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Transmission Planning and Expansion in the Western Interconnection

Transmission Planning and Expansion in the Western Interconnection. Doug Larson Western Interstate Energy Board August 21, 2006. Outline of Presentation. Geographical and institutional context Transmission planning Evolution of regional planning Current regional planning EPAct actions

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Transmission Planning and Expansion in the Western Interconnection

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  1. Transmission Planning and Expansion in the Western Interconnection Doug Larson Western Interstate Energy Board August 21, 2006

  2. Outline of Presentation • Geographical and institutional context • Transmission planning • Evolution of regional planning • Current regional planning • EPAct actions • FERC and transmission planning • Western Governors’ Clean and Diversified Energy Initiative transmission recommendations • Larson’s suggestions • Additional material • Slides on SWAT/WestConnect • SWAT/CCPG planning principles

  3. Acronymns • CCPG – Colorado Coordinated Planning Group • CREPC – Committee on Regional Electric Power Cooperation • DOC – Department of Commerce • DOD – Department of Defense • DOE – U.S. Department of Energy • DOI – Department of the Interior • FERC – Federal Energy Regulatory Commission • IRP/LCP – Integrated Resource Plan/Least Cost Plan • MGA – Midwest Governors’ Association • NERC – North American Electric Reliability Corporation • NOPR – Notice of Proposed Rulemaking • NTAC – Northwest Transmission Assessment Committee • OATT – FERC’s Open Access Transmission Tariff • RMATS – Rocky Mountain Area Transmission Study • STEP – Southwest Transmission Expansion Plan • SSG-WI – Seams Steering Group-Western Interconnection (now defunct) • SWAT – Southwest Area Transmission • USDA – U.S. Department of Agriculture (Forest Service) • WAPA – Western Area Power Administration • WCPSC – Western Conference of Public Service Commissioners • WECC – Western Electricity Coordinating Council • WGA – Western Governors’ Association • WIEB – Western Interstate Energy Board • WIRAB – Western Interconnection Regional Advisory Body

  4. Geographical Context WIRAB and CREPC geography

  5. Regional Institutional Context Western Governors’ Association http://www.westgov.org Western Interstate Nuclear Board Established by interstate compact ratified by P.L.91-461; members appointed by Governors of signatory states Federal Energy Regulatory Commission • Western Interstate Energy Board • Members appointed by Governors, plus provincial representatives from AB, BC, SK • Serves as the energy arm of the Western Governors’ Association • Web site http://www.westgov.org/wieb • Western Interconnection Regional Advisory Body (WIRAB) • Governors from AZ, CA, CO, ID, MT, NV, NM, OR, UT, WA, WY created pursuant to Section215(j) of the Federal Power Act. • Appointees by Governors from AZ, CA, CO, ID, MT, NV, NM, OR, UT, WA, WY • Western Governors have extended invitations to join the WIRAB to British Columbia, Alberta, SD, NE, TX and will be extending an invitation to the appropriate Mexican entity. • Web site http://www.westgov.org/wieb/site/wirab/wirabindex.htm Western Conference of PSCs http://psc.state.wy.us/htdocs/wcpsc.htm North American Electric Reliability Corporation Western Electricity Coordinating Council • Committee on Regional Electric Power Cooperation (CREPC) • Joint Committee of WIEB and WCPSCs • All energy and regulatory agencies in the states/provinces in Western Interconnection • Web site http://www.westgov.org/wieb/site/crepcpage/index.htm

  6. Committee on Regional Electric Power Cooperation • Joint committee of WIEB and WCPSCs • Membership open to all energy/regulatory agencies in Western Interconnection • Action when no one objects • Work plan • Two CREPC meetings/year (next 9/27-29) • Resource adequacy • Transmission planning & expansion • Participation in regional planning • National interest corridors • Cost allocation/recovery for transmission • Market assessment/monitoring • Transmission permitting • WGA Protocol http://www.westgov.org/wieb/electric/Transmission%20Expansion/index.htm • Siting pre-emption • Interstate compact

  7. Western Interconnection Regional Advisory Body • Created by Governors under Federal Power Act • http://www.westgov.org/wieb/site/wirab/wirabindex.htm • Appointees by Governor or their designee • Actions • 7/24 Advice to FERC on standards • http://www.westgov.org/wieb/wirab/07-25-06advice.doc • Next advice on: • NERC/WECC budgets • NERC/WECC delegation agreement

  8. Major Western Transmission Paths • Transmission Planning • Evolution • Current planning • EPAct actions • FERC and transmission planning

