RAP Schwartz Transmission EPAregionXworkshop 2012-4-24

8/12/2019 RAP Schwartz Transmission EPAregionXworkshop 2012-4-24

1/56

The Regulatory Assistance Project

Transmission in the Western U.S.

EPA Region X Workshop

Presented by Lisa Schwartz

April 24, 2012


2/56

Transmission Topics Today

A few transmission fundamentals USDOE transmission activities Transmission planning Utility, subregional and

Western Interconnection-wide

FERC Order 1000 transmission planning requirements Other Western transmission initiatives

Western Renewable Energy Zones BPA Non-Wires Solutions

2


3/56

3

Transmission lines move power from powerplants or interties (lines between balancingauthority areas*) to transmission ordistribution substations.

*The collection of generation, transmission, and loads within the metered boundaries of the Balancing Authority. The Balancing Authority maintains load-

resource balance within this area . (NERC)


4/56

Network Interconnections Interconnection: a geographic area in which the operation of

the bulk-power system components is synchronized such that the failure of one or more of such components may adversely affect theability of the operators of other components within the system tomaintain reliable operation (DOE FOA, June 15, 2009)

Benefits of Interconnection: Reliability backup from entire network for loss of generating

capacity Economic energy trading among parties capture load and

resource diversity


5/56

North American Interconnections

Texas

EasternInterconnection

Quebec

WesternInterconnection


6/56

Entities Coordinating Reliability in U.S.

6


7/56

AC vs. DC Transmission Lines Three phase AC systems adopted in early 20 th Century

Standard North American frequency is 60 Hertz (60 cycles per second) AC transmission voltages in the US increased during 20 th Century from

44 kV to 765 kV Voltage choice is based on capacity need, fit to existing system,

technology advances and ultimately cost to construct and operate.

Advantage of AC systems: Voltage can be increased and decreased by low cost transformers Current can be inexpensively interrupted

No direct control of power flow on lines in an AC network Line flow is changed by altering the generation dispatch.

Change in generation dispatch affects all lines in network DC lines: AC-DC convertors at each end control power flow

No decrease in capacity with distance, but not economical for short lines No capacity loss for underground lines


8/56


9/56

USDOE Transmission Activities

Recovery Act transmission funding $6 billion for loan guarantees for renewable and transmissiontechnologies

$3.25 billion in increased Bonneville Power Administration borrowing authority

$3.25 billion in Western Area Power Administration borrowingauthority

$80 million for facilitating the development of regionaltransmission plans - East, West and ERCOT (Texas)

See Additional Slides on: Transmission congestion studies Coordination of federal transmission permitting Rapid Response Team for Transmission

9


10/56


11/56

What Is Transmission Planning?

Identification of future infrastructureneeds to1. Serve the expected load reliability2. Meet public policy directives3. Minimize cost and environmental impact

Identification of future transmissioncapacity needs given a future set of loadsand generation resources

11


12/56

Transmission System PlanningComponents

Load Forecasting determining the need to be served Annual forecasts out to 10 th year are collected by WECC Load profiles How load behaves from hour-hour over the year

Resource Planning selecting the best portfolio of

resources that meets multiple objectives Policy objectives Capital and operating costs Operating characteristics

Dispatch responsiveness to follow load Locational needs for voltage support or dynamic inertia

Transmission Planning dealing with space and time toreliably deliver energy to consumers Make the best possible decision today after

examining possible future needs and conditions


13/56

Transmission Planning in the West

13

Subregional Planning Groups

1. Utilities and federal

power marketingagencies (e.g., BPA) plantransmission to meet load,transmission service requests andpublic policy directives.

2. Subregional planninggroups conduct detailed studiesof aggregate plans of affiliatedtransmission providers and jointlyconsider planning issues amongmembers and stakeholders.

