electric transmission 203
TRANSCRIPT
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ELECTRIC ELECTRIC TRANSMISSION 203:TRANSMISSION 203:
Planning To Expand and Planning To Expand and Upgrade The Electric GridUpgrade The Electric Grid
June 28, 2010 2:00P.M.385 Russell Senate Office Building
ELECTRIC ELECTRIC TRANSMISSION 203:TRANSMISSION 203:
Planning To Expand and Planning To Expand and Upgrade The Electric GridUpgrade The Electric Grid
June 28, 2010 2:00P.M.385 Russell Senate Office BuildingFACULTY:
Steve Herling, Vice PresidentSteve Herling, Vice President——Planning, PJM Interc onnectionPlanning, PJM InterconnectionJay Caspary, Director, Transmission Development, So uthwest Pool PowerJay Caspary, Director, Transmission Development, So uthwest Pool PowerDaniel Kline, Regional Transmission Planning, Xcel EnergyDaniel Kline, Regional Transmission Planning, Xcel EnergyBill White, Energy Future CoalitionBill White, Energy Future CoalitionAdmiral John Nathman, U.S. Navy (ret.)Admiral John Nathman, U.S. Navy (ret.)Hannes Pfeifenberger, Principal, The Brattle GroupHannes Pfeifenberger, Principal, The Brattle Group
James Hoecker, Counsel to WIRES; former Chairman of FERC; Husch Blackwell, ModeratorJames Hoecker, Counsel to WIRES; former Chairman of FERC; Husch Blackwell, Moderator
Presented by WIRES - a national coalition of investo r- and publicly-owned transmission providers customers, renewable energy developers, and technol ogy and service companies dedicated to promoting investment in strong, well-planned, and b eneficial high voltage electric transmission infrastructure
FACULTY:Steve Herling, Vice PresidentSteve Herling, Vice President——Planning, PJM Interc onnectionPlanning, PJM InterconnectionJay Caspary, Director, Transmission Development, So uthwest Pool PowerJay Caspary, Director, Transmission Development, So uthwest Pool PowerDaniel Kline, Regional Transmission Planning, Xcel EnergyDaniel Kline, Regional Transmission Planning, Xcel EnergyBill White, Energy Future CoalitionBill White, Energy Future CoalitionAdmiral John Nathman, U.S. Navy (ret.)Admiral John Nathman, U.S. Navy (ret.)Hannes Pfeifenberger, Principal, The Brattle GroupHannes Pfeifenberger, Principal, The Brattle Group
James Hoecker, Counsel to WIRES; former Chairman of FERC; Husch Blackwell, ModeratorJames Hoecker, Counsel to WIRES; former Chairman of FERC; Husch Blackwell, Moderator
Presented by WIRES - a national coalition of investo r- and publicly-owned transmission providers customers, renewable energy developers, and technol ogy and service companies dedicated to promoting investment in strong, well-planned, and b eneficial high voltage electric transmission infrastructure
PJM Regional Transmission Expansion Plan (RTEP)
Steven R. HerlingVice President, Planning
PJM Interconnection, L.L.C.
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RTEP Development DriversRTEP Development Drivers
www.pjm.com
Planning HorizonPlanning Horizon
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Approved PJM Backbone FacilitiesApproved PJM Backbone Facilities
2012 2013 2014 2015 2016 2017 2018 2019 2020
Load Forecast
Reduction
New Generation
ISAs
Merchant Project
Queue WithdrawalsAdditional Merchant
Deliveries to NYC
Generation Retirements &
Queue Withdrawals
Load Template
Adjustments
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Public Policy Criteria
Existing RTEP Drivers• Reliability Criteria
• Market Efficiency Criteria
Moving ForwardMoving Forward
Transmission Development Update
Jay CasparyDirector Transmission Development
Southwest Pool Power
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SPP MissionSPP Mission
Helping our members work together to keep the lights on – today and in the future.
