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NAUSCA Summer Meeting

NAUSCA Summer Meeting. Boston June 30, 3009 David W. Hadley Vice President State Regulatory Relations Midwest ISO. Midwest ISO Reliability Footprint. Electric System Development – Historical View. Traditional Electric System Development (Generation and Transmission)

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NAUSCA Summer Meeting

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  1. NAUSCASummer Meeting Boston June 30, 3009 David W. Hadley Vice President State Regulatory Relations Midwest ISO

  2. Midwest ISO Reliability Footprint

  3. Electric System Development – Historical View • Traditional Electric System Development (Generation and Transmission) • Planned at a single company level • Designed for single company use • Funded at company / state level • Decision basis • Meet local requirements (i.e., load growth) • With local natural resources • Few national policy issues • Limited regional use • Last major build out of baseload capacity and transmission ended in the early 1980s

  4. The current regional generation fleets reflects the natural resources of each region – with gas being the default peaking fuel for all MIDWEST NORTHEAST Coal Nuclear Gas Hydro WECC Wind Other SOUTH ERCOT

  5. … and the sources of each regions’ electrical energy reflects those generation portfolios and resources NORTHEAST MIDWEST Coal Nuclear Gas Hydro WECC Wind Other SOUTH ERCOT

  6. …While the transmission system reflects the desire to move energy from a company’s generation to the load it serves – without a robust “backbone”

  7. Xcel Energy Transmission

  8. Midwest ISO Transmission Map

  9. RPS RPS RPS 800 MW Load 10,000 – 12,000 MW

  10. Who Pays? • Remember Open Access – Transmission Owners cannot discriminate & favor their own generation over another's • So – the utility must open it’s transmission lines to others generation • Today the developer pays for transmission from the generator to the transmission 100% • Transmission upgrades needed have the developer pay 50% and the utility pay 50%

  11. Midwest ISO Planning Principles reflect need to address local and regional issues Fundamental Goal The development of a comprehensive expansion plan that meets both reliability and economic expansion needs • Make the benefits of a competitive energy market available to customers by providing access to the lowest possible electric energy costs • Provide a transmission infrastructure that safeguards local and regional reliability • Support state and federal renewable energy objectives by planning for access to all such resources (e.g. wind, biomass, demand-side management) • Create a mechanism to ensure investment implementation occurs in a timely manner • Develop a transmission system scenario model and make it available to state and federal energy policy makers to provide context and inform the choices they face Midwest ISO Board of Director Planning Principles

  12. Midwest ISO is actively engaged in planning from local to regional level RGOS I MTEP & RGOS II EWITS JCSP RGOS = Regional Generation Outlet Study MTEP= Midwest ISO Transmission Expansion Plan JCSP = Joint Coordinated System Plan EWITS = Eastern Wind Integration and Transmission Study

  13. Different policy assumptions result in very different siting outcomes with different transmission system requirements.

  14. The transmission overlay for the Reference Case (Status Quo) establishes the need for some backbone development…

  15. …While the 20% Wind Energy Case highlights the need for substantial transmission backbone development

  16. We must effectively manage our current infrastructure while carefully planning and developing our future infrastructure Current Infrastructure Future Infrastructure • 60% of the electric grid infrastructure (T/D/G) is at or near the end of original planned life • 20% of T/D/G is past original planned life • In the Midwest, the average age of infrastructure is very high • Baseload generation = 42 years • Transmission = 40+ years • The region use of the electric system is also increasing the transmission congestion • Planning must balance many issues • Use of existing generation fleet • National policy issues • Efficient use of natural resources • Demand response • Costs • Construction • Operating • Fuel • Decommissioning • Environmental • Regional / national use of the electric system must be considered as the planning is done • Unknowns (policy and financial) challenge planning

  17. Renewable Policy Operational Impacts Load Growth and DSM New Generation and Demand Response Fair Cost Allocation Changing Regulatory Requirements Aging Infrastructure Key Issues Planning Activities Key Issues Congestion

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