Dive Brief:
- Grid Assurance, the transmission security company which will stockpile critical equipment, officially launched yesterday.
- Six energy companies signed agreements last year to form the new initiative, which aims to combat the risk of lengthy blackouts resulting from natural disasters and possible terrorist attacks.
- Kansas City Power & Light Senior Vice President Michael Deggendorf will serve as Grid Assurance CEO.
Dive Insight:
It took less than a year to launch Grid Assurance, a sign of how vital the half dozen companies backing the venture believe it will be.
"Grid Assurance is an industry-led, proactive response to the numerous potential risks facing our nation's transmission system," Deggendorf said, including severe weather, natural disasters or physical and cyberattacks. Because some transformers can take up to two years to build and deliver, the company's service could help avoid lengthy blackouts.
The company was founded by affiliates of American Electric Power, Berkshire Hathaway Energy, Duke Energy, Edison International, Eversource Energy and Great Plains Energy. Companies signed a memorandum of understanding to pursue development of Grid Assurance in in June 2015, and prior to launching they received a review of the company's structure by federal regulators.
At KCP&L, Deggendorf led FERC-regulated transmission business efforts, Transource, as well as the development of Grid Assurance. "By maintaining a readily available supply of critical equipment necessary to restore power delivery if the transmission system is severely damaged, Grid Assurance will help protect consumers and communities from the devastating impacts that delays in restoring electricity can have on quality of life and the nation's economy," he said.
Looking ahead, Grid Assurance said Deggendorf will bring on key management team members in the coming weeks. Marketing will begin immediately, and the company will accept subscribers now. Next up is ordering critical transmission sparing equipment based on secured subscriptions.
The company's headquarters "will be determined in the coming months."
