ADVANCED INNOVATIVE ELECTRIC TRANSMISSION TECHNOLOGIES Including … · · 2016-10-06ADVANCED INNOVATIVE ELECTRIC TRANSMISSION TECHNOLOGIES Including the Breakthrough Overhead Line

ADVANCED INNOVATIVE ELECTRIC TRANSMISSION TECHNOLOGIES

Including the Breakthrough Overhead Line Design (BOLDTM)

and State Public Policies to Accelerate Their Deployment

Midwestern Governors Association Meeting

Grid Modernization: Understanding Technology Advancements

Columbus, Ohio

October 5, 2016

American Electric Power

Carlos Casablanca

[email protected]

Paul Loeffelman

[email protected]

Utility Transformation

You just heard about AEP’s transition to become the next premium utility.

We are focused on providing our customers with much more zero and low CO2 emission

generated energy including wind and solar and more efficient energy resources.

We are also focused on improving reliability/resiliency through deployment of advanced

technologies throughout our transmission and distribution grids, as well as offering our

customers customized energy solutions to improve their efficient use of energy.

This transformation has already begun as shown by AEP operating company integrated

resources plan filings adding 3108 MW of solar, 6300 MW of wind, and 3400 MW natural

gas through 2033, and energy storage.

Governors can lead the establishment of supportive policies in their states. A toolkit for all

state policymakers in the MGA region is a meeting handout.

Reference: DOC 1.

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Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman ([email protected]) for copies.

mailto:[email protected]

New Technology

AEP has pioneered or adapted generation, transmission, and distribution technology

innovations to cost-effectively increase reliability, efficiency, and environmental performance

for its customers.

Transmission technologies are being focused on grid flexibility, data acquisition and analytics,

improving system performance and efficiency, and maximizing use of right-of-way.

Policymakers may be interested in the report AEP and 10 other international electricity

companies wrote to share their technology and public policy experiences for 50 low and zero

carbon emitting energy technologies that could help country signatories to the Paris

Agreement meet their CO2 reduction pledges, and achieve other public policy goals.

Together the 11 companies annually produce and deliver 33% of the world’s electricity, 60%

being carbon free.

Reference: DOC 2.

3



Modernizing the Grid

More Reliable New, Replaced and Upgraded Circuits – Example: over 200,000 miles in the US should be replaced in the coming years due to their age

More Efficient Delivery of Electrons – Reduce line losses

More Efficient Use of Rights-of-Way – More power with less land using new types of transmission structures, advanced conductors, etc.

Addressing Political Issues – Reducing viewshed objections, concerns about EMF radiation, slowing rate increase pressures by cost-effectively increasing delivery of electricity

Facilitating Generation in the Evolving Grid – Voltage management, impact on utility and regulatory planning accuracy

Permitting Integration of Energy Storage and Future Technology – Flexibility to expand grid management solutions

Reference: DOCS 5,8

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NARUC’s regulatory policy and the Midwestern Legislative Conference Policy

promote cost effective advanced transmission technologies to address these issues



Example Technology: BOLD™

Breakthrough Overhead Line Design

The Breakthrough Overhead Line Design (BOLDTM) developed by AEP and publically announced in October 2015 is one example among a number of advanced transmission technologies.

AEP is deploying the BOLD technology within the 11 states of our traditional service territory, and now working with domestic and international utilities for use on future projects.

BOLDTM can help states achieve many of their public policy goals, such as economic growth, decreasing carbon emissions, adding more clean energy generation, increasing grid reliability and resiliency, etc.

With the approvals of states and PJM and ERCOT regional transmission organizations, AEP is deploying BOLD in Indiana and Texas.

Each state has many miles of high-voltage lines that are at least 50-75 years old. BOLD is well suited to replace and upgrade these aging circuits and maximize use of right-of-way while limiting impacts to the environment.

Reference: DOCs 3, 4, 5.

5



6

BOLD

Tubular

HEIGHT: 108’ 6”

Traditional

Lattice

HEIGHT: 113’

BOLD

Tubular

HEIGHT: 93’

Traditional

Tubular

HEIGHT: 151’ 6”

230 kV 345 kV

944 608 2420 16800

500

1000

1500

2000

2500

Line Loadability (MW @ 100 miles)

BOLD ™ Has Much More Capacity At Lower

Tower Heights Compared To Modern

Conventional Designs


Reference: DOC 3


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Reference: DOC 3



How BOLD Works

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BOLD’s compact design, compared to

conventional modern designs, leverages

physics of the design to optimize electrical

performance

Reference: DOC 5



Comparison of

BOLD vs.

