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Office of Energy Projects 1 FERC and Transmission Siting Robert J. Cupina Deputy Director Office of Energy Projects Federal Energy Regulatory Commission.

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Presentation on theme: "Office of Energy Projects 1 FERC and Transmission Siting Robert J. Cupina Deputy Director Office of Energy Projects Federal Energy Regulatory Commission."— Presentation transcript:

1 Office of Energy Projects 1 FERC and Transmission Siting Robert J. Cupina Deputy Director Office of Energy Projects Federal Energy Regulatory Commission Western Electricity Coordinating Council Annual Meeting April 20, 2006

2 FERC Office of Energy Projects 2 FERC Helping Markets Work Adequate Infrastructure OEP Market Oversight OMOI Competitive Market FERC Effective Market Rules OEMR

3 FERC Office of Energy Projects 3 FERCs Hydropower Projects Transmission Line Capacity 0 - 59 kV 60 - 229 kV 230kV

4 FERC Office of Energy Projects 4 FERCs Hydro Transmission Lines Transmission Line Capacity Number of Transmission Lines 230 kV82 60 – 229 kV300 < 60 kV1216 5,800 miles of primary transmission line

5 FERC Office of Energy Projects 5 Source: Based on Platts PowerMap FERC certificates U.S. interstate natural gas pipelines

6 FERC Office of Energy Projects 6 Existing LNG Import Terminals LAKE CHARLES ENERGY BRIDGE ELBA ISLAND COVE POINT EVERETT

7 FERC Office of Energy Projects 7 Existing Gas Storage Facilities Source: Based on Platts PowerMap.

8 FERC Office of Energy Projects 8 Siting Infrastructure: Lessons Learned Early staff involvement Proactively identity issues and alternative siting Develop advocates not adversaries Expertise to provide a sound record Recommendations based on technical analysis

9 FERC Office of Energy Projects 9 Energy Policy Act of 2005 EPAct 2005 provides for federal siting of interstate electric transmission facilities (§1221) by amending the FPA (§216) - Designation of National Interest Electric Transmission Corridors (§216(a)) - Construction Permit (§216(b)) - Coordination of Federal Authorizations for Transmission Facilities (§216(h))

10 FERC Office of Energy Projects 10 EPAct 2005 Electric Transmission Corridors Conduct study within one year of electric transmission congestion –Every three years thereafter Issue report based on study –Designate any geographic area that experiences congestion as a National Interest Electric Transmission Corridor

11 FERC Office of Energy Projects 11 EPAct 2005 Construction Permit FERC can authorize construction of transmission facilities in a corridor if: –A state has no authority to either site facilities or consider interstate benefits, or –A state, with authority to site, either does not act within one year or conditions approval such that there is either no reduction in congestion or is not economically feasible

12 FERC Office of Energy Projects 12 EPAct 2005 Construction Permit Application to be filed with FERC –Filing requirements to be issued Comments will be received Rights-of-way –Right of eminent domain –Acquired right-of-way used exclusively for electric transmission facilities Compensation

13 FERC Office of Energy Projects 13 EPAct 2005 Coordination of Federal Authorizations Lead agency for permit coordination and environmental review –Must issue regulations within 18 months –Must enter into an MOU with other agencies within one year –Provide a pre-filing mechanism All permit decisions and environmental reviews shall be completed within one year –Failure to act within deadlines may be appealed to the President DOE delegation to FERC likely

14 Major Pipeline Projects Certificated (MMcf/d) 2000 to Present 42.5 BCF/D Total 8,537 Miles Transco (204,236,323) Southern (336,330) Kern River (135,886) 6 North Baja (500) Tuscarora (96) Northwest (162,113) Kern River (282) TETCO (250) Northwest (224) NFS/DTI (150) Georgia Straits (96) SCG Pipeline (190) 1 2 3 4 Northwest (191) East Tennessee (510) Tennessee (320) TETCO (197) Greenbrier (584) El Paso (230,320,620) WBI (80) ANR (194,750,210,220, 107,143,168) 17 TETCO (223) Cove Point (445) Ocean Express (842) 14 Cheyenne Plains (560,170) 16 13. CIG (282,92) 14. CIG (85,133,118,105) 15. TransColorado (125,300) 16. WIC (120,116,675,350) 17. El Paso (140) 18. Rendezvous (300) 19. Entrega (1,500) 8 Calypso (832) Discovery (150) Transwestern (150,375) 5 Trunkline(1,500) Cheniere Sabine (2,600) Trunkline (200) Questar (272,102) 6 Petal (700,600) Horizon (380) GTN (207) Otay Mesa (110) Florida Gas (239,270) East Tennessee (170) 7 1. Algonquin (285) 2. Islander East (285) 3. Iroquois (230,85) 4. Columbia (135,270) 5. Algonquin (140) 6. Transcontinental (105) 7. Transcontinental (130) 8. Tennessee (200) 9. Maritimes (80,360) 10. Algonquin (301) 11. Tennessee (500) 12. Mill River (800) 8 Millenium (700) 9 10 Northern Border (544,130) Independence (916) Trans Union (430) Southern Trails (120) Gulfstream (1,130) 11 Guardian (750) Trailblazer (324) 13 15 El Paso (502) Center Point (113) Vista del Sol (1,100) Golden Pass (2,000) 12 18 19 San Patricio (1,000) Dominion South (200) Columbia (172) East Tennessee (86) Tennessee (400,200) Cheniere Corpus Christi (2,600) East Tennessee (235) Midwestern (120) 14 FERC Office of Energy Projects

15 FERC Office of Energy Projects 15 Caldwell Ontario Clarksville Chamber Springs Road Mt. Enterprise Tenaska Lamar Holcomb Brownlee Oxbow Spurlock Tap of Stuart/ W H Zimmer Shoreham New Haven Habor Fentress Shawboro Beacon Rathdrum Sayreville Wempletown Paddock Newbridge Road Sources: NERC Summer and Winter Assessments, WECC Existing Generation and Significant Additions and Changes to System Facilities Reports and FERCs Transmission Database Since January 1, 2000, 11 interstate transmission lines have been built or are near completion totaling 461 miles. Major Electric Transmission Lines 2000 to Present 345 kV 230 kV Transmission Projects DC 345 kV 230 kV Transmission Projects

16 FERC Office of Energy Projects 16 Related Proceedings Transmission Investment Pricing Reform –RM06-04 –NOPR issued November 18, 2005 –Comments due January 11, 2006 109 comments filed –Final rule due in one year (August 2006) DOEs National Interest Electric Transmission Corridor Study –NOI issued February 2, 2006 –Conference held March 29, 2006

17 FERC Office of Energy Projects 17 Issues for Electric Transmission Clear Regulatory Path Contract Commitment Pricing Incentives Market Response - Timing

18 FERC Office of Energy Projects 18 What Will Make This Work FERC staff involvement as early as possible Develop a pre-filing process Start with two points and work the route Voluntary agency enlistment Rational Siting Process –One federal lead agency, one record for decisions, one avenue of appeal


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