Wind Association Floats Transmission Compromise

Southern California Edison garnered 11 protests or partial protests while six entities backed its precedent-setting request to the Federal Energy Regulatory Commission to roll in the cost of building new transmission to access wind power in the Tehachapis. If Edison?s plan flies, it will receive regulatory exemptions and establish a new transmission category for transmission lines for renewable power. The California Wind Energy Association, which has mixed reactions to the utility?s proposal, offered a compromise in its April 14 comments to the commission. It supports Edison?s objective but would avoid having regulators declare a precedent by carving out a new category of transmission line?thus avoiding much of the opposition. Instead, CalWEA would roll in the costs of building new lines to be paid for by all customers by keeping all the proposed lines in the ?network? category. Edison?s plan has two of the potential lines in the traditional ?network? category. However, Edison would have regulators create a new, narrowly defined category for a third part of the transmission project that would also require customers to pay for the line through rates. Among those protesting against Edison was the Transmission Agency of Northern California. While supporting the concept of removing barriers to transmission development, the agency said that ?Edison provides no evidence to support its assumptions that renewables pose greater risks than other forms of generation, and that barriers, unique to the interconnection of renewable facilities, exist to the construction of transmission lines thus necessitating special rate treatment.? The group maintains that Edison is already compensated for any risk in construction in existing rates. The Northern California Power Agency and other munis had similar arguments. Munis have been fighting regulatory and legislative requirements for renewable energy in their own supply portfolios. Pacific Gas & Electric supports Edison?s precedent and would expand it to all renewable resources, not just wind. Edison?s plan to get transmission built through rolled-in rates is an attempt to break the logjam between wind developers and the utility. The California Public Utilities Commission attempted to force Edison to build the lines, risking its own investment, but Edison successfully fought the commission?s attempt by prevailing in a court appeal. Wind developers say they cannot afford to build the transmission. Thus, if Edison is successful with its FERC request, the lines would get built and be paid for through rates. Edison?s FERC request would have three transmission projects, called ?Antelope,? paid for in rates, and ensure the utility recovery of its costs. Cost recovery would be guaranteed even if developers? plans for more wind turbines do not materialize, and/or Edison decides to abandon or cancel its transmission projects. The plan would eliminate the utility?s risks and negate potential disallowances. If the plan is approved, regulators will be making an exception to their nondiscriminatory-access rule, because it would be built for transmitting renewable power ( Circuit , April 1, 2005).

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Wind Association Floats Transmission Compromise

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