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Transmission Expansion Planning Policy Committee Scott Cauchois Chair, TEPPC April 29, 2009.

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Presentation on theme: "Transmission Expansion Planning Policy Committee Scott Cauchois Chair, TEPPC April 29, 2009."— Presentation transcript:

1 Transmission Expansion Planning Policy Committee Scott Cauchois Chair, TEPPC April 29, 2009

2 Topics 2008 Annual Report – Recommendation for board approval DOE 2009 Congestion Study 2009 Study Plan Regional Planning Task Force

3 Annual Report Report Objectives In accordance with a Synchronized Study Plan, identify economically beneficial transmission expansion needs and information that would be useful in the conception and design of new projects Study Plan results from stakeholder requests and prioritization of requests with significant implications for interconnection.

4 Study Themes 2008 study themes Higher penetration of renewables (w/ & w/o higher conservation) Implications of carbon emissions reduction using carbon adder – 2017 Update of production cost data base and gas price sensitivity analysis – 2012 Completion of analysis of 2007 actual and scheduled flows on major paths

5 Study Framework Try to achieve consistent improvement in data, models, & methodology 2008 study is the first full blown study building on pilot studies conducted in Major advance: use of NREL meso-scale wind & solar data to locate and profile resources

6 Study Results Relative to 2017 base case: 15 % renewables scenario 5% reduction in CO2 emissions 18% reduction in gas use 15% renewables/20% energy efficiency results in further 17% reduction in C02 44% in gas use 5% reduction in coal Increased congestion east to west

7 Study Results, contd. 15% renewables/20% energy efficiency/$20/ton C02 adder Further 3% reduction in CO2 Further 8% reduction in gas generation 50 % increase in production costs 5 paths were consistently congested across cases; similar to historical analysis

8 Transmission Paths Flow on selected transmission paths, particularly those that connect regions, were compared between cases 8 TOT 3 PATH C TOT 2A TOT 2B TOT 2C FOUR CORNERS 345/500 kV EAST OF COLORADO RIVER (EOR) WEST OF COLORADO RIVER (WOR) MIDWAY-LOS BANOS NORTHWEST–CANADA COI PACIFIC DC INTERTIE (PDCI) MONTANA–NORTHWEST ALBERTA–BRITISH COLUMBIA IDAHO–NORTHWEST TOT 4A # # Path Name &

9 Caveats re: 2017 cases Coal & gas prices held constant CO2 reductions sensitive to order in which renewables, energy efficiency, CO2 applied Congestion dependent on location of assumed new renewables, and conventional generation Renewables marginal cost = 0. Capital costs to be incorporated next cycle

10 Motion: Approve 2008 Annual Report of the Transmission Expansion Planning Policy committee

11 DOE 2009 Congestion Study DOEs 2006 study resulted in designation of NIETCs. DOE received significant input from WCATF. DOE meeting of W-I and E-I in March, 2009 examined Congestion metrics Results from WECC/DOE funded historical path analysis Featured WECC/TEPPC/SPG transmission planning process. DOE to update, no new corridors

12 2009 Study Plan 23 study requests from 9 organizations received in November 1, 2008 – January 31, 2009 open request window Themes continue to expand upon aggressive renewable programs and greenhouse gas reduction polices Also impacts of specific transmission line proposals. Final study plan to be adopted in June.

13 Proposed Major Transmission Projects in WECC 13 Proposed Transmission Projects in the Western Interconnection Note: This plot includes selected projects from Table 3.2 of 2008 TEPPC Study Plan(v7) Projects have been grouped to simplify coding. Sea Breeze Projects TransCanada Projects Gateway & Other NTTG Projects Columbia Grid Projects TransWest Express LS Power & Great Basin Projects WY-CO Intertie Project High Plains Express Sun-ZIA Canada/PacNW-NoCalif Central CA Clean Energy (C3ET) Green Path North Devers-Palo Verde 2 Navajo Transmission Project

14 Regional Planning Task Force RPTF formed by TEPPC on March 19 to oversee development of a white paper which conceptualizes enhanced western transmission planning and to prepare for, and respond to a Funding opportunity Announcement (FOA) expected from DOE in response to the America Recovery and Reinvestment Act.