3. Western ElectricityCoordinating Council(WECC) conducts interconnection- wide planning studies focus today


14/56

Studies by Subregional Planning Groups andTransmission Providers

Subregional Planning Groups Adequacy assessments Power flow studies Dynamic stability studies Production cost simulations (by some subregional planning

groups) Transmission Providers

and Project Sponsors Power flow and dynamic

stability studies For project design To establish path ratings

under WECCs Project RatingProcess

14

Gateway West project Idaho Power and PacifiCorp


15/56

Utility Resource Planning and Procurement

Long term utility resource/procurement plansdirect resources developed transmission follows

For renewable resources, utilities are focused onacquiring within or close to their service areas. Renewable portfolio standards may limit out-of-state

resources or create a preference for in-state resources Developing local resources is a better match with modular

renewable resource development Easier to site and recover costs for in-state facilities

Siting transmission across borders is difficult Pancaking of transmission charges

Utilities prefer resources with existing transmission

15


16/56

Environmental Conundrum:Long-term vs. short-term concerns

Stave off a biodiversity disaster in the future by fast-tracking renewable-power development andtransmission vs.

Protect important habitat and landscapes now no matterlong term climate concerns Human nature to focus on short term, tangible, impacts

close to home

We know and can reasonably control the proximalthreats of renewable energy generation and transmissionvs. having less knowledge, fewer tools, and less legalability to influence the impacts of a substantially warmerclimate

Source: Gary Graham, Western Resource Advocates; chair, WECC Scenario Planning Steering Group


17/56

Environmental Issues and Stakeholders

Bring environmental issues at stake inproject siting and routing to transmissionplanning; treat them with weight equal to

that given project economics Earn stakeholder consent: Enablingstakeholder participation in transmissionplanning can earn stakeholder support forplanned projects

17

Source: Ron Lehr, Western Grid Group


18/56

Long Term and Scenario Planning

Plan diverse long term scenarios that requiredifferent transmission solutions. Note commontransmission elements required in most or allscenarios. Replan.

Bring external costs and benefits to bear ontransmission plans.

Use planning information to inform investmentdue diligence and public approval decisions.

18

Source: Ron Lehr, Western Grid Group


19/56

FERC Order 1000 (1) Each Transmission Provider must participate in a

regional planning process that results in a regional plan Define planning region

Subregional planning groups to constitute regions, more or less Identify process for making decisions Satisfy Order 890 principles

Coordinate with other planning regions Identify and jointly evaluate transmission facilities that are

proposed to be in both regions Exchange planning data and information

Set procedures to identify transmission needs driven byPublic Policy Requirements & evaluate potential solutions Stakeholders must be consulted

Transmission cost allocation also part of order

FERC mandated a process , not an outcome 19


20/56

FERC Order 1000 (2) Required scope of Public Policy Requirements to consider

is limited to existing state and federal laws or regulations Policies considered in West-wide planning today*

Policies that affect resource selection Renewable portfolio standards, demand-side resources,

integrated resource planning

Carbon and air quality policies Policies with a nexus to electric sector

Water, wildlife and environmental resources Wests Regional Transmission Plan is good role model for

regional plans under Order 1000 Existing state and federal policies for expected or base case Prospective policies for plausible alternative futures Also consider policies with a nexus to electric sector

20*Western Interstate Energy Board paper will be posted at http://www.westgov.org/order1000/site/documents.htm
http://www.westgov.org/order1000/site/documents.htmhttp://www.westgov.org/order1000/site/documents.htmhttp://www.westgov.org/order1000/site/documents.htmhttp://www.westgov.org/order1000/site/documents.htm


21/56

Western Interconnection RegionalTransmission Planning Process (RTEP)

21


22/56

Goals of RTEP Process Expand regional transmission planning activities

An extension of existing planning process, with annual studyrequests from stakeholders under FERC Order 890 provisions

Coordinate Subregional Coordinating Group CommonCase Transmission Assumptions

Create 10 Year Transmission Plan in 2011 and 2013 Create 20 Year Transmission Plan in 2013 Facilitate stakeholder involvement

