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SD Energy Infrastructure Authority “Transmission 101” June 9, 2006. Mike Risan Senior Vice President, Transmission Basin Electric Power Cooperative. Transmission Constraints. Constraints. Man. of. Rules. Nature. of. Rules. Rules of Nature. Laws of Physics Regional Characteristics.
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SD Energy Infrastructure Authority“Transmission 101”June 9, 2006 Mike Risan Senior Vice President, TransmissionBasin Electric Power Cooperative
Transmission Constraints
Constraints Man of Rules Nature of Rules
Rules of Nature • Laws of Physics • Regional Characteristics
Power Laws of Physics Load Generation
Lightning Power Contingencies
Power Contingencies
Overload? Power
Power Low Voltage?
Power Transient Stability?
Low Overload Transient Voltage Stability Weakest Link
Power Transfer Capability Limit
Natural Characteristics • Coal • Hydro • Wind • Location • Load
Hydro Fort Peck Garrison Oahe BigBend FortRandall Gavins Point
50m (164ft) PowerClass Speed* (m/s) Wind Power(W/m2) Wind
Limit Load Generation Load
NDEX Load
MHEX NDEX MWSI GRIS LNC GGS FTCALS WNE WKS COOPERS
Rules of Nature Summary • Complex • Regional problem • Need regional solution • Technically feasible
Rules of Man • Regulatory Rules/Processes • More Problematic • In a state of flux • Deregulation
FERC • States • Transmission line permitting & siting • Eminent Domain authority • Rate Recovery PUC Regulatory Rules/Process • Federal Energy Regulatory Commission • Regulates jurisdictional utilities directly,others indirectly • Interstate transportation • Leading restructuring initiatives
FERCRestructuring Initiatives • Orders 888/889 – 1996 • Order 2000 – 1999
Orders 888/889 • Open Access Pro-Forma Tariff • Standards of Conduct • Electronic reservation system (OASIS) • Tariff Process (FIFO) • Consider all requests sequentially • Correctly assign costs
Cost Provisions • Rate = • Expansion uses “OR” Pricing • Incremental • Average Cost Usage
Not designed for large scale Interregional Transactions
Request Transmission Impact Study Facility Study Decision Period Confirm Service Tariff Process
R T O
Order 2000 • Regional Transmission Organizations • Regional pricing to eliminate pancaking • Coordinated operations for reliability improvement • Regional transmission planning Same goals as the IS!
Rate Issues • RTO rate • License Plate • Postage Stamp • Bottom line = Who Pays?
No Cost/Benefit Costs Benefits
Other Impedimentsto New Transmission • Opposition and litigation • Siting across multiple jurisdictions • Impacts vs. benefits? • Who has responsibility to build? • Uncertain cost recovery • Risky – Who will invest?
Rules of Man Summary • Regulatory arena in a state flux • Process in gridlock • Much uncertainty • Who pays?
Solution • Expand Bulk Transmission System • System Wide Average Rate (HV only) • Common Rate Zone (IS) • Cost Effective/Efficient • Least Cost Planning • Allow Immediate Recovery for Investments • Incentives Unnecessary
Solution • This will promote: • Economic Development • Energy Independence • Competition • Reliability