The August 14, 2003 blackout was a disaster waiting to happen. This briefing looks at its underlying causes, and examines how a clear, consistent and comprehensive electricity policy could prevent future problems in the electricity sector.
Document Highlights
What began on August 14, 2003 as a local problem expanded within 10 seconds into a major blackout in the Northeast region. Why?
This briefing identifies three underlying causes, which, in combination with a heat wave, contributed to the blackout: an outdated and interconnected North American power grid, insufficient generation capacity, and wastefulness. All these problems were well known before August 14.
This briefing makes several suggestions for government action in moving forward with electricity policy. We must modernize the power grid and expand its capacity, preferably through already approved transmission corridors, and explore other avenues for longer-term capacity additions. Stronger reliability standards should support the upgrades. Also, we must improve power generation and trade by providing a positive business environment that will encourage competition in electricity generation and trade, which will in turn attract additional investment. We must adopt a pricing system that encourages conservation and supports needed investment. Finally, we must foster both conservation and innovation related to electricity.
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