  9. Evolution of Transmission Planning • 2000-2001 Western electricity crisis spurred action by Governors – 2001 Conceptual Transmission Plans report • Interconnection-wide planning by SSG-WI, now WECC • Sub-regional planning • SWAT http://www.azpower.org/swat/ • CCPG http://ccpg.basinelectric.com/ • NTAC http://www.nwpp.org/ntac/ • RMATS http://psc.state.wy.us/htdocs/subregional/home.htm • STEP http://www1.caiso.com/docs/2002/11/04/2002110417450022131.html

  10. NTAC NorthwestTransmissionAssessmentCommittee RMATS RockyMountainAreaTransmissionStudy CCPG CAISO ColoradoCoordinatedPlanningGroup CaliforniaIndependentSystemOperator SWAT SouthwestAreaTransmission STEP SouthwestTransmissionExpansionPlanning Western Interconnection Sub-Regional Planning Groups RMATS – http://psc.state.wy.us/htdocs/subregional/home.htm SWAT – http://www.azpower.org/swat CAISO – http://www.caiso.com/thegrid/planning/index.html STEP – http://www.caiso.com/docs/2002/11/04/2002110417450022131.htmp NTAC – http://www.nwpp.org/ntac CCPG – http://ccpg.basinelectric.com

  11. Current Planning Relevant to Colorado • SWAT/CCPG • Project Zia • WECC’s Transmission Expansion Planning Policy Committee • http://www.wecc.biz/index.php?module=pagesetter&func=viewpub&tid=5&pid=49 • WAPA/Trans-Elect/Wyoming Infrastructure Authority • TransWest Express

  12. British Alberta Columbia Canada WA MT OR ID SD WY NV NE UT CO CA NM AZ Mexico Project Zia: Potential EHV Projects Peace Peace River River British British Alberta Alberta Columbia Columbia H Canada Canada Seattle Seattle WA WA Portland Portland MT MT Celilo Celilo Colstrip Colstrip Pacific Pacific OR OR ID ID Ocean Ocean Malin Malin SD SD WY WY Midpoint Midpoint Borah Borah Round Round Mountain Mountain Laramie Laramie Jim Jim Salt Salt Bridger Bridger River River NV NV Lake Lake NE NE Reno Reno City City San Francisco San Francisco H F, G UT UT Denver Denver B Market Market CO CO Four Four C Place Place CA CA Corners Corners D Los Los Palo Palo Angeles Angeles NM NM Verde Verde A Albuquerque Albuquerque E Phoenix Phoenix AZ AZ San Diego San Diego Legend Tucson Tucson Mexico Mexico El Paso El Paso Proposed/Planned projects Potential Transmissionidentified

  13. EPAct Actions • DOE • August 8 DOE congestion study • http://www.oe.energy.gov/epa_sec1221.htm#National_Electric_Transmission_Congestion_Study • Energy corridors on federal lands (DOE, DOI, USDA, DOC, DOD) • http://www.oe.energy.gov/energy_policy/epa_sec368.htm • FERC • Proposed FERC rules to pre-empt states in National Interest Electric Transmission Corridors • Comments due 8/25 • http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/06-5619.htm

  14. DOE’s Critical Congestion Areas and Congestion Areas of Concern

  15. DOE’s Conditional Constraint Areas

  16. Preliminary EPAct Section 368 Energy Corridors

  17. FERC and Transmission Planning • Reform of Order 888 OATT • FERC proposing new transmission planning requirement • http://www.ferc.gov/industries/electric/indus-act/oatt-reform.asp • CREPC comments • Support FERC proposal • Apply to jurisdictional and non-jurisdictional transmission owners • Can satisfy requirement by participating in regional transmission planning effort • Equitable sharing of planning cost; financial support for state participation • http://www.westgov.org/wieb/electric/epact/RM05-25CREPCcomments.pdf • Planning elements in reliability rules • FERC NOPR expected in September

  18. Proposed Transmission Projects MT-AB intertie John Day-McNary Northern Lights Northwestern AMPS Seabreeze WAPA/TransElect/WIA Frontier Line Miracle Mile-Ault TransBay Robinson Summit- Harry Allen TransWest Express Colorado-New Mexico Interconnection Project Tehachapi NavajoTransmission Project Green Path Palo Verde – Devers II Sunrise Powerlink Tucson-Nogales)

  19. WGA Clean and Diversified Energy Initiative Transmission Policy Recommendations • Efficient Use of the Existing Transmission System • Transmission Expansion References CDEAC report • http://www.westgov.org/wga/meetings/am2006/CDEAC06.pdf Governors’ resolution • http://www.westgov.org/wga/policy/06/clean-energy.pdf Transmission Task Force report • http://www.westgov.org/wga/initiatives/cdeac/TransmissionReport-final.pdf

