plains & eastern clean line - the tennessee...
TRANSCRIPT
10/28/2015
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Plains & Eastern Clean Line
TN Chamber of Commerce: 33rd Annual
Environment and Energy Conference
October 15, 2015
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Clean Line’s projects connect the lowest-cost wind
resources to major demand centers
Clean Line projects
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Source: DOE 2014 Wind Technologies Market Report published August 2015
Wind energy prices continue to decrease, particularly
in the windiest part of the country
Levelized PPA prices by PPA execution date
2014 $/MWh
The “Interior” region consists of the 13 states where the wind resource is the strongest:
OK, KS, IA, NM, SD, NE, TX, MN, WY, CO, ND, MT, and MO.
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The Plains & Eastern Clean Line will connect wind from the
Oklahoma Panhandle to the Mid-South and Southeast
Project interconnects with TVA 500 kV system at Shelby Substation in western Tennessee -3500 MW capacity.
The Arkansas converter station, a DOE alternative under NEPA proposed in response to scoping comments, interconnects with MISO 500 kV system at ANO/Pleasant Hill - 500 MW capacity.
Using TVA Point-to-Point transmission service, wind transmitted on the line can be delivered to other utilities, cooperatives and municipal utilities in the Southeast.
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Project overview map
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Direct current transmission is the right answer to tap
distant wind resources
conducive to a merchant model
ideal for hauling power over long distances
• Converter stations are like on- and off-ramps that make it easier to
charge customers directly for service over the line
• Clean Line will sell transmission service to generators and load
serving entities
• Reliability – DC, unlike AC, allows complete control of power flow and
prevents cascading outages
• Efficiency – Over long distances, DC transfers more power with lower
line losses and with less infrastructure than comparable AC lines
• Smaller footprint – DC requires narrower right-of-way than equivalent
AC configuration, resulting in lower land use impact
HVDC is…
3000-4000 MW Capacity
Three 500 kV AC lines One ± 500kV DC bipole
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Endpoints determined Five miles wide Five miles wide
Five miles wide One mile wide 1000-feet wide
STUDY AREA CANDIDATE CORRIDORS CORRIDOR NETWORK
STUDY CORRIDORNETWORK OF
POTENTIAL ROUTES
APPLICANT PROPOSED
ROUTE
Clean Line engaged in a multi-staged routing process
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Clean Line has conducted extensive outreach to
stakeholders during multi-year development process
• Over 400 stakeholders
32 Roundtable Meetings in 2012
• More than 74 businesses participated
11 Local Business Opportunity Meetings in 2012
• Approximately 1000 stakeholders
20 Open Houses in 2012-2013
• Over 500 stakeholders
30 Office Hours in 2014
• Over 7,500 landowners along proposed route, alternatives and study areas
Mailing following Draft EIS release in 2014
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Clean Line has engaged in regulatory processes at both
the state and federal levels
2009 2010 2011 2012 2013 2014 2015 20172016 2018 2019
Section 1222 Process
DOE issued Section
1222 RFP
CL submitted Section
1222 App
DOE & CL signed Advance Funding
& Development AgreementSection 1222
Comment Period
CL submitted
Part 2 App
DOE Record of
Decision
Oklahoma Regulatory
Arkansas Regulatory
Tennessee Regulatory
OCC grants authority to operate as an electric utility
AR PSC denied granting CCN
TRA issued CPCN
Note: future activities subject to change
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The TRA approved the Plains & Eastern Clean Line as a
transmission-only utility in the state
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The Department of Energy is evaluating Clean Line’s
Section 1222 Part 2 Application
The Part 2 Application is Clean Line’s response to DOE’s request for
an update to Clean Line’s original application under Section 1222
What does the Part 2 Application include?
- Detailed description of the project and
the progress made to date
- Detailed support for how the project
meets the criteria under Section 1222
- Proposed Participation Agreement Term
Sheet with Southwestern and DOE
What’s next?
- Develop Participation Agreement
- Record of Decision
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Final Environmental Impact Statement for Plains &
Eastern expected October 2015
What does the EIS process include?
