Securing interregional transmission acceptance hinges on identifying mutually beneficial outcomes, according to industry experts.
The energy sector is witnessing a surge in interregional transmission collaboration, with complex negotiations underway. One such initiative is the Multistate transmission collaboration, where cost allocation has emerged as a particularly challenging issue.
Recently, MISO (Midcontinent Independent System Operator) has come under scrutiny. Five state utility commissions have filed a complaint, alleging that MISO used flawed modeling to calculate the potential benefits of its portfolios, which they claim are significantly less than the costs. The commissions have urged the Federal Energy Regulatory Commission to change the classification of one of MISO's portfolios to make it ineligible for cost-sharing.
Amidst these challenges, Abe Silverman, an assistant research scholar with Johns Hopkins Universityβs Ralph O'Connor Sustainable Energy Institute, is facilitating the Northeast States Collaborative on Interregional Transmission. In June, this collaborative issued a request for information (RFI) to identify candidate projects that would increase interregional transfer capability across one or more ISO interfaces, either between PJM and New York, or between New York and ISO New England.
The goal of this RFI initiative, as stated by Silverman, is to identify candidate projects so that benefits to consumers can be demonstrated when discussing the projects with the governors of various states. The organization that issued the call for information is the Eastern Interconnection Planning Collaborative (EIPC). Responses to the RFI are due by October 23rd.
The success of past interregional transmission projects, such as the CapX2020 project, underscores the potential benefits of such collaborations. Led by Beth Soholt, executive director of the Clean Grid Alliance, the CapX2020 initiative was an 800-mile high-voltage transmission project among 11 Midwestern utilities. The project's success was due to a strong shared vision among the participating utilities and extensive public engagement, regulatory processes, logistics, and financial complexity.
However, Soholt points out that MISO South is currently resistant to interregional transmission and is focused on protecting incumbent generation. She suggests that willing participants are necessary for replicating the success of the CapX2020 project in other regions, such as the South.
Opportunities for regional collaboration between the Northeastern states and Canada also exist, driven by mutual carbon-reduction goals and geographical proximity. Nova Scotia, for instance, has designated four offshore areas for future offshore wind development and is exploring the idea of exporting some of that power to New England, according to CBC News.
In light of federal limitations on U.S. offshore wind development, advocates like Anya Poplavska, a senior policy advocate at the Acadia Center, see opportunities to take advantage of cross-border opportunities with Canada. Poplavska also emphasizes that cost allocation is one of the hardest things to agree on in these projects, and suggests a focus on benefits allocation instead.
Despite the challenges, the drive towards interregional transmission collaboration continues. With clear communication of benefits and a focus on consumer benefits, these collaborations could pave the way for a more interconnected and sustainable energy future.
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