Reach out to groups not traditionally involved

Expect process will continue on a biennial cycle Planning process will evolve, adapt and improve with each cycle

Focus on studies with Interconnection-wide implications Reliability, cost and emissions

22http://www.wecc.biz/Planning/TransmissionExpansion/RTEP/Pages/default.aspx
http://www.wecc.biz/Planning/TransmissionExpansion/RTEP/Pages/default.aspxhttp://www.wecc.biz/Planning/TransmissionExpansion/RTEP/Pages/default.aspxhttp://www.wecc.biz/Planning/TransmissionExpansion/RTEP/Pages/default.aspx


23/56

RTEP Components Two separate but related activities

10-Year Planning A bottom up process: Local and SPG studies produce proposed projects TEPPC evaluated system impact of projects. Output is a 10-Year Regional Transmission Plan based on

TEPPCs consideration of proposed projects 20-Year Planning A top down process: TEPPC begins from scratch looking at possible scenarios. TEPPC evaluates likely long-term transmission needs to

produce 20-Year Regional Target Transmission Plan.

Transmission Expansion Planning Policy Committee TEPPC provides policy direction and management of the

regional planning processes and guides analyses and modelingfor economic transmission expansion planning.

23


24/56

Stakeholder and ExpertInvolvement Scenario Planning Steering Group

Guidance on scenarios to be modeled,key assumptions and modeling tools

NGO, state, consumers, industry, tribes Environmental Data Task Force

Develop method to compare

transmission alternatives based onrelative risk of facing environmentaland cultural constraints

Environmental Recommendations for Transmission Planning report at http://www.wecc.biz/committees/BOD/TEPPC/SPSG/EDTF/default.aspx

State-Provincial Steering Committee State PUC and provincial energy ministry representatives Demand-Side Management Work Group recommends high energy

efficiency, demand response, distributed generation scenarios

Subregional Coordination Group Develops Common CaseTransmission Assumptions (next slide)

TEPPC work groups Develop/review data, modeling methods 24
http://www.wecc.biz/committees/BOD/TEPPC/SPSG/EDTF/default.aspxhttp://www.wecc.biz/committees/BOD/TEPPC/SPSG/EDTF/default.aspxhttp://www.wecc.biz/committees/BOD/TEPPC/SPSG/EDTF/default.aspx


25/56

25


26/56

10-Year Study Model

Production cost simulation used to investigatetransmission system congestion and congestion relief A least cost hourly dispatch for each hour of the study year Dispatch with constraints of reliable operation, including:

Transmission path ratings Generation operating parameters

Base cases Loads and resources collected from Balancing Authority Areas Existing generation units Existing transmission network

Study Cases New resource portfolios Potential transmission expansion

26


27/56

20-Year Planning Studies Scenarios cover broad strategic factors. For example:

Regional economy activity Public policy Environmental and cultural values

Study Case Development Tool Aid to Scenario Planning Steering Group in developing scenarios Convert scenarios into nodal load and resource data Provide segment route possibilities considering environmental impacts

Network Expansion Tool Synthesizes feasible networks for study end states

Analysis of end-state networks Looks for tendencies where is capacity needed, how much and when

Requires analytic judgment not a model Identify significant exemptions low probability but major consequences

Repetition of network designs Narrow the range of long-term study case Provides the sequence for facility additions

27


28/56

20-Year Scenarios - 2032

28


29/56

29


30/56

10-Year Regional Transmission Plan for 2020(Completed September 2011)

30http://www.wecc.biz/library/StudyReport/Wiki%20Pages/Home.aspx
http://www.wecc.biz/library/StudyReport/Wiki%20Pages/Home.aspxhttp://www.wecc.biz/library/StudyReport/Wiki%20Pages/Home.aspxhttp://www.wecc.biz/library/StudyReport/Wiki%20Pages/Home.aspx


