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Inter-Regional Planning

Inter-Regional Planning. Black Sea Regional Transmission Planning Project Little Rock, AR November 12, 2010. 3 Interconnections / 8 NERC Regions. Independent System Operator (ISO) / Regional Transmission Organization (RTO) Map. Annual Average Wind Speed - 80 meters. 5. 7.

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Inter-Regional Planning

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  1. Inter-Regional Planning Black Sea Regional Transmission Planning Project Little Rock, AR November 12, 2010

  2. 3 Interconnections / 8 NERC Regions

  3. Independent System Operator (ISO) /Regional Transmission Organization (RTO) Map

  4. Annual Average Wind Speed - 80 meters 5

  5. 7

  6. HVDC PROPOSALS ON TOP w/ HVDC Proposals

  7. There is no…

  8. The solution will take…

  9. Goal: Design transmission backbone to connect load to most reasonable generation alternatives Strengthen ties to Eastern and Western Interconnections Improve connections between SPP’s east and west regions Horizons: 20, 10, and Near Term Focus: Regional, integrated with local Resulting in: Comprehensive list of needed projects for SPP region over next 20 years With 40 year financial/economic analysis Underlying Value: Reliability and Economics are inseparable What is Integrated Transmission Planning? 12

  10. Who pays for transmission? Highway/Byway 13 13

  11. Recent MOPC initiatives • SPP’s Markets and Operations Policy Committee (MOPC) has commissioned Land Use Policy Task Force (LUPTF) and Area Generation Connection Task Force (AGCTF) with recommendations due in October. • LUPTF will formulate SPP policy to help us get the best lines in the best corridors, with coordination of efforts and consideration of land use and natural resource inputs into SPP planning. • AGCTF is parallel effort to help address operational and design needs for wind farm integrations in close proximity.

  12. Approved LUPTF Recommendations • SPP is not a siting authority and does not have the authority to define routes for transmission lines. However, SPP is a regional planning entity and is responsible for designating the need and general location for new transmission related facilities including substation facilities.  With regard to minimizing land use, SPP will: • At least annually, work with resource developers, transmission owners, other ISO/RTOs and neighboring transmission providers, to identify future transmission needs including locations/routes for inclusion in SPP’s Integrated Transmission Planning (ITP) process.

  13. Approved LUPTF Recommendations (cont.) • While considering reliability issues and practical equipment ratings, SPP should strive to combine possible transmission facilities projects to reduce the number of parallel paths and minimize needed right-of-way. • Encourage participation of land use and natural resource entities in SPP’s semi-annual Transmission Summit meetings, as well as sub-regional planning meetings held in conjunction with quarterly Transmission Working Group (TWG) meetings, to identify areas where transmission facilities might have an adverse effect on the environment, wildlife, or cultural or historic sites. • Note when a proposed transmission facility identified in the ITP 20 and 10 year plan might traverse a sensitive area, identify why the area is a sensitive area, and note that the project cost could be affected. If practical SPP will estimate the additional cost of traversing or avoiding a sensitive area.

  14. Approved LUPTF Recommendations (cont.) • Look for opportunities to connect generator leads together prior to connecting to the transmission system during the Interconnection Feasibility Study (IFS), Preliminary Interconnection System Impact Study (PISIS), Definitive Interconnection System Impact Study (DISIS) process and in coordination with the recommendations of the Area Generation Connection Task Force (AGCTF). • Identify instances where generator leads might share a common location with transmission facilities listed in the ITP 20 and 10 year plan. • Consider the difference between future environmental and economic impacts that would occur either by selecting lower voltage solutions for near term needs or by selecting higher voltage solutions to meet future ITP20 and 10 needs.

  15. AGCTF Progress and Draft Recommendations • Charter - Develop Optimum Methods of Connecting Wind Generation to the Transmission System. • Avoidance of Multiple Generation Station Taps on transmission lines that are short distances from each other. • Recommend that ITP process designate wind collector system hub substation on new 345 kV and higher voltage lines. • Generation Leads could be combined to form new network facilities when practical and in accordance with Good Utility Practice.

