WREZ Phases 2, 3, 4

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WREZ Phases 2, 3, 4

• Doug Larson and Tom Carr
• Western Interstate Energy Board

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Outline of Presentation

• WREZ project Phases 1, 2, 3, 4
• Status of activities
• Phase 2
• Activities (WREZ model WREZ request to WECC)
• Key players
• Phase 3
• Feb 24-25 Resource Planning meeting
• Key players
• Phase 4
• Context
• Key players
• Changing role of Technical Committee in Phases
  2-4

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WREZ Project Phases

• Phase 1
• Identify developable renewable energy zones
• Develop renewable resource supply curves for each
  zone
• Phase 2
• Develop model to estimate delivered price of
  power from renewable energy zones to load centers
• Develop conceptual transmission plans
• Phase 3
• Foster coordinated renewable resource acquisition
  by utilities
• Phase 4
• Facilitate interstate transmission for renewables

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Phase 2 WREZ Model

• Released Model to public March 13
• Model webinar training sessions held
• GTMWG March 12 16
• Resource and transmission planners March 18 24
• Website for WREZ Model
• http//www.westgov.org/wga/initiatives/wrez/gtm/mo
  del.htm
• Download User guide, methodology and assumptions
• Video of the March 24 training session
• Solicit comments from model users
• Peer analysis tool under construction
• Improvements being made per public comments
• Version 2.0 ready about 2 weeks after REZs
  finalized

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Phase 2 Conceptual Transmission Plans

• January WREZ request to WECC
• WECC/TEPPC review, work plan, modeling
• TEPPC review process of study requests from 8
  entities Feb. April 28.
• Database and scenario inputs to model
  (spring-summer 2009)
• Modeling runs (summer-fall 2009)
• Analysis and drafting report (fall 2009)
• Complete and approve report (winter 2010)

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Phase 2 Key Players

• Utilities and other model users
• WECC (TEPPC and TEPPC stakeholders)
• Sub-regional planning groups
• Depending on Congressional action, FERC

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Phase 3 Coordinated Procurement

• Status
• Feb 24-25 Western Interconnection Resource
  Planning meeting
• 80 attendees (25 utilities, 12 states/provinces
  including 10 PUCs)
• Secured LSE volunteers to help scope out Phase 3
• Takeaways
• Resource planners looking at near-term options
  those requiring multiple years of transmission
  develop at disadvantage
• Ron Lehr ongoing research on utility acquisition
  processes
• Next steps
• Scope further Phase 3 work
• Guesstimate of direction
• Common research areas (e.g., any legal barriers)
• Meetings of LSEs and PUCs who are interested in
  the same REZs

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Phase 3 Key Players

• Utility resource planners and generation
  procurement personnel
• PUCs

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Phase 4 - Facilitate interstate transmission for
renewables

• Fluid playing field
• Unprecedented number of proposed transmission
  projects
• Some facing downsizing
• Others facing corridor constraints
• All face uncertainty about demand for renewable
  generation (e.g., no federal carbon or renewable
  rules)
• FERC pre-emption authority under EPAct 2005
  undercut by 4th Circuit Court decision
• 5 major bills in Congress
• Obama Administration developing its policy on
  transmission for renewables
• Potential revision and readoption of WGA
  Transmission Permitting Protocol

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Proposed major transmission projects
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Situation Analysis

• Administration
• FERC Chair and Secs of Energy, Interior, Ag and
  meeting to formulate Obama plan on transmission
  for renewables and response to Congress
• Meeting with Govs in Park City?
• Congress
• Five bills so far (Reid, Bingaman,
  Dorgan/Voinovich, Nelson, Waxman-Markey)

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Outline of Bills

• Dorgan/Voinovich
• No REZ language
• Applies to transmission for renewables, fossil
  with CCS
• Generally same, but allows multiple planning
  entities in an interconnection and more detail
  (e.g., avoid areas,
• Generally same
• FERC in control but greater constraints on FERC
  ability to ignore state

• Reid
• Pres. designates REZs
• Applies only to transmission for renewables
• Generally same
• Generally same

• Bingaman
• No REZ language
• Applies to all transmission
• Transmission plans
• FERC designates interconnection-wide planning
  entity/entities
• FERC approves transmission plans if no plan,
  FERC does plan
• Financing
• Regional planning entity proposes cost allocation
  for project OR FERC will
• If FERC does, then spread cost as broadly as
  possible
• Siting
• FERC ultimately decides

• Nelson
• No REZ language
• Applies to National Energy Superhighway and
  connector lines
• FERC develops plan
• Govt pays

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Feedback from WIEB/WIRAB/CREPC Discussions

• Governors need to weigh in with Congress and
  Administration and be prepared to respond rapidly
  to changing policy proposals
• Support interconnection-wide plans that have
  consequences
• Governors must have a major role in plans (e.g.,
  approve electricity futures to be studied,
  approve plan)
• WECC is the right entity to develop transmission
  plan
• Feds should have to follow approved plan
• Feds pay to right size lines to
  geographically-constrained, low-carbon generation
  (existing WGA policy)
• Support to review Section 368 corridors on
  federal land (existing WGA policy)
• Pre-empting state siting wont speed up the
  permitting process
• Need new interstate permitting agreement with
  federal agencies
• Governors need to support actions to reduce cost
  of integrating wind and solar, including urging
  FERC and DOE action

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Phase 4 Key Players

• Congress
• Carbon/RPS rules
• Changes to transmission development process
• Obama Administration
• Allocation of stimulus money
• WAPA and BPA
• Loan guarantees
• 4.5 billion smart grid (80 million for
  transmission to conduct a resource assessment and
  an analysis of future demand and transmission
  requirements)
• New Administration policy
• Western Governors
• Others
• LSEs and transmission developers
• WECC and sub-regional planning groups
• PUCs

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Summary of Key Players on Phase 2-4
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Changing Role of Technical Committee

• The success of Phases 2-4 is in the hands of a
  much broader group of decision-makers than Phase
  1
• Technical Committee may need to shift to focus on
  transmission-related issues
• Oversight of work group activities

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Potential Future Tasks

• Phase 1
• Refine environmental data
• Update technology cost information (late 2009?)
• Phase 2
• Encourage parties to use model to specify
  preferred REZs
• Upgrade model through 2009
• Transfer of model to WECC in 2010
• Review WECC analysis of transmission needs under
  WREZ scenarios (late 2009/early 2010)
• Assemble environmental data useful in
  transmission siting

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Potential Future Tasks

• Phase 3
• Approve refined work plan for Phase 3 (after REZ
  info and Model version 2.0 available, e.g. June)
• Monitor utility procurement plans (June
  2009-forward)
• Phase 4
• Monitor changing federal playing field on
  permitting, cost recovery
• Monitor proposed transmission projects serving
  REZs and obstacles to such projects
• Offer advice on needed improvements to
  transmission project development and permitting
  processes