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RSEP Reform

RSEP Reform. Creating a Planning Process to Support Resource Adequacy. The RTEP Approach Results in “Transmission Only” Solutions to Reliability Problems. The Problem: RTEP has been passive towards non- transmission solutions.

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RSEP Reform

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  1. RSEP Reform Creating a Planning Process to Support Resource Adequacy

  2. The RTEP Approach Results in “Transmission Only” Solutions to Reliability Problems • The Problem: RTEP has been passive towards non- transmission solutions. • Given the weak signals for Generation and Demand Response investment in New England, this approach limits cost-effective and timely alternatives and creates a “transmission only” set of results. • Under RTEP assumptions, no more generation can be built in SWCT until Phase II is finished – which is increasingly uncertain and expensive. • The Solution: RSEP must be reformed to include cost-effectiveness analysis for combinations of alternative solutions. • Non transmission components of expansion plans must be explored and presented as potential ways to reduce costs and improve the timeliness of reliability investment.

  3. The Way We Were • RTEP process developed: • During period of optimistic generation investment and nascent electricity markets • When little consideration was paid to demand response options • Assuming that, somehow, market forces would attract new generation as needed

  4. The Way We are Today RSEP process must be revisited to address changed circumstances: • Investment in generation sector reduced and extremely cautious regarding returns • Existing units are in jeopardy • Load response seen as a key initiative • Developed markets continue not to send appropriate price signals in generation-deficient areas

  5. RSEP Reform • RSEP should include analysis of costs of alternative solutions, and combinations of alternative solutions. Such information will: • Provide load and their agents with an understanding of the costs of transmission vs. alternative solutions. • Provide suppliers with information on generation solutions that can be supported by the existing system, and provide transmission plans that will support cost-effective new generation. • Interconnection studies are not an efficient way to accomplish this. • Allow investors, load, and their agents to identify the combination of transmission, demand response, and generation that can resolve reliability needs in the most cost-effective and timely manner.

  6. RSEP Reform--SWCT • Transmission has been planned for the area since the early 70s. • The only meaningful addition has been the 345Kv radial from Long Mountain to Plum Tree. • It has not become easier or less expensive to build in the area. • Signficant generation cannot be sited without relieving short-circuit constraints through Phase II or alternate means. • Phase II is getting further away, more expensive, less reliable, and increasingly likely to have major costs allocated to Connecticut.

  7. SWCT • RSEP should develop one or more credible alternate plans for SWCT including: • Demand response • Emergency generation • Transmission alternatives that will allow needed supply to be sited in the area and support reliability prior to the completion of Phase II • The overall need for specific transmission investments should be reevaluated in light of any more cost-effective alternatives identified by this comprehensive planning approach “We Need Them All”

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