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Transmission Expansion in the Western U.S. Transmission Policy, Incentives, and Expansions in the Western States Marcus Wood Stoel Rives LLP 900 SW Fifth Avenue, Suite 2600 Portland, OR 97204 503-294-9434 mwood@stoel.com May 21, 2007. Proposed Transmission Projects. MT-AB Intertie.

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Transmission expansion in the western u s l.jpg

Transmission Expansionin the Western U.S.

Transmission Policy, Incentives, and Expansions in the Western States

Marcus Wood

Stoel Rives LLP

900 SW Fifth Avenue, Suite 2600

Portland, OR 97204

503-294-9434

mwood@stoel.com

May 21, 2007


Slide2 l.jpg

Proposed Transmission Projects

MT-AB Intertie

John Day- McNary

Northern Lights

Northwestern AMPS

Seabreeze

N. CA to Canada

TOT 3

Frontier Line

Miracle Mile-Ault

TransWestExpress

Robinson Summit-

Harry Allen

High Plains Express

Navajo Transmission Project

TransBay

Colorado-New Mexico

Interconnection Project

Tehachapi

Palo Verde – Devers II

Green Path

Map prepared by Doug Larson and John Carr

Sun Zia

Sunrise Powerlink

Tucson-Nogales)


Slide3 l.jpg

Proposed Transmission Projects

MT-AB intertie

John Day- McNary

Northern Lights

Northwestern AMPS

Seabreeze

N. CA to Canada

TOT 3

Frontier Line

Miracle Mile-Ault

TransWest Express

Robinson Summit-

Harry Allen

High Plains Express

Navajo Transmission Project

TransBay

Colorado-New Mexico

Interconnection Project

Tehachapi

Palo Verde – Devers II

Green Path

Sun Zia

Sunrise Powerlink

Tucson-Nogales)


Slide4 l.jpg

Proposed Transmission Projects

MT-AB intertie

John Day- McNary

Northern Lights

Northwestern AMPS

Seabreeze

N. CA to Canada

TOT 3

Frontier Line

Miracle Mile-Ault

TransWest Express

Robinson Summit-

Harry Allen

High Plains Express

Navajo Transmission Project

TransBay

Colorado-New Mexico

Interconnection Project

Tehachapi

Palo Verde – Devers II

Green Path

Sun Zia

Sunrise Powerlink

Tucson-Nogales)


Slide5 l.jpg

Proposed Transmission Projects

MT-AB intertie

John Day- McNary

Northern Lights

Northwestern AMPS

Seabreeze

TOT 3

N. CA to Canada

Frontier Line

Miracle Mile-Ault

TransWest Express

Robinson Summit-

Harry Allen

High Plains Express

Navajo Transmission Project

TransBay

Colorado-New Mexico

Interconnection Project

Tehachapi

Palo Verde – Devers II

Green Path

Sun Zia

Sunrise Powerlink

Tucson-Nogales)


Slide6 l.jpg

Proposed Transmission Projects

MT-AB intertie

John Day- McNary

Northern Lights

Northwestern AMPS

Seabreeze

N. CA to Canada

TOT 3

Frontier Line

Miracle Mile-Ault

TransWest Express

Robinson Summit-

Harry Allen

High Plains Express

Navajo Transmission Project

TransBay

Colorado-New Mexico

Interconnection Project

Tehachapi

Palo Verde – Devers II

Green Path

Sun Zia

Sunrise Powerlink

Tucson-Nogales)


Slide7 l.jpg

Proposed Transmission Projects

MT-AB Intertie

John Day- McNary

Northern Lights

Northwestern AMPS

Seabreeze

N. CA to Canada

TOT 3

Frontier Line

Miracle Mile-Ault

TransWest Express

Robinson Summit-

Harry Allen

High Plains Express

Navajo Transmission Project

TransBay

Colorado-New Mexico

Interconnection Project

Tehachapi

Palo Verde – Devers II

Green Path

Sun Zia

Sunrise Powerlink

Tucson-Nogales)


Slide8 l.jpg

Proposed Transmission Projects

MT-AB intertie

John Day- McNary

Northern Lights

Northwestern AMPS

Seabreeze

N. CA to Canada

Frontier Line

TOT 3

Miracle Mile-Ault

TransWest Express

Robinson Summit-

Harry Allen

High Plains Express

Navajo Transmission Project

TransBay

Colorado-New Mexico

Interconnection Project

Tehachapi

Palo Verde – Devers II

Green Path

Sun Zia

Sunrise Powerlink

Tucson-Nogales)


