atc major projects update

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ATC Major Projects Update Flora Flygt, Director of System Planning Franc Fennessy, Manager of Local Relations Wisconsin Industrial Energy Group August 9, 2007 Madison, WI

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ATC Major Projects Update. Wisconsin Industrial Energy Group August 9, 2007 Madison, WI. Flora Flygt, Director of System Planning Franc Fennessy, Manager of Local Relations. Access Initiative. Goal : Reduce delivered cost of energy to Wisconsin consumers by . . . - PowerPoint PPT Presentation

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Page 1: ATC Major Projects Update

ATC Major Projects Update

Flora Flygt, Director of System Planning Franc Fennessy, Manager of Local Relations

Wisconsin Industrial Energy Group August 9, 2007

Madison, WI

Page 2: ATC Major Projects Update

2

Access Initiative

Goal: Reduce delivered cost of energy to Wisconsin consumers by . . .

– reducing system congestion– improving access to additional energy sources

Solution: Add an additional 345 kV circuit to the existing 345 kV line (W4) between Rockdale SS (Dane) and Paddock SS (Rock)

Project estimated costs (2010):– Preferred route: $132.7 million– Alternate route: $210.8 million

Page 3: ATC Major Projects Update

3

Access: Net Present Value Benefits less Project Costs

(2010)

Paddock-Rockdale Analysis - NPV of Net Benefits (Costs)

($ Millions)

 

RobustEconomy

No NALX -COL

RobustEconom

yHigh

RetirementsHigh

EnvironmentalSlow

Growth

FuelSupply

Disruption

HighGrowth

Wisconsin

APC $341 $299 $574 $82 ($62) $575 $265

70% APC + 30% LLMP $529 $455 $950 $132 ($47) $956 $544

LLMP $968 $819 $1,826 $249 ($12) $1,843 $1,196

ATC CustomerBenefit $409 $356 $710 $104 ($56) $710 $365

APC = Adjusted Production Costs

LLMP = Load-weighted Locational Marginal Prices

Page 4: ATC Major Projects Update

4

Access: Net Present Value Benefits less Project Costs (2010)

Paddock-Rockdale Net Present Value ($Millions)

($500)

$0

$500

$1,000

$1,500

$2,000

APC 70% APC + 30% LLMP LLMP ATC Customer Benefit

Robust EconomyWithout

Add’l EHV

RobustEconomy

With Add’l EHV

High Retire

s

HighEnvironme

nt

Slow Growt

h

FuelSupply

Disruption

High Growth

Wisconsin

Page 5: ATC Major Projects Update

Dane County Projects Update

Page 6: ATC Major Projects Update

6

Background

Dane County has experienced major economic growth in the last 25 years.

Three of Wisconsin’s top 5 fastest growing municipalities are in Dane County (Verona, Cottage Grove and Sun Prairie). (Includes municipalities with a population of 5,000 or more in 2005; data source: U.S. Census Bureau.)

Dane County’s electricity consumption is expected to continue to increase through year 2020.

System-reliability models indicate that new transmission lines will be needed in Dane County by 2008 and every few years thereafter to keep pace with this growing demand.

ATC proposed five projects to deal with this growth

Page 7: ATC Major Projects Update

7

Public Outreach

Extensive outreach on all Dane County projects– Energy Initiative Study – supported a group

of stakeholders and traditional interveners in review of Dane County’s transmission needs

– Project communications, open houses– Ongoing consultation with regulatory

agencies– Extensive media relations– Polling– Advertising

Page 8: ATC Major Projects Update

8

Dane County Transmission Projects

North Madison-Huiskamp – approval 7/12/07 Femrite-Sprecher – in service Fitchburg-Verona – application complete,

pending hearings Paddock-Rockdale – application complete,

hearings set Rockdale-West Middleton – routes

announced in August

Page 9: ATC Major Projects Update

9

North Madison-Huiskamp

Project(aka “Waunakee Project”)

Controversy early in project– 39 different parties, two intervenor groups– More than 100 public hearing witnesses– Calls for ‘independent’ study

Excerpts from PSCW oral discussion of decision:– “Ebert said this agenda item represents probably the

most pressing reliability challenge he has seen since becoming Chairman.”

– “Ebert said the [PSC] was formed 100 years ago and was created precisely to conduct that independent review.”

Page 10: ATC Major Projects Update

10

Dane County 345 kV Project

Rockdale – West Middleton (Dane)– Resolves significant voltage and reliability

issues in Madison area– Final routes were announced on August 1;

PSCW filing in October 2007– Considerable public involvement effort to date.

Open houses this month– Underground options evaluated—will not be

recommended by ATC– In-Service: 2013

Page 11: ATC Major Projects Update

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Other 345 kV Projects

Arrowhead – Weston – On schedule & budget for June 2008

Gardner Park - Central Wisconsin– WPS Weston 4 generator interconnection– Early in construction; in-service 2009

Morgan – Werner West– System enhancement project in NE Wisconsin– Early in Construction; in-service

2009

Page 12: ATC Major Projects Update

12

Thanks!

Questions?

E-Mail: [email protected]

[email protected]

Web: www.atcllc.com