Transmission Expansion Transmission Expansion REV REVOLUTION: - - PowerPoint PPT Presentation

Transmission Expansion Transmission Expansion

REV REVOLUTION: Oklahoma W TION: Oklahoma Wind nd Ener Energy Conf Confer erence ence Oklahoma Cit Oklahoma City, y, OK OK y, y, December 3, December 3, 2008 2008

O i O i Overv verview ew

SPP Backgro nd

• SPP Background

1. Unprecedented interest to build EHV transmission and develop wind resources

• SPP Transmission Expansion Plan

SPP Transmission Expansion Plan

• Oklahoma Electric Power Transmission Task Force
• Balanced Portfolio almost complete
• 2008 EHV Overlay Study being finalized
• 2008 EHV Overlay Study being finalized
• Joint Coordinated System Plan being finalized
• Federal leadership to address need for standard

interconnection protocols and siting challenges, as well interconnection protocols and siting challenges, as well as Seam Agreements with fair / simple cost allocations are critical success factors

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3 I 3 I t ti ti / 8 NERC / 8 NERC R i 3 I 3 Interconnec erconnecti tions

• ns /

/ 8 NERC 8 NERC Reg egions

• ns

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SPP Transmission Expansion SPP Transmission Expansion Plan Plan

F h b h i li bilit t

• Focus has been comprehensive reliability assessment

and documentation of other commitments for approved generator interconnections, long term firm service agreements and other economic / sponsored service agreements and other economic / sponsored upgrades for transmission expansion which have been reviewed and approved by SPP.

• Most recent plan 2008-2017 STEP included $2.2 B of

transmission projects over 10 year horizon with almost $800M of transmission projects requiring financial $800M of transmission projects requiring financial commitments in 2008-2011 and $465M of major economic upgrades primarily in KS (costed at 345 kV).

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Transmission Expansion Transmission Expansion Transmission Expansion Transmission Expansion

Minimum Transmission SPP Today Cost

Congestion Management Cost Transmission Expansion

Need for More Transmission Reliability Infinite Bus

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Amount of Transmission

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Economic Planning Economic Planning

Reliability and Economics are Inseparable Reliability and Economics are Inseparable Economic Upgrades – sponsored under existing t iff b t li ibl f dit b d i tariff but eligible for credits based on new service sold Balanced Portfolio

• Postage stamp cost allocations for a portfolio of

Economic Upgrades which benefit SPP as a whole, and for which each zone realizes benefits in excess of their for which each zone realizes benefits in excess of their costs

• FERC Approved 10/16 in Docket ER08-1419
• Balanced Portfolio in final stages of development

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Balanced Portfolio in final stages of development

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EHV Overlay Studies EHV Overlay Studies

• SPP hired Quanta Technologies to perform long range
• SPP hired Quanta Technologies to perform long range

visionary expansion plan.

• Original study updated in early 2008 due to GI queue

requests. $8B 2 250 il 765 d 500 kV l ith i ifi t

• $8B, 2,250 mile 765 and 500 kV plan with significant

expansion into and within Entergy, MISO and PJM systems.

• 765 kV, not 345 kV, expansion was recommended when

p wind development exceeds 4,600 MW in SPP.

• Foundation for 2008 EHV Overlay Study in process at SPP

to identify optimal expansion and economic benefits to identify optimal expansion and economic benefits

• Incorporated into JCSP study with MISO, TVA, PJM, ISO-

NE, NYISO, MAPP, and others.

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OEPTTF Study OEPTTF Study

Okl h El t i P T i i T k

• Oklahoma Electric Power Transmission Task

Force (OEPTTF) created by OK legislature

• Identify need for SPP study to identify

transmission expansion needs for OK and beyond

• Scope and assumptions approved late

Scope and assumptions approved late December, 2007

• Final Report posted March 31, 2008

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15,000 MW

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EHV Commitments EHV Commitments

• Competition to build transmission is refreshing
• Competition to build transmission is refreshing.
• Westar and OG&E are building major 345 kV projects in KS

and OK, respectively. , p y

• ITC Great Plains and ITC Panhandle, along with Prairie

Wind Transmission LLC and Tallgrass Transmission LLC are proposing to build major 765 and 345 kV LLC are proposing to build major 765 and 345 kV transmission to support an SPP EHV Overlay. AEP, Westar and OG&E have expressed interest too.

