Transmission Joint Action in the Upper Midwest as
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Transcript Transmission Joint Action in the Upper Midwest as
December 7, 2004
Transmission Joint Action in the Upper Midwest
a presentation to the
APPA Joint Action Workshop
by David A. Berg, P.E.
Principal
Background
Public power has a strong presence in
the upper Midwest
There is a rich tradition of municipal
joint action in our region
Transmission has become a critical
issue in our region and across the
country
Transmission Access Policy Study Group
(TAPS) June 2004 White Paper
"Effective Solutions for Getting Needed
Transmission Built at Reasonable Cost"
Examines problems and proposes
policy solutions for transmission
investment needs
TAPS White Paper
Problems Identified
Transmission investment needed to improve
reliability
Competitive wholesale market requires added
transmission infrastructure
Commonly proposed solutions not working
Increased return and accelerated depreciation
Participant funding
TAPS White Paper
Structural Solutions
Inclusive Stand-Alone Transmission
Companies
Shared System Model
TAPS White Paper
Regulatory Solutions
Ratemaking devices
Reduce investment risk
Attract capital at reasonable cost
Spread cost across broad regions
Regional planning to achieve costeffective and efficient solutions
Performance-based rates to hold
transmission owners accountable
Midwest Independent System Operator (MISO)
MISO Issues
Understanding
Membership
Congestion Management
Ownership Incentives
Regional Planning
Why Joint Action?
Single Small Municipal Utility
12
10
MW
8
6
4
2
0
Small Municipal
Small & Large Municipal Utilities
300
250
MW
200
150
100
50
0
Small Municipal
Large Municipal
Individual Municipals & Agency
600
500
MW
400
300
200
100
0
Small Municipal
Large Municipal
Agency
Individual Municipal Regional Presence
18,000
16,000
14,000
12,000
MW
10,000
8,000
6,000
4,000
2,000
0
Small
Municipal
Large
Municipal
Agency
Basin Electric
Great River
Energy
MidAmerican
Alliant
We Energies
Xcel
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ip
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nt
Al
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Am
er
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id
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M
id
G
M
Ba
si
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al
lM
un
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ip
La
rg
Sm
MW
Collective Municipal Regional Presence
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Midwest Municipal Transmission Group
(MMTG)
January 2002 formal announcement
120 Iowa & Minnesota municipals (1300 MW)
Intervened in TRANSLink filing
Goal - get municipal transmission recognized in
TRANSLink
Goal - invest in new regional highway transmission
projects
Successful in initial goals
Continuing participation in regional transmission
arena
MISO
Investment opportunities
Super Joint Action in the Upper Midwest
Idea has been brewing for a while
Joint Action Workshop held July 13, 2004
Joint Action Working Group formed
Existing agencies
"Independent" municipals
6 states
Transmission identified as proper focus for
expanded joint action
Upper Midwest Regional Focus
Transmission System Planning and
Investment
Champion TAPS approach
Municipals want a seat at the table
Investment = Influence
Expanded or Super Joint Action
can not only get municipals to
the table, it can get them to the
head of the table
Current Approach
Examining expansion of MMTG
Interaction between MMTG Operating
Committee and Joint Action Working
Group
MMTG Benefits
Existing organization
Multi-state
Track record of success
Next Steps
Conduct 2-day strategic planning meeting (early
2005)
Prepare plan of development
Mission
Organizational structure
Staffing
Funding
Development timeline
Investment strategy
Move Forward?
Questions and Discussion