Federal Energy Regulatory Commission Pat Wood III, Chairman Regional Grid Development Pat Wood, III Kansas Transmission Summit September 8, 2004.

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Presentation transcript:

Federal Energy Regulatory Commission Pat Wood III, Chairman Regional Grid Development Pat Wood, III Kansas Transmission Summit September 8, 2004

Federal Energy Regulatory Commission Pat Wood III, Chairman 2 Infrastructure Is the Foundation Vigilant Oversight Effective Rules Sufficient Infrastructure Competitive Markets

Federal Energy Regulatory Commission Pat Wood III, Chairman 3 Lagging Transmission Investment Half as much annual investment in 2000 as in 1975 Annual growth rates in Gen, Trans, Load

Federal Energy Regulatory Commission Pat Wood III, Chairman 4 5 Barriers to Investment 1. Lack of regional focus 2. Incentive to favor generation 3. Uncertain cost recovery policy 4. Insufficient incentives

Federal Energy Regulatory Commission Pat Wood III, Chairman 5 Robust regional grids benefit customers Access to inexpensive supply Protection from local disruption and weather volatility Economic dispatch and efficient exchange Fuel diversity

Federal Energy Regulatory Commission Pat Wood III, Chairman 6 Fuel diversity Coal and wind require longer lines and regional delivery system. Wind also requires an open competitive balancing (energy) market that RTOs provide.

Federal Energy Regulatory Commission Pat Wood III, Chairman 7 State and federal handshake Recent settlements demonstrate lack of conflict  Missouri  Kentucky  Virginia RSCs provide greater opportunities than ever before for state input.

Federal Energy Regulatory Commission Pat Wood III, Chairman 8 RTOs help regional grid development Develop regional plan that identifies cost- effective grid investments to support reliability and economic delivery. Provide a means of cost allocation and recovery.