pat wood iii, chairman federal energy regulatory commission bringing power to california customers...
TRANSCRIPT
Pat Wood III, Chairman
Federal Energy Regulatory Commission
Bringing Power to California Customers
Silicon ValleyManufacturing GroupMay 27, 2004
May 27, 2004 Pat Wood, III: Federal Energy Regulatory Commission 2
Stable platform for growth
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The Vision
Reliable, robust, modern electric & gas system
Competitive prices underpin economic expansion
Efficient generation replaces old, dirty power plants
Clear framework supports long term investments
Customer choice drives service innovations
Interconnections with rest of West facilitate trade
Vigilant, balanced oversight restores customer confidence
De-politicization of energy issues brings stability
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Insufficient Resources State-wide Under Adverse Conditions this Summer
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Hydro Supply is Always a Wild Card
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Conservation and Demand Response Programs Have Declined
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Southern California would have Insufficient Resources without Imports
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Access to new generation is
constrained by transmission
capacity
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Congestion Costs are Rising
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Supply to San Diego Limited by Congestion
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Prescription: Delivering Power to California Customers
Transmission Adequacy
Congestion Management
Resource Adequacy
FERC
California
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Achieving Transmission Adequacy
Robust grid = umbrella insurance
Price of 20 % overnight upgrade is a modest 1.5 % increase in retail bill
Also provides access to cheaper generation which would lower bills
CAISO and WECC identify regional needs
Siting process could be streamlined
ISO tariff provides the simplest cost recovery vehicle
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Key California Transmission Projects
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Congestion Management: Making the Best Use of Existing Transmission
No more infeasible schedules
Strains operations
Causes customers to pay for production that never happens
Individual self-interest should not trump what is best for customers overall
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Resource Adequacy
CA and FERC agree that resource adequacy is critical
Achieve consensus around a workable model that allows for long term contracts and customer switching
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Accommodate Renewables and New Technologies to Benefit the Grid
Small Scale Generation (distributed energy resources)
Backup for power outages
Increase power quality
Renewable Technologies
“Smart grid” communication technologies
New Transmission Technologies