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
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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
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"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
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Transmission investment needed to improve
reliability
Competitive wholesale market requires added
transmission infrastructure
Commonly proposed solutions not working
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Increased return and accelerated depreciation
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Participant funding
TAPS White Paper
Structural Solutions
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Inclusive Stand-Alone Transmission
Companies
Shared System Model
TAPS White Paper
Regulatory Solutions
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Ratemaking devices
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Reduce investment risk
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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
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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
pp
er
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al
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Xc
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En
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M
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ip
W
e
nt
Al
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rg
Am
er
M
id
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ct
ric
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ip
a
rE
iv
e
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w
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a
M
id
G
M
Ba
si
n
e
al
al
lM
un
ic
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)
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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
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MISO
Investment opportunities
Super Joint Action in the Upper Midwest
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Idea has been brewing for a while
Joint Action Workshop held July 13, 2004
Joint Action Working Group formed
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Existing agencies
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"Independent" municipals
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6 states
Transmission identified as proper focus for
expanded joint action
Upper Midwest Regional Focus
Transmission System Planning and
Investment
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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
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Examining expansion of MMTG
Interaction between MMTG Operating
Committee and Joint Action Working
Group
MMTG Benefits
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Existing organization
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Multi-state
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Track record of success
Next Steps
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Conduct 2-day strategic planning meeting (early
2005)
Prepare plan of development
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Mission
Organizational structure
Staffing
Funding
Development timeline
Investment strategy
Move Forward?
Questions and Discussion