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Transmission and Distributed Resources; Dynamic Pricing and Advanced Metering

Transmission and Distributed Resources; Dynamic Pricing and Advanced Metering. J. Riley Allen Vermont Department of Public Service February 9, 2007. Is Transmission an Enabler of Distributed Resources or Competitor? Vermont Perspective.

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Transmission and Distributed Resources; Dynamic Pricing and Advanced Metering

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  1. Transmission and Distributed Resources; Dynamic Pricing and Advanced Metering J. Riley Allen Vermont Department of Public Service February 9, 2007

  2. Is Transmission an Enabler of Distributed Resources or Competitor? Vermont Perspective • Transmission is an enabler and a complement of distributed resources, however, • Goal is least cost service. • Vermont has taken explicit steps to ensure that distributed resources are also recognized as a complement or substitute for transmission resources

  3. In Docket No. 6860, the Board concluded that it had: • no viable option but to approve a transmission solution for a reliability problem that might have been either deferred or more cost-effectively addressed through demand-side measures or local generation, if there had been sufficient advance planning by VELCO and its owners. • Board Opened Docket 7081 to address this failure

  4. Vermont Context

  5. Vermont Situation • Vermont utilities remain vertically integrated; • Single provider of bulk transmission services (VELCO) • Vermont utilities depend on resources generally far from load • Vermont investments in transmission projects have been fairly inactive until recently. • Vermont Public Service Board approved the Northwest Reliability Project and the Lamoille Loop Project (together are now estimated to cost more than $250 million)

  6. Transmission Challenges

  7. Vermont load zone map Vermont split into five zones • Northern zone @15 MW (on 90 MW base in 2006) • Northwest zone @ 150 MW (on 535 MW base in 2006) • Eastern zone @ 10 MW (on 70 MW base in 2006) • Central zone @ 30 MW (on 280 MW base in 2006) • Southern zone @ 20 MW (on 140 MW base in 2006) Source: VELCO

  8. Challenge to all the key elements in a cohesive Transmission Planning Process • 20 Distribution Utilities (fully integrated owners of VELCO) • Single Efficiency Utility • Single Provider of Bulk Transmission Services (VELCO) • Department of Public Service (Responsible for Statewide Planning) • Competitive market place (energy efficiency, generation services)

  9. Proposed Planning Process and Coordinating Body

  10. Vermont System Planning Committee (VSPC) (Settlement Proposals Docket 7081) • Addresses the fundamental challenge of coordination • DUs, VELCO, VTDPS, Public Representatives, EEU • Addresses transparency through open meetings, notice of meetings, public participation, minutes of meetings posted; • Addresses integration through participation of efficiency utility, PSD and each solution is subject to a presumptive need for market test.

  11. VT System Planning Committee • Comprised of VELCO • 20 Distribution Utilities (4 with subtransmission facilities) • Energy Efficiency Utility • Vermont Department of Public Service • 3 Public Service Board appointments to represent environment concerns, business ratepayers, and residential ratepayers

  12. Vermont Proposed Planning Process

  13. Step 8 Perform Detailed NTA Analysis • Follows Step 3 (preliminary NTA analysis) that determines if full nontransmission alternatives might be viable • Evaluation is primarily centered on societal test • Nontransmission alternatives must meet “equivalence test” (eliminated violations of operating criteria to approximately same level as transmission) • Coordination with ISO-NE on NTA • Includes consultations with efficiency utility and renewable contract facilitator • Includes presumption of a market test.

  14. Key Features of the New Transmission Planning Process • Release to the public of transmission plan on 3 year cycle • Public engagement processes (transmission plan and choice of solutions) • Longer planning horizon (20 years versus 10 year current cycle) • Central coordinating entity (VSPC) • Increased transparency in planning process (VSPC has open records, open meetings, public representatives, web notice of meetings, regular reporting requirements)

  15. Key Features of the New Transmission Planning Process (cont’d) • Involvement of distributed resource providers (Energy Efficiency Utility; Market suppliers through RFPs and Open Door Policy)

  16. THE END

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