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  1. Rich Kowalski Director, Transmission Strategy and services ISO-NE Planning Process Implementation of Attachment K February 12, 2013 | westborough, MA Planning Advisory Committee Meeting

  2. Presentation Goals • Discuss guides intended to document the implementation of the regional planning process described in Attachment K and the associated technical assumptions • Two draft documents developed • Planning Process Guide - to be discussed at the February 12th PAC meeting • Planning Technical Guide - to be discussed at the March 20th PAC meeting • Does not pre-suppose the “final” document structure to memorialize this information • Solicit written comments from PAC members on the document discussed • Comments due in 30 days to pacmatters@iso-ne.com • Does the documentation accurately reflect current practices? Stakeholders may propose edits that would make it more accurately reflect current practices. • Proposed improvements to current practices (proposed changes that might impact Attachment K will require stakeholder discussion, NEPOOL advisory input, and FERC approval)

  3. Background • Mid-2011: The ISO began developing a planning guide that outlines both the planning process as described in Attachment K and the technical assumptions that the ISO and the Transmission Owners use when performing planning studies • In order to produce a planning guide, the ISO has developed two separate documents describing the process and technical assumptions that are currently being followed in New England • The documents were developed and reviewed with the New England Transmission Owners to verify consistency with the current process and practices • The documents were also provided to NESCOE for their review and comment

  4. Overview of Planning Process • Attachment K describes how all planning study efforts are discussed within the PAC • Two-step Process • Needs Assessment - To determine the adequacy of the power system to maintain the reliability of the facilities while promoting the operation of efficient wholesale electric markets in New England • Solutions Study - To determine the most cost-effective and reliable solution(s) for the region • Stakeholder Involvement • There are opportunities for stakeholders to provide comments throughout the process from the scoping phase to draft needs and solutions reports • Multiple PAC presentations • Stakeholders are expected to actively participate in the PAC process by attending meetings, commenting on posted study scopes and reports and otherwise providing useful comments on the process

  5. Needs Assessment Overview • In general, the ISO performs regular Needs Assessments of the system to test the ability of the system to meet the requirements of reliability criteria. Because of the size of the system, these assessments look at parts of the system rather than the whole. Attachment K enumerates other triggers for Needs Assessments in Sections 4.1(a) and 4.1(b).

  6. Scope of a Needs Assessment • Conduct analysis to assess compliance with reliability standards, criteria, or guides (including those established by the ISO, NERC, NPCC and the Transmission Owner) consistent with the long-term needs of the system • Assess the adequacy of the transmission system capability, such as transfer capability to support local, regional and interregional reliability • Assess the efficient operation of the wholesale electric market (see Attachment N regarding the identification of market efficiency upgrades) • Assess sufficiency of the system to integrate new resources and loads on an aggregate or regional basis as needed for the reliable and efficient operation of the system • Examine the need to replace a significant amount of system equipment due to age or condition (see ISO Planning Procedure No. 4 for determination of what would be considered significant)

  7. Scope of a Needs Assessment, cont. • Analyze various aspects of system performance (including, but not limited to, transient network analysis, small signal analysis, electromagnetic transients program (EMTP) analysis, or delta P analysis) • Examine short circuit performance of the system (e.g., circuit breakers, bus systems, ground grids, and circuit switchers) • Assess the ability to efficiently operate and maintain the transmission system • Assess the capability of the transmission system to support the transmission services, including generator interconnections that have been or are expected to be provided • Address requests for an economic study consistent with section 4.1.b of Attachment K

  8. Needs Assessment Process

  9. Solutions Study Process Overview • Where the Needs Assessment process has identified instances where criteria is not met, the ISO will initiate an ISO-led process to develop solution alternatives for consideration • The Solution Study process examines the identified issues and existing power system to develop alternatives for consideration. These alternatives are examined to determine which elements provide the best combination of cost, electrical performance, and expandability in order to identify the most cost-effective solution for a given system reliability need.

  10. Solutions Study Process

  11. Associated Process • Regional System Plan • This document is vetted with the PAC and is based on periodic comprehensive assessments of the PTF system-wide needs to maintain the reliability of the New England Transmission System • RSP Project List • RSP Project List is updated periodically, typically three times per calendar year. updates are given to the PAC in February/March, May/June and October. The Project List and updates are posted on the ISO website. • TCA • This is the process in which the ISO reviews the costs associated with a Regional Benefit Upgrade to determine if there are Localized Costs that should be excluded from Pool-Supported PTF costs that are included in the regional transmission rate. In order to do this, the ISO examines the preferred alternative project against what is proposed to be constructed or what has actually been constructed. The TCA application can be filed before the ISO approves the I.3.9, but the ISO will not be able to make a final determination on the TCA until it approves the PPA. Material scope changes or cost overruns of more than 10% require that a TCA be re-submitted.