1. Massachusetts Electric Restructuring Roundtable
New England Regional Transmission Expansion Planning Process By
Thomas J. Gentile
National Grid
October 28, 2004

2. Transmission Planning[1]
Identify [Plan] a Flexible, Robust, and Implementable Transmission System
Reliably Facilitates Commerce [Markets]
Serves all Load in a Cost Effective Manner
[1] Eric Hirst & Brendan Kirby, Transmission Planning for a Restructuring US Electricity Industry, June 2001

3. Necessary Components for a Reliable and Efficient Electric Network
Generation Adequacy
Transmission Infrastructure
Demand Response
Correct Market Signals

4. New England RTEP Principles [2]
Provide for coordination with existing transmission systems and with appropriate interregional and local expansion plans
Properly account for market responses including generation, merchant transmission and demand side responses
[2] ISO-New England “Current RTEP Process” RTO-NE Stakeholder Working Group, April 15, 2003

5. Overview of New England ISO Regional Planning Process
Region-wide Annual Planning Process
Open Process Allows for Stakeholder Input
Includes Market Solutions
Transmission Owners provide “Backstop”
Input and Coordination with Other Areas
Addresses Market Efficiency

6. Overview of New England ISO Regional Planning Process
Planning process recognizes that any Market Proposals can go forward at anytime
Planning process addresses both reliability and economic needs
Planning process retains the TOs obligation to provide “Backstop”

7. New England ISO Regional Planning Process
Develop Range of Solutions
Work Collaboratively with TOs
Stakeholder Input
Regulatory Input
Regional Expansion Plan

8. Industry Entities Independent (Merchant) Generators Power Marketers
Merchant Transmission Developers
Independent Transmission Companies
End Users
The traditionals remain
Vertically Integrated Utilities
Municipals
Federal Public Power entities

9. NERTO System Planning Process Flow Diagram (High Level) NO YES
Needs Assessment
5-10 Year Horizon
Reliability, Economic, and Inter-Area
Inform Stakeholders
Request for Solutions in Consultation with Advisory Committee
Market Responses
Generation
Distributed Resources
Merchant Transmission
Regulated Responses
TO(s)/ITC(s) Proposals
Backstop
Board Approval of NSP NO
NERTO/ITC Evaluates Regulated Responses
YES
NERTO issues GAP RFP for Non-Transmission Solutions
NERTO Evaluates GAP RFP Solutions
Meets System Needs
Is an Interim Need Identified?
NERTO Evaluates Market Responses to System Needs
If Any Needs Remain
NERTO System Planning
Process Flow Diagram
(High Level)
NERTO Formulates NSP to Maintain System Reliability and Economically Justify Congestion Reduction and Address Inter-Area needs

10. Challenges Defining Role of Regulators
More Hands in the Planning “Pot”
Changing Planning Process
Balancing Market Rules and Reliability

11. QUESTIONS