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ISO Confidential Decision on the 2015-2016 Transmission Plan Neil Millar Executive Director, Infrastructure Development Board of Governors Meeting General Session March 25, 2016
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ISO Confidential

Decision on the 2015-2016 Transmission Plan

Neil Millar

Executive Director, Infrastructure Development

Board of Governors Meeting

General Session

March 25, 2016

ISO Confidential

Approving the plan means approving determinations

and recommendations contained in the plan.

• Thirteen transmission projects:

– All new reliability projects each of which is less than $50 million

– no policy driven projects

– no economically driven projects

• Canceling 13 sub-transmission - primarily local –

previously approved projects in PG&E’s service area

No regional transmission solutions found to be needed are

eligible for competitive solicitation.

Page 2

ISO Confidential

The 2015-2016 Transmission Planning Process

Slide 3

Phase 1

Development of ISO unified

planning assumptions and

study plan

• State and Federal policy

requirements and

directives

• Demand forecasts, energy

efficiency, demand

response

• Renewable and

conventional generation

additions and retirements

• Input from stakeholders

Phase 3

• Request for bids, receive

proposals, evaluate, and

award to successful

applicant to build identified

reliability, policy and

economic transmission

projects.

Technical Studies and Board Approval

• Reliability analysis

• Renewable delivery (policy) analysis

• Economic analysis

• Consider Transmission Alternatives, e.g.

preferred resources and energy storage.

• Publish comprehensive transmission plan

Continued regional and sub-regional coordination

October 2016

Coordination of Conceptual

Statewide Plan

April 2015

Phase 2

March 2016

ISO Board Approval

of Transmission Plan

Four Consultation Windows

ISO Confidential

New reliability needs reduced from prior cycles,

both in number of projects and capital cost:

Slide 4

Capital

Cost in

$millions

By Service Area

2322

31

15

2 7

3

2

11

9

5

5

11

45

1

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2010/11 Plan 2011/12 Plan 2012/13 Plan 2013/14 Plan 2014/15 Plan 2015/16 Plan

Pacific Gas & Electric Southern California Edison Co. San Diego Gas & Electric Co. Valley Electric Association

ISO Confidential

13 reliability-driven projects are found to be

needed

• 5 projects (red text) were

initially identified in the

planning process and

approved by management.

• The remaining 8 projects

were subsequently

identified and require Board

of Governor approval.

Slide 5

No. Project Name Service AreaExpected In-

Service DateProject Cost

1Panoche – Ora Loma 115 kV Line

ReconductoringPG&E May-21 $20 M

2 Bellota 230 kV Substation Shunt Reactor PG&E Dec 2020 $13-19 M

3Cottonwood 115 kV Substation Shunt

ReactorPG&E Dec 2019 $15-19 M

4 Delevan 230 kV Substation Shunt Reactor PG&E Dec 2020 $19-28 M

5 Ignacio 230 kV Reactor PG&E Dec 2020 $23.4-35.1 M

6Los Esteros 230 kV Substation Shunt

ReactorPG&E Dec 2020 $24-36 M

7 Wilson 115 kV SVC PG&E Dec 2020 $35-45 M

8 15 MVAR Capacitor at Basilone Substation SDG&E Jun-16 $1.5-2 M

930 MVAR Capacitor at Pendleton

SubstationSDG&E Jun-17 $2-3 M

10 Reconductor TL 605 Silvergate – Urban SDG&E Jun-18 $5-6 M

11Second Miguel – Bay Boulevard 230 kV

Transmission CircuitSDG&E Jun-19 $20-45 M

12TL600: “Mesa Heights Loop-in +

ReconductorSDG&E Jun-18 $15-20 M

13 Eagle Mountain Shunt Reactors SCE Dec-18 $10 M

ISO Confidential

13 previously approved local PG&E projects are being

cancelled, primarily due to lower load projections

• The projects each were estimated to cost less than $50

million each, and total $192 million.

• 11 projects were initially identified and cancelled by

management.

• 2 projects were subsequently identified and require

Board of Governor approval.

– Monta Vista - Wolfe 115 kV Substation Equipment Upgrade

(Greater Bay Area) - $1 million

– Newark - Applied Materials 115 kV Substation Equipment

Upgrade (Greater Bay Area) – $1 million

Page 6

ISO Confidential

The ISO’s policy-driven analysis focused on the 33%

Renewables Portfolio Standard:

• No policy-driven requirements were identified to achieve

the 33% renewables portfolio standard by 2020

• Transmission needs to meet the 50% renewables

portfolio standard by 2030 will be explored in future

planning cycles.

Slide 7

ISO Confidential

Economic driven solutions were also explored in the

planning process focusing on areas of congestion.

• Consistent with past findings, congestion was not

sufficient to warrant capital upgrades

Slide 8

ISO Confidential

Other considerations:

• No regional transmission solutions recommended for

approval are eligible for competitive solicitation

• The Lugo-Victorville 500 kV upgrade was found to be

needed and a recommendation will be brought to the

Board after coordination with LADWP has taken place in

the 2016-2017 planning cycle

• The LA Basin/San Diego findings continue to

demonstrate meeting future overall area needs – a

230 kV loading issue has been identified that will be

addressed in the 2016-2017 planning cycle

Page 9

ISO Confidential

Regional high voltage transmission access charge

projection:

Slide 10

* Existing returns are maintained for existing PTO rate base, and 11% return on equity is

assumed for new transmission capital.

Regional

High

Voltage

TAC

$/MWh

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

2015 Projection

2016 Projection w/o recommended approvals

2016 Projection with recommended approvals

$13.9

$13.8

FERC-approved PTO revenue

requirement increases in 2015 not

related to ISO-approved projects

higher than projected.

ISO Confidential

Special studies looked at emerging issues preparing

for grid transitioning to low carbon future:

• 50 percent “energy only” study

• Frequency response study

• Gas/electric coordination preliminary study

Efforts in these areas will continue in future planning cycles.

Page 11

ISO Confidential

Stakeholder feedback provided a wide range of views:

• Concerns about specific projects, and the ISO’s basis for

moving forward

– Projects driven by high voltage concerns

– Previously approved projects

– Projects not recommended for approval

• Deliverability of CPUC-provided 33% renewable

generation portfolios for policy-driven transmission

• Support for continuation of special studies

Page 12

ISO Confidential

Management recommends the Board approve the

2015-2016 ISO Transmission Plan.

• Continues to pursue low emissions strategies in

addressing reliability needs of the ISO controlled grid

• Enables the state’s 33% RPS goals and sets a

foundation for higher renewable energy goals

• Provides for prudent and economic development of the

transmission system

Slide 13


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