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Transmission Joint Action in the Upper Midwest a presentation to the APPA Joint Action Workshop

December 7, 2004. Transmission Joint Action in the Upper Midwest a presentation to the APPA Joint Action Workshop. by David A. Berg, P.E. Principal. Background. Public power has a strong presence in the upper Midwest There is a rich tradition of municipal joint action in our region

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Transmission Joint Action in the Upper Midwest a presentation to the APPA Joint Action Workshop

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  1. December 7, 2004 Transmission Joint Action in the Upper Midwesta presentation to theAPPA Joint Action Workshop by David A. Berg, P.E. Principal

  2. Background • Public power has a strong presence in the upper Midwest • There is a rich tradition of municipal joint action in our region • Transmission has become a critical issue in our region and across the country

  3. Transmission Access Policy Study Group (TAPS) June 2004 White Paper • "Effective Solutions for Getting Needed Transmission Built at Reasonable Cost" • Examines problems and proposes policy solutions for transmission investment needs

  4. TAPS White PaperProblems Identified • Transmission investment needed to improve reliability • Competitive wholesale market requires added transmission infrastructure • Commonly proposed solutions not working • Increased return and accelerated depreciation • Participant funding

  5. TAPS White PaperStructural Solutions • Inclusive Stand-Alone Transmission Companies • Shared System Model

  6. TAPS White PaperRegulatory Solutions • Ratemaking devices • Reduce investment risk • Attract capital at reasonable cost • Spread cost across broad regions • Regional planning to achieve cost-effective and efficient solutions • Performance-based rates to hold transmission owners accountable

  7. Midwest Independent System Operator (MISO)

  8. MISO Issues • Understanding • Membership • Congestion Management • Ownership Incentives • Regional Planning

  9. Why Joint Action?

  10. Single Small Municipal Utility

  11. Small & Large Municipal Utilities

  12. Individual Municipals & Agency

  13. Individual Municipal Regional Presence

  14. Collective Municipal Regional Presence

  15. Midwest Municipal Transmission Group (MMTG) • January 2002 formal announcement • 120 Iowa & Minnesota municipals (1300 MW) • Intervened in TRANSLink filing • Goal - get municipal transmission recognized in TRANSLink • Goal - invest in new regional highway transmission projects • Successful in initial goals • Continuing participation in regional transmission arena • MISO • Investment opportunities

  16. Super Joint Action in the Upper Midwest • Idea has been brewing for a while • Joint Action Workshop held July 13, 2004 • Joint Action Working Group formed • Existing agencies • "Independent" municipals • 6 states • Transmission identified as proper focus for expanded joint action

  17. Upper Midwest Regional Focus

  18. Transmission System Planning and Investment • Champion TAPS approach • Municipals want a seat at the table • Investment = Influence

  19. Expanded or Super Joint Action can not only get municipals to the table, it can get them to the head of the table

  20. Current Approach • Examining expansion of MMTG • Interaction between MMTG Operating Committee and Joint Action Working Group • MMTG Benefits • Existing organization • Multi-state • Track record of success

  21. Next Steps • Conduct 2-day strategic planning meeting (early 2005) • Prepare plan of development • Mission • Organizational structure • Staffing • Funding • Development timeline • Investment strategy • Move Forward?

  22. Questions and Discussion

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