission and distribution lines. For quite a period of time, they literally sat around with nothing to do. Then the company was sold to a British company, and this "hands off" attitude has continued.
So, I am very curious to know whether NiMo's lack of maintenance has something to do with today's problem. Another aspect of this problem is the fact that many long-time technical workers at Niagara Mohawk have either retired or been forced out, with their jobs not being filled. The crew sizes are down considerably. The amount of work never decreases - it mostly likely increases - but there are less KNOWLEDGEABLE people on board to handle such technical matters.
I truly hope that a full investigation into this matter is done, and if NiMo has dropped the ball, they be held accountable.
I was waiting for it too - as soon as it came on that a Canadian part of the grid was down, I was thinking, "They'll be blaming Canada any minute now." Sure enough, right on cue, it starts flying back and forth from CNN to MSNBC to FOX - Canada Canada Canada Foreigners it's all the damn furriners.
Turned out not to be true, but honest to god the USA needs to get a grip. Not everything bad that happens is the fault of other nations. It's getting impossible to even talk to Americans these days - the concept of the USA being less than heavenly perfection personified, coming down from above to light the way for backwards and brown peoples who should shut up and do as they are told is rampant - you can see the rage rising behind their eyes when you even suggest that the USA is not to be envied in all things.
The USA is becoming strange and unpleasant. If it were a high school student it would be a wealthy jock, well-dressed, undeniably smart and handsome but with an ugly, arrogant soul. "They only hate me because they're jealous."
I know America - I like America. All the same America as a whole needs to rediscover a bit of humility.
On the other side of the coin, we just learned that two or three well placed attacks could plunge the entire nation into darkness and we can start planning now to make sure that doesn't happen. Do you think we will?
I'd start by mandating that towns either take their traffic signal systems off the main power grid or insure adequate backup power for them. The last thing we need in the middle of a blackout is traffic jams preventing emergency vehicles from getting where they need to go.
I'd also make sure hospitals and air ports have adequate backup capacity. Apparently a lot of them don't.
Then I'd have the Al-Capone Teamwork dinner with the CEOs of the various power companies, during which the NiMo CEO would get asked why one power station going down can take out a quarter of the nation's power. You know how that scene goes. Teamwork!
That'd be a good start I guess. Gives us something to do for the next 5 years or so.
I'm trying to teach myself to set people on fire with my mind... Is it hot in here?
The first thing I did when I came to this discussion was search for 'Bush' to find out how people were going to use this event as an excuse to do some Bush bashing. When none came up, I was a bit disappointed, but I started to wade through the posts. Yours was quite sensible...at first.
The real problem is people who substitute ideology for thinking about a problem.
Excellent!
The free market is not the solution to every problem. Get over it.
The state is not the solution to every problem either. Get over it.
Very well said, and balanced, too.
The solution to every domestic energy issue must be to drill oil wells in Alaska. The solution to every foreign policy problem must be to invade a country in the gulf with large oil reserves.
Oh, you lost me. You could have taken one of those, plus one of these: "The answer to every attempt at oil drilling is 'No!' The solution to every foreign policy problem, even those involving violent thugs who have no problems killing and torturing citizens and neighbors, is to talk and plead over decades," in order to sound as thoughtful as you began.
Not everything is about Bush. Get over it.
Evil is the money of root.
The original post was very informative. EmagGeek was right on track when he mentioned that one generator got knocked offline for some reason and because of that the power grid compensated by rerouting electricity from other generators.
My dad was vice president of electric supply for NIPSCO for a number of years after having worked his way up the chain of command starting off working at a power plant as an electrical engineer. As VP of electric supply his job included ensuring NIPSCO was generating enough power to cover the needs of all the power customers (including several steel mills), working with regulators to ensure the rates were reasonable so that money could be spent to increase capacity when needed, and working with environmentalists to ensure that emissions were well below accepted government levels.
NIPSCO was a company very interested in serving its customers. As a heavily regulated utility the only reasonable business decision is to service your customers the best that you possibly can. My dad took that to heart. He was strongly opposed to deregulation. Why? Because the simple fact of the matter is that my dad was somewhat of an exception. Most executives tend to look strictly at the bottom line and lose sight of the forest for all the trees. He knew that deregulation would inevitibly lead to cost cutting in areas where costs should not be cut simply because without regulation the power company is at the mercy of its shareholders and shareholders are very often in it strictly for the money.
So, tonight I had a discussion with him about this mess. First of all, the background. Apparently a generator went off grid this afternoon forcing other generators to take up the slack. That can happen for a number of reasons. Equipment does fail, humans do make mistakes, etc. What's supposed to happen is that the rest of the generators and the grid should have enough capacity to take up the slack. Should there not be enough capacity then someone needs to lose power. This should happen at the customer side. That is, a portion of the customers should be blacked out to reduce the load on the grid and allow normal operations to continue. I believe that is what you meant by "putting a release on the chain." You are correct, that's what should have happened. The fact that it didn't indicates that there was some major problem with the logic of the grid. It would have been far better to cut the power to thousands of customers than millions.
Bad logic was part of the cause. The other problem was a seriously overloaded power grid. The power grid was designed to handle the situation where a power company normally had sufficient capacity but due to generator failures was unable to meet demand. Notice that I said failures (plural). If a few generators are knocked off the grid the company ought to have enough energy to supply all of its customers. Furthermore, it ought to have backup generators that can be started and on the grid within an hour. Those backup generators are just that: backups. They cost a hell of a lot of money to operate but they aren't as expensive to build as a main generator. If a few more generators get knocked off grid it's reasonable to expect that a power company will be unable to handle this situation without buying power from another company. That is what the grid is for.
