Blow for ESB as US deal on hold

THE ESB expressed disappointment yesterday at a decision by American authorities to suspend a lucrative project that the ESB had been named as preferred bidder to manage.

The SeTrans project, which aimed to set up an electricity transmission system in the southeast of the United States managed on a regional rather than on a state basis, was suspended by its sponsors in light of proposed changes to American energy laws.

ESBI, the ESB’s international consulting arm, and ESN National Grid, which operates the Irish power transmission network, were appointed as preferred bidders to develop a regional transmission operator in late 2002. The project hoped to restructure the way in which power transmission in the southeast was managed, to produce greater efficiency in the power network and ultimately bring benefits to consumers.

Recent changes to American energy laws meant that local, state and federal agencies would not be obliged to take part in the regionalisation process. A statement by the project sponsors, which included energy giants Energy and Southern Company as well as municipal authorities in the states of Georgia and Florida, said it was unlikely that consensus support and acceptance for the project would be forthcoming from all the necessary agencies.

The project would have involved investment of up to $150m in new IT systems to manage the south-east region’s power needs and was expected to generate revenues of up to $100m a year for five years.

ESBI said the project sponsors were within their rights to suspend the project but added it was disappointed with the outcome as it was capable of successfully delivering the project.