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Transmission ExpansionTransmission Expansionin the Western U.S.in the Western U.S.
Transmission Policy, Incentives, and Transmission Policy, Incentives, and Expansions in the Western StatesExpansions in the Western States
Marcus WoodStoel Rives LLP900 SW Fifth Avenue, Suite 2600Portland, OR [email protected]
May 21, 2007
2
Frontier Line
Palo Verde – Devers II
Navajo Transmission
Project
John Day- McNary Northern
Lights
TransWest Express
TOT 3
MT-AB Intertie
Tehachapi
Green Path
Sunrise Powerlink
Seabreeze
Miracle Mile-Ault
Robinson Summit-
Harry AllenTransBay
Tucson-Nogales)
Colorado-New Mexico
Interconnection Project
Northwestern AMPS
High Plains Express
N. CA to Canada
Sun Zia
Proposed Transmission ProjectsProposed Transmission Projects
Map prepared by Doug Larson and John Carr
3
Frontier Line
Palo Verde – Devers II
Navajo Transmission
Project
John Day-
McNaryNorthern Lights
TransWest Express
TOT 3
MT-AB intertie
Tehachapi
Green Path
Sunrise Powerlink
Seabreeze
Miracle Mile-Ault
Robinson Summit-
Harry AllenTransBay
Tucson-Nogales)
Colorado-New Mexico
Interconnection Project
Northwestern AMPS
High Plains Express
N. CA to Canada
Sun Zia
Proposed Transmission ProjectsProposed Transmission Projects
4
Frontier Line
Palo Verde – Devers II
Navajo Transmission
Project
Northern Lights
TransWest Express
TOT 3
MT-AB intertie
Tehachapi
Green Path
Sunrise Powerlink
Seabreeze
Miracle Mile-Ault
Robinson Summit-
Harry AllenTransBay
Tucson-Nogales)
Colorado-New Mexico
Interconnection Project
Northwestern AMPS
High Plains Express
N. CA to Canada
Sun Zia
John Day- McNary
Proposed Transmission ProjectsProposed Transmission Projects
5
Frontier Line
Palo Verde – Devers II
Navajo Transmission
Project
John Day-
McNary Northern Lights
TransWest Express
TOT 3
MT-AB intertie
Tehachapi
Green Path
Sunrise Powerlink
Miracle Mile-Ault
Robinson Summit-
Harry AllenTransBay
Tucson-Nogales)
Colorado-New Mexico
Interconnection Project
Northwestern AMPS
High Plains Express
N. CA to Canada
Sun Zia
Proposed Transmission ProjectsProposed Transmission Projects
Seabreeze
6
Frontier Line
Palo Verde – Devers II
Navajo Transmission
Project
John Day-
McNary
TransWest Express
TOT 3
MT-AB intertie
Tehachapi
Green Path
Sunrise Powerlink
Seabreeze
Miracle Mile-Ault
Robinson Summit-
Harry AllenTransBay
Tucson-Nogales)
Colorado-New Mexico
Interconnection Project
Northwestern AMPS
High Plains Express
N. CA to Canada
Sun Zia
Northern Lights
Proposed Transmission ProjectsProposed Transmission Projects
7
Frontier Line
Palo Verde – Devers II
Navajo Transmission
Project
John Day-
McNaryNorthern Lights
TransWest Express
TOT 3
MT-AB Intertie
Tehachapi
Green Path
Sunrise Powerlink
Seabreeze
Miracle Mile-Ault
Robinson Summit-
Harry AllenTransBay
Tucson-Nogales)
Colorado-New Mexico
Interconnection Project
Northwestern AMPS
High Plains Express
N. CA to Canada
Sun Zia
Proposed Transmission ProjectsProposed Transmission Projects
8
Palo Verde – Devers II
Navajo Transmission
Project
John Day-
McNaryNorthern Lights
TransWest Express
TOT 3
MT-AB intertie
Tehachapi
Green Path
Sunrise Powerlink
Seabreeze
Miracle Mile-Ault
Robinson Summit-
Harry AllenTransBay
Tucson-Nogales)
Colorado-New Mexico
Interconnection Project
Northwestern AMPS
High Plains Express
N. CA to Canada
Sun Zia
Frontier Line
Proposed Transmission ProjectsProposed Transmission Projects
9
Frontier Line
Palo Verde – Devers II
Navajo Transmission
Project
John Day-
McNaryNorthern Lights
TransWest Express
TOT 3
MT-AB intertie
Tehachapi
Green Path
Sunrise Powerlink
Seabreeze
Miracle Mile-Ault
Robinson Summit-
Harry AllenTransBay
Tucson-Nogales)
Colorado-New Mexico
Interconnection Project
Northwestern AMPS
High Plains Express