Conventional

Design Benefits

BOLD can be used for new or

replacement transmission

circuits up to 500 kV.

BOLD is a cost-effective design,

and results in a net savings when

benefits are considered.

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BOLD vs. Conventional Modern DesignsBENEFITS BOLD 345 kV BOLD 230 kV

Increased Capacity* 10-60% 15-75%

Lower Tower Height (25-35%) (20-30%)

Lower Magnetic Field Levels (45-50%) (45-50%)

Lower Energy Losses* Up to (33%) Up to (15%)

*Comparisons dependent on conductor selection. BOLD also works for other voltage classes.

• Costs for BOLD differ depending on design standards, but current estimates put BOLD on par with conventional designs before considering any benefits.

• BOLD is up to 33% less expensive than conventional on a cost per MW basis. This also means fewer lines are required to achieve the same level of capacity.

• Savings associated with reduced line losses further offset up-front material cost.

• BOLD benefits are much greater compared to the aging lines now in service.

Reference: DOC 5



Minimizing Right-of-Way

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345 kV Traditional(3) Single Circuit Towers

345 kV BOLD(1) Double Circuit Tower

345 kV Traditional (1) Single Circuit Tower

(1) Double Circuit Tower

450’ ROW 150’ ROW300’ ROW

BOLD can provide 10-75% more capacity in the same right-of-way

Reference: DOC 3



Reducing Line Losses

Higher voltage lines experience lower energy losses, particularly over long

distances or when lines are heavily loaded

The 345 kV BOLD 3-bundle design offers up to 33% less energy loss compared

with traditional lines of the same voltage in the existing right-of-way

For a 50-mile 345 kV line, using the BOLD design could save enough energy to

power around 7,000 US homes each year

Energy losses, while not often valued , can help offset costs of new technologies

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Reference: DOC 5



CURRENT BOLD PROJECTS

• AEP Robison Park-Sorenson Rebuild

Fort Wayne, Indiana

o Two Voltages: 345 kV and 138 kV

o Line scheduled in service October 2016

• AEP Meadow Lake – Reynolds Rebuild

Lafayette, Indiana

o First double-circuit 345 kV application

o Line scheduled in service June 2018

• Magic Valley II Wind Interconnection

Raymondville, Texas

o Part of larger 130-mile project

o Line scheduled in service August 2020

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Reference: DOC 5Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman ([email protected]) for copies.


Technology Deployment Options

State policymakers want reliability, clean energy, job growth, economic productivity, and other public policy goals to be achieved as quickly as possible.

There are many deployment options that have been created for BOLD.

o BOLD Transmission, LLC is a subsidiary of AEP Transmission established to deploy the patented technology anywhere in the US and internationally

o Transource Energy, an AEP affiliate that can build projects in any state, may propose BOLD in competitive transmission solicitations

o BOLD can also be utilized by incumbent transmission owners/developers through licensing or partnerships

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Reference: DOC 5Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman ([email protected]) for copies.


Public Policy Support

Governors and state legislators can help drive the modernization of their grids. KS Rep.

Tom Sloan shared ideas on how to enable advanced technologies in a recent Council

of State Governments eCademy Webcast. Building the Grid of the Future: How

Legislators Can Bring Advanced Transmission Technologies to Their States.

Governors and state legislators, utility regulators, regional planning

organizations, and other policymakers are interested in new advanced technologies

like BOLDTM being quickly deployed to benefit citizens and businesses. But project

developers can be reluctant to propose these new technologies if they believe that

policymakers will favor older, more familiar technologies.

Governors can reassure project developers that their new technologies will be fairly

compared through development of supportive policies in the form of legislation,

resolutions, regulations and other expressions of encouragement.

Reference: DOC 5 (especially slides 13, 14 and the Appendix).

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Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman

([email protected]) for copies.


Encourage Advanced Transmission Technology

Deployment Through Policymaker Associations & State

Policies

There are a few regional and national policymaker association resolutions and policies

that have supported deployment of new transmission technologies like BOLD:.

Policies established by CSG Midwest Legislative Conference, CSG Southern Legislative

Conference, CSG West, Southern States Energy Board, and NARUC. Governors, economic

regulators, legislative leadership, and regional planning organizations received copies.

Additionally, only a few states (Arkansas, Kansas, and New York are examples) have

established policies that encourage the deployment of these types of new technologies.

Governors can work with their legislatures to establish statehouse-level policies and

to further accelerate advanced transmission technology deployment, extending the

benefits to residents of states.

Reference: DOCs 5, 6, 7, 8, 9.

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Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman

([email protected]) for copies.


