Transcript ECAR 2001 Summer Transmission Assessment

“The National Grid”
Presented To The
Fall Tri-State Member
Services
Conference
October 10, 2001
Covington, KY
Jeff Mitchell
ECAR
Manager, Transmission Services
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“The bulk electric system is a term commonly
applied to that portion of an electric utility
system, which encompasses the electrical
generation resources, transmission lines,
interconnections with neighboring systems, and
associated equipment, generally operated at
voltages of 100 kV or higher.”
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ECAR
TRANSMISSION CIRCUIT MILEAGE
AS OF DECEMBER 31, 2000
COMPANY
AP
AEP
BREC
CIN (CGE)
CIN (PSI)
CONS
DPL
DECO
DLCO
EKPC
FE (CEI)
FE (OE)
FE (TE)
HE
IMPA
IPL
LGEE (KU)
LGEE (LGE)
NIPS
OVEC
SIGE
WVPA
TOTAL
GRAND TOTAL
120KV
Total
138KV
161KV
230KV
345KV
500KV
765KV
--------------1,555.900
-----------------------------
3,617.832
8,673.110
14.400
658.250
1,493.260
3,713.500
379.870
31.000
406.880
360.280
906.340
2,261.910
508.050
16.680
18.650
363.423
1,029.280
316.270
757.218
--313.240
14.400
--46.340
335.400
------------426.310
------223.680
----531.090
65.930
---------
267.060
98.770
----701.350
----89.800
----0.700
------31.720
------------83.870
17.040
3,801.130
67.400
387.630
742.230
1,942.350
413.650
968.500
118.540
59.560
358.020
670.730
167.370
62.430
70.710
457.481
357.480
135.250
354.442
774.400
--63.470
684.540
110.960
----------------------------56.870
-----------
--2,022.060
-----------------------------------------
4,586.472
14,752.370
417.200
1,045.880
2,936.840
5,655.850
793.520
2,645.200
525.420
846.150
1,265.060
2,932.640
675.420
302.790
121.080
820.904
1,974.720
517.450
1,111.660
774.400
313.240
161.740
1,555.900
25,853.843
1,628.750
1,273.270
11,989.813
852.370
2,022.060
45,176.006
45,176.006
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NERC Regions
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 Formed June 1968
 Mission: “Promote Reliability of Bulk Electric
Supply in North America”
 Voluntary Organization of 10 Regions ( and
Their Members)
 Develops Planning and Operating Reliability
Standards
 Uses “Peer Pressure” to Enforce Reliability Rules
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Since its formation in 1968, the North American Electric Reliability Council (NERC) has
operated as a voluntary organization - one dependent on reciprocity, peer pressure, and the
mutual self-interest of all those involved. Through this model, NERC has helped to make the
North American electric system the most reliable system in the world. Now, the growth of
competition and the structural changes taking place in the industry have significantly altered
the incentives and responsibilities of market participants to the point that a system of
voluntary compliance is simply no longer adequate.
NERC is in the process of transforming itself into NAERO - the North American Electric
Reliability Organization - whose principal mission will be to develop, implement, and enforce
standards for a reliable North American bulk electric system. Under today's system,
compliance with NERC standards is mandatory but it is not enforceable. NERC is working
with its members to incorporate an enforcement mechanism by way of contracts between
NERC's Regional Councils and their members. However, federal legislation is needed in the
United States to ensure that NERC and its Regions have clear-cut statutory authority to
enforce compliance with reliability standards among all market participants.
NERC's membership is unique. As a not-for-profit corporation, NERC's members are ten
Regional Councils. The members of these Regional Councils come from all segments of the
electric industry: investor-owned utilities; federal power agencies; rural electric cooperatives;
state, municipal and provincial utilities; independent power producers; power marketers; and
end-use customers. These entities account for virtually all the electricity supplied in the United
States, Canada, and a portion of Baja California Norte, Mexico.
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ECAR is one of the ten Regional Reliability Councils of the North American Electric
Reliability Council (NERC).
ECAR was established in 1967 to augment the reliability of its members’ electricity
supply systems through coordination of the planning and operation of the members’
generation and transmission facilities. ECAR’s membership includes 29 major
electricity suppliers located in nine east-central states serving more than 36 million
people.
