NECPUC Staff Report on Transmission Cost Allocation, 6/15/07NHPUC Report on NH Transmission Infrastructure, 12/1/07Both available at:www.puc.nh.gov Some resources on POWER FROM THE NORTH2/29/08 Roundtable Commissioner Clifton Below, NHPUC

What Resources Really Will be Available? Good Question, depends, in part, on transmission (also siting & finances)

Source: http://truewind.teamcamelot.com/ne/

NE VermontNW MaineNorthern NH

One Biomass Example:Just this week Clean Power Development, LLC gave NH Site Evaluation Committee a heads up that they would soon be filing 3 applications for RPS qualified renewable bio-mass fueled projects: 38.5 MW Merrimack cogeneration next to Anheuser-Busch Brewery 50 MW Winchester base loaded in SW NH 30-40 MW Berlin cycling plant next to waste water treatment facility

Clean Power Development, LLC Successful Farm Appearance

Rising Concerns about Rising Cost of Transmission as a Rate Component

Chart1

13.9813.980

14.2514.250

15.5715.010.56

15.3614.560.8

14.8813.81.08

14.8613.131.73

15.1412.622.52

15.612.183.42

16.8112.484.33

18.8213.295.53

25.6213.0612.55

27.6512.8414.81

Slide prepared by NHPUC Comm. Clifton Below from data in slides 5 and 6 of "RTO RNS Rate Presentation" by Participating Transmission Owners, 8/20/07, file name: a3_rns_stakeholder_presentation_082007.pdf available as part of Zip 10 for 8/20-21 RC/TC, a0_zip_10_tc_08202107.zip, at http://www.iso-ne.com/committees/comm_wkgrps/trans_comm/tariff_comm/mtrls/2007/aug20212007/index.html.

Total

Pre- 1997

Post 1996

$/kW-year

New England TransmissionRegional Network Service (RNS) Rates History

Sheet1

TotalPre- 1997Post 1996

3/1/9713.9813.980

6/1/9714.2514.250

6/1/9815.5715.010.56

6/1/9915.3614.560.8

6/1/0014.8813.81.08

6/1/0114.8613.131.73

6/1/0215.1412.622.52

6/1/0315.612.183.42

6/1/0416.8112.484.33

6/1/0518.8213.295.53

6/1/0625.6213.0612.55

6/1/0727.6512.8414.81

Acr5DCA

Rate Year Beginning( $/kW-year )

Pre97Post96Total

3/1/9713.98-13.98

6/1/9714.25-14.25

6/1/9815.010.5615.57

6/1/9914.560.815.36

6/1/0013.81.0814.88

6/1/0113.131.7314.86

6/1/0212.622.5215.14

6/1/0312.183.4215.6

6/1/0412.484.3316.81*

2/1/0512.494.416.89*

6/1/0513.295.5318.82*

6/1/0613.0612.5525.62*

6/1/0712.8414.8127.65

*Reflects 12/21/06 ROE Compliance

Who Pays? With $3-6 Billion More of Reliability Upgrades in the Pipeline

Many other regions (around the world, e.g ON, NZ) dealing with similar ?s of process for deciding what transmission to build to connect renewable resources to load and how to pay.1 interesting case in point: SPP RSC has responsibility for cost allocation & rate design.Through stakeholder process (CAWG) SPP RSC has adopted Concepts Paper on Economic Upgrades (1/28/08) for implementing with SPP RTO.

SPP: Balanced Economic Portfolio Ensure that some SPP transmission customers are not benefiting at the a cost to others.10 yr NPV of benefits (to customers) > 10 yr NPV of levelized revenue requirement for upgrade.For an acceptable portfolio, at zonal level, no zone should have benefits < than costs.If not then some zonal adjustments through additonal upgrades or cost transfers to pool rate.

Final ThoughtOver time, climate science, and resulting policy recommendations, public opinion and political will are steadily trending to need for more carbon reductions sooner than later to avoid serious and costly consequences of global warming.We need to figure this out and move forward to capture as many GHG reductions, as cost effectively, on as many fronts, as quickly, as we possibly can.

This chart shows the cost of transmission that is part of regional network service (RNS) in New England for the past decade. The cost is charged as dollars per kilowatt (of demand) per year. A kilowatt is equal to the load caused by (10) 100 watt light bulbs running at the same time. The annual cost is based on peak demand or load on the transmission system. So someone running a kW of load at the peak times that charges are computed would have caused the load serving entity (LSE), usually the distribution company, to have incurred about $15 in annual RNS charges from 1997 to 2003 and nearly $28 today. Note that this year, for the first time, cost recovery for investments made since 1996 exceed cost recovery for all transmission investments made before 1997. The total rate for RNS can be expected to steadily climb for the foreseeable future as investment in RNS transmission upgrades continues.