Transmission Workgroup
Meeting Summary
November 29, 1999
Welcome and Introductions
Gabe Petlin, RESOLVE
After introductions and adoption of the
agenda, Gabe Petlin reviewed the purpose of today's meeting:
- Review NWCC Transmission Case Studies
- Discuss Transmission and FERC RTO
Proposed Outreach Activities
- Review draft NWCC Blue Print
Transmission Goals
Transmission Case Studies
Overview and Insight:
Ron Lehr, Ed DeMeo, and Charles Smith presented case study findings.
CASE ONE: Transmission Policy and
Pricing in Texas (Ron Lehr)
- Transmission policy and pricing is
critical to wind
- ISO handles planning and pricing and
FERC approves
- Texas is a unique example - state
approved ERCOT ISO
- 100% flat fee (or 'postage stamp')
transmission rates
CASE TWO: Virtual Wheeling (Ed DeMeo)
- The link from wind generation to load is
long and/or costly (or nonexistent)
- Wind availability and load's need for
energy are poorly coordinated
- There is a significant cost differential
between scheduled (firm) and unscheduled (non-firm) transmission costs
CASE THREE: Transmission Upgrades
(Charles Smith)
- The problem is inadequate transmission
in MAPP to move remote sources of generation to load centers
- Relevant issues explored include the
following:
- Remote generation is located in the Dakotas (coal)
- Excellent wind resources in the Dakotas
- Loads are in Chicago and Minneapolis
- Inadequate transmission to bring the generation to market
- Opposition to new lines from environmentalists and abutters
- Transmission benefits are shared unequally
There is continued general support for the
case study process. Group members agreed the cases have been helpful in
the following ways:
- In helping the NWCC and wind energy
constituents to focus on transmission issues
- In initiating involvement and discussion
about wind energy and transmission issues in the wind industry
- As an information tool for non
transmission experts
- In educating NWCC stakeholders about
wind transmission barriers and opportunities
Participants commented on the three case
studies highlighting these and other issues:
- Transmission governance should occur on
a region wide basis to facilitate wind energy's open access to
transmission services
- Transmission governance needs broader
multi-stakeholder representation
- Who pays for transmission upgrades is a
key issue for wind.
e.g. Texas: loads pay, which can facilitate
interconnection
for
new generation sources
e.g. Other areas: generation usually pays
- Relevance of each case may depend on the
context
e.g. In Wisconsin, siting issues are the
focus of attention
e.g. Transmission policies in Texas may or
may not be
relevant outside of the state
- One participant suggested that virtual
wheeling may work better in a regulated market.
Goal of Case Studies and Final Product:
The group agreed that the goal of the case studies remains to educate
the NWCC. The cases would need additional work to be ready for release as
official NWCC products. Most counseled that the NWCC not expend the
resources needed to achieve that goal. Rather, the group recommended that
the NWCC "clean up" the cases, incorporate outstanding comments,
and complete the cases as "working drafts" for use as an
educational tool that is updated periodically.
- After Gabe Petlin completes drafts of
the case studies, the Transmission Workgroup will draft an NWCC
"conclusions overlay." The purpose of this would be to
synthesize the main lessons that the NWCC draws from the cases while
leaving intact the different views expressed by respondents
interviewed, including views that some committee members dissagree
with. Whether the "final" product is released to a larger
audience is likely to be further discussed by the Workgroup and
the NWCC.
Transmission and FERC RTO Outreach Proposed Activities
Discussion focused on determining the
appropriate role for the NWCC to play in analysis of and outreach for
transmission issues and the FERC RTO process. The committee considered
whether working at the central level of FERC or at the regional level
would be more effective. After hearing from invited panelists the group
agreed that important transmission issues are being decided at the
regional level because FERC has essentially delegated the task of
implementing open access transmission policy to a process of regional
transmission institutional development. The NWCC should therefore focus
its outreach efforts at the regional level.
Workgroup's discussion on the role
of the NWCC in FERC RTO Process:
- There are two ways to influence the FERC
RTO process:
- Act as legal intervenor in a contested case proceeding
- Participate in the RTO filing proceedings in response to the Order
(more likely role for NWCC)
- Provide a bridge to non-technical people
on transmission issues.
- Convene transmission experts to make
knowledge and perspectives accessible to a broader audience.
- Become active in regions to learn and be
a resource for expertise.
- Assemble expertise and increase NWCC's
knowledge of transmission and FERC RTO issues.
- Support members and wind stakeholders to
participate in transmission forums e.g. Western Interstate Energy
Board, CREPC, Regional Transmission Associations, Northwest Education
Forum, and FERC RTO workshops and meetings.
- Given limited resources, target efforts
towards 1-2 key regions, i.e. possibly MAPP or Western region.