  20. CDEAC Recommendations: Efficient Use of Existing Transmission System #1: Adopt Conditional Firm and related transmission tariff products #2: Review & assess Available Transfer Capability (ATC) levels #3: Eliminate rate pancaking (i.e. multiple fees imposed across multiple control areas) #4: Promote control area consolidation #5: Encourage economic dispatch #6: Support common OASIS sites

  21. CDEAC Recommendation: Transmission Expansion #7: Support regional planning • 7(a) – Resources and institutions • 7(b) – Regional impacts in regulatory reviews • 7(c) – Planning supports regulatory analysis • 7(d) – Synchronize planning efforts # 8: State leadership role #9: Queue reform for interconnection #10: Open season process

  22. CDEAC Recommendation:Transmission Expansion Cost allocation and cost recovery #11: Presumption of prudence • Reduce risk with tiered standard of review #12: Public interest (e.g., RPS compliance) and regulatory incentives #13: Transmission in advance of generation • Texas and Minn. Legislation • Tehachapi model #15: Transmission incentives • E.g. Higher rates of return, quicker cost recovery, avoid unrecoverable trapped costs

  23. CDEAC Recommendation:Transmission Expansion • Transmission Siting and Permitting #18: Siting and permitting Arenas • #18(a): Implement WGA and MGA Transmission Protocols • #18(b): Consider Interstate Siting Compact in response to Section 1221 of EPAct 2005 • #18(c): Governors coordinate siting processes within their own state #19: Federal land coordination • Section 368 of EPAct 2005 federal land corridors

  24. Larson’s Suggestions • Require and provide resources for PUC to participate in regional transmission planning • Link LSE resource plans and regional transmission plans • Require that LSE resource plans consider results of regional transmission planning processes • Urge regional transmission planning processes to evaluate regional implications of LSE resource plans • Synchronize timing of Colorado LSE plans with neighbors • Identify a single point of contact in state government for transmission permitting • Coordinate county input to regional permitting efforts • Protect state from FERC pre-emption • Ensure that PUC (and counties) has the authority to consider regional benefits when examining transmission proposals • Require biennial state transmission plan (e.g., AZ) • Require transparency in data and analysis

  25. Supplemental Slides on Southwest Regional Transmission Planning

  26. WestConnect Regional Planning Footprint with CCPG/SWAT NTAC NorthwestTransmissionAssessmentCommittee RMATS RockyMountainAreaTransmissionStudy CCPG CAISO ColoradoCoordinatedPlanningGroup CaliforniaIndependentSystemOperator SWAT SouthwestAreaTransmission STEP SouthwestTransmissionExpansionPlanning RMATS – http://psc.state.wy.us/htdocs/subregional/home.htm SWAT – http://www.azpower.org/swat CAISO – http://www.caiso.com/thegrid/planning/index.html STEP – http://www.caiso.com/docs/2002/11/04/2002110417450022131.htmp NTAC – http://www.nwpp.org/ntac CCPG – http://ccpg.basinelectric.com

  27. WESTCONNECT REGIONAL PLANNING WORK GROUP • GOALS and OBJECTIVES • Promote coordination of regional transmission planning within the WestConnect footprint by formalizing a relationship among the WestConnect parties, the Southwest Area Transmission Planning Group (SWAT) and the Colorado Coordinated Planning Group (CCPG) • Provide resources to SWAT and CCPG for conducting open, objective and transparent stakeholder processes in completing biennial transmission system plans • Produce a single WestConnect biennial transmission plan that incorporates input from the SWAT and CCPG plans and addresses all transmission needs across the WestConnect footprint.

  28. WESTCONNECT – SWAT – CCPG • BASIS OF UNDERSTANDING FOR PRINCIPLES • SWAT and CCPG sub-regional planning groups were initially established independently by different forces, principles and membership. • The sub-regional planning organizations continue to conduct focused planning efforts for their sub-regions. • Coordination of CCPG and SWAT sub-regional efforts will bring benefits to WestConnect and all other utilities and entities through representation of a larger region. • The WECC Board approved the formation of the Transmission Expansion Planning Policy Committee (TEPPC) at the April 2006 Board Meeting. The TEPPC will be responsible for west wide cost production modeling and management of the west wide transmission and generation database. CCPG and SWAT will provide coordination between their respective sub-region and the TEPPC.