Updated Oct. 9, 2009
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3 Interconnections / 8 NERC Regions3 Interconnections / 8 NERC Regions
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Independent System Operator (ISO) /Independent System Operator (ISO) /Regional TransmissionRegional TransmissionOrganization (RTO) MapOrganization (RTO) Map
Certainty Regarding Cost Allocations / Certainty Regarding Cost Allocations / Recovery Is Key Success Factor at SPPRecovery Is Key Success Factor at SPP
• Regional State Committee is responsible for cost allocation for the SPP RTO
• Cost Allocation mechanisms have evolved with time from Base Plan Funding for reliability projects and Economic/Sponsored Upgrades in 2005 to Highway/Byway approach just approved by FERC. Balanced Portfolio of economic upgrades was interim step at SPP.
• Industry needs fair and simple cost allocation approaches and effective seams agreements
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SPP’s Next StepsSPP’s Next Steps
• Integrated Transmission Planning in process with first plan due January 2011– 20 year scenarios with 40 year financials– Approved Priority Projects – 765 or 345 kV?
• Support inter-regional planning (EIPC) and other initiatives to quantify benefits of robust ties while getting the best lines in the best corridors
• Reality vs. costs/schedules of approved projects?• SPP’s continued evolution with consolidated BAs and
Day 2 markets in process
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HVDC PROPOSALS ON TOPHVDC PROPOSALS ON TOP
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w/ HVDC Proposals
Jay CasparyDirector, Transmission Development
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Transmission 203 – Planning to Expand and Upgrade the Grid
Daniel KlineRegional Transmission Planning
Xcel Energy
Western Planning EffortsWestern Planning Efforts
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Why is the West Different? Why is the West Different?
• No Regional Transmission Organization– Collection of planning groups that address
planning and operations issues– Each balancing area responsible for its own
generation dispatch– No formal cost allocation/sharing
mechanism– Governors given great latitude in dealings
between states (Western Governors’ Association)
Why is the West Different? Why is the West Different?
• Load diversity– Large portion of west is WAPA service
territory (remote, low load density)– Northwest U.S. is Bonneville Power
Administration territory (remote, low load density, large hydro generation sources)
– Highest load density in California• Very edge of system• ~1/3 of load• Only established RTO in western U.S.
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How Does Planning Happen? How Does Planning Happen?
• State laws, mandates• Agreements between states (Governor-
driven)• Multi-utility projects• Highly coordinated system of geographic
planning groups • Western Electric Coordinating Council
(WECC)• Interconnection-wide planning (DOE-funded)
RTEPRTEPRegional Transmission Expansion PlanningRegional Transmission Expansion Planning
(Western Interconnection Planning)(Western Interconnection Planning)
• ARRA-funded via a $14.5M DOE Grant to WECC– Corresponding $12.0M Grant to WGA
• Activities managed by Transmission Expansion Planning Policy Committee (TEPPC)
• WECC’s proposal available at the RTEP website – www.wecc.biz
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RTEP:RTEP:Activities Funded In Part By the DOE Activities Funded In Part By the DOE
(ARRA) Grant(ARRA) Grant
WestConnect
ColoradoCoordinated
PlanningGroup
SouthwestArea
Transmission
CCPGCCPG
SWATSWAT
SSPGSSPGSierra Subregional Planning Group
http://www.westconnect.com
• Group of western transmission-owning companies
• Focused on assessment of market needs– Wholesale electricity
market– Maintaining efficient
transmission system to meet customer needs
• Coordination with other regional efforts
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TEPPCTransmission Expansion Planning
Policy Committee• TEPPC’s analyses and studies focus on studies
with Interconnection-wide implications– Reliability, Cost, Emissions
• TEPPC’s role does not include – Detailed project-specific studies– Advocating projects– Identifying potential “winners” and “losers” – Siting and cost allocation
• Provides governance over the RTEP project
AESO
ALBERTA ELECTRIC SYSTEM OPER.
