Process for Including Supplemental Transmission Projects in the RTEP. Does it Need to Change?

Transcription

1 Process for Including Supplemental Transmission Projects in the RTEP Does it Need to Change? OPSI s 2016 Annual Meeting October 19-20, 2016 Columbus, OH Presented by Robert Bradish, Vice President Transmission Grid Development American Electric Power

2 Introduction to AEP Transmission AEP is among the largest electric utilities in the United States More than 5 million customers 200,000 + sq. mi service territory 32 GW of generating capacity Over 40,000 miles of electric transmission lines More than 3500 substations 215,000 miles of electric distribution lines Largest owner of electric transmission in the United States Own, operate or are developing facilities in 4 RTO s Operate through several transmission companies Significant transmission provider, supplying: o ~10% of demand in Eastern Interconnection o ~11% of demand in ERCOT (Texas) HVDC, every AC kv class including 2100-mi 765 kv 13 states (AR, IN, KS, KY, LA, MI, MO, OH, OK, TN, TX, VA, WV) 110+ year history of low-cost, reliable transmission At the forefront of transmission technology development 2

3 Major Investment Categories Regional Criteria Driven Asset Health Monitoring Both competitive and non-competitive Condition driven decision making Reliability, market efficiency, public policy Generation Interconnections Gas, Wind and Solar Situational Awareness SCADA PMU Customer Connections Physical & Cyber Security Wholesale customers [munis, coops] Industrial [shale gas, data centers, etc.] NERC standards EMP/GMD hardening Asset Renewal Telecommunications T-line, transformers, CBs, relays, batteries, metering, etc. Local Reliability TO reliability criteria sub-transmission SAIDI / SAIFI / CMI improvements Severe weather hardening Conversion of analog to digital Modernization Failure Replacement Sparing strategy Break Fix Abnormal Conditions Facilities Diverse set of drivers, can be significant overlap, the most cost-effective long-term solutions are holistic address multiple drivers in a single project

4 Needs Assessment Asset Renewal Condition Evaluation Assess Asset Condition (Per Internal Standards) Physical characteristics: age, design, materials, etc. Site inspection and test analytics Monitoring data (substation Asset Health Center) Performance Analysis Review Reliability & Availability Metrics System : TSAIFI,TSAIFI-S, TMAIFI, TSAIDI Customer: SAIFI, SAIDI, CAIDI, CMI Evaluate asset contributions to metrics Review Trends & Analyze Root Causes Initiating causes; sustained v. momentary causes Maintenance & remediation requirements & trends Prioritize Renewal Portfolio Risk Assessment Evaluate risk Combine weighted performance & condition scores Review anticipated customer/system/public impact Customer Inputs Collect Customer & Stakeholder Feedback Wholesale customers National accounts & other retail customers 4

5 Develop Mitigating Solutions Integrate Develop cost effective, holistic solutions; combine projects in area Review with regional execution teams for coordination & alignment Scope Build upon anchor projects for efficient execution Establish targeted, specific programs for standalone asset renewal Define & vet specific project scopes, schedules and estimates Execute Authorize improvement plans Execute project portfolio Submit model changes to RTO (if topology changes) Holistic, multi-driver solutions are developed, scoped and vetted, and integrated into the overall transmission work plan 5

6 So, Does It Need To Change? AEP believes that the current PJM process as explained in the Operating Agreement does comply with FERC Order 890 FERC approved process Sub-regional RTEP meetings open to participation by a broad range of interested stakeholders Historically limited interest and participation by stakeholders AEP believes transparency and engagement in the planning process is valuable We work directly through independent meetings with stakeholders in addition to the Subregional meetings AEP supports improving in the implementation of the Operating Agreement s framework Increase transparency Additional opportunity for review and input by stakeholders AEP supports placing additional details in the PJM Tariff regarding planning of supplemental projects Some other thoughts Asset management responsibilities remain with the TO not the RTO This should not end up being a cost-shifting exercise Transparency and engagement does not mean second guessing and delaying Transmission owners are responsible for operating and managing their system safely, reliably and efficiently 6