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NAUSCASummer Meeting
BostonJune 30, 3009
David W. HadleyVice President State Regulatory Relations
Midwest ISO
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Midwest ISO Reliability Footprint
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Electric System Development – Historical View• Traditional Electric System Development (Generation and
Transmission)– Planned at a single company level– Designed for single company use– Funded at company / state level
• Decision basis– Meet local requirements (i.e., load growth)– With local natural resources– Few national policy issues – Limited regional use
• Last major build out of baseload capacity and transmission ended in the early 1980s
• Traditional Electric System Development (Generation and Transmission)– Planned at a single company level– Designed for single company use– Funded at company / state level
• Decision basis– Meet local requirements (i.e., load growth)– With local natural resources– Few national policy issues – Limited regional use
• Last major build out of baseload capacity and transmission ended in the early 1980s
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WECC
MIDWEST
NORTHEAST
ERCOT
SOUTH
Coal
Nuclear
Gas
Hydro
Wind
Other
The current regional generation fleets reflects the natural resources of each region – with gas being the
default peaking fuel for all
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WECC
MIDWEST
NORTHEAST
ERCOT
SOUTH
Coal
Nuclear
Gas
Hydro
Wind
Other
… and the sources of each regions’ electrical energy reflects those generation portfolios and resources
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…While the transmission system reflects the desire to move energy from a company’s generation to the load it serves – without a robust “backbone”
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Xcel Energy Transmission
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Midwest ISO Transmission Map
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800 MW Load
RPS
RPS
RPS
10,000 – 12,000 MW
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Who Pays?
• Remember Open Access – Transmission Owners cannot discriminate & favor their own generation over another's
• So – the utility must open it’s transmission lines to others generation
• Today the developer pays for transmission from the generator to the transmission 100%
• Transmission upgrades needed have the developer pay 50% and the utility pay 50%
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Midwest ISO Planning Principles reflect need to address local and regional issues
• Make the benefits of a competitive energy market available to customers by providing access to the lowest possible electric energy costs
• Provide a transmission infrastructure that safeguards local and regional reliability
• Support state and federal renewable energy objectives by planning for access to all such resources (e.g. wind, biomass, demand-side management)
• Create a mechanism to ensure investment implementation occurs in a timely manner
• Develop a transmission system scenario model and make it available to state and federal energy policy makers to provide context and inform the choices they face
Midwest ISOBoard ofDirectorPlanningPrinciples
FundamentalGoal
The development of a comprehensive expansion plan that meetsboth reliability and economic expansion needs
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Midwest ISO is actively engaged in planning from local to regional level
RGOS IMTEP & RGOS II
JCSP
EWITS
RGOS = Regional Generation Outlet StudyMTEP= Midwest ISO Transmission Expansion PlanJCSP = Joint Coordinated System PlanEWITS = Eastern Wind Integration and Transmission Study
RGOS = Regional Generation Outlet StudyMTEP= Midwest ISO Transmission Expansion PlanJCSP = Joint Coordinated System PlanEWITS = Eastern Wind Integration and Transmission Study
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Different policy assumptions result in very different siting outcomes with different transmission system requirements.
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The transmission overlay for the Reference Case (Status Quo) establishes the need for some backbone development…
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…While the 20% Wind Energy Case highlights the need for substantial transmission backbone development
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We must effectively manage our current infrastructure while carefully planning and
developing our future infrastructure
• 60% of the electric grid infrastructure (T/D/G) is at or near the end of original planned life
• 20% of T/D/G is past original planned life
• In the Midwest, the average age of infrastructure is very high– Baseload generation = 42 years– Transmission = 40+ years
• The region use of the electric system is also increasing the transmission congestion
• 60% of the electric grid infrastructure (T/D/G) is at or near the end of original planned life
• 20% of T/D/G is past original planned life
• In the Midwest, the average age of infrastructure is very high– Baseload generation = 42 years– Transmission = 40+ years
• The region use of the electric system is also increasing the transmission congestion
Current InfrastructureCurrent Infrastructure
• Planning must balance many issues– Use of existing generation fleet– National policy issues– Efficient use of natural resources– Demand response– Costs
• Construction• Operating• Fuel• Decommissioning• Environmental
• Regional / national use of the electric system must be considered as the planning is done
• Unknowns (policy and financial) challenge planning
• Planning must balance many issues– Use of existing generation fleet– National policy issues– Efficient use of natural resources– Demand response– Costs
• Construction• Operating• Fuel• Decommissioning• Environmental
• Regional / national use of the electric system must be considered as the planning is done
• Unknowns (policy and financial) challenge planning
Future InfrastructureFuture Infrastructure
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Planning Activities
Key Issues
CongestionRenewable
PolicyOperational Impacts
New Generation and
Demand Response
ChangingRegulatory
Requirements
FairCost
Allocation
Load Growth and DSM
AgingInfrastructure
Key Issues