CEC Urges Centralized Transmission Planning

California needs centralized planning of its electrical transmission system that will streamline permitting and drive needed investments, the California Energy Commission staff said in its Draft 2005 Strategic Transmission Investment Plan September 9. Not surprisingly, the commission said it should play the key role in such planning, including taking over permitting authority for transmission facilities from the California Public Utilities Commission. The commission's 2005 Integrated Energy Policy Report committee will hold a hearing on the transmission report on September 23. If approved, it will become a part of the 2005 IEPR. The lack of investment in transmission facilities cost California investor-owned utility customers more than $1 billion in 2004, according to the report. That included $426 million in congestion charges and $644 million for reliability-must-run contracts. Completing key transmission lines can lower those costs dramatically. Major transmission projects opened earlier this year—including upgrades to Path 26, South of Lugo, and the new Miguel-Mission line in San Diego—are reducing the cost of bottlenecks on the state's grid, according to the California Independent System Operator. Congestion costs in the first seven months of 2005 are just $87 million, compared to $205 million for the same period last year. "This is real progress for the consumers," said Yakout Mansour, CAISO chief executive officer. "Strategically planned transmission upgrades to the grid can be very cost-effective." According to the report, California must focus on quickly approving and acquiring rights-of-way to make sure key transmission projects are constructed in the near term. The lines include Palo Verde to Devers 2; the Sunrise Powerlink to bring renewable power into Southern California from the Imperial Valley; and the Tehachapi Transmission Plan to bring wind power to Southern California Edison customers. It also includes the Imperial Valley Transmission Upgrade Project, which would increase the capacity of an existing line to bring more geothermal power to Edison territory and eventually tie into the Western Area Power Administration and Arizona Public Service. In the longer term, the report urged sweeping changes, such as: State legislation to establish a transmission corridor designation process. Changing CAISO tariffs to "support the clustered development of renewables" to make transmission facilities for green power projects more economically feasible. Having the CPUC allow utilities to carry the cost of land acquisition for transmission lines in the rate base for a longer period of time. Optimizing existing pumped storage hydropower facilities and identifying locations for additional pumped storage projects to level power output as the state moves toward intermittent renewable power.

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CEC Urges Centralized Transmission Planning

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