• Transmission Ownership Construction Task Force has

addressed process and rules for deciding who has the right to build transmission in SPP.

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2007 - 2007 - 2008 JCSP Overview 2008 JCSP Overview

E l t 1/1/08 RPS d t i 26 t t /DC

• Evaluate 1/1/08 RPS mandates in 26 states/DC

as reference scenario, as well as a 20% National RPS scenario as part of 2008-2009 NREL/DOE E t Wi d I t ti & NREL/DOE Eastern Wind Integration & Transmission Study (EWITS)

• Studies will be used to demonstrate the value
• f bulk power transmission to harvest best

wind resources in central plains for future wind resources in central plains for future scenarios. Ch k t j t d

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• Check out www.jcspstudy.org

JCSP Progress to JCSP Progress to Date Date

MISO JOA ith PJM SPP d TVA i

• MISO JOAs with PJM, SPP and TVA require

periodic joint planning studies

• Initiated with kick off meeting Nov 1, 2007 in

Initiated with kick off meeting Nov 1, 2007 in Pittsburgh by MISO, PJM, SPP and TVA

• Active participants include ISO-NE, MAPP and

NYISO

• Interested parties continues to grow
• 10 regional workshops/meetings to date
• 10 regional workshops/meetings to date
• FERC Order 890 emphasizes importance of

inter-regional planning and cost allocations

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g p g

Reference Scenario Reference Scenario Current Overlay Current Overlay Reference Scenario Reference Scenario – Current Overlay Current Overlay

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20% Wind Scenario 20% Wind Scenario – Current Overlay Current Overlay 20% Wind Scenario 20% Wind Scenario – Current Overlay Current Overlay

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SPP Implications SPP Implications

• JCSP plans are complimentary to EHV Overlay

p p y y designs for SPP.

• Reference scenario shows need for 765 kV

f L C KS MO d IL t AEP i from LaCygne, KS across MO and IL to AEP in Western IN, plus double circuit 500 kV from Ft Smith, AR across Entergy and TVA to SoCo.

• 20% Wind Scenario has 3 - 800 kV HVDC

terminals in central and southern plains sourced from 765 kV EHV Overlay in SPP at sourced from 765 kV EHV Overlay in SPP at Lawton Eastside & Muskogee in OK, and LaCygne KS with another 800 kV HVDC

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terminal north of KC near Omaha, NE.

JCSP T JCSP T i i R R lt / / C t JCSP T JCSP Transm ransmiss ssion

• n R

Resu esult lts / C / Cos

• sts

Cost per Mile Assumption 345 KV (2) - 345 kV 500 KV (2) - 500 kV 765 KV DC - 400 kV DC - 800 kV 2024$ 2,250,000 3,750,000 2,875,000 4,792,000 5,125,000 3,800,000 6,000,000 Estimated Line Mileage Summary (Miles) 345 KV (2) - 345 kV 500 KV (2) - 500 kV 765 KV DC - 400 kV DC - 800 kV Total Reference 3,329 292 508 946 3,118 282 2,400 10,875 20% Wind 2,042 193 864 279 3,977 7,582 14,937 Estimated Cost Summary (Millions of 2024$) 345 KV (2) - 345 kV 500 KV (2) - 500 kV 765 KV DC - 400 kV DC - 800 kV Total Reference 9,363 1,371 1,825 5,668 19,975 1,698 14,400 54,298 20% Wind 5,742 905 3,106 1,671 25,478 45,492 82,394

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Cost Perspectives Cost Perspectives

20% Wind Future Cumulative Costs through 2024 Reference Future Cumulative Costs through 2024 Costs through 2024

Transmission Capital 2%

Costs through 2024

Transmission Capital Generation Capital 30% 2% Generation Capital 23% p 1% Production 68% Production 76%

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Benefit to Benefit to Cost Ratios are Impressive Cost Ratios are Impressive

A i 15% l i h t

• Assuming an 15% annual carrying charge rate

and existing plans, the B/C for the reference and 20% Wind scenarios are roughly 1.4 and g y 1.0, respectively.