  16. AGCTF Progress and Draft Recommendations • Requested tap points on 345 kV and higher voltage lines at points other than approved hubs must go through more rigorous and thorough study on the front end of the interconnection process rather than performing switching surge studies (EMTP analysis) at the Facility Study stage. • Generation Leads should be shared for optimal use of right-of-way and substation equipment. • Discussion incomplete because recommendations were not ready for approval in October. Need more time for discussion regarding cost allocation.

  17. FFTF Whitepaper on Rightsizing • “Rightsizing” is not just “upsizing” • Whitepaper and recommendations are posted at SPC Background Materials • Whitepaper and recommendations were approved by Federal Funds Task Force (FFTF) and the Strategic Planning Committee (SPC) in October

  18. Rightsizing Recommendations SPP staff will shepherd future efforts with quarterly status reports to the SPC: • SPP will seek and support opportunities to emphasize the importance of rightsizing in the transmission planning process • SPP staff will initiate formal dialogue with ERCOT/ CREZ TOs, as well as MISO, to identify potential joint EHV transmission facilities/corridors in the Texas Panhandle and Missouri River Valley • SPP staff will work with key stakeholders such as DOE, FERC staff, Congressional staff, consultants to develop strategies to increase their awareness and SPP’s emphasis on rightsizing

  19. EWITS Scenario 2 EWITS Scenario 2

  20. Merchant Developers like Clean Line are Proposing Large HVDC Projects

  21. Will Merchant Projects Drive Grid Build-Out? • Atlantic Wind Connection (AWC) announced a as proposed $5B, 350 mile, HVDC backbone project off NJ, MD and VA shore to harvest off-shore wind and provide deliveries to 4 stations • Sponsors include Google, Good Energies, Trans-Elect, Marubeni and others Oct 12th New York Times headline article, but graphics may be misleading since significant EHV transmission expansion will likely be required on shore and into heartland (EWITS)

  22. What’s Next? • FERC Chairman Wellinghoff: “Conceptually it looks to me to be one of the most interesting transmission projects that I have ever seen walk through the door.” • Sierra Club’s Deputy Director for National Campaigns, Melinda Pierce: “These kinds of audacious ideas might just be what we need to break through the wretched logjam.” • Time will tell regarding the implications of AWC to the future of the US bulk power grid

  23. SPP’s Next Steps Integrated Transmission Planning (ITP) in process with first plan due January 2011 20 year scenarios with 40 year financials Approved Priority Projects – 765 or 345 kV? Significant increases in actual project costs and refined cost estimates are creating issues AGCTF recommendations due Jan 2011 FERC RM10-23 will help shape inter-regional planning plus cost allocations and clarify the role of merchant developers in long range plans 26

  24. Inter-Regional Planning Can Work • In the 1960s, 11 South Central Electric Companies (SCEC) built first 500 kV network in US with 345 kV extensions to facilitate 1,500 MW seasonal diversity interchange with TVA using common design standards • The benefits of this expansion were grossly underestimated, e.g., planners and transmission / substation design engineers assumed only a fraction of 500 kV line thermal capacity would be needed and utilized in operations. Hard to imagine any tie line ever loading over 1,000 MVA

  25. Benefits of Enabling Infrastructure Evolve • Seasonal diversity exchanges were terminated in 1980s due to a convergence of many items which affected the bulk power system, e.g., oil embargoes and economic recessions slow energy growth, Three Mile Island accident delay/halt nuclear expansion, shift in TVA seasonal load patterns to higher summer peaks,… • SCEC 500 kV backbone facilities enabled economy sales/open access, but also significant economies of scale in major base load generation expansion in 70s and 80s, and IPP/QFs in 90s with minimal incremental EHV transmission

  26. Jay Caspary Director, Transmission Development 501.614.3220jcaspary@spp.org

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