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Regional Grid Development Pat Wood, III Kansas Transmission Summit September 8, 2004. Infrastructure Is the Foundation. Vigilant Oversight. Competitive Markets. Effective Rules. Sufficient Infrastructure. Lagging Transmission Investment.
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Regional Grid DevelopmentPat Wood, IIIKansas Transmission SummitSeptember 8, 2004
Infrastructure Is the Foundation Vigilant Oversight Competitive Markets Effective Rules Sufficient Infrastructure
Lagging Transmission Investment • Half as much annual investment in 2000 as in 1975 Annual growth rates in Gen, Trans, Load
5 Barriers to Investment • Lack of regional focus • Incentive to favor generation • Uncertain cost recovery policy • Insufficient incentives
Robust regional grids benefit customers • Access to inexpensive supply • Protection from local disruption and weather volatility • Economic dispatch and efficient exchange • Fuel diversity
Fuel diversity • Coal and wind require longer lines and regional delivery system. • Wind also requires an open competitive balancing (energy) market that RTOs provide.
State and federal handshake • Recent settlements demonstrate lack of conflict • Missouri • Kentucky • Virginia • RSCs provide greater opportunities than ever before for state input.
RTOs help regional grid development • Develop regional plan that identifies cost-effective grid investments to support reliability and economic delivery. • Provide a means of cost allocation and recovery.