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Efficient Exit Strategies for La Palma and Fort Phantom Transmission Units

A comprehensive analysis of cost-effective and timely transmission alternatives for La Palma and Fort Phantom units. Explore near-term upgrades and long-term solutions to ensure reliable power transmission without uneconomic support.

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Efficient Exit Strategies for La Palma and Fort Phantom Transmission Units

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  1. RMR Exit Strategies for La Palma and Fort PhantomOctober 21, 2003 BILL BOJORQUEZ Director of Transmission Services

  2. RMR UNITS

  3. APPROACH • Staged approach to determine cost effective and timely transmission alternatives • Near-term Alternatives: Upgrades to existing infrastructure that can be expedited • Do not require CCN • Can be completed in less than three years • Long-term Alternatives: Future lines and system upgrades necessary to ensure that load is served reliably and without uneconomic RMR support

  4. OPEN PROCESS • September 11, AEP Service Company (the TDSP) provided short-term alternatives for RMR units • September 15, ERCOT hosted stakeholder meeting in Austin to review short-term alternatives • September 22, Stakeholders submitted comments to the short-term alternatives • September 30, ERCOT issued a draft recommendation on RMR short-term exit strategies • October 7, Stakeholder Comments on ERCOT‘s draft recommendation due • October 9, TAC voted in support of near term alternatives • October 10, Second stakeholder meeting to present longer-term alternatives • October 24, Briefing on CFE-ERCOT Interconnections Study

  5. MITIGATION UNDERWAY • RIO PECOS (near McCamey) • Two 20 MVAR shunt reactors and one 29 MVAR capacitor placed in-service July 2003 • Agreement to terminate in November 2003 • SAN ANGELO POWER STATION • 345 kV line from Morgan Creek to Red Creek to Comanche Peak placed in-service June 2003 • Twin Buttes Cut-in of the Big Lake to SAPS 138 kV line CCN approved at 9/18/03 PUCT Open Meeting • Planned to be in-service during Summer 2004, which will release SAPS from RMR • Rebuild of cut-in to SAPS 138 kV line to follow in Fall 2004

  6. EXIT STRATEGY - FT. PHANTOM • FORT PHANTOM (near Abilene) • 10-ohm reactors on each Mulberry 345/138-kV autotransformer • Shunt capacitors in the Abilene area • 100-Mvar 345-kV shunt reactor at Red Creek substation • 36-Mvar reactor on the tertiary of the Mulberry East autotransformer • TOTAL ESTIMATED COST $6.4M IN 2004 • HISTORIC RMR ANNUAL COST $13M • EXPECTED NPV OF COSTS TO CONSUMERS • Continued RMR $45M • Transmission Upgrades $7.2M

  7. EXIT STRATEGY – LA PALMA • LA PALMA UNITS (near Harlingen) • Add 2nd 600 MVA 345/138 kV autotransformer at Rio Hondo, upgrade 138-kV bus • Rebuild the existing LaPalma to Rio Hondo 138-kV line with 2-795 ACSS , double circuit capable • Upgrade the LaPalma 138-kV terminal bus • TOTAL ESTIMATED COST $13.6M • HISTORIC RMR ANNUAL COST $26M • EXPECTED NPV OF COSTS TO CONSUMERS • Continued RMR $104M • Transmission Upgrades $15M (plus Long-Term upgrade cost)

  8. UNDER STUDY • BM DAVIS (Corpus Christi) • Additional studies performed and reviewed by Stakeholders • Near term exit strategy expected be presented in November • LAREDO and BATES (near McAllen) • Projects and agreements needed for exit strategy recommendations for these units are still under development and analysis • NEXT STEPS • October 24 briefing on technical study findings • Economic evaluation of alternatives

  9. QUESTIONS/MOTION • ERCOT Staff recommends that the Board approve the near term RMR Exit Strategy for Fort Phantom and LaPalma RMR service, as identified in the Board materials.

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