• Economic models are showing annual adjusted

production cost savings in either scenario in excess of $10B. $

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Estimated CO Estimated CO2 Implications by Implications by Estimated CO Estimated CO2 Implications by Implications by Scenario Scenario

2008 2024 C l ti CO O t t

• 2008 – 2024 Cumulative CO2 Output

Reference Future (5% Wind): 34 98 B tons Reference Future (5% Wind): 34.98 B tons 20% Wind Future: 32.11 B tons

• Increase of 15% Wind in Eastern

Interconnection will reduce CO2 Output by 2.87 B t hi h ld ti i th B tons which some would monetize in the range of tens of billions of dollars

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T S T S l H i h H i ht C C i

164’

To S Sca cale H Height C ht Compar

• mparison

son

151’ 164 92’ 164’ 262’ 328’

500 kV-DC

116’

800 kV-DC

138’

765 kV-AC

133’

345 kV-AC

88’

500 kV-AC

103’

50m Wind Turbine

6

80m Wind Turbine 100m Wind Turbine

M a d

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Turbine Turbine Turbine

e b y J T

Produced by Midwest ISO

Next Steps Next Steps

Fi l it ti ti i i 2024 i

• Final iteration on optimizing 2024 expansion

plans in process.

• Reliability assessments for 2018 reliability and

2024 economic models are in process.

• Expect economic and reliability analyses to be

completed soon with results published by year completed soon with results published by year end.

• Upcoming meetings: JCSP 12/10/08 at DFW

Hyatt Regency and EWITS Transmission Hyatt Regency and EWITS Transmission Expansion 1/21/09 in Little Rock with registration links on www.spp.org calendar.

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2009 2009 – 2012 JCSP Scope 2012 JCSP Scope

S f JCSP f 2009 2012 i d

• Scope for JCSP for 2009 - 2012 is under

development with focus on structure and funding. g

• 2009 effort is expected to include a 10%

National RPS future, as well as other futures to evaluate carbon constraints increased nuclear evaluate carbon constraints, increased nuclear expansion, etc.

• DOE seems to be expecting JCSP to take over

p g congestion studies for the Eastern Interconnection.

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July 1 2006 HE 0100 Wind Profile July 1 2006 HE 0100 Wind Profile

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Aug 1 Aug 1 2006 HE 0100 Wind Profile 2006 HE 0100 Wind Profile

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Wi Wi d I d I t ti ti / P / P t ti ti Wi Wind I d Integra egrati tion

• n / P

/ Pene enetra rati tion

• n

C b t ti l i i t d

• Concerns about operational issues associated

with wind integration must be addressed => Wind Integration Task Force with kick off g meeting 12/4 in Dallas

• SPP is working with AMEC on SPS Wind

Penetration Study to identify and address

• perating reserve issues in near term with

p g focus on 2010 light load conditions

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SPP 2008 EHV Overlay Study SPP 2008 EHV Overlay Study

I ith lt t d i t k

• In process with results expected in next week
• r so.
• Focus on economic benefits of major EHV

Focus on economic benefits of major EHV transmission expansion in and around SPP to support wind development from 3 to 21 GW in next 20 years next 20 years.

• Provide a foundation for EHV cost allocation

and seams agreement discussions. g

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Questions? Questions?

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Jay Caspary Director, Engineering 501.614.3220 jcaspary@ spp.org

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