Not just a ‘boondoggle’: State regulators, industrial companies push for cost effective transmission

Proactive planning, incentives and competitive solicitations can help control transmission costs, the Brattle Group’s Johannes Pfeifenberger said.

With transmission costs expected to continue increasing, state utility regulators, energy consumers and transmission operators are eyeing options to ensure the grid is expanded in the most cost-effective way possible, according to a Nov. 13 panel at the National Association of Regulatory Utility Commissioners’ annual meeting in Anaheim, California.

“We’re not opposed to transmission investment,” said Pat Scully, a commissioner at the Maine Public Utilities Commission. “We know it’s necessary, but it needs to be subject to appropriate, high quality planning — planning that focuses on what the needs are, what the most effective solutions for those needs are and with some mechanisms to control costs.”

In New England, annual transmission charges have grown to $3.3 billion, from $869 million in 2008, with transmission investments almost entirely focused on reliability needs, according to Scully.

Looking ahead, ISO New England estimates the region will need about 57 GW to meet state energy goals by 2050, up from 28 GW today, Scully said during a panel on ensuring cost-effective transmission. That could require up to $26 billion in new transmission, he said.

New England states have asked ISO-NE to issue a solicitation for transmission that could deliver roughly 3 GW of potential wind generation in Northern Maine to the rest of New England, Scully noted. The grid operator is expected to issue a request for proposals early next year and a project to be selected in 2026, according to Scully.

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