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Joint Ownership of Transmission

Joint Ownership of Transmission. Richard A. Lehman Salt River Project. Background. Joint Ownership Projects have played a vital role in the growth and development of the West and SRP Rapid growth in post war years forced IOU’s and public power utilities to work together

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Joint Ownership of Transmission

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  1. Joint Ownership of Transmission Richard A. Lehman Salt River Project

  2. Background • Joint Ownership Projects have played a vital role in the growth and development of the West and SRP • Rapid growth in post war years forced IOU’s and public power utilities to work together • SRP has been involved in the development of jointly owned generation and transmission projects for nearly 50-years

  3. Benefits of Joint Ownership • Economy of scales offered by larger projects • Better control and oversight of expenses • Lower Cost - expenditures are cost based • Easier to match capacity needs to anticipated growth

  4. Principles of Joint Ownership Projects • Owned by Participants (“tenants in common”) • Owners allocated transmission entitlement based on their participation level (% or MW) • Owners independently administer their share of allocated transmission entitlement • Costs & expenses shared proportionally • Capital expenditures • O&M expenditures • Owners participate in oversight & administration • Engineering & Operating Committee • Ad Hoc Committees

  5. Principles (continued) • Owners approve • Budgets • Major expenditures • Significant operational matters • Approvals subject to defined voting process • Designated Project Manager/Operating Agent • Typically one of the owners • Takes direction from the owners • Owners indemnify each other • Liabilities incurred are shared proportionally • Interconnections require approval/signature of all owners

  6. Scale in Miles 0 50 75 100 SASKATCHEWAN WASHINGTON WECCJOINT FACILITIES(DEVELOPED OR OWNED) MONTANA NORTHDAKOTA OREGON IDAHO LEGEND: SOUTHDAKOTA WYOMING WECC BOUNDARY NEBRASKA JOINT DC TIES JOINT PHASESHIFTER OPERATION NEVADA JOINT LINES UTAH JOINT POWER GENERATION KANSAS COLORADO CALIFORNIA OKLAHOMA ARIZONA NEWMEXICO TEXAS BAJACALIFORNIANORTE SONORA CHIHUAHUA SOURCE: POWERmap

  7. Development • Jointly-owned transmission projects have historically been developed in conjunction with jointly-owned generation projects • Generation located in remote locations • Transmission additions necessary to deliver generation entitlement to load center of project participants • Jointly-owned transmission projects more recently developed to access market hubs

  8. Development (continued) • Some Examples • Mohave Project (Generation & Transmission) • Four Corners Project (Gen & Transmission) • Navajo Project (Generation & Transmission) • Palo Verde Project (Gen & Transmission) • Mead-Phoenix Project (Transmission Only) • Rudd Project (Transmission Only) • Southeast Valley Project (Transmission Only)

  9. Sub-Regional Planning • WECC sub-regional planning organizations • SWAT (SW Area Transmission) • STEP (SW Transmission Expansion Planning) • CCPG (Colorado Coordination Planning Group) • RMAT (Rocky Mtn Area Transmission System) • NTAC (NW Transmission Assessment Committee) • CAISO (California Independent System Operator)

  10. Sub-Regional Planning (continued) • Central Arizona Transmission Study (CATS) was genesis for current sub-regional planning groups • Organized to study needs of specific region • Participation open to all interested parties • Participants have input to study scope and assist in performance of study work • Process allows: • Consolidation of multi-party needs • Study of a broad range of scenarios and alternatives • Leads to solutions that maximize benefits to the most parties in the region

  11. Southeast Valley Project • First project to be developed from the sub-regional planning process • 500 kV transmission line from Palo Verde area to the SE Phoenix metropolitan area/Pinal County, AZ • Participants • Arizona Public Service Company • Electrical District No. 2 (Pinal County) • Electrical District No. 3 (Pinal County) • Electrical District No. 4 (Pinal County) • Southwest Transmission Cooperative • Salt River Project • Tucson Electric Power Company

  12. Contact Information For additional information please contact: Richard Lehman Principal Contract Analyst Regulatory Affairs and Contracts Salt River Project (602) 236-3022 ralehman@srpnet.com

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