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Regional Grid Development Pat Wood, III Kansas Transmission Summit September 8, 2004

Regional Grid Development Pat Wood, III Kansas Transmission Summit September 8, 2004. Infrastructure Is the Foundation. Vigilant Oversight. Competitive Markets. Effective Rules. Sufficient Infrastructure. Lagging Transmission Investment.

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Regional Grid Development Pat Wood, III Kansas Transmission Summit September 8, 2004

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  1. Regional Grid DevelopmentPat Wood, IIIKansas Transmission SummitSeptember 8, 2004

  2. Infrastructure Is the Foundation Vigilant Oversight Competitive Markets Effective Rules Sufficient Infrastructure

  3. Lagging Transmission Investment • Half as much annual investment in 2000 as in 1975 Annual growth rates in Gen, Trans, Load

  4. 5 Barriers to Investment • Lack of regional focus • Incentive to favor generation • Uncertain cost recovery policy • Insufficient incentives

  5. Robust regional grids benefit customers • Access to inexpensive supply • Protection from local disruption and weather volatility • Economic dispatch and efficient exchange • Fuel diversity

  6. Fuel diversity • Coal and wind require longer lines and regional delivery system. • Wind also requires an open competitive balancing (energy) market that RTOs provide.

  7. State and federal handshake • Recent settlements demonstrate lack of conflict • Missouri • Kentucky • Virginia • RSCs provide greater opportunities than ever before for state input.

  8. RTOs help regional grid development • Develop regional plan that identifies cost-effective grid investments to support reliability and economic delivery. • Provide a means of cost allocation and recovery.

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