*BCTC*
BRITISH COLUMBIA TRANS. CORP
* BCTC is not a WECC TEPPC designated SPG. BCTC is actively involved in regional transmission planning process and is a SCG member
Subregional Transmission Planning Groups (SPG) Coordination Group
(SCG)• Collaboration between SPGs,
formalized
– Approved charter– Ad-hoc group
• Provide TEPPC a Foundation Transmission Project List
– Starting point for TEPPC 10-year plan
• Provide TEPPC Potential Transmission Project List
– WECC can utilize to integrate resources and mitigate congestion
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Draft Document - Ver. 4.1, May 24, 2010
CAISO
•CAISO02 Sunrise
•CAISO03 Bylthe-Devers
•CAISO04 Tehachapi
SSPG
•SSPG02 SWIP South
•SSPG06 TCP Harry Allen - Northwest
•SSPG07 TCP Northwest – Armagosa
SWAT
•SWAT01 PV-NG#2
•SWAT06 Pinal Central – Tortolita
•SWAT07 Southeast Valley (SEV)
•SWAT08 PV - Morgan
CCPG
•CCPG02 Pawnee – Smoky Hill
•CCPG03 Waterton- Midway
•CCPG04 San Luis Valley
Hemingway
NTTG01
NTTG02
Populus
NTTG03
NTTG01
NTTG03
Boardman
Bethel
NTTG06
Townsend
WyomingWyoming
MontanaMontana
IdahoIdahoOregonOregon
WashingtonWashington
ColoradoColoradoUtahUtah
NevadaNevada
ArizonaArizona
New MexicoNew Mexico
Comanche
Waterton
Midway
Smoky Hill
PawneeCCPG02
CCPG03
CCPG04SLV
Palo Verde
SWAT01
North Gila II Pinal Central
Midpoint
TortolitaSWAT06
BrowningSWAT07
FOUNDATIONAL PROJECTS BY 2020FOUNDATIONAL PROJECTS BY 2020 NTTG
•NTTG01 Gateway South Phase 1
•NTTG02 Gateway Central Phase 1
•NTTG03 Gateway West Phase 1
•NTTG05 Hemingway – Boardman
•NTTG06 Cascade Crossing
CG
•CG01 I-5 Corridor
•CG02 West McNary
•CG03 Big Eddy – Knight
•CG04 Little Goose Area Reinforcement
BCTC•BCTC01 Nicola – Meridian
•BCTC03 BC-US Intertie
Alberta AESO
•AESO03 1202L Conversion
•AESO04 Heartland
•AESO05 West HVDC
•AESO06 East HVDC
•AESO07 Fort McMurray - East Line
•AESO08 Fort McMurray - West LineMona
Aeolus
SSPG02
Harry Allen
NTTG05
Eldorado
SSPG06
Northwest
Amargosa
Devers
CAISO03ImperialPeňesquitos
CAISO02
SSPG07
ByltheMorganSWAT08
McNaryJohn Day
Sigurd
Red Butte
Bridger
Castle Rock
TroutdaleCG01
CG02
NicolaMeridian
BCTC01
OquirrhLimber
Terminal
Coyote Spgs
Legend
500 kV Single Circuit Line345 kV Single Circuit Line500 kV Double Circuit Line345 kV Double Circuit LineDC Circuit (various voltage)Termination SubstationsIntermediate Substations
(1) Map does not reflect 230kV lines that are included in the Foundational Transmission Project List.(2) Internal reinforcements projects not shown for clarity.(3) Lines shown are for illustrative purposes only and may not reflect final line routing.
