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Posts Tagged ‘Transmission Issues’

MendoCoastCurrent, June 25, 2010

The Federal Energy Regulatory Commission (FERC) today proposed to build on its Order No. 890 open access transmission reforms by establishing a closer link between regional electric transmission planning and cost allocation to help ensure that needed transmission facilities actually are built.

The Notice of Proposed Rulemaking (NOPR) is based on an extensive record: three years of monitoring implementation of Order No. 890, three regional technical conferences and examination of more than 150 sets of comments filed in response to an October 2009 request for comment on transmission planning and cost allocation. It proposes and seeks comment on requiring:

  • Transmission providers to establish a closer link between cost allocation and regional transmission planning by identifying and establishing cost allocation methods for beneficiaries of new transmission facilities;
  • Transmission planning to take into account needs driven by public policy requirements established by state or federal laws or regulations;
  • Neighboring transmission planning regions to improve their coordination with respect to facilities that are proposed to be constructed in two adjacent regions and could address transmission needs more efficiently than separate intraregional facilities; and
  • The removal from Commission-approved tariffs or agreements provisions that provide an undue advantage to an incumbent developer so that sponsors of transmission projects have the right, consistent with state or local laws or regulations, to build and own facilities selected for inclusion in regional transmission plans.

“Our nation needs a transmission grid that can accommodate rising consumer demand for a more diverse mix of power generators and the sophisticated technology of the smart grid,” FERC Chairman Jon Wellinghoff said. “To do that, we must make sure FERC transmission policies are open and fair to all.”

A significant aspect of the proposal is the requirement that transmission planning take into account public policy requirements, such as state-mandated renewable portfolio standards. Doing so during the transmission planning process will help ensure these legal requirements are met in a way that is fair and efficient to transmission customers.

The proposal also ties cost allocation to the regional transmission planning processes to facilitate the transition from planning to implementation. This ensures that only those consumers benefiting from transmission facilities are charged for associated costs, and gives each region the first opportunity to develop cost allocation mechanisms and identify how the benefits of transmission facilities will be determined. Comments are due 60 days after publication in the Federal Register.

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MendoCoastCurrent, July 19, 2009

SmartGrid-graphicThe Federal Energy Regulatory Commission (FERC) moved to accelerate the development of a smart electric transmission system that could improve the efficiency and operation of the grid. The Smart Grid Policy Statement sets priorities for work on development of standards for the developement of a reliable and smart grid.

Smart grid advancements are digital, enabling two-way communications and real-time coordination of information from both generating plants and demand-side resources. Thus improving the efficiency of the bulk-power system with the goal of achieving long-term savings for consumers. Also providing tools for consumers to control their electricity costs.

The policy issued today tracks the proposed policy issued March 19, 2009 and sets priorities for development of smart grid standards to achieve interoperability and functionality of smart grid systems and devices. It also sets FERC policy for recovery of costs by utilities that act early to adopt smart grid technologies.

“Changes in how we produce, deliver and consume electricity will require ‘smarter’ bulk power systems with secure, reliable communications capabilities to deliver long-term savings for consumers,” FERC Chairman Jon Wellinghoff said. “Our new smart grid policy looks at the big picture by establishing priorities for development of smart grid standards, while giving utilities that take the crucial early steps to invest in smart grid technologies needed assurance about cost recovery.”

“The new policy adopts as a Commission priority the early development by industry of smart grid standards to:

  • Ensure the cybersecurity of the grid;
  • Provide two-way communications among regional market operators, utilities, service providers and consumers;
  • Ensure that power system operators have equipment that allows them to operate reliably by monitoring their own systems as well as neighboring systems that affect them;
  • Coordinate the integration into the power system of emerging technologies such as renewable resources, demand response resources, electricity storage facilities and electric transportation systems.

So early adopters of smart grid technologies will recover smart grid costs if they demonstrate that those costs serve to protect cybersecurity and reliability of the electric system, and have the ability to be upgraded, among other requirements.

And explains that by adopting these standards for smart grid technologies, FERC will not interfere with any state’s ability to adopt whatever advanced metering or demand response program it chooses.

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Electric Light & Power, June 11, 2009

menu01onAs the Obama administration shapes its policy on transmission planning, siting and cost allocation, the Large Public Power Council (LPPC) has sent a joint letter voicing its transmission policy views and concerns to Energy Secretary Chu, Interior Secretary Salazar, Agriculture Secretary Vilsack, FERC Chairman Wellinghoff, White House Council on Environmental Quality Chair Sutley and Presidential Energy Advisor Carol Browner.

The letter was sent to the Obama policy makers by Bob Johnston, Chair of the 23 member not-for-profit utility organization. Members of the LPPC own and operate nearly 90% of the transmission investment owned by non-federal public power entities in the United States.

The LPPC told the Obama Administration that it is “most supportive of a framework for interconnection-wide planning that addresses the growing need to interconnect renewable resources to the grid.”

