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Navigating Interconnection and Transmission in the Major US Markets
Rhonda Peters, Ph.D.Grid Interconnection and Transmission Engineer
Kevin Brokish, M.SGrid Interconnection and Transmission Coordinator
Clipper Windpower Development Co., Inc.Carpinteria, CA
Navigating Interconnection and Transmission in the Major US Markets
Agenda
1
3
4
5
Clipper Snapshot
Regional Interconnection Processes
FERC “Pro Forma” Generator Interconnection Process
Navigating Interconnection
13
2 Background: Key Transmission Policy Issues
NOTE: Many LGIP details have paraphrased/simplified in the interests of time.Please refer to Open Access Transmission Tariffs for the definitive rules of Generator Interconnection Processes.
Interconnection Request• Size Dependent (<6MW to >1GW)
$10,000 - $120,000 (€7.500 - €90.000)• Site Control or an additional $100,000 (€75.000)
Feasibility “Test” determines if system upgrades are minimal and project can skip the “SPA” phase
System Planning and Analysis Phase (“SPA”)
Definitive Planning Phase (“DPP”)• Size Dependent (<6MW to >1GW)
$40,000 - $520,000 (€30.000 - €390.000)• M2* Demonstration of Project Seriousness• M3** Demonstration of Project Seriousness
Interconnection Agreement• Cannot suspend
*Milestone 2 (M2) is two of the following: application for air or land permits, PUC approval, approval to proceed from the project’s board of directors, purchase order or agreement for generating equipment, security equal to one month of transmission service (approx $2000/MW).** Milestone 3 (M3) is one of the following: security equal to the cost of network upgrades, PPA, or a purchase/agreement for generating equipment
Preliminary Interconnection System Impact Study• $60,000 (€45.000)• Demonstration of Site Control
Definitive Interconnection System Impact Study• $150,000 (€112.500)• *Demonstration of Project Seriousness
Facilities Study
Generator Interconnection Agreement• Shared upgrades cannot be suspended• Suspension limit of 18 months, $5,000,000
(€3.750.000) deposit due at 6 months.
*Demonstration of project seriousness means one of the following: Letter of Credit for Network Upgrades, Power Purchase Agreement, evidence of a “Designated Resource”, Purchase Order for Generating Equipment, Application for Air Permit, Filing of FAA Notice
Revenue Credits• Generators are
reimbursed as the network upgrades are used for transmission service.
Often the interconnection rules/tariff change mid process making it critical to attend ISO/RTO stakeholder meetings.
Midwest ISO• 2008: Interconnection Process Task Force (IPTF) Change from first in/ first
out to milestone based queue process, suspension no longer allowed, and up to $120k to enter queue plus $520k to complete studies
• 2009: Regional Expansion Criteria and Benefits Task Force (RECBTF)—change from 50% reimbursement for network upgrades to 0% if less than 345kV, 10% if 345kV and above
SPP• 2009: Generator Interconnection Task Force (GITF) changed from first in/
first out to milestone based queue process, suspension limited and more costly, higher deposits required
CAISO• 2008/2009 Generator interconnection changed from serial to cluster study,
two phase process with $250k to enter queue and up to $7.5M security required to enter Phase II study
The challenges faced by the US wind industry cannot be met by individual companies. Industry Organizations play a critical role in responding to policies that create barriers to wind development
• Wind on the Wires (“WoW”) – MISO, Midwest• The Wind Coalition – SPP, ERCOT• AWEA Transmission Committee – National• Center for Energy Efficiency and Renewable Technologies – CAISO and West• CALWEA—California Wind Energy Association – CAISO• Interwest Energy Alliance – West• Mid Atlantic Renewable Energy Coalition• RENEW New England – ISO-NE• Renewable Northwest Project (“RNP”) – BPA• Alliance for Clean Energy New York – NYISO• NWCC-Northwest Wind Coordinating Committee