- Monitor-what groups are forming.
- Look for 'coat tails' benefits.
- Look for opportunities to succeed in
fair open competition.
- Identify the RTO process and strategic
input points for affecting outcome.
Workgroup
identified these issues
and questions:
- Early NWCC activity is important,
because responses to the FERC RTO Order will be filed in 2000.
- Large number of RTO-related meetings
will be challenging to keep up with even with targeting.
- One size does not fit all - RTO regions
will vary considerably.
- The ability of the NWCC to be a
technical resource in this complex RTO process is limited.
- Energy based access charges are an
important consideration for wind energy.
- Should/could the NWCC have a message for
these RTO meetings? Is consensus possible? Some felt that the NWCC
should identify issues on which to focus other stakeholders attention
and when possible agree on principle.
Panelist's Comments on the FERC RTO
Process:
Four guest panelists were present at the
Transmission Workgroup Meeting to respond to questions about the FERC
RTO process. The panelists included Alan Davis, Montana Department of
Environmental Quality; Jeff Gilardi, Enron Wind Corporation; Leon Lowery,
FERC; and Gary Thompson, Nebraska Public Power. Some of their comments are
listed below.
- FERC will issue the Final Order by the
end of the year.
- A collaborative process will convene in
Spring 2000. Rather than FERC proposing regional transmission
governance structures, each region will propose its own RTO structure
and FERC will either approve or deny RTO proposals.
- The NWCC's broad-based alliance has been
good at broadening the appeal and understanding of wind energy.
- NWCC can influence the process of
forming RTO proposals that will be submitted to FERC, but the NWCC
will be ineffective if it asks the commission for special treatment
for wind, because FERC will not advocate for wind and will work for a
level playing field for all energy sources.
- FERC will ultimately decide on RTOs, but
will solicit guidance from the regional level.
The Transmission analysis and outreach
activities proposed by the Workgroup have been incorporated into the
Goals section below.
NWCC Transmission Goals
The group reviewed the draft NWCC Blue
Print Transmission Goals. The following goals were agreed upon and
presented at the Business Meeting. (Note: these goals have been updated to
reflect the Transmission Goals adopted by the NWCC at the 11/30 Business
Meeting)
Action Item: One of the goals of the
Transmission Group is to emphasize outreach. A member of the Transmission
Group needs to create draft agenda for a general outreach forum.
Goals:
- Create opportunities to bring
wind-related issues before regional decision making bodies that affect
transmission so that wind issues are raised, addressed, and resolved.
- Develop and provide information
for key stakeholders to use at the regional level.
- Document examples of how
transmission issues are being addressed in ways that are beneficial or
harmful for wind development.
- Review FERC RTO Order:
What does it say?
What does it mean for wind energy? 4th Qtr. 1999/1st Qtr. 2000
- Continue case study process:
Clean-up case studies,
Incorporate comments,
add conclusion overlay, and
develop additional case study(s). 2000
- Convene Workgroup and invited
experts to discuss RTO
Order and plan/strategize activities. 1st Qtr. 2000
- Conduct regional transmission issues
forum(s) possibly in
conjunction with RTO discussions/meetings March 2000 and TBA
- Participate/engage in RTO proposal
discussions/meetings in
targeted priority region(s): #1 Midwest, #2 Texas, #3 West 2000
- Provide resources and educate local
stakeholders on issues.
- Disseminate information in a targeted
way to key participants. 2000-2002
- Utilize outside consultant expertise as
required. 2000-2002
National Wind Coordinating
Committee
Transmission Workgroup
Meeting
Monday, November 29, 1999
RESOLVE
1255 Twenty-Third St., NW Suite 275
Washington, DC 20037
Participants List
- Abby Arnold
RESOLVE, Inc.
- Alan Davis *
Energy Division, Montana Department of Environmental Quality
- Ed DeMeo
Renewable Energy Consulting Services, Inc.
- Mark Eilers
NEG Micon
- Jeff Gilardi *
Enron Wind Corporation
- Roger Hamilton
Oregon Public Utilities Commission/National Association of Regulatory
Utility Commissioners
- Karen Lane
Utility Wind Interest Group
- Ron Lehr
National Association of Regulatory Utility Commissioners
- Leon Lowery *
Federal Energy Regulatory Commission
- John Nunley
Composite Technology Corporation
- Brian Parsons
National Renewable Energy Laboratory
- Gabe Petlin
RESOLVE, Inc.
- Kevin Porter
National Renewable Energy Laboratory
- Lori Riggs
RESOLVE, Inc.
- Charlie Smith
Utility Wind Interest Group/Electrotek Concepts Inc.
- Gary Thompson *
Nebraska Public Power District
* Denotes guest panel member
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