Membership is voluntary, and the current Full Members are those utilities whose
generation and transmission have an impact on the reliability of the interconnected
electric systems in the Region. Small electric utilities, IPPs, marketers who are active
within the Region, and Full Members of other NERC Regions participate as Associate
Members. The ECAR organization is comprised of an Executive Board, a
Coordination Review Committee, a Market Interface Committee, nine technical
advisory panels, and various working groups. Over 250 individuals drawn from all the
Region’s members participate in carrying out the Region’s reliability mission. A small
permanent staff located in Canton, Ohio provides coordination and technical support
of the Region’s activities.
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P U R P O S E
“ . . .TO AUGMENT RELIABILITY OF THE
PARTIES’ BULK POWER SUPPLY
THROUGH COORDINATION OF THE
PARTIES’ PLANNING AND OPERATION
OF THEIR GENERATION AND
TRANSMISSION FACILITIES.”
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ALLEGHENY POWER
AMERICAN ELECTRIC POWER
BIG RIVERS ELECTRIC CORPORATION
CINERGY CORPORATION
CONSUMERS ENERGY
THE DAYTON POWER AND LIGHT COMPANY
THE DETROIT EDISON COMPANY
DUQUESNE LIGHT COMPANY
EAST KENTUCY POWER COOEPRATIVE, INC.
ENRON SE CORPORATION
FIRSTENERGY
HOOSIER ENERGY RURAL ELECTRIC COOPERATIVE, INC.
INDIANAPOLIS POWER & LIGHT COMPANH
LGE ENERGY
NORTHERN INDIANA PUBLIC SERVICE COMPANY
OHIO VALLEY ELECTRIC CORPORATION
ORION POWER MIDWEST
VECTREN ENERGY DELIVERY OF INDIANA
TOTAL 18
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CATEGORY A
Joint Action Agencies
•
•
6 Included
Example – AMPO-OHIO
CATEGORY B
Marketers and IPPs
•
•
20 Included
Example – Dynegy
CATEGORY C
Utilities from Other Regions
•
•
3 Included
Example - IMO
CATEGORY D
RTOs and ISOs
•
•
1 Included
Midwest ISO
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Like most other entities involved in the electric industry, ECAR is
actively addressing the many significant issues related to the
restructuring of the industry. Among the issues being addressed by
ECAR are: ECAR’s governance and organizational structure; funding
mechanism; transformation of ECAR from a Regional Reliability
Council of NERC to a Regional Reliability Organization of the coming
new NAERO; and implementation of a formal compliance monitoring
and enforcement process for ECAR. As a result of activities such as
these, eventually ECAR will look and function a lot differently than it
does today.
In a word, we are in a time of significant change. ECAR is taking the
steps necessary to ensure the continued high reliability of its bulk
electric systems while accommodating the needs and realities of the
competitive marketplace that is evolving from restructuring of the
industry.
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•
Regional Transmission Organizations (includes Independent
System Operators, ISOs)
•
Scheduled to be operational by December 15, 2001, per FERC
Order 2000
•
FERC, in a July 2001 announcement, would prefer to see 4
total in the United States (plus ERCOT)
–
–
–
–
•
Northeast
Southeast
West
Midwest
Now have 15 in various stages of development, plus 2 new
ones – PPRTG (TVA) and WestConnect (Desert Star)
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 The “Old World”:
- Approximately 110 Control Areas Nationwide
- Had Control Over All Generation, Transmission, and
Distribution Facilities for One Company or Pool
 The “New World” After Deregulation:
- FERC Would Prefer to Have 5 RTOs Nationwide
- RTOs Would Operate the Grid with Many
Participants
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 Open Access to Transmission Systems Now
 Many New Industry Participants
 Separation of Reliability and Merchant Functions
 Increased Use of Transmission Systems
 Voluntary Compliance or “Peer Pressure” Not
Sufficient in a Competitive Industry
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 Federal Legislation:
- Senate Bill Passed in 2000 in old Congress
- House Bill Passed in 2001 in new Congress
 “Plan B”
- NERC has signed contracts with 7 of 10 Regions
(Remaining 3 to sign by end of 2001)
- ECAR Plans to sign similar contracts with its
members
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FOR MORE INFORMATION:
www.ecar.org
www.nerc.com
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