Among the more influential business groups backing the Grid Transformation and Security Act of 2018 is the Northern Virginia Technology Council. In a Richmond Times-Dispatch op-ed today, President Bobbie Kilberg outlines her reasons for supporting the legislation, which would repeal the electric rate freeze and plow utility over-earnings into modernization of the electric grid.
Kilberg cites several advantages of an upgraded grid, including faster responses to power outages and greater security against cyber sabotage or physical threats. What intrigued me most was this statement: “High-quality power must be available on a 24/7 basis; even minute disruptions can have serious consequences for technology-dependent businesses.”
What does Kilberg mean by “high-quality” power? My primitive understanding is that high-quality power equates to electric current subject to a minimum of voltage fluctuation and micro-interruptions. Electronic equipment is designed to work at a specific voltage, and one of the great challenges of electric utilities is to maintain stability as customers dial their consumption up and down and as power sources kick in and drop off. That challenge will grow as Virginia comes to rely increasingly upon intermittent solar power. The problems appear to be well understood, however, and technology exists to address the problem. It just needs to be installed.
So, here’s my question: Are tech companies more dependent upon high-quality electric power than ordinary businesses that rely upon computers? Are tech enterprises more vulnerable to minute fluctuations in voltage and frequency? What costs are imposed by variations in electric current that might be imperceptible to the rest of us? Finally, if the quality of electric power is an essential input for tech companies, would modernization of Virginia’s electric grid confer a competitive advantage for the Old Dominion? These questions would seem to deserve greater scrutiny.
If the answer is yes, high-quality electricity does confer a competitive advantage in the tech sector, that introduces an important and under-reported consideration into the debate over grid modernization. There may be multiple paths toward the goal of high-quality electricity — the Grid Transformation Act is not the only way to finance upgrades to the electric grid — but whichever approach we choose, it would be useful to gain a keener clearer understanding of the economic-development stakes involved.There are currently no comments highlighted.