- Comprehensive review of potential
impacts; proposed route and
alternatives analyzed
- Department of Energy held public
meetings in January and February
and 120 day comment period
- Three-year effort, $15 million cost
What’s next?
- Final EIS expected October 2015
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Plains & Eastern Clean Line will result in cleaner air and
better conservation of water resources
13 million tons
carbon dioxide
reduced in year 1
3.4 billion gallons
saved
5 thousand tons
nitrogen oxide reduced
11 thousand tons
sulfur dioxide reduced
Source: Leidos, 2015.
ENVIRONMENTAL BENEFITS
194 pounds
mercury reduced
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103
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60
80
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120
KY AL GA TN SC AR NC SE States Plains &
Eastern
Plains & Eastern Clean Line can help Southeastern states
meet their carbon reduction targets
Annual CO2 emissions reductions (million tons) for Southeast states
4,000 MW of wind delivered by Plains & Eastern can make a significant impact on CO2
emissions in Southeastern states, reducing between 9 million and 23 million tons of CO2
depending on the generation source displaced.
Source: EPA Clean Power Plan1 Production cost modeling models the generation displaced by the addition of new energy. Production cost modeling of the Plains & Eastern Project
shows that 13 million tons of CO2 will be displaced based on the current supply stack.
Note: Mass-based CO2 emission reductions based on EPA calculations for 2012 and 2030 targets for each state. Plains & Eastern displacements are
calculated using the average coal and gas emission rates for Southeastern states as defined in the EPA Clean Power Plan and assumes a 60%
utilization rate of the Plains & Eastern line
9 – 23
9 mm tons = gas
23 mm tons = coal
CO2 emissions reductions required by Clean Power Plan
CO2 emissions reductions from Plains & Eastern
131
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Plains & Eastern Clean Line represents significant
investment and large benefits to Tennessee
Hundreds of
direct jobs during
construction, operations and maintenance
Property tax revenue
to Tipton and Shelby Counties
Access to clean,
affordable energy
$300 million investment
in transmission facilities
in western Tennessee
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The Plains & Eastern Clean Line supports TVA’s goals
and vision
Responsibility and Economic Development
Greater reliability
Cleaner Air
Low Rates
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www.plainsandeasterncleanline.com
www.cleanlineenergy.com
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Plains & Eastern Clean Line has reached an advanced
stage in the development process
ROUTING
REGULATORY APPROVALS
INTERCONNECTION
STATUS MILESTONES
Identified preferred route and alternatives in OK, AR, and TN through four-phased routing study
Approved as a public utility in Oklahoma in 2011
DOE Record of Decision expected Q4 2015
Approved as a public utility in Tennessee in 2015
SPP Criteria 3.5 (No Harm) Studies complete, Facilities Study results received Nov 2014
MISO Feasibility Study complete, entered Definitive Planning Phase Q1 2015
TVA System Impact Study complete, Facilities Study in progress
ENVIRONMENTAL DOE Published Environmental Impact Statement (EIS) Notice of Intent (NOI)
Draft Environmental Impact Statement (DEIS) released Dec 2014
Final Environmental Impact Statement (FEIS) expected Q4 2015
COMMERCIAL Received negotiated rate authority from Federal Energy Regulatory Commission (FERC) to negotiate bilaterally for 100% of line’s capacity
Conducted Open Solicitation
Negotiating precedent agreements with shippers
Generators sign PPA’s with load serving entities and enter into transmission service agreements with Plains & Eastern
CONSTRUCTION MANAGEMENT & SUPPLY CHAIN
Designated General Cable (AR), Sediver (AR) and Pelco Structural (OK) as preferred suppliers
Preliminary engineering and structure spotting complete
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17,000+ MWin requests for
capacity
=enough to fill Plains & Eastern 4+ times
potential customers
submitted responses
15for service to Tennessee
7For service to Arkansas
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Transmission Service Requests indicate demand for
transmission capacity to deliver wind to market
From May through July 2014, Clean Line conducted an open solicitation for
transmission capacity on the Plains & Eastern Clean Line.