N. CA to Canada
Sun Zia
Proposed Transmission ProjectsProposed Transmission Projects
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Key Characteristics of WSCC Grid That Key Characteristics of WSCC Grid That Impact Transmission ExpansionImpact Transmission Expansion
• Grid is a “donut” with a very weak east side
• Transmission system is a “hub and spoke” system
• Transmission ownership is fragmented
• Most of the WSCC is outside of RTO control
• Outside of California, path ratings must be negotiated
• Outside of California, there is no agreement on transmission line cost allocation
• Major expansions require siting in multiple states
• Most Western land is not privately-owned
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Transmission Ownership is FragmentedTransmission Ownership is Fragmented
• In WSCC, there are at least 58 owners of bulk transmission• Bonneville Power Administration owns 75% of the high-
voltage transmission in the Northwest• Western Area Power Administration is a major transmission
owner in the Rocky Mountain/Southwest areas• Substantial transmission is owned by generation
cooperatives and municipalities• Why dealing with other transmission owners is important
– Siting– Condemnation– Path ratings– Cost allocation
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Outside of California, Path Ratings Must Outside of California, Path Ratings Must Be NegotiatedBe Negotiated
• Description of “path,” “cut plane,” “nomogram”
• Paths have nothing to do with actual flow of electricity
• Basics of path rating determination
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Pacific Northwest Cut PlanesPacific Northwest Cut Planes
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Major Expansions Involve Siting in Major Expansions Involve Siting in Multiple StatesMultiple States
• TOT 3 example– Wyoming siting
– Colorado siting
• HVDC Line: What is the benefit to intervening states?
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Most Land in WSCC Area Is Not Most Land in WSCC Area Is Not Privately-OwnedPrivately-Owned• Example for Transwest Express proposed path
– Crosses:
• 20 BLM resource management areas
• 2 national monuments
• 1 Department of Defense area
• 4 Indian reservations
• 8 national forests
• Significance of non-private ownership– No condemnation rights
– “Off-limits” areas
– Environmental Impact Statement requirements
– Negotiations with Indian Nations
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Transmission Cost AllocationTransmission Cost Allocation
• Four potential allocations of cost of a transmission line– State government entity (Wyoming Infrastructure Authority)
– RTO
– Retail utilities
– Generators
• Outside of California, no agreement on allocation
• Complex mix of allocation factors
• If retail utilities are to share costs, all affected retail regulatory commissions must agree
• If generators are to bear costs, who pays until full capacity signed up?
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ConclusionConclusion
• WSCC transmission grid is seriously inadequate for WSCC needs
• Well-planned transmission additions, especially on the east side, could greatly improve reliability and resource choice and reduce overall cost of power
• Successful sponsorship of major WSCC transmission requires– A deep understanding of WSCC institutional relationships
– A sophisticated and knowledgeable negotiation with and accommodation of a large number of interested parties
– A heightened understanding of global warming rulemaking
– Great political savvy
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ConclusionConclusion
• TO BUILD WSCC TRANSMISSION, ONE FIRST NEEDS TO NEGOTIATE WSCC TRANSMISSION