The Wind Coalition WIND ENERGY IS HERE TODAY AND IN AMERICA S FUTURE

Transcription

1 The Wind Coalition 1 WIND ENERGY IS HERE TODAY AND IN AMERICA S FUTURE We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age. All this we can do. And all this we will do.

2 A NEW VISION FOR WIND ENERGY IN THE U.S. State of the Union Address We will invest more in revolutionary and wind technologies Advanced Energy Initiative Areas with good wind resources have the potential to supply up to 20% of the electricity consumption of the United States. ENERGY SECURITY INDEPENDENCE ECONOMIC DEVELOPMENT OPPORTUNITY BENEFITS OF A COST EFFECTIVE TRANSMISSION ENHANCEMENT TO CONSUMERS CHANGES IN NATIONAL AND STATE POLICY STATE RENEWABLE ENERGY STANDARDS NATIONAL RES NATIONAL POLICIES ON CARBON AND MERCURY

3

4

5 Planning Siting Cost allocation

6 Default FERC methodology Challenges with establishing different policies Regional Interregional Interconnect RTO Improved the cost allocation challenges Success has varied State involvement has helped Still significant barriers

7

8 RTO BOARD IPPs TRANS COs RSC INDUS TRIALs INC GENs STATE v. REGIONAL RTO Stakeholder driven process Incumbents still control the votes in the policy working groups GENERATORS REVENUE INTERESTS Membership issues in some RTOs

9 RTOs have made progress RTO vulnerability to threats to withdraw More open process but votes in the committees are often controlled by the incumbents Non RTO areas Parochial agendas with limited oversight SPP Regional State Committee has just approved a new cost allocation methodology for Priority Projects and Integrated Resource Planning Projects RSC deserves substantial credit Highway Byway 300 KV and above will be regionally allocated on a load ration share basis 100 KV 300 KV will be allocated 1/3 regionally and 2/3 to the zones where the upgrades occur Less than 100 KV will be allocated to the zones where the upgrade occurs

10 SPP to work on supporting a record for filing at FERC Federal Court Decision 7 th Circuit PJM Analysis will include documenting the regional benefits of larger transmission lines Additional cost allocation considerations and questions remain Reliability Upgrades for designated resources Collector Systems for wind generation

11

12 Exports Modeling entirely based on the benefits to load within SPP SPP is not modeling for an export future IPPs RTO BOARD TRANS COs RSC INDUS TRIALs INC GENs STATE v. REGIONAL

13 INCUMBENT GENs REGIONAL &STATE NATIONAL INTERESTS ITCs IPPs

14 In the Balanced Portfolio projects were identified that brought clear benefits over costs Some of the benefits are in other areas outside of the SPP Currently there is no way of ensuring that transmission gets built if the justification extends beyond an existing RTO or Non RTO border The result is that transmission that is clearly cost beneficial that benefits multiple regions within an interconnect is not being built

15 Current FERC default cost allocation method does not encourage needed transmission construction Participant Funding No strong incentive to participate Disincentives to allow construction of lines that increase generator competition Cross Border Cost Allocation remains the most significant barrier to building transmission that will implement national electricity policy in the Eastern Interconnect Cross border planning remains an obstacle as well but it has been the subject of the recent JCSP study and now yet another study. These studies do not address the cost allocation issue

16 Millions of dollars in savings are being lost by consumers because of this issue This issue will be a significant impediment to high load regions accessing renewable generation such as wind and solar in higher capacity areas of the country even when it is cost effective to do so Congress could provide much needed assistance FERC Authority Now? The FPA, however, unambiguously grants FERC jurisdiction over the interstate transmission of electric energy in interstate commerce. 16 U. S. C. 824(b)(1). As the Court notes, [t]here is no language in the statute limiting FERC.s transmission jurisdiction to the wholesale market Thomas, Kennedy and Scalia concurring in part dissenting in part NEW YORK V. FERC (00 568) 535 U.S. 1 (2002) 225 F.3d 667, affirmed.

17 Unintended consequences Default cost allocation FERC Rulemaking

18 The Dwight D. Eisenhower System of Interstate and Defense Highways is in place and celebrating its 40th anniversary, must surely be the best investment a nation ever made. Consider this: It has enriched the quality of life for virtually every American. It has saved the lives of at least 187,000 people. It has prevented injuries to nearly 12 million people. It has returned more than $6 in economic productivity for each $1 it cost. It has positioned the nation for improved international competitiveness. It has permitted the cherished freedom of personal mobility to flourish. It has enhanced international security. It is not an exaggeration, but a simple statement of fact, that the interstate highway system is an engine that has driven 40 years of unprecedented prosperity and positioned the United States to remain the world's pre eminent power into the 21st

19 STEVE GAW Wind Coalition Approved the following Priority Project package for further analysis and review on a regional basis with SPC oversight (in coordination with MOPC and its Working Groups) for approval by the January 2010 series of meetings: Valliant NW Texarkana (345 kv) $131 million Cooper Sibley (345 kv) $278 million Riverside Tulsa Reactor (138 kv) $842,000 Hitchland Woodward District EHV (345 kv double circuit) $237 million Spearville Comanche Medicine Lodge Wichita (765 kv construction 345 kv operation) $518 million Comanche Woodward District EHV (765 kv construction 345 kv operation) $135 million Total E&C is approximately $1.3 billion