AESO04
AESO05
AESO06
AESO03
AESO08AESO07
Langdon
AlbertaAlberta
Heartland
Ellerslie
West Brooks
Genesee
Ingledow
CusterBCTC03
DRAFT
CG03
CG04
Big EddyKnight
Lower Ferry
Monumental
British British ColumbiaColumbia
Robinson
Highwind
Vincent
Antelope
Pardee
WindhubCAISO04
CAISO
•CAISO01 C3ET
SSPG
•SSPG01 SWIP North
•SSPG03 SNIP
•SSPG04 Harry Allen – Eld/Mead
SSPG08 Blackhawk - Amargosa
SWAT
•SWAT02 PV-Colo. River
•SWAT03 Navajo Transmission Project
•SWAT04 SunZia
•SWAT05 High Plains Express
CCPG
•CCPG01 WCI
•CCPG05 Lamar Front Range
•CCPG07 Pawnee - Daniels Park
•CCPG08 Pawnee – Story
Hemmingway
NTTG01
Crystal
Populus WindstarCaptain Jack
NTTG01
NTTG04
Townsend
WyomingWyoming
MontanaMontana
IdahoIdahoOregonOregon
WashingtonWashington
ColoradoColorado
UtahUtah
NevadaNevada
ArizonaArizona
New MexicoNew Mexico
Daniels Park
Missile Site
Pawnee
Palo Verde
SWAT02
Pinal Central
Midpoint
Springerville
POTENTIAL PROJECTS BY 2020POTENTIAL PROJECTS BY 2020
NTTG
•NTTG01 Gateway South Phase 2
•NTTG02 Gateway Central Phase 2
•NTTG03 Gateway West Phase 2
•NTTG04 Hemingway-Captain Jack
•NTTG07 MSTI
•NTTG08 Chinook
•NTTG09 Zephyr
•NTTG10 Overland
•NTTG11 Transwest Express
•NTTG13 Colstrip Upgrade
CG
•CG05 Juan De Fuca Cable #1
•CG06 Juan De Fuca Cable #2
•CG07 West Coast Cable
BCTC•BCTC02 CNC including Devils Gap
Alberta ESO•AESO02 Northern Lights
Mona
Aeolus
Marketplace
Amargosa
CAISO01
Colo. River
Buckley
Sigurd
Red Butte
Bridger
CG07
Selkirk
BCTC02
LRS
Wray
Boone
Lamar
Vilas
Gladstone
BlackwaterCorona
SunZia East
SunZia Midpoint
Comanche
Blackhawk
SWAT04
SWAT05
SWAT03
ShiprockRed Mesa
Moenkopi
StoryCCPG 07
CCPG 05
CCPG 01
CCPG 08
SSPG08
Midway
Gregg
BCTC02
Edmonton
AESO02
NTTG03
Collinsville
Eldorado
NTTG08
NTTG09
NTTG10
NTTG11Limber
Terminal
NTTG02
Mead
Harry Allen
SWAT05
(1) Map does not reflect 230kV lines that are included in the Foundational Transmission Project List.(2) Internal reinforcements projects not shown for clarity.(3) Lines shown are for illustrative purposes only and may not reflect final line routing.
Draft Document - Ver. 4.1, May 24, 2010
CG05 CG06
NTTG013
DRAFT
Legend
500 kV Single Circuit Line345 kV Single Circuit Line500 kV Double Circuit Line345 kV Double Circuit LineDC Circuit (various voltage)Termination SubstationsIntermediate Substations
MidC
AlbertaAlbertaBritish British ColumbiaColumbia
Robinson
SSPG 01
NTTG07
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High Plains Express InitiativeA Roadmap for Regional Transmission Expansion
• Description– Two 1,250 mile 500 kV AC
lines through WY,CO,NM and AZ
– 3,500 – 4,000 MW of transmission capacity
– ~$5.13 Billion
• Benefits– Renewable development– Enhanced reliability– Consumer savings
• Participants– 7 Utilities– 3 State Agencies– 1 Transmission Developer
Colorado Senate Bill 07-100
• Upon recommendations by the 2006 Transmission Task Force on Reliable Electricity Infrastructure, the 66th General Assembly passed Senate Bill 07-100. Under SB 07-100, PSCo must meet the following requirements:– Designate “Energy Resource Zones (ERZ)”– Develop plans for the construction or expansion of
transmission facilities necessary to deliver electr ic power consistent with the timing of the development of be neficial energy resources located in or near such zones
– Consider how transmission can be provided to encour age local ownership of renewable energy facilities
– Submit proposed plans, designations, and applicatio ns for certificates of public convenience and necessity to the commission for simultaneous review
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Current SB-100 Transmission Plan
http://www.sb100transmission.com
Contact: Daniel Kline
612-330-7547
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William WhiteEnergy Future Coalition
Transmission Planning Reform: Essential Policy for the Clean
Energy Economy
National Clean Energy Transmission National Clean Energy Transmission InitiativeInitiative
� Began a series of stakeholder advisory meetings in September 2008.