Q&A – Thank You

16

Carlos Casablanca

Director – Advanced Transmission Studies and

Technology


[email protected]

+1.614.933.2568

Paul Loeffelman

Director, Corporate US External Affairs

Head of Corp Int’l Affairs


[email protected]

+1.614.716.1243



APPENDIX

• US Infrastructure Investment Needs

• Council of State Governments Midwest Legislative Conference (CSG MLC) Resolution Supporting the Deployment of Advanced Electric Transmission Technology (August 2016)

• National Association of Regulatory Utility Commissioners (NARUC) Resolution Supporting Advanced Electric Transmission Technology (February 2016)

• Document Number Index to the Toolkit Supporting the Statehouse Level Adoption of the CSG MLC Resolution

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US Infrastructure

Investment Needs

230 kV originated in late 1920's and early 1930's with a large portion built before 1950.

345 kV originated in the mid-1950’s with the bulk of lines built between 1960 and 1970.

Data shows a significant increase in line miles to be replaced or upgraded as these facilities already exceed 50 years of age and many approach 70-100 years of age.

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Reference: DOC 3



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71st Annual Meeting of the Midwestern Legislative Conference of The Council of State Governments

July 17 – 20, 2016

Resolution Supporting the Deployment of Advanced, Innovative Electric Transmission Technology

WHEREAS, a secure, reliable and resilient power grid integrating generation resources serves as a foundation of a growing economy and is critical to our national security; and

WHEREAS, regulators, policy-makers, and consumers expect generating resources and the grid to perform extremely reliably; and

WHEREAS, a significant portion of the nation’s transmission facilities are aged and will require a replacement strategy; and

WHEREAS, environmental regulations, state renewable energy portfolio standards, state and federal tax policies, other economic factors and technology developments are causing some electric generation resources to retire, while replacement generation, some of it fueled by intermittent resources, is being sited at other locations on the electric grid; and

WHEREAS, new innovative cost-effective transmission technologies (including, but not limited to, high-capacity/high-efficiency conductors, and compact transmission towers) are commercially available that can increase grid capacity, improve energy transfers, promote greater stability and resiliency, make more efficient use of rights-of-way, reduce transmission line losses and help to streamline siting and construction activities; and

WHEREAS, the policy of the National Association of Regulatory Utility Commissioners recognizes the benefits of these technologies to modernize the grid and improve generating resource integration and encourages electric utilities, grid operators and state public service commissions to consider the cost-effective use of these technologies; now therefore be it

RESOLVED, that the Midwestern Legislative Conference encourages state legislatures and public service commissions to support utility efforts to: 1) investigate and consider new advanced transmission technologies when replacing aged transmission infrastructure; 2) evaluate new transmission technologies to determine whether they can cost effectively ensure the continued reliable delivery of electricity while providing greater capacity and enhanced efficiency; 3) consider the ability of these technologies to reduce environmental and visual impacts to communities; and 4) consider the ability of these and other technologies to reduce the overall cost of energy delivery; and be it further

RESOLVED, that the MLC encourages state legislatures and public service commissions to work with Regional Transmission Organizations/Independent System Operators and other planning authorities to support and encourage consideration of those cost-effective advanced electric transmission infrastructure options that can increase grid capacity, reduce transmission line losses, improve energy transfers, make efficient use of rights-of-way, improve energy efficiency, and help to streamline siting and construction activities in their planning, evaluation and oversight of transmission grid development, especially by utilizing existing transmission corridors; and be it further

RESOLVED, that the MLC encourages state legislatures and public service commissions to include in their oversight of transmission facilities the consideration and promotion of the appropriate use of advanced electric transmission technologies in support of their interest in the continued provision of affordable, reliable electricity to consumers; and be it further

RESOLVED, that this resolution be submitted to appropriate state, federal and provincial officials.

Adopted this 20th day of July, 2016 at the 71st MLC Annual Meeting in Milwaukee, Wisconsin. Reference: DOCs 5, 8



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NARUC Resolution Supporting Advanced Electric Transmission Technology

WHEREAS, A secure, reliable, and resilient power grid integrating generation resources serves as a foundation of a growing economy and is critical to our national security; and

WHEREAS, Regulators, policymakers, and consumers expect generating resources and the grid to perform extremely reliably; and

WHEREAS, A significant portion of the nation’s transmission facilities are aged and will require a replacement strategy; and

WHEREAS, Environmental regulations, State renewable energy portfolio standards, State and federal tax policies, other economic factors, and technology developments are causing some electric generation resources to retire, while replacement generation, some of it fueled by intermittent resources, is being sited at other locations on the electric grid; and

