Download - Transmission Joint Action in the Upper Midwest a presentation to the APPA Joint Action Workshop
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Transmission Joint Action in the Upper Midwesta presentation to the
APPA Joint Action Workshopby David A. Berg, P.E.
Principal
December 7, 2004
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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
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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
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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
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TAPS White PaperStructural Solutions
Inclusive Stand-Alone Transmission Companies
Shared System Model
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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
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Midwest Independent System Operator (MISO)
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MISO Issues
Understanding Membership Congestion Management Ownership Incentives Regional Planning
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Why Joint Action?
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Single Small Municipal Utility
0
2
4
6
8
10
12
Small Municipal
MW
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Small & Large Municipal Utilities
0
50
100
150
200
250
300
Small Municipal Large Municipal
MW
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Individual Municipals & Agency
0
100
200
300
400
500
600
Small Municipal Large Municipal Agency
MW
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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
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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
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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
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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
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Upper Midwest Regional Focus
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Transmission System Planning and Investment
Champion TAPS approach Municipals want a seat at the table Investment = Influence
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Expanded or Super Joint Action can not only get municipals to
the table, it can get them to the head of the table
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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
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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?
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Questions and Discussion