©2009 office of massachusetts attorney general martha coakley transmission planning &...

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©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred Plett, -Utility Analyst

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Page 1: ©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred

©2009 Office of Massachusetts Attorney General Martha Coakley

Transmission Planning & Construction

“When, Where, How Much and Who Pays”

-Comments by Fred Plett,-Utility Analyst

Page 2: ©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred

Page 2 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred PlettPresentation to NASUCA

June 30, 2009

Joint Coordinated System Plan

• Midwest ISO, TVA, SPP, PJM, MAPP,NYISO, and ISO-NE • 20% wind scenario • Transmission Dakotas to the Northeast• $80 Billion• 2024 Benefit – Cost Ratio of 1.0!!• If wind projects get built• Transmission cost may be 3-4 times higher!

Page 3: ©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred

Page 3 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred PlettPresentation to NASUCA

June 30, 2009

• Testimony in Favor• ITC Holdings, Inc

- Green Power Express • Energy Futures Coalition

- JCSP studies, 3-1 BC Ratio• FERC Chair Wellinghoff

Subcommittee on Energy & EnvironmentThe Future of the Grid: Proposals for Reforming National Transmission

Policy

Page 4: ©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred

Page 4 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred PlettPresentation to NASUCA

June 30, 2009

New England Transmission

Renewables in Northern NH and ME

• Northern New England View• Economic Development Opportunity• Socialized Rate-Based Transmission Costs

• Massachusetts View• “Build it and they will come” not Desirable• Giant Generator Interconnect

• Generator Responsible

• Costs Certain, Benefits Not

Page 5: ©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred

Page 5 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred PlettPresentation to NASUCA

June 30, 2009

Hydro-Québec TransÉnergie,

NU and NSTAR HVDC Model

• Des Cantons, Québec - NH• US portion built by NU and NSTAR• Cost of Service Recovery from HQ US• Hydropower Sale to include Transmission

Cost• 25 Year Transmission, Purchase Agreements

All – In Cost Must Be Competitive!

Page 6: ©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred

Page 6 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred PlettPresentation to NASUCA

June 30, 2009

Local vs. Midwest

• 100 – 250 Miles vs. 1,800 Miles!• Same Discussions - Who Pays, Who

Benefits• Costs Certain, Benefits Conditional –

But Costs Likely Lower Locally

Page 7: ©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred

Page 7 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred PlettPresentation to NASUCA

June 30, 2009

Distances

Page 8: ©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred

Page 8 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred PlettPresentation to NASUCA

June 30, 2009

Discussion Requirements

• Bottom Up Planning• Stakeholder Input and Acceptance• Proven Benefit Cost Ratio• Purchase Power Agreements

• Performance Warranties

All-In Costs must Benefit Consumers!

Page 9: ©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred

Page 9 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred PlettPresentation to NASUCA

June 30, 2009

Project Cost Control

• Helps Ensure Positive Benefit Cost Ratios

• Projects get built, may go into formula rates (non-Merchant projects)

• Should FERC be more aggressive in Prudence Reviews?