WHEREAS, New innovative cost-effective transmission technologies (including, but not limited to, high-capacity/high-efficiency conductors, compact transmission towers, and variable frequency transformers) are commercially available that can increase grid capacity, improve energy transfers, promote greater stability and resiliency, make more efficient use of rights-of-way, reduce transmission line losses, and help to streamline siting and construction activities; and

WHEREAS, New and advanced replacement transmission facilities can be designed to enable a wide variety of new generating resources and can address technical, environmental, and aesthetic issues that might impede or limit the development and operation of these resources; and

WHEREAS, Crowded utility corridors often allow little room for expansion; and

WHEREAS, Some States have established policies that encourage the use of advanced transmission line technologies; now, therefore be it

RESOLVED, That the Board of Directors of the National Association of Regulatory Utility Commissioners (NARUC), convened at its 2016 Winter Committee Meetings in Washington, D.C., encourages utility efforts to: 1) investigate and consider new advanced transmission technologies when replacing aged transmission infrastructure; 2) evaluate new transmission technologies to determine whether they can cost-effectively ensure the continued reliable delivery of electricity while providing greater capacity and enhanced efficiency; 3) consult with the Department of Energy and its National Laboratories to understand advancing transmission technologies; and 4) consider the ability of these technologies to reduce environmental and visual impacts to communities; and be it further

RESOLVED, That NARUC encourages Regional Transmission Organizations/Independent System Operators and other planning authorities to support and consider cost-effective advanced electric transmission infrastructure options that can increase grid capacity, reduce transmission line losses, improve energy transfers, make efficient use of rights-of-way, improve energy efficiency, and help to streamline siting and construction activities in their planning, evaluation and oversight of transmission grid development; and be it further

RESOLVED, That NARUC encourages State public service commissions to include in their oversight of transmission facilities the consideration of cost-effective use of advanced electric transmission technologies in support of the continued provision of affordable, reliable electricity to consumers.

_______________________________

Sponsored by the Committee on Electricity

Adopted by the National Association of Regulatory Utility Commissioners Board of Directors on February 17, 2016

http://pubs.naruc.org/pub/66436AF7-DFB2-C21E-43B2-1AE83A02D8F5 Reference: DOCs 5, 9



Toolkit Document Number Index

1. PowerPoint. The Next Generation Energy Company: Transforming to Enhance the Customer Experience. May 5, 2016 Presentation by Robert P. Powers, Executive Vice President and Chief Operating Officer at the United States Energy Association Public Policy Forum, Washington D.C.

2. Report Excerpt. Powering Innovation for a Sustainable Future: An Electric Industry’s Perspective. Prepared by members of the Global Sustainable Electricity Partnership. Published 2015. Full report available at http://www.globalelectricity.org/upload/File/final_powering_innovation_for_website_and_usbs_2.pdf

3. One page. Advanced Electric Transmission Technology Fact Sheet. September 16, 2016.

4. Article. AEP’s BOLD Response to New Industry Challenges. Authored by Richard Gutman and Meihuan Zhu Fulk. Published October 26, 2015 in Transmission and Distribution World.

5. PowerPoint. August 16, 2016 Council of State Governments eCademy Webcast. Building the Grid of the Future: How Legislators Can Bring Advanced Transmission Technologies to Their States. Co-presented by Kansas Representative Tom Sloan and AEP/BOLD’s Evan Wilcox. Slides 13, 14 and Appendix from August 16, 2016 Council of State Governments eCademy Webcast PowerPoint contain citations to example policies from Arkansas, Kansas, New York, CSG-South, CSG-Midwest, NARUC.

6. NY PSC Order Excerpt. December 17, 2015 Order Finding Transmission Needs Driven By Public Policy Requirements. Supporting pages for Slide 14 citation to list of public policies, and evaluation criteria for transmission solutions in Document 5, CSG eCademy PowerPoint.

7. Arkansas Resolution. Interim Resolution 2015-004 Supporting the Deployment of Advanced, Innovative Electric Transmission Technology. Adopted May 12, 2016 by the Joint Interim Committee on Energy.

8. CSG Midwest Legislative Conference Policy ( July 2016). Resolution supporting the deployment of advanced innovative electric transmission technology.

9. NARUC Policy (February 2016). Resolution supporting advanced electric transmission technology.

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http://www.globalelectricity.org/upload/File/final_powering_innovation_for_website_and_usbs_2.pdf


Documents

ADVANCED INNOVATIVE ELECTRIC TRANSMISSION TECHNOLOGIES Including … · · 2016-10-06ADVANCED INNOVATIVE ELECTRIC TRANSMISSION TECHNOLOGIES Including the Breakthrough Overhead Line