� Released a vision statement in 2009 and legislative plan for a National Clean Energy Smart Grid – supported by more than 60 organizations, including renewable energy developers, environmental organizations, labor unions, and utilities.
http://cleanenergytransmission.org/
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Unlocking Vast DomesticUnlocking Vast DomesticRenewable ResourcesRenewable Resources
Top 20 Electricity Consuming States
Solar Potential
Wind Potential
Transmission PlanningTransmission Planningis the Key is the Key
• Science-based greenhouse gas emissions reduction targets –80% by 2050 – imply profound changes across our entire energy system.
• Low-carbon electricity will be needed to power our homes, businesses, and an increasing portion of our vehicle fleet.
• The system we have today for planning, paying for, and building transmission lines cannot respond to a challenge of this magnitude.
• Building transmission infrastructure to connect abundant domestic renewable resources to population centers will:
– Create jobs in a thriving domestic clean energy industry
– Enhance national energy security, and
– Cost-effectively reduce greenhouse gas emissions and other pollution
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Renewable EnergyRenewable EnergyNeedsNeeds TransmissionTransmission
DOE’s Eastern Wind Integration and Transmission Study (EWITS) January, 2010:– What changes to the grid in the eastern US would be
needed to deliver 20-30% of energy from wind?
– All scenarios – land-based wind in the Midwest, offshore wind in the East, and combinations of wind power resources – require transmission infrastructure upgradesfor which planning should start immediately.
– In all scenarios studied, the cost of aggressively expanding the existing transmission grid was less than 15% of total costs.
– Wind energy development is a highly cost-effective way to reduce carbon emissions.
What’s Wrong withWhat’s Wrong with
Transmission Planning?Transmission Planning?
• Scale is too small.
• Scope is too narrow.
• Limited participation and transparency:– Undermines public support for urgently needed facilities
– Inhibits competition in transmission and generation, and
– Hurts electricity consumers by artificially limiting choices
• Plans are not implemented.
Bad transmission planning disproportionately impacts renewable resources because they are:– location constrained
– concentrated in remote areas, and
– most economic when balanced over large areas.
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How can transmission planningHow can transmission planning
be improved?be improved?
Increase the Scale – require planners to coordinate and
explore more efficient interstate and inter-regional solutions
– consistent with national goals.
Broaden the Scope – explicitly plan for public policy goals
– such as emissions reduction targets and renewable energy
standards – in additional to reliability and cost.
Open the Process – to incorporate stakeholder input,
increase competition and consumer choice, and consider the
full range of alternatives: energy efficiency, distributed
generation, demand response, and smart grid upgrades.
Link Planning to Implementation Authority – cost
allocation and siting.
Thank you.
Contact:Bill White
David Gardiner & [email protected]
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Admiral John NathmanU.S. Navy (ret.)
A National Security Perspective on the Grid Planning
Johannes Johannes PfeifenbergerPfeifenbergerThe Brattle Group
Transmission Planning: Overarching Challenges to Regional Expansion
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Major Challenges to Major Challenges to Regional Transmission PlanningRegional Transmission Planning
• Transmission planning and cost allocation works reasonably well for “traditional” transmission projects (i.e., single utility and reliability projects):– Current level of investment 4-5 times higher than in 1990s
– Significant new transmission under construction and planned
• Cost allocation now is the major barrier for multi-state, multi-purpose projects, including “overlays” to integrate renewables:– Transmission developers need to know from whom they will
recover costs before they can plan projects
– Transmission customers and state commissions need to know what costs they will bear (and why) before they agree to plans
– Few regions have cost allocation frameworks for such projects
Major Challenges to Major Challenges to Regional Transmission PlanningRegional Transmission Planning
