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MARC Untying the Gordian KNot

MARC Untying the Gordian KNot. The Wind Coalition. The Wind Coalition. Member Directory

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MARC Untying the Gordian KNot

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  1. MARCUntying the Gordian KNot The Wind Coalition

  2. The Wind Coalition • Member Directory • AES Wind Generation | Blattner Energy, Inc.BP Alternative Energy North America | Clean Line Energy Partners, LLC | Clipper Windpower | CPV Renewable Energy Co.Duke Energy | Edison Mission Energy | enXco | E.ON |  Electric Power Engineers, Inc | Eurus EnergyGamesa Energy | GE Energy | Horizon Wind EnergyIberdrola Renewables | Infinity Wind | Invenergy | John Deere | LuminantMartifer Renewables | Mesa Power | Mortenson Construction | Novus WindpowerPattern | RES Americas | Shell Wind Energy | Siemens | Stahl, Bernal & Davies, LLP | Stewart National Title ServicesTerra-Gen | Third Planet | TradeWind Energy, LLC | Trinity Structural Towers, Inc.Vestas-Americas, Inc. | Wanzek Construction |   Wind Capital Group • Non-Profit Members: • AWEA | Environmental Defense Fund | Public Citizen | TREIA

  3. Everybody’s Talking About It

  4. Everybody’s Talking About It

  5. Everyone’s Talking About it • SPP • FERC Tariff Filed • MISO • FERC Tariff to be filed in July • PJM • FERC revisiting after 7th Circuit Decision

  6. You pay! NO you pay. No you!!!

  7. The arguments can be serious to those involved

  8. The SPP STORY • SPECIAL Authority Given to the Regional State Committee • FERC approved the SPP request to become an RTO with States in SPP generally supportive • A Primary driver of state support was that the RSC would have decisional authority over what was filed on cost allocation by the SPP Board

  9. What kind of upgrade? • Cost Allocation divided into several categories • Generation Interconnection • Reliability • Economic • Policy

  10. SPP • Reliability upgrades and those necessary to deliver energy from new or changed designated generation resources to load • Subsequent to RTO formation and RSC action • One third regional • Two thirds assigned to zones on a MW mile basis

  11. But it could save us money! • Economic Upgrades • Initially participant funded • Balanced Portfolio

  12. Good news/Bad News • Despite all of the incremental improvements it did not appear that substantial progress was being made in constructing significant needed improvements to the grid in SPP

  13. “We are never going to get there”

  14. SPP • Migration to Highway-Byway filing • Need to build a more robust grid • Cannot get there with reliability alone • Results of the Balanced Portfolio were not encouraging • Complexity • Good projects left behind • Transfer mechanism was insufficient to solve benefit/cost issues (in part because the method of measuring benefits did not capture many of the regional benefits of the upgrades) • The over all benefits of projects in the areas near seams were only partially counted

  15. SPP Board • Stepping out of the weeds • SPPT how do we plan and build the needed transmission infrastructure in SPP? • New approach to planning and cost allocation

  16. Synergistic Planning Project Team Goals 16 • Integrate west and east portions of SPP grid • Renewable resources primarily in west while the majority of load is in the east • Support Aggregate Study process for transmission service • Provide relief to Generation Interconnection (GI) queue • Relieve known congestion

  17. HORSE AND CARRIAGE PLANNING AND COSTS

  18. SPPT • Proactive Planning • Fair balance between zonal and regional cost sharing on new transmission • Consider cost effective solutions to reliability and policy driven issues • Make transmission a facilitator in crafting solutions • Do not evaluate transmission cost allocation benefits one line at a time

  19. Planning • Traditionally Reactive • Plan for current or short term needs • Reliability driven • Zonal not regional • Limited to facilitation of delivery of known generation to load • Fails to identify the efficiencies for the region over time • Does not facilitate efficient generation siting -particularly for location constrained resources. • The big picture was often ignored

  20. Reactive Regional Planning • Traditional Process • Reactive in nature • Reliability • Moving vertically integrated generation to the company’s load • Congestion relief (sometimes) • Generation (the most expensive solution) drives the use of transmission • Generation revenue protection and market power are major factors influencing the decision to build transmission • Policy does not factor in to measuring the need for transmission • Economic upgrades are done if at all by some but not all of the beneficiaries

  21. Design an infrastructure for current and future needs.

  22. Better Planning and Design • Proactive • Uses transmission to solve for the future needs on a more equal footing with other resources • Plans around regional and local current and anticipated future needs • Designed around the needs of more than one likely future • Designs are cost effective solutions to anticipated needs of the region

  23. Policy Needs • Policy driven upgrades are needed for load • State RESs anticipated national RESs. • Traditional analysis and modeling has not been getting cost effective transmission solutions for policy driven upgrades built in a cost effective way

  24. SPP Vision • SPP approach • Transmission should be a part of the solutions examined to address anticipated future needs • The distinctions between reliability and economic upgrades is artificial and can act as an obstacle to needed improvements • How do you build a system that addresses policy needs unless you model for them? Policy upgrades do not fit into traditional economic or reliability analyses.

  25. “I Promise, its calculated by the bite”

  26. Beneficiaries should pay • Trying to predict how much any particular entity benefits from particular upgrades is like……

  27. We can keep this up! But Why?

  28. Why we can stop the old habit and finally move forward • System is designed for the SPP load. • Higher voltage lines primarily will be used as a backbone for the SPP system. • The planning and design justify the way costs are shared.

  29. Highway/Byway Cost Allocation 29

  30. What the new cost allocation is not • Generation Interconnection • Connection requirements • Generator pays for upgrades • Eligible for revenue credits • Cost allocation for regional upgrades

  31. Projects are ready to roll

  32. Maybe we are looking at this wrong.

  33. Maybe we are Making this too difficult

  34. THANK YOU STEVE GAW Wind Coalition

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