Barton_Outsourcing_book_temp.qxd 25/02/2010 10:11 Page 88
Overcoming Political, Operational and Technical Challenges in
Establishing Cross-border Transmission Networks
a report by
Lisa M Barton
Vice President, Transmission Strategy and Business Development, American Electric Power
The US is at a crossroads with respect to energy policy and development and objectives, a means to integrate existing regional
ransmission & Distribution
T
infrastructure development. Global concern over climate change, systems and consistent standards across the country.
growth of low-emission generation, increased environmental
requirements on fossil-fuelled generation, emerging technologies Where We Are and How We Got Here
(including plug-in hybrid electric vehicles [PHEVs]) and increased Following years of under-investment, the US transmission system is
demand response and focus on energy efficiency are challenging the beginning to see signs of new investment. Despite efforts to refurbish
US power delivery system, and will continue to do so. the existing infrastructure, the lack of substantive new transmission
development, in particular EHV transmission, is leaving the nation
From its humble origins in Nikola Tesla’s upper New York laboratory, ill-prepared to adapt to changes in the generation mix that are
the US AC power system has grown to include 157,000 miles of likely over the next several decades. Today, the lack of transmission
extra-high-voltage (EHV) transmission lines stretching from coast to infrastructure is a well-known barrier to the development of
coast.
1
Despite its highly developed and vast footprint, voids and renewable generation and will be a barrier to generation retirements.
inefficiencies in the way that the US grid is planned and designed will Coupled with a fragmented and inconsistent approach to both
inhibit the growth of new technologies and drive increased costs for transmission planning and financial support/cost recovery for such
electricity consumers unless properly mitigated. Of particular concern facilities, this limitation exacerbates the risk of the US lagging behind
are the challenges associated with establishing cross-border EHV other industrialised nations. Energy policies in the US have
transmission networks between transmission planning regions. Failing transformed over time from being focused on supporting the more
to advance timely and meaningful planning reform will hinder the local needs of an integrated utility to developing broader and more
US economy and inhibit the ability of the US to meet expectations for complex electricity markets. In the 1990s, in response to demands for
greenhouse gas reductions. more competition in electricity markets by both consumers and
generators, Congress and the Federal Energy Regulatory Commission
Demands on the transmission grid are increasing and energy (FERC) took steps to remove participation barriers for new market
forecasts are predicting even greater demands on the grids of the entrants and to provide them open access to the nation’s transmission
future. More than ever, the debate that surrounds grid capacity grid. To ensure adequate competition in the generation sector and to
expansion is enmeshed with political agendas. Proponents of broaden wholesale energy markets, the FERC encouraged the
aggressive efficiency efforts in the demand sector are calling for a formation of Regional Transmission Organizations (RTOs) for oversight
renewed focus on distribution networks and consumer intelligence, and regional planning. RTO planning processes were encouraged to
and at the same time renewable developers are waiting less than focus on “…identifying projects that expand trading opportunities,
patiently for transmission networks to be built to deliver their better integrate the grid, and alleviate congestion that may enhance
generation to load. Unrest with the debate is showing itself in the generator market power”.
3
form of US$120 billion-worth of new conceptual and planned
projects across the nation
2
and countless merchant proposals Nearly a decade later, RTOs have encouraged greater transmission
targeted at integrating wind. How the transmission system should be investment; however, that investment has been limited in size and
planned and how the cost should be supported, as well as national scope by RTO boundaries and traditional planning approaches. The
security and economic development in a struggling economy, are at regulatory framework that leaves siting and construction to local
the core of industry and policy discussions. While there are authorities also continues as a barrier to efficient development of
tremendous benefits associated with being involved in the debate, multistate EHV projects and the development of the efficient, less
we must avoid falling victim to political snares that can delay congested grid FERC envisaged. While now broader in scope,
progress and, by default, also delay transmission development. Keys transmission planning in many areas is still principally localised and
to avoiding those snares include organised and systemic focused on narrow, short-term reliability benefits. As a result, recent
transmission development has largely addressed local reliability needs
and connected new localised generation to the existing grid. Since
Lisa M Barton is Vice President of Transmission Strategy and Business Development for
American Electric Power (AEP). She responsible for business planning and analysis,
their formation, no sizeable ‘economic’ projects have been advanced
business development, asset strategy and planning and oversight of AEP’s interface with by the Midwest Independent Transmission System Operator (ISO),
its corporate partners. She also serves as President of Electric Transmission America
PJM Interconnection, New York ISO or ISO-New England.
4
At the
(ETA), a joint venture between AEP and MidAmerican Energy Holding Company. She
joined AEP from Northeast Utilities in Berlin, Connecticut, where she was Manager of
same time, no transmission projects beyond smaller merchant
Transmission Regulations and Compliance.
facilities have been developed between the regions despite the call to
E: transmissioninquiries@aep.com eliminate the seams between regions that date back to the formation
of RTOs themselves.
© TOUCH BRIEFINGS 2010
88
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108