Energizing the Northwest

1
Energizing the Northwest
September 28-29 Portland, Oregon

• TRANSMISSION
• AND THE POWER SYSTEM

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PHYSICAL CHARACTERISTICS OF THE SYSTEM
The interplay of generation, demand response,
conservation and transmission
The complexity of institutions and assignment of
responsibility
3
SYSTEM PHYSICS
Running the existing bulk transmission system
given the current status of generation, fuel
supply, demand response and transmission
What are the key factors in doing this well ?
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KEY FACTORS
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INSTITUTIONAL OPTIONS
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RESOURCE ADEQUACY
The physics of the system depend on the
availability of resources including demand
response. Conservation or demand response,
especially at peak times, reduces the stress on
the system.
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RESOURCE ADEQUACY

• Generation, demand response, conservation and
  transmission all have a critical role to play.
• Each is governed by a different set of market
  dynamics and cost recovery principles while they
  are substitutes or near substitutes for each other

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RESOURCE ADEQUACY
Analyzing resource availability is a WECC role,
determining minimum criteria for adequacy at this
time is a regulatory function. The RPIC has
assigned PCC to develop recommendations for
resource adequacy criteria.
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RESOURCE ADEQUACY

• NERC has also recommended that Regions maintain
  and enforce resource adequacy criteria must be
  done in consultation with regulatory community.
• Balancing among the options is a public policy,
  governmental and regulatory issue because of
  their inherent roles in siting, cost recovery and
  market development.

10
TRANSMISSION

• Transmission siting requires both need and
  political will.
• Reliability and economic transmission are
  transitory, that is an economic upgrade
  ultimately becomes a reliability upgrade.
  Benefits are also transitory e.g. beneficiaries
  change over time as load, generation and demand
  response change.
• Transmission cost recovery is rate
  base/rate-of-return but it has a direct effect on
  markets.
• Will require a multi-state, multi-project
  solution with wide political support.

11
Transmission and the Power System

• Comments