Massachusetts Electric Restructuring Roundtable

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Massachusetts Electric Restructuring Roundtable

• New England Regional Transmission Expansion
  Planning Process
• By
• Thomas J. Gentile
• National Grid
• October 28, 2004

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Transmission Planning1

• Identify Plan a Flexible, Robust, and
  Implementable Transmission System
• Reliably Facilitates Commerce Markets
• Serves all Load in a Cost Effective Manner
• 1 Eric Hirst Brendan Kirby, Transmission
  Planning for a Restructuring US Electricity
  Industry, June 2001

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Necessary Components for a Reliable and Efficient
Electric Network

• Generation Adequacy
• Transmission Infrastructure
• Demand Response
• Correct Market Signals

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New England RTEP Principles 2

• Provide for coordination with existing
  transmission systems and with appropriate
  interregional and local expansion plans
• Properly account for market responses including
  generation, merchant transmission and demand side
  responses
• 2 ISO-New England Current RTEP Process RTO-NE
  Stakeholder Working Group, April 15, 2003

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Overview of New England ISO Regional Planning
Process

• Region-wide Annual Planning Process
• Open Process Allows for Stakeholder Input
• Includes Market Solutions
• Transmission Owners provide Backstop
• Input and Coordination with Other Areas
• Addresses Market Efficiency

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Overview of New England ISO Regional Planning
Process

• Planning process recognizes that any Market
  Proposals can go forward at anytime
• Planning process addresses both reliability and
  economic needs
• Planning process retains the TOs obligation to
  provide Backstop

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New England ISO Regional Planning Process

• Develop Range of Solutions
• Work Collaboratively with TOs
• Stakeholder Input
• Regulatory Input
• Regional Expansion Plan

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Industry Entities

• Independent (Merchant) Generators
• Power Marketers
• Merchant Transmission Developers
• Independent Transmission Companies
• End Users
• The traditionals remain
• Vertically Integrated Utilities
• Municipals
• Federal Public Power entities

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Challenges

• Defining Role of Regulators
• More Hands in the Planning Pot
• Changing Planning Process
• Balancing Market Rules and Reliability

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• QUESTIONS