“Many of our members are leaders in renewable deployment and energy efficiency. We are committed to these policy goals and closely tied to the values of our local communities,” the LPPC emphasized. “But we also believe that creating a new planning bureaucracy could be costly and counterproductive in achieving needed infrastructure development.”

The LPPC voiced strong support for the region-wide planning process recently mandated by FERC Order 890 that directed implementation of new region-wide planning processes that the LPPC claims “require an unprecedented level of regional coordination, transparency and federal oversight.”

“It seems quite clear that federal climate legislation and a national renewable portfolio standard will further focus these planning processes, the LPPC asserted. “LPPC fully expects that the regional processes to which parties have recently committed will take on new urgency and purpose. Adding a planning bureaucracy to that mix will be time consuming and will likely delay rather than expedite transmission development.”

The LPPC also told the Obama policy makers that, “it would be unnecessary, inequitable and counterproductive to allocate the cost of a new transmission superhighway to all load serving entities without regard to their ability to use the facilities or their ability to rely on more economical alternatives to meet environmental goals.”

The LPPC contended, “that certain proposals it has reviewed to allocate the cost of new transmission on an interconnection-wide basis would provide an enormous and unnecessary subsidy to large scale renewable generation located far from load centers, at the expense of other, potentially more economical alternatives. Utilities, state regulators, and regional transmission organizations should determine how to meet the environmental goals established by Congress most effectively by making economic choices among the array of available options, without subsidy of one technology or market segment over others.”

The LPPC letter further claimed that the cost of a massive transmission build-out will be substantial and that cost estimates they had reviewed “appear to be meaningfully understated.” The LPPC estimates that nationwide costs for such a build-out “may range between $135 billion and $325 billion, equating to a monthly per customer cost between $14 and $35.  This is a critical matter for LPPC members, as advocates for the consumers we serve.”

The Large Public Power Council letter concluded by offering its support for additional federal siting authority for multi-state transmission facilities “in order to overcome the limited ability of individual states to address multi-state transmission projects to meet regional needs. LPPC is confident that such new authority can be undertaken in consultation with existing state siting authorities in a manner that capitalizes on existing expertise and ensures that state and local concerns are addressed in the siting process.”

The LPPC’s membership includes 23 of the nation’s largest publicly owned, not-for-profit energy systems. Members are located in 10 states and provide reliable, electricity to some of the largest cities in the U.S. including Los Angeles, Seattle, Omaha, Phoenix, Sacramento, San Antonio, Jacksonville, Orlando and Austin.

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DOUG WILLIAMSON, The Windsor Star, May 8, 2008

The prospect of wind energy development in Essex County received mixed reviews Wednesday during a public meeting to hear comments on the county’s proposed policy for commercial wind farms.

Visual and noise impact, whether or not wind energy is a viable solution to global warming and other issues dominated the session attended by about 300 people, as well as county councillors.

Amherstburg lawyer Anthony Leardi warned that wind turbine developments are not public utilities, and if they go bankrupt the cost of decommissioning them could be borne by the municipality.

“In that case you will be left with these turbines,” he said. Leardi said turbines should be prohibited in favour of other forms of renewable energy, but if they are approved, there should be conditions such as a height limit of 100 feet.

“It is based on the topography of this county,” Leardi said. “One hundred feet may actually be dangerous.”

Joy Purdy of Harrow cited possible adverse environmental effects of the proposed turbines.

‘NO ADVERSE EFFECTS’

But Raymond Duhamel of Jones Consulting, which is working with the county on the proposed wind energy policy, said policy-makers are trying to avoid those.

“We hope these policies will ensure there are no adverse effects,” he said.

Colette McLean of Harrow questioned whether wind energy really can have an impact on global warming, and said the turbines are “the definition of adverse effects. It affects all of us as taxpayers.”

Joe Ouellette of Amherstbug questioned the impact of turbine electricity generation on microwave transmission and airport radar, and said companies should be notified in advance of plans for wind turbines.

“Essex County must adopt a comprehensive policy,” he said. “If a link (from turbine generation to microwave transmission) is found … I do believe notification should be given to the company.”

One of the few speakers to totally support the wind turbines was Ted Gorski, a Harrow farmer and businessman.

“We live in some very challenging times,” he said, citing global energy concerns. “I am in favour of wind farms. Renewable energy is a must. If we don’t act we won’t be able to afford it.”

Duhamel said the county has to consider several factors in developing a wind energy policy, including natural resources and “cultural” assets such as winery routes. He also acknowledged the subject is controversial.

“This issue has become very divisive wherever I go.”

Bob Sylvester, deputy mayor of Lakeshore, warned that the new energy production may have infrastructure problems.

“The most unappealing parts of wind farms was the transmission lines,” he said of his own tours of wind energy sites in the province.

County council is to deal with it renewable energy policy on May 21.

Thank you National Wind Watch for this post!

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