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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

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The transmission imperative

The Transmission Imperative

November 3, 2011

Jay Caspary


  • 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

Electric reliability organization
Electric Reliability Organization


NEB, Alberta, British Columbia, Manitoba, Ontario, New Brunswick, Nova Scotia, Quebec, and Saskatchewan

United States

Federal Energy Regulatory Commission



de Energia



Government Oversight



Electric Reliability




Reliability Assessment

Other ERO Members

Bulk Power System Owners, Operators, Users

Regions and interconnections
Regions and Interconnections

NERC Reporting Areas = Subregions

2010 Reporting Areas

Based on Load/Capacity Areas defined by NERC Subregions

Need for transmission
Need for Transmission

High levels of variable generation will require significant transmission additions and reinforcements.

  • Challenge

    • 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.


  • 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

Future in spp
Future in SPP Projects

  • 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

So where are we going
So…where are we going? Projects

  • ITP in process, Integrated Marketplace in place 1Q14

  • EIPC Federal Futures project >100GW wind in SPP

  • 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