Slide9 l.jpg

Proposed Transmission Projects

MT-AB intertie

John Day- McNary

Northern Lights

Northwestern AMPS

Seabreeze

N. CA to Canada

TOT 3

Frontier Line

TransWest Express

Miracle Mile-Ault

Robinson Summit-

Harry Allen

High Plains Express

Navajo Transmission Project

TransBay

Colorado-New Mexico

Interconnection Project

Tehachapi

Palo Verde – Devers II

Green Path

Sun Zia

Sunrise Powerlink

Tucson-Nogales)


Key characteristics of wscc grid that impact transmission expansion l.jpg
Key Characteristics of WSCC Grid That Impact Transmission Expansion

Title Goes Here

  • Grid is a “donut” with a very weak east side

  • Transmission system is a “hub and spoke” system

  • Transmission ownership is fragmented

  • Most of the WSCC is outside of RTO control

  • Outside of California, path ratings must be negotiated

  • Outside of California, there is no agreement on transmission line cost allocation

  • Major expansions require siting in multiple states

  • Most Western land is not privately-owned

Subhead Goes Here

Presenter Goes Here

Date Goes Here


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Transmission Ownership is Fragmented Expansion

Title Goes Here

  • In WSCC, there are at least 58 owners of bulk transmission

  • Bonneville Power Administration owns 75% of the high-voltage transmission in the Northwest

  • Western Area Power Administration is a major transmission owner in the Rocky Mountain/Southwest areas

  • Substantial transmission is owned by generation cooperatives and municipalities

  • Why dealing with other transmission owners is important

    • Siting

    • Condemnation

    • Path ratings

    • Cost allocation

Subhead Goes Here

Presenter Goes Here

Date Goes Here


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Outside of California, Path Ratings Must Be Negotiated Expansion

Title Goes Here

  • Description of “path,” “cut plane,” “nomogram”

  • Paths have nothing to do with actual flow of electricity

  • Basics of path rating determination

Subhead Goes Here

Presenter Goes Here

Date Goes Here


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Pacific Northwest Cut Planes Expansion

Title Goes Here

Subhead Goes Here

Presenter Goes Here

Date Goes Here


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Major Expansions Involve Siting in Multiple States Expansion

Title Goes Here

  • TOT 3 example

    • Wyoming siting

    • Colorado siting

  • HVDC Line: What is the benefit to intervening states?

Subhead Goes Here

Presenter Goes Here

Date Goes Here


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Most Land in WSCC Area Is Not Privately-Owned Expansion

Title Goes Here

  • Example for Transwest Express proposed path

    • Crosses:

      • 20 BLM resource management areas

      • 2 national monuments

      • 1 Department of Defense area

      • 4 Indian reservations

      • 8 national forests

  • Significance of non-private ownership

    • No condemnation rights

    • “Off-limits” areas

    • Environmental Impact Statement requirements

    • Negotiations with Indian Nations

Subhead Goes Here

Presenter Goes Here

Date Goes Here


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Transmission Cost Allocation Expansion

Title Goes Here

  • Four potential allocations of cost of a transmission line

    • State government entity (Wyoming Infrastructure Authority)

    • RTO

    • Retail utilities

    • Generators

  • Outside of California, no agreement on allocation

  • Complex mix of allocation factors

  • If retail utilities are to share costs, all affected retail regulatory commissions must agree

  • If generators are to bear costs, who pays until full capacity signed up?

Subhead Goes Here

Presenter Goes Here

Date Goes Here


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Conclusion Expansion

Title Goes Here

  • WSCC transmission grid is seriously inadequate for WSCC needs

  • Well-planned transmission additions, especially on the east side, could greatly improve reliability and resource choice and reduce overall cost of power

  • Successful sponsorship of major WSCC transmission requires

    • A deep understanding of WSCC institutional relationships

    • A sophisticated and knowledgeable negotiation with and accommodation of a large number of interested parties

    • A heightened understanding of global warming rulemaking

    • Great political savvy

Subhead Goes Here

Presenter Goes Here

Date Goes Here


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Conclusion Expansion

Title Goes Here

  • TO BUILD WSCC TRANSMISSION, ONE FIRST NEEDS TO NEGOTIATE WSCC TRANSMISSION

Subhead Goes Here

Presenter Goes Here

Date Goes Here