Chris Dutton, VELCO
These are quick notes taken during Chris Dutton’s speech. For more comprehensive info, see the PDF linked at the end of this story.
Economic Projects vs Reliability Projects
- Economic projects are those transmission projects that do not qualify for reliability under ISO-NE’s definition
- Economic transmission projects paid for by participants and not socialized throughout new england.
- Reliability projects have guaranteed and capped rate of return, return on economic projects is driven by the market.
- Economic projects can yield higher returns than reliability projects, however, they carry greater risk.
VELCO has ordered ISO New England (the folks who run the New England electric grid) to work with NY’s energy organizations to coordinate transmission projects.
We’re trying to develop criteria to encourage economic projects while making sure that, for example, private transmission facilities are being made in ways and places that make sense. Looking to reduce the rate at which electric rates increase.
- Regional project costs a growing component of bills
- Maintaining system reliability if VT Yankee is not relicensed.
- Maintaining compliance with increasingly strict federal reliability standards
- and Others …
- Need to deliver renewables driving national/regional economic transmission project proposals likely to impact VT.
- Geography and grid configuration puts Burlington Telecom in a key position between supply and demand.
- Parties now pursuing projects based on their own priorities that may not match VTs priorities.
- We’re in the process of identifying the most efficient, cost effective, environmentally sound transmission/renewable energy option.
Q: Part of the reliability of renewables is storage/intermittency
A: We recognize the issue. There’s technology being developed that deals with some of those concerns. The levels of renewable generation given the load in NE shouldn’t be a problem – w/poss localized exceptions.
Q: At what point does it become intermittency a problem?
A: That depends on the energy mix, the location