Transmission Issues from a Developers Perspective

1
Transmission Issues from a Developers Perspective

• Presented
• at
• The Geothermal Opportunities in Nevada Workshop
• by
• Ellen Allman
• Caithness Energy LLC
• January 11, 2002

2
Transmission Issues from a Developers Perspective

• Discussion What are some problems and concerns
  of developers with respect to transmission issues
  and potential solutions in the areas of
• Interconnection
• Land Use
• Cost
• Planning

3
Interconnection with Transmission Lines

• Issue Interconnection is a cumbersome effort
  that is disconnected with the sale of the energy
• Solution Streamline process, hire consultants
• Reduces developers time in queue, reducing risk
• Group studies to reduce effort and cost
• Institute grid model that can cope with one-off
  requests
• Pre plan a supply needs assessment
• Standardize interconnection requirements
• Reduce phases of study

4
Land Use Issues with Transmission Line
Installation

• Issue The siting and easement process can be
  slow and expensive, and can require multiple
  agency interaction
• Solution Streamline process, coordinate efforts
  across agencies
• Earlier granting of ROW can reduce developers
  risk
• Assign lead agency responsibility to expedite the
  permit
• Assign time limits
• Align requirements of agencies to reduce
  duplicative effort
• Ensure a tiered approach to match permit
  requirements with agency needs

5
Cost of Installing Transmission Lines

• Issue The cost of installing transmission can
  be prohibitive
• Solution Have utility providers own/install
  maintain lines in remote areas
• Reduces development cost
• Utility provider can spread cost of line over
  many users
• Promotes stability by reducing multiple radial
  lines
• Capitalizes on utility providers low cost of
  debt
• Need to assure adequate cost recovery mechanisms

6
Coordinated Planning for Transmission

• Issue Coordinated planning can address many
  issues and assist developers, utilities and
  agencies
• Solution Combine RPS effort into the utility
  Resource Plan
• Early review of interconnection requests can
  allow utility direction to developers
• Transmission needs assessment can allow utilities
  time to build, recover costs
• Agencies can staff appropriately for work load
• Early feedback helps long term planning for
  development