Transmission Expansion in the Western U.S. Transmission Policy, Incentives, and Expansions in the...

Transmission ExpansionTransmission Expansionin the Western U.S.in the Western U.S.

Transmission Policy, Incentives, and Transmission Policy, Incentives, and Expansions in the Western StatesExpansions in the Western States

Marcus WoodStoel Rives LLP900 SW Fifth Avenue, Suite 2600Portland, OR [email protected]

May 21, 2007

2

Frontier Line

Palo Verde – Devers II

Navajo Transmission

Project

John Day- McNary Northern

Lights

TransWest Express

TOT 3

MT-AB Intertie

Tehachapi

Green Path

Sunrise Powerlink

Seabreeze

Miracle Mile-Ault

Robinson Summit-

Harry AllenTransBay

Tucson-Nogales)

Colorado-New Mexico

Interconnection Project

Northwestern AMPS

High Plains Express

N. CA to Canada

Sun Zia

Proposed Transmission ProjectsProposed Transmission Projects

Map prepared by Doug Larson and John Carr

3

Frontier Line


Navajo Transmission

Project

John Day-

McNaryNorthern Lights

TransWest Express

TOT 3

MT-AB intertie

Tehachapi

Green Path

Sunrise Powerlink

Seabreeze

Miracle Mile-Ault

Robinson Summit-

Harry AllenTransBay

Tucson-Nogales)

Colorado-New Mexico


Northwestern AMPS

High Plains Express

N. CA to Canada

Sun Zia


4

Frontier Line


Navajo Transmission

Project

Northern Lights

TransWest Express

TOT 3

MT-AB intertie

Tehachapi

Green Path

Sunrise Powerlink

Seabreeze

Miracle Mile-Ault

Robinson Summit-

Harry AllenTransBay

Tucson-Nogales)

Colorado-New Mexico


Northwestern AMPS

High Plains Express

N. CA to Canada

Sun Zia

John Day- McNary


5

Frontier Line


Navajo Transmission

Project

John Day-

McNary Northern Lights

TransWest Express

TOT 3

MT-AB intertie

Tehachapi

Green Path

Sunrise Powerlink

Miracle Mile-Ault

Robinson Summit-

Harry AllenTransBay

Tucson-Nogales)

Colorado-New Mexico


Northwestern AMPS

High Plains Express

N. CA to Canada

Sun Zia


Seabreeze

6

Frontier Line


Navajo Transmission

Project

John Day-

McNary

TransWest Express

TOT 3

MT-AB intertie

Tehachapi

Green Path

Sunrise Powerlink

Seabreeze

Miracle Mile-Ault

Robinson Summit-

Harry AllenTransBay

Tucson-Nogales)

Colorado-New Mexico


Northwestern AMPS

High Plains Express

N. CA to Canada

Sun Zia

Northern Lights


7

Frontier Line


Navajo Transmission

Project

John Day-


TransWest Express

TOT 3

MT-AB Intertie

Tehachapi

Green Path

Sunrise Powerlink

Seabreeze

Miracle Mile-Ault

Robinson Summit-

Harry AllenTransBay

Tucson-Nogales)

Colorado-New Mexico


Northwestern AMPS

High Plains Express

N. CA to Canada

Sun Zia


8


Navajo Transmission

Project

John Day-


TransWest Express

TOT 3

MT-AB intertie

Tehachapi

Green Path

Sunrise Powerlink

Seabreeze

Miracle Mile-Ault

Robinson Summit-

Harry AllenTransBay

Tucson-Nogales)

Colorado-New Mexico


Northwestern AMPS

High Plains Express

N. CA to Canada

Sun Zia

Frontier Line


9

Frontier Line


Navajo Transmission

Project

John Day-


TransWest Express

TOT 3

MT-AB intertie

Tehachapi

Green Path

Sunrise Powerlink

Seabreeze

Miracle Mile-Ault

Robinson Summit-

Harry AllenTransBay

Tucson-Nogales)

Colorado-New Mexico


Northwestern AMPS

High Plains Express

N. CA to Canada

Sun Zia


Title Goes HereTitle Goes Here

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Key Characteristics of WSCC Grid That Key Characteristics of WSCC Grid That Impact Transmission ExpansionImpact Transmission Expansion

• Grid is a “donut” with a very weak east side

• Transmission system is a “hub and spoke” system

• Transmission ownership is fragmented

• Most of the WSCC is outside of RTO control

• Outside of California, path ratings must be negotiated

• Outside of California, there is no agreement on transmission line cost allocation

• Major expansions require siting in multiple states

• Most Western land is not privately-owned


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Transmission Ownership is FragmentedTransmission Ownership is Fragmented

• In WSCC, there are at least 58 owners of bulk transmission• Bonneville Power Administration owns 75% of the high-

voltage transmission in the Northwest• Western Area Power Administration is a major transmission

owner in the Rocky Mountain/Southwest areas• Substantial transmission is owned by generation

cooperatives and municipalities• Why dealing with other transmission owners is important

– Siting– Condemnation– Path ratings– Cost allocation


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Outside of California, Path Ratings Must Outside of California, Path Ratings Must Be NegotiatedBe Negotiated

• Description of “path,” “cut plane,” “nomogram”

• Paths have nothing to do with actual flow of electricity

• Basics of path rating determination


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Pacific Northwest Cut PlanesPacific Northwest Cut Planes


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Major Expansions Involve Siting in Major Expansions Involve Siting in Multiple StatesMultiple States

• TOT 3 example– Wyoming siting

– Colorado siting

• HVDC Line: What is the benefit to intervening states?


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Most Land in WSCC Area Is Not Most Land in WSCC Area Is Not Privately-OwnedPrivately-Owned• Example for Transwest Express proposed path

– Crosses:

• 20 BLM resource management areas

• 2 national monuments

• 1 Department of Defense area

• 4 Indian reservations

• 8 national forests

• Significance of non-private ownership– No condemnation rights

– “Off-limits” areas

– Environmental Impact Statement requirements

– Negotiations with Indian Nations


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Transmission Cost AllocationTransmission Cost Allocation

• Four potential allocations of cost of a transmission line– State government entity (Wyoming Infrastructure Authority)

– RTO

– Retail utilities

– Generators

• Outside of California, no agreement on allocation

• Complex mix of allocation factors

• If retail utilities are to share costs, all affected retail regulatory commissions must agree

• If generators are to bear costs, who pays until full capacity signed up?


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ConclusionConclusion

• WSCC transmission grid is seriously inadequate for WSCC needs

• Well-planned transmission additions, especially on the east side, could greatly improve reliability and resource choice and reduce overall cost of power

• Successful sponsorship of major WSCC transmission requires– A deep understanding of WSCC institutional relationships

– A sophisticated and knowledgeable negotiation with and accommodation of a large number of interested parties

– A heightened understanding of global warming rulemaking

– Great political savvy


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ConclusionConclusion

• TO BUILD WSCC TRANSMISSION, ONE FIRST NEEDS TO NEGOTIATE WSCC TRANSMISSION

Transmission Expansion in the Western U.S. Transmission Policy, Incentives, and Expansions in the...

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