15 Requested Board Guidance Support for WECC/TEPPC response to the DOE funding request according to guidelines adopted by TEPPC Flexibility to address specific requirements in the funding request WECC staff required to support the response process

16 Regional Planning Discussion Tom Schneider Bradley Nickell April 29, 2009

17 Topics Stimulus Bill Renewable Planning Whitepaper Scenario Based Planning Next Steps

18 Stimulus Bill Language That for the purpose of facilitating the development of regional transmission plans, the Office of Electricity Delivery and Energy Reliability within the Department of Energy is provided $80,000,000 within the available funds to conduct a resource assessment and an analysis of future demand and transmission requirements after consultation with the Federal Energy Regulatory Commission: Provided further, That the Office of Electricity Delivery and Energy Reliability in coordination with the Federal Energy Regulatory Commission will provide technical assistance to the North American Electric Reliability Corporation, the regional reliability entities, the States, and other transmission owners and operators for the formation of interconnection- based transmission plans for the Eastern and Western Interconnections and ERCOT: Provided further, That such assistance may include modeling, support to regions and States for the development of coordinated State electricity policies, programs, laws, and regulations:…

19 Stimulus Bill Synopsis Calls for DOE to: Conduct a resource assessment and an analysis of future demand and transmission requirements (with consultation from FERC) Provide Assistance to NERC, WECC, States, Transmission entities To form interconnection-based transmission plans assistance may include modeling, support to regions and States for the development of coordinated State electricity policies, programs, laws, and regulations

20 Stimulus Bill Synopsis The language does NOT: Require a single transmission plan (master plan) be created Give authority to any entity to take action on any product created from this funding Change any governance structure for the Western Interconnection

21 DOE Identified Needs A body of analysis that identifies new or greatly-upgraded lines required under a wide range of potential futures Analyses must be transparent, and produced through collaboration among industry experts and representatives from states, federal agencies, and key NGOs Collaboration is essential to achieving results that key stakeholders will regard as objective and sufficient.

22 Status of DOE Execution Request for proposal not out yet Funding period is 5 years Money out of DOE by end of FY 2010 Cost Sharing Requirement Activity must be perpetual Have to show how they would coordinate their work with other entities (e.g., WGA, NREL)

23 Proposal Inclusions (from DOE) The body of work that should be done over the first 5-year period An organizational framework for accomplishing it Schedule for the work Funds required from DOE and other sources Other inputs required from DOE or other federal sources How the transition to non-federal funding would be managed

24 Regional Planning Whitepaper Purpose Provide a framework for the WECC/TEPPC response to provisions relating to interconnection-wide transmission planning Inform stakeholders about efforts to prepare a response to an anticipated DOE request for proposal Seek stakeholder involvement in these efforts so that the Western Interconnection is ready to submit a comprehensive funding request

25 Regional Planning Whitepaper Status First meeting of task force to discuss details and solicit verbal feedback Drafting continues (3 rd round) Next draft will be released for wider distribution

26 Regional Planning Whitepaper Guiding Principles 1. Does not require institutional changes 2. Process will be FERC Order 890 compliant 3. WECC TEPPC will provide expertise, guidance, analysis, and options to project sponsors, Sub-Regional Groups, and stakeholder requests that come in through the WECC/TEPPC/SPG planning processes 4. WECC/TEPPC will not prescribe the specific facilities to be built, but rather will provide the critical intelligence to state and federal decision-makers about overall west-wide needs and solutions 5. The planning process will include extensive outreach opportunities for stakeholders to participate, interact and comment throughout plan development. 26

27 Scenario Based Regional Planning Instead of trying to predict the future, we quantify needs under potential futures Quantify effects of policy, societal values, economy on the electric power industry Look for common solutions among many needs Decision support for policy activities

28 Scenario Planning Paradigm 28

29 What will change Increase the breadth and depth of TEPPC regional planning activities Breadth Many more generation/load scenarios Additional tools and study methodologies More involved parties Depth Direct tie back to policy decisions Total cost comparisons

30 What will NOT change Evolving TEPPC coordination with other committees Process compliance with FERC 890 Role of subregional planning groups No endorsement of specific projects

31 Next Steps Support for WECC/TEPPC response to the DOE funding request according to guidelines adopted by TEPPC Flexibility to address specific requirements in the funding request WECC staff required to support the response process Continue drafting process Incorporate todays discussion 31

32 32 Questions Bradley Nickell Renewable Integration Director Western Electricity Coordinating Council Tom Schneider Managing Director – Planning & Standards Western Electricity Coordinating Council


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