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Transmission Planning/Cost Allocation NOPR Update

Transmission Planning/Cost Allocation NOPR Update. SWAT Meeting – November 16, 2010 LeeAnn Torkelson. NOPR Background. Published June 17, 2010 60-day comment period extended to September 29, 2010 Reply Comments Due November 12, 2010 Transmission Planning directives:

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Transmission Planning/Cost Allocation NOPR Update

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  1. Transmission Planning/Cost Allocation NOPR Update SWAT Meeting – November 16, 2010 LeeAnn Torkelson

  2. NOPR Background • Published June 17, 2010 • 60-day comment period extended to September 29, 2010 • Reply Comments Due November 12, 2010 • Transmission Planning directives: • Local/regional planning must account for public policy requirements by state/federal laws or regulations • Improve coordination between neighboring planning regions • Remove right of first refusal by incumbent load-serving utilities to build transmission lines within their exclusive service areas . • Cost Allocation directives: • Establish link between transmission planning & cost allocation • Require cost allocation methods for intra or inter-regional transmission facilities to satisfy cost allocation principles. SWAT Meeting - NOPR update - Torkelson

  3. NOPR Update • 170+ comments (SWAT was one) • Tone in the West is generally “give existing processes more time to work” • Existing processes: • DOE funding for regional transmission planning: • WECC’s Regional Transmission Expansion Planning (RTEP) • <1 year in development/implementation • Attachment K – transmission planning processes • 2+ years in development/implementation SWAT Meeting - NOPR update - Torkelson

  4. NOPR Expectations • In a Final Rule, FERC may provide: • an extension of time, beyond initially proposed six months, for utilities to negotiate regional planning and cost allocation agreements with their neighbors • some modification to the initially proposed removal of the right of first refusal for incumbent utilities to build transmission facilities necessary for reliable service to their loads SWAT Meeting - NOPR update - Torkelson

  5. NOPR Expectations, continued • However, it is not very likely that FERC will: • retract completely the concept of cost allocation to entities regardless of their voluntary participation in contracts to build, own or use particular transmission facilities, or • request additional comments before issuing a Final Rule SWAT Meeting - NOPR update - Torkelson

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