Unfortunately, because of government stupidity (deregulation) and corporate greed the grid is now being used in a way it was never intended to be. It is often loaded to near full capacity drawing power over very long distances. The idea of deregulation was that loosely regulated for-profit companies would compete to generate electricity which the local power companies could purchase instead of generating their own. Because the power companies no longer had to be responsible for providing capacity in excess of what is needed the rates could be
This is not the first massive northeastern blackout. There were wipespread blackouts like this in the early 1960s. The engineers learned that all sections of the grid must have significant over-capacity designed in so that the entire system could recover from large transients and short duration system oscillation without tripping protection devices. They beefed up the system so it could ride through these events.
The safety margin is gone. Demand has grown but capacity has not. If lightning runs in on a substation, it can trigger a chain of events leading to a couple generator switchyards opening their air breakers. From there, the overload snowballs.
Does deregulation play a part? Yes. Power brokering activities create additional burden on the system. There is less incentive to increase capacity. There is also diffusion of responsibility.
The electric power industry was not broken prior to deregulation and didn't need fixing. It's infrastructure and regulated monopolies suck less than gov't run or private run ventures.
This is apt to get worse.
Wansu, th' chinese sailor
What causes cascades like this actually has very little to do with megawatts
and everything to do with frequency. See, every generator on the power grid is
syncronized to a common source. Indeed, before a power plant comes back on
line it must first syncronize its generators. The generators normally sit
there running at a boring 3600 RPM (60hz*60 seconds). All plants have a
monitor that kicks them off line if their frequency varies by more than +/- a
hz or so. As an aside, the power grid is not always EXACTLY 60 hz. The
frequency of the entire grid is allowed to float a bit, though drifts are
corrected so the frequency averaged over a certain time is a nominal 60 Hz.
The cascade happens when a either big plant or a big load suddenly goes off
line. In the case of a big plant the other plants try to take up the load, but
in the process their frequency drops as the generators get loaded more (much
like shifting a car's manual transmission to a higher gear before it hits the
right engine RPM). Once a generator drops below 59 hz, it also trips off
making it even harder for the ones left to keep up, and generators begin to
fall off the grid like dominoes.
The opposite happens when a load suddenly goes away, but in that case the
generators' frequency abruptly jumps upward, which also results in it tripping
off the grid. Either way the result is a cascade like happened today.
Once the dominoes (generators) begin to fall off, the grid becomes unglued.
There's an old saying in the power industry:
59.5 Hz = trouble. 59 Hz = BIG trouble!
I believe the new power management software mentioned in the news reports that
should have prevented this works by intelligently shedding loads distant from where the anomaly occurrs (for example, shedding load in NYC for an anomaly in Canada). This would give the generators time to react to the change. Obviously it didn't work.
The power distribution everywhere in the western world is done using high voltage 3-phase AC systems.
They fail, if
a) the frequency slips or
b) if the power balance between production and demand gets to big.
The reason for all the hazzle of AC distribution is that it's simple to change voltages via transformers.
With modern power electronics, transformers will no longer be needed.
A DC distribution grid will be much more stable since the only reasons to take a generator off the network will be overload or overvoltage.
There is no frequency to lock to. There is no syncronizing phase when the generator starts production again.
At times with high demand, the DC grid voltage will drop. Surplus production will push up the grid voltage.
Circuit breakers can be set to turn on at a certain voltage, that automatically will turn on demand when the grid voltage can drive the load. Low priority areas can have the high-voltage switches, high priority areas have low-voltage switches.
Combine this with a varying price: Low voltage = high price, high voltage = low price and you'll get system which can smoothe out changes in the balance between supply and demand.
Will it work? Well, we do have some DC links from Denmark to Germany and to Norway. They are relatively small but power electronics are developing fast.
-- From Denmark
"Today's failure is a dramatic reminder of the importance of the uninterrupted flow of power to the health, safety, and well being of our citizens and the defense of our country. "This failure should be immediately and carefully investigated in order to prevent a recurrence. "You are therefore directed to launch a thorough study of the cause of this failure. I am putting at your disposal full resources of the federal government and directing the Federal Bureau of Investigation, the Department of Defense and other agencies to support you in any way possible. You are to call upon the top experts in our nation in conducting the investigation. "A report is expected at the earliest possible moment as to the causes of the failure and the steps you recommend to be taken to prevent a recurrence." Signed, Lyndon B. Johnson
De-regulation works well when there is a competitive marketplace and it fails utterly when there isn't. Witness the airlines for examples of both how it succeeds and fails. If you are travelling between major hubs in the US, you have multiple airlines to choose from and the price you pay is pretty low. If you are travelling between off-hub points, then you pay a premium because it's likely only one or two airlines serve that route.
The electrical industry, much like the phone and cable industry is too dependent on the connection to the house to be truly competitive. Ultimately whoever controls the wires into the home runs the show and has a competitive (and frequently regulatory) advantage over anybody who would need to run new wires.
There seems to be this belief that privatizing and de-regulating are magical cure alls for many problems. They aren't. If a market is naturally prone to creating uncompetitive monpolies, then neither government nor private industry will make it more efficient over the long run. Thus you are better off with government where at least the motivations are to please the citizenry rather than please the shareholders.
This sig has been temporarily disconnected or is no longer in service
Greg Palast takes a look at why the lights went out.