Transcript irpinvermont.ppt

IRP in Vermont
Docket 7081
Workshop Sept. 13, 2005
IRP in VT
• What are IRP’s and How are they developed?
• DUP – How does it impact VELCO’s Transmission
Planning
• How do Distribution Utilities use VELCO Transmission
Planning?
• Alternatives to Transmission – Analysis and Selection
What are IRP’s and How are they
developed?
• A plan for meeting electric energy needs over
twenty years at lowest cost by combining
– Power supply (central & distributed)
– Transmission and distribution
– End-use efficiency
• IRPs are developed separately by each utility
– Power supply is company-wide
– Transmission & distribution is location specific
– End-use efficiency affecting each utility
Legal Basis for IRP
• Under 30 V.S.A. 218c. an IRP is a plan for meeting
the public’s need for energy services, after safety
concerns are addressed, at the lowest present value
life cycle cost, including environmental and economic
costs, through a strategy combining investments and
expenditures on energy supply, transmission and
distribution capacity, transmission and distribution
efficiency, and comprehensive energy efficiency
programs.
Principal Criteria of Solution
• Societal cost
– Fuel
– Capital (construction & financing)
– Environmental (Externalities)
• Stability
– Solution must be flexible
– Robust across scenarios
– Avoid rate shocks
• Financial viability
– Rates must maintain utility’s investment grade credit rating
and access to capital markets
Scenario Development
Portfolio Development
Analysis of End-use Efficiency Potential
Ranking Portfolio Performance
T&D Reliability & Efficiency
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Comprehensive multi-year study of T&D system efficiencies
Prioritize all right-of-way clearing on areas with greatest need
Monitor delivery system reliability indices
Use line patrols and infrared scans to find and correct problems
before they cause outages
• Address capacity constraints consistent with DUP planning
guidelines
– Consider all feasible alternatives including joint facilities
with neighboring utilities, on-site generation and DSM
– Consider environmental impacts, societal costs and other
public concerns
• Work with VELCO in support of the Northwest Reliability
Project
DUP – How does it impact
VELCO’s Transmission Planning
• Southern Loop as an example
– Local reliability issue post contingency with existing
loads (CV DUP Docket 6805)
– Regional reliability problems S. Vt/SW NH
• RTEP S. Loop; Monadnock;post-NRP
– Potential local capacity needs (CV DUP Docket
6805)
– Future regional/state capacity needs (RTEP)
– All will be examined in CVPS DUP Docket 6805
How do Distribution Utilities use
VELCO Transmission Planning?
• DU Utility Planners work with VELCO
continuously (+ VUPG)
• VELCO considers DU power supply plans
– e.g.. 1987 VELCO Plan revised in 1992 after Phase
I/II multi-terminal and NW VT cogen plans
changed
• Transmission projects and Power Supply interact
for least-cost solution, e.g., Northern Loop/
VJO delivery
Alternatives to Transmission –
Analysis and Selection
• DUP analysis looks at least-cost societal NPV to
compare solutions – does not differentiate
between public and private benefits/costs
• Risk of complex implementation plans and
reliability of long-run performance are factors
• ISO-NE adopted transparent planning to allow
entry by merchant G/T/DR providers
• Viable financing plans are critical: Vt may add
alternatives without regional cost support