• In addition, within most multi-state RTO/ISOs, planning parameters are too narrowly defined: – Leaves out important but difficult-to-quantify benefits (e.g.,
economic development, reliability, fuel diversity, energy security, competition)
– Leaves out consideration of achieving policy goals at lower costs (e.g., renewable energy development, climate)
– Insufficient coordination with neighboring regions
• Exactly calculating benefits for beneficiaries (e.g., “beneficiary-pays” frameworks) is not pragmatic:– Benefits too broad in scope, wide-spread geographically, diverse
in their effects on individual market participants, and changing over course of several decades
– Many important benefits likely be judged only qualitatively
– Incentives to understate individual benefits (to reduce cost allocations) undermines perceived overall project benefits
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Major Challenges to Major Challenges to Regional Transmission PlanningRegional Transmission Planning
• State involvement necessary to set regional priorities and achieve meaningful commitment to regional transmission plans and cost allocations– In single-state ISOs (CA and TX), transmission planning
objectives are already aligned with state policy goals
– Recently, as within the Southwest Power Pool (SPP), states are integral part of pro-active efforts to improve regional planning and resolve cost allocation
• Success more likely in modestly-sized regions that are sufficiently uniform (e.g., SPP)
• Promising FERC initiatives, but federal backstop for planning and cost allocation may be needed to achieve viable and timely regional cooperation and commitment
Comparison: Service Areas of Comparison: Service Areas of Regional Transmission Organization and Regional Transmission Organization and
NERC Reliability RegionsNERC Reliability Regions
DRAFT
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Selected Regional Transmission Planning Selected Regional Transmission Planning Groups and NonGroups and Non--RTORTO--level Regional level Regional
Planning EffortsPlanning EffortsNTAC
Northwest Transmission Assessment Committee
ColumbiaGrid
PSPA
Pacific Southwest Planning
Association
SWAT
Southwest Area
Transmission
CCPG
Colorado Coordinated
Planning Group
WestConnect
NTTG
Northern Tier Transmission
Group
UMTDI
Upper Midwest
Transmission Development
Initiative
RGOS Phase I
Regional Generation
Outlet Study
RGOS Phase II
Regional Generation Outlet Study
Similar scope as Strategic
Midwest Area Transmission
(SMART) Study
TVATVA
Tennessee Tennessee Valley Valley
AuthorityAuthority
North Carolina Transmission
Planning Collaborative
Southeast Inter-Regional Participation
Process
Additional ReadingFox-Penner, Pfeifenberger, Hou, “For Grid Expansion, Think ‘Subregionally’,” The Energy Daily, June 8,
2010.
Fox-Penner, “Smart Power: Climate Change, the Smart Grid, and the Future of Electric Utilities,” Island Press, 2010.
Pfeifenberger, Chang, Hou, Madjarov, “Job and Economic Benefits of Transmission and Wind Generation Investments in the SPP Region,” The Brattle Group, Inc., March 2010.
Pfeifenberger, Fox-Penner, Hou, “Comments from The Brattle Group Principals Peter Fox-Penner and Johannes Pfeifenberger and Associate Delphine Hou,” filed at the U.S. Federal Energy Regulatory Commission for Transmission Planning Processes Under Order No. 890 – Notice of Request for Comments (Docket AD09-8).
Pfeifenberger, Fox-Penner, Hou, "Transmission Investment Needs and Cost Allocation: New Challenges and Models," The Brattle Group, Inc., presented to FERC Staff, Washington, DC, December 1, 2009.
Fox-Penner, Pfeifenberger, “The Anchor-Tenant Model – And Some of the Chickens and Eggs,” The Electricity Journal Guest Editorial, Volume 22, Issue 6, July 2009.
Pfeifenberger, "Assessing the Benefits of Transmission Investments," presented at the Working Group for Investment in Reliable and Economic Electric Systems (WIRES) meeting, Washington, DC, February 14, 2008.
Pfeifenberger, Direct Testimony on behalf of American Transmission Company re: Transmission Cost-Benefit Analysis Before the Public Service Commission of Wisconsin, Docket 137-CE-149, January 17, 2008.
Pfeifenberger, Newell, "Evaluating the Economic Benefits of Transmission Investments," EUCI’s Cost-Effective Transmission Technology Conference, Nashville, TN, May 3, 2007.
Pfeifenberger, Testimony on behalf of Southern California Edison Company re: economic impacts of the proposed Devers-Palo Verde No. 2 transmission line, before the Arizona Power Plant and Transmission Line Siting Committee, Docket No. L-00000A-06-0295-00130, Case No. 130, September and October, 2006.
DRAFT