Transcript The Transmission Imperative November 3, 2011 Jay Caspary Overview • NERC’s Evolution to Today’s Culture of Compliance • Organized and Bilateral Markets – No Standard Market Design • Regional Planning is.

The Transmission
Imperative
November 3, 2011
Jay Caspary
Overview
•
NERC’s Evolution to Today’s Culture of Compliance
•
Organized and Bilateral Markets
–
No Standard Market Design
•
Regional Planning is working and improving
•
Interregional Planning in process
•
Smart Grid Applications for Transmission in Future
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About NERC: Reliability History
1965
Northeast Blackout I
1968
NERC formed
1978
National Energy Act – NERC Expands
1980
NERC Merges with NAPSIC
1987
National Electric Security Committee
1992
Energy Policy Act - NERC action plan for the future
1996
FERC orders on open access put NERC on a course to become a selfregulatory reliability organization
1997
NERC/DOE “Blue Ribbon” Panel suggests mandatory standards
2002
First reliability standards become mandatory and enforceable in Ontario
2003
Northeast Blackout II
2005
Energy Policy Act creates “Electric Reliability Organization”
2006
NERC applies & becomes “Electric Reliability Organization”
2007
First reliability standards become mandatory & enforceable in US
Electric Reliability Organization
Canada
NEB, Alberta, British Columbia,
Manitoba, Ontario, New Brunswick,
Nova Scotia, Quebec, and
Saskatchewan
Mexico
United States
Federal Energy Regulatory
Commission
Comision Reguladora
de Energia
Government Oversight
Reliability
Standards
Electric Reliability
Organization
Regional
Entities
Reliability Assessment
Other ERO
Members
Bulk Power System
Owners, Operators, Users
Compliance
Enforcement
3 Interconnections / 8 NERC Regions
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Regions and Interconnections
NERC Reporting Areas = Subregions
2010 Reporting Areas
Based on Load/Capacity Areas defined by NERC
Subregions
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Changing Industry Landscape
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ISO / RTO Map
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FERC Order 890 Planning Regions
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Annual Average Wind Speed - 80 meters
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Need for Transmission
High levels of variable generation will require significant transmission additions
and reinforcements.
Challenge
Historical 5-Year Plans Compared to Actual
Miles Added (200 kV > greater)
18,000
16,000
14,000
2009 5-year Plan:
2013 Planned Projections
12,000
10,000
8,000
6,000
5 year Plan
Actual Miles Added
2009-13
2008-12
2007-11
2006-10
2005-09
2004-08
2003-07
2002-06
2001-05
2000-04
1999-03
1998-02
1997-01
1996-00
1995-99
1994-98
1993-97
1992-96
1991-95
4,000
2,000
0
1990-94
Interconnect variable energy resources
in remote areas
Smooth the variable generation output
across a broad geographical region
and resource portfolio
Deliver ramping capability and ancillary
services from inside and outside a
Balancing Area to equalize supply
and demand.
Construct/site/permit the needed
transmission and supporting facilities
to deliver power across long
distances.
Circuit-Miles

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345 kV+ Transmission Growth at a Glance
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345 kV+ Transmission Growth at a Glance
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345 kV+ Transmission Growth at a Glance
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345 kV+ Transmission Growth at a Glance
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345 kV+ Transmission Growth at a Glance
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Projects with Notifications to Construct
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Transmission…
•
represents only a fraction of a consumers total energy
bill (5-10%)
•
enables and defines markets
•
can no longer be an undervalued asset since it
provides tremendous benefits in reducing congestion
costs, improving value of diverse/variable resources,
enhances grid efficiencies and dynamic performance
•
is aging infrastructure in existing ROWs that could
provide tremendous value and capability as it is
replaced and rightsized, where appropriate
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EWITS Scenario 2
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Merchant Developers like Clean Line are
Proposing Large HVDC Projects
USFERC
500 kV
and1000
above AC plus HVDC Transmission
Order
Future in SPP
•
Renewable development beyond member needs of
12GW in SPP will depend on level of exports. While
focus to date has been wind, solar will be next, then…
•
Asset management with aging infrastructure will be a
challenge. Effective use of new and existing ROWs will
be key success factor
•
Future is bright with more robust planning and
certainty of cost allocations, but we need smart grid
applications to minimize renewable curtailments in
advance of grid build-out and to manage flows using
new technology, e.g., HVDC, as well as system
reconfiguration/ optimization tools
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So…where are we going?
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ITP in process, Integrated Marketplace in place 1Q14
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EIPC Federal Futures project >100GW wind in SPP
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Customers have requested dozens of Firm Transmission
Service Requests with more than 7GW of wind exports
from SPP to SERC, with firm/contingent firm service on
adjacent systems. Most under study, with few granted
•
SPP reviewing through and out rates which should help
potential rightsizing of facilities in a key corridor or two
•
Compliance filings for FERC Order 1000 for regional and
interregional planning due October 2012 and April
2013, respectively
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