  29. WESTCONNECT – SWAT – CCPG • PRINCIPLES FOR TRANSMISSION PLANNING • Conduct a biennial near and long-term transmission system plan in accordance with NERC/WECC planning criteria • Provide input for WestConnect to produce a single near and long-term transmission plan/document that addresses all the transmission needs across the entire WestConnect footprint. • Coordinate efforts such that the transmission plans of each sub-regional group are developed on the same cycle. • Coordinate base case development for the WestConnect region • Commit to coordinate and share information regarding planning efforts between CCPG and SWAT, and subsequently with WestConnect. • Maintain individual sub-regional planning processes and procedures, but ensure no redundancies occur in the WestConnect footprint. • Where appropriate, develop coordinated transmission plans.

  30. WESTCONNECT – SWAT – CCPG SUB-REGIONAL TRANSMISSION PLANNING SCHEDULE - 2006 SWAT Approved Principles January 17 Steering Committee Approved Principles March 31 CCPG Approved Principles April 13 Draft responsibilities, objectives, processes, and procedures to WestConnect Steering Committee April 28 WC Steering Committee Approval of responsibilities, objectives, processes, and procedures May 25 WC Implements Responsibilities Late Summer First Biennial Plan 1st Qtr 2008

  31. Contact Information Salt River Project P.O. Box 52025 Phoenix, AZ 85072-2025 Attention: Robert Kondziolka, Manager Mail Station POB100 Phone – (602) 236-0971 Fax – (602) 236-3896 E-Mail – rekondzi@srpnet.com

  32. Project Zia Transmission Planning Workshop Bob Smith Arizona Public Service Company August 17th, 2006

  33. Overview • Meeting on July 17th in Phoenix • Purpose - Brainstorm potential transmission expansion projects necessary for 10-20 years into the future • Approximately 40 attendees • 6 breakout groups looked at • Load Centers • Generation Sites • Transmission Projects • Groups took different approaches, but results were very similar

  34. Summary - Load Centers • Phoenix/Tucson • Southern California • Colorado (Denver and Ft Collins) • Utah (Salt Lake Area) • New Mexico (ALBU Area) • Nevada (Las Vegas Area) • Critical to include So. Cal. when assessing load growth

  35. Summary - Generation • Rough estimates indicated there could be as much as 19,000MW of power available through solar, geothermal, wind, natural gas, and coal technologies to serve an incremental 15,000MW of load by the 2020 timeframe • Resources outside of DSW will be needed to meet demand • Potential generation in Mexico that could be synchronized with US grid • Possibilities for generation in Texas to serve Southwest load • Coal and wind resources in Wyoming and southeastern Colorado

  36. Summary - Generation cont’ • AZ need for additional energy will require new generation and most likely locations will be near existing sites • PV, Cholla, Coronado, Bowie, Desert Rock, Mexico (in particular Agua Prieta) • Also considered were Bouse (previous study work) and San Manuel • New Mexico going to be an energy exporting state • Significant wind potential (mesas of the east portion of the state) • Significant solar power potential (solar near Deming)

  37. Summary - Generation cont’ • Wyoming (Coal/Wind) • New Mexico (Wind) coal? • Colorado (Coal/Wind) • Arizona (Coal: Cholla and Springerville) • Arizona (Nuclear: PV) • Nevada (Wind) coal? • Mexico (Coal) • Various (Gas)

  38. Summary - Transmission • Transmission used to bring large amounts of power from remote locations to load centers; possibly DC connections • Transmission from Wyoming through CO and NM into AZ • Transmission from Wyoming through Utah into NV and CA • DC ties into Texas • Eastern side of Colorado into New Mexico • New transmission identified is consistent with existing study recommendations (RMATS, SSG-WI, etc.) as well as proposed projects (TWE, FL, NL) • Upgrade existing 345kV conductor to double circuit 500kV

  39. Summary - Transmission cont’ • Transmission across Mexico at Imperial Valley/Yuma, Tucson, and El Paso to service load and/or access resources in Mexico • AZ-NM transmission through the middle of southern portion of the states rather than a northern connection (due to congestion at FC) • New Mexico has some definite no-go areas • White Sands Missile Range • Very Large Array (east of Datil) • Mountain ranges • Process should try to make use of the Section 368 Corridors from the EPACT of 2005

  40. Summary - Transmission cont’ • From Wyoming through Utah into Arizona • From Wyoming through Utah into Nevada • From Wyoming through Colorado and New Mexico into Arizona • From Arizona into California • From Nevada into California • From Arizona Gens to Arizona Load Centers • From New Mexico into Arizona • From Mexico into CA, AZ, and NM New 500kV and or upgrade existing 345kV to 500kV

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