a romp through the transmission planning process… · 1 pjm©2016 a romp through the transmission...
TRANSCRIPT
PJM©2016 1
A ROMP THROUGH THE TRANSMISSION PLANNING PROCESS…Looking Backward to Look Forward
Presentation to Michigan Energy
Providers Conference
July 27, 2016
Craig Glazer
Vice President
PJM Interconnection
PJM©2016 2
PJM as Part of the Eastern Interconnection
www.pjm.com
KEY STATISTICS
PJM member companies 900+
millions of people served 61
peak load in megawatts 165,492
MWs of generating capacity 183,604
miles of transmission lines 62,556
2013 GWh of annual energy 791,089
generation sources 1,376
square miles of territory 243,417
area served 13 states + DC
externally facing tie lines 191
• 27% of generation in
Eastern Interconnection
• 28% of load in Eastern Interconnection
• 20% of transmission assets in
Eastern Interconnection
21% of U.S. GDP produced in
PJM
As of 4/1/2014
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PJM PROCESS OVERVIEW
PJM Planning Process: “all-in on Order 1000”
--- 400 proposals submitted through six proposal windows
--- 105 project designations
--- Designations to competitive providers and incumbents
--- All violations put out for competitive solicitation
---Recent filing to add 200kV floor
---Increased opportunities with MISO as a result of FERC’s
eliminating MISO threshold barring consideration of lower
voltage facilities
www.pjm.com
PJM©2016 4
THE CHALLENGES AHEAD…
POLICY CHOICES…
The Long and Winding Road…
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The Past
• Transmission: Built to support major
generation projects
• Connect distant generation to load;
Distribution: One way delivery of power
to the home
• Grid Costs: Rate-based to the home
utility’s customers
• ROI: Little focus on transmission as a
stand alone business element
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Policy Choices: Deciding What We Want?
Policy Choice #1
Is the grid an enabler or a competitor?
Grid as an Enabler?
– Accept the grid as a natural
monopoly
– Drive solutions through
regulation
– Provide incentives for
innovation
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Policy Choices: Deciding What We Want?
Policy Choice #1 (cont’d)
Grid as a Competitor?
– Grid development must compete with generation or demand side
– Grid entrepreneurs take risk: no guaranteed ROI
– Grid pricing reflects competitive outcomes: Bid solutions into the marketplace (RPM)
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The Policy Choices: Defining What We Want?
Policy Choice #2: A Strong or Weak Grid?
Characteristics of the “Strong” Grid:
• Generation distance from load
• Meet the needs for future transmission expansion
• Costs socialized to reflect
interconnected nature of
the grid
• Broad regional approach
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The Policy Choices: Defining What We Want?
Policy Choice #2-The Alternative:
The localized grid…
• Generation closer to load
• Centralized focus on development of DSR, energy efficiency and renewables
• Transmission/distribution grid as an enabler of alternative generation
• Transmission focused on meeting state/local needs
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The Strong vs. Weak Grid Debate
Policy Choice #2: Decision Points
• Siting: Regional vs. Local Needs
• Cost Allocation: Socialization vs. Direct Assignment
• IRP/RPS vs. Competitive Procurement
• Short term procurement vs. long term
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The Policy Choices: Defining What We Want?
Policy Choice #3: Determine the Planning
Philosophy
– Transmission decisions driven by
generation investment or generation
investment influenced by the planned
transmission grid?
– Role of the Planning Authority
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An Added Complication:
Who Decides?
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Who Decides?
• States:
– State Energy Policies:
Governors/legislators
– State PUCs
• FERC
– FERC Review of Planning
• Who chooses projects?
• Environmental Agencies
– Non-attainment areas
– RGGI et al.
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AVOIDING THE QUAGMIRE OF INACTION
“Hanging in mid-air”: a dangerous place
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LET’s TALK
LET’S TALK…
Craig Glazer
Vice President-Federal Government Policy
PJM Interconnection
202-423-4743