31/56


32/56


33/56

Renewable Procurement

Trends


34/56

Renewable Resource Relocation Cases

34

R R l i Al i


35/56

Resource Relocation AlternativesTransmission Expansion


36/56

36

Coal Plant Retirement Study Set to Inactive


37/56

37


38/56

38


39/56

1. Some remote renewable resources are cost-effective2. Consider upgrades for Montana to Northwest path3. Consider upgrades for Pacific Tie paths4. Study operational impacts of variable generation5. Planning cooperation needed6. Address environmental and cultural considerations

in future transmission planning processes

7. Water resources will impact future generation mix8. Gaps in regional transmission planning processes

Observations and Recommendations

No new major transmission needed by 2020 to meet load and state policyobjectives (e.g., Renewable Portfolio Standards) beyond 44 foundational

projects already under development (Map in Additional Slides)


40/56

Other Western U.S. Transmission Initiatives

40


41/56

Western Renewable Energy Zones Initiative

Western Governors initiative funded by USDOE Identify and develop areas with

enough high-quality renewableresources to justify high-capacitytransmission lines (500 kV AC) inareas with low environmental impacts

Including 95,000 MW of wind in 53 hubs

Identify WREZs of common interest Explore how to develop these zones

and associated transmission Create a critical mass of transmission

needs in the same timeframe for efficient build-out Convene multi-state discussions on transmission siting

and cost allocation 41


42/56


43/56

BPA Non-Wires Solutions

NWS are non-traditional solutions, such as distributed generation,demand exchange, demand response, and conservation measures,that may keep costs down, while maintaining reliability.

Often constraints on the transmission system are 40 hours or lessduring extreme weather, in any given year. The traditional approach

would be construction of a multi-million dollar transmission line.NWS may be far less expensive and just as reliable. Example projects: Orcas Island (conservation while replacing

damaged underwater cable) and Puget Reinforcement Project(conservation plus series capacitors, etc. that avoided voltage

collapse and delayed construction of new transmission overCascades by 10 years)

43

Source: http://transmission.bpa.gov/planproj/Non-Wires_Round_Table/NonWireDocs/NonWiresQuestionsAnswers.pdf
http://transmission.bpa.gov/planproj/Non-Wires_Round_Table/NonWireDocs/NonWiresQuestionsAnswers.pdfhttp://transmission.bpa.gov/planproj/Non-Wires_Round_Table/NonWireDocs/NonWiresQuestionsAnswers.pdfhttp://transmission.bpa.gov/planproj/Non-Wires_Round_Table/NonWireDocs/NonWiresQuestionsAnswers.pdfhttp://transmission.bpa.gov/planproj/Non-Wires_Round_Table/NonWireDocs/NonWiresQuestionsAnswers.pdfhttp://transmission.bpa.gov/planproj/Non-Wires_Round_Table/NonWireDocs/NonWiresQuestionsAnswers.pdf


44/56

About RAPThe Regulatory Assistance Project (RAP) is a global, non-profit team of experts thatfocuses on the long-term economic and environmental sustainability of the powerand natural gas sectors. RAP has deep expertise in regulatory and market policiesthat:

Promote economic efficiencyProtect the environmentEnsure system reliability Allocate system benefits fairly among all consumers

Learn more about RAP at www.raponline.org

Lisa Schwartz, Senior [email protected]

802-498-0723 (0); 541-990-9526 (m)
mailto:[email protected]:[email protected]


45/56

Additional Slides

45


46/56

46

The Grid Is Weakest Where Wind andSolar Resources Are Best

Source of maps: NREL, Platts
http://www.greenlivingbuilding.com/wp-content/uploads/2009/09/map_pv_national_lo-res.jpg


47/56

2022 WECC Regional Transmission PlanHigh DSM Case Energy Efficiency

47

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

E n e r g y o r

P e a k

D e m a n

d

WECC Common Case

All CostEffective EE

High DSM/DG Case

Balancing Authority LoadForecast Submitted to WECC

Embedded Savings from EE Policies& Programs (2011-2021)

Expected EESavings from

CurrentPolicies &Programs

(2011-2021)


48/56

Overview of RTEP Process

48

StakeholderRequests

(Open Season)

Study ProgramDevelopment(Study Plan)

ScenarioDevelopment

(SPSG)

Create StudyCases

Analysis

Reporting &Creation of

Plan(s)

Review andPublic Comment

Process

Scenario Analysis Meets

StrategicGuidance

YES

Decision BodyScenario Planning Steering Group

TEPPC

WECC Board

TEPPC Workgroup Consensus

Public

NO

Approval of Plan(s)

PublishReport and

Plan(s)YES

NO

All meetings are noticed and open to the public. The small boxes represent opportunities for stakeholders to be

directly involved in planning processes. Diagram does not showmultiple feedback loops during process.

TEPPC Workgroup activities are open to all and decisions are madeby consensus. It is at these meetings where many of the details ofthe lannin rocess are decided.

Recommend Approval


49/56

PDCI

COI

MT - NW


50/56

20 2 i l l i i i


51/56

2012 National Electric TransmissionCongestion Study

Required every three years by Energy Policy Act of2005. Target publication date not set yet, but will bereleased in 2012.

Four regional workshops held in December; analystsare now combing through regional source material(RTO/ISO planning studies, state-of-market reports,state energy plans, etc.)

DOE will issue 2012 study in draft form, take andconsider comments, reissue in final.

After considering comments and completing thestudy, the Secretary may designate one or moreNational Corridors not required by law to do so.


52/56

Coordination of FederalTransmission Permitting

Section 216(h) of the Federal Power Act,created by EPACT 2005 designated DOEas the lead agency to conduct NEPA

review for transmission lines requiringmultiple Federal PermitsMOU signed by 9 Federal Agencies in

October of 2009 to execute section216(h).


53/56

Nine Agency MOU

Mandated by section 216(h)(7)(B)(i) of the FederalPower Act.

Establishes the roles and responsibilities of thenine signatory agencies regarding electric

transmission infrastructure project applications Provides single point of contact for coordinating all

federal authorizations required to locate electrictransmission facilities on federal land

Establishes DOE (under authority pursuant tosection 216(h) of the FPA) as lead agency forcoordinating all federal authorizations and relatedenvironmental reviews.


54/56

DOE MOU Responsibilities

Designate lead federal agency for NEPAcompliance Provide expertise in determining Qualifying

Projects Provide technical assistance in evaluating

transmission proposals Assist lead agency in developing the

schedule and approve schedule deviations Maintain publicly available project tracking

website and links to information from allparticipating and cooperating agencies.

www.doe-etrans.us

Rapid Response Team for
http://www.doe-etrans.us/http://www.doe-etrans.us/http://www.doe-etrans.us/http://www.doe-etrans.us/


55/56

Rapid Response Team forTransmission (RRTT)

Builds upon the MOU and the August 31, 2011,

Presidential Memorandum on Speeding InfrastructureDevelopment through More Efficient and EffectivePermitting and Environmental Review.

RRTT aims to improve the overall quality and timelinessof electric transmission infrastructure permitting, review,

and consultation by the Federal govt on both Federaland non Federal lands.

RRTT first steps. Selection of Seven Pilot Projects identified through ARRA-

funded, independent, broad stakeholder processes led by

WECC and EISPC. DOE development of electronic dashboard to track pilot

projects. www.doe-etrans.us
http://www.doe-etrans.us/http://www.doe-etrans.us/http://www.doe-etrans.us/http://www.doe-etrans.us/


56/56

RAP Schwartz Transmission EPAregionXworkshop 2012-4-24

Documents

Transcript of RAP Schwartz Transmission EPAregionXworkshop 2012-4-24