Transmission Joint Action in the Upper Midwest a presentation to the APPA Joint Action Workshop by David A. Berg, P.E. Principal December 7, 2004
Mar 19, 2016
Transmission Joint Action in the Upper Midwesta presentation to the
APPA Joint Action Workshopby David A. Berg, P.E.
Principal
December 7, 2004
Background
Public power has a strong presence in the upper Midwest
There is a rich tradition of municipal joint action in our region
Transmission has become a critical issue in our region and across the country
Transmission Access Policy Study Group (TAPS) June 2004 White Paper
"Effective Solutions for Getting Needed Transmission Built at Reasonable Cost"
Examines problems and proposes policy solutions for transmission investment needs
TAPS White PaperProblems Identified
Transmission investment needed to improve reliability
Competitive wholesale market requires added transmission infrastructure
Commonly proposed solutions not working Increased return and accelerated depreciation Participant funding
TAPS White PaperStructural Solutions
Inclusive Stand-Alone Transmission Companies
Shared System Model
TAPS White PaperRegulatory Solutions
Ratemaking devices Reduce investment risk Attract capital at reasonable cost
Spread cost across broad regions Regional planning to achieve cost-
effective and efficient solutions Performance-based rates to hold
transmission owners accountable
Midwest Independent System Operator (MISO)
MISO Issues
Understanding Membership Congestion Management Ownership Incentives Regional Planning
Why Joint Action?
Single Small Municipal Utility
0
2
4
6
8
10
12
Small Municipal
MW
Small & Large Municipal Utilities
0
50
100
150
200
250
300
Small Municipal Large Municipal
MW
Individual Municipals & Agency
0
100
200
300
400
500
600
Small Municipal Large Municipal Agency
MW
Individual Municipal Regional Presence
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
SmallMunicipal
LargeMunicipal
Agency Basin Electric Great RiverEnergy
MidAmerican Alliant We Energies Xcel
MW
Collective Municipal Regional Presence
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Small M
unici
pal
Large
Mun
icipa
l
Agenc
y
Basin
Electric
Great R
iver E
nergy
MidAmeri
can
Alliant
We E
nergi
es Xcel
Upper
Midwes
t Mun
icipa
ls
MW
Midwest Municipal Transmission Group (MMTG)
January 2002 formal announcement 120 Iowa & Minnesota municipals (1300 MW) Intervened in TRANSLink filing Goal - get municipal transmission recognized in
TRANSLink Goal - invest in new regional highway transmission
projects Successful in initial goals Continuing participation in regional transmission arena
MISO Investment opportunities
Super Joint Action in the Upper Midwest
Idea has been brewing for a while Joint Action Workshop held July 13, 2004 Joint Action Working Group formed
Existing agencies "Independent" municipals 6 states
Transmission identified as proper focus for expanded joint action
Upper Midwest Regional Focus
Transmission System Planning and Investment
Champion TAPS approach Municipals want a seat at the table Investment = Influence
Expanded or Super Joint Action can not only get municipals to
the table, it can get them to the head of the table
Current Approach
Examining expansion of MMTG Interaction between MMTG Operating
Committee and Joint Action Working Group
MMTG Benefits Existing organization Multi-state Track record of success
Next Steps
Conduct 2-day strategic planning meeting (early 2005)
Prepare plan of development Mission Organizational structure Staffing Funding Development timeline Investment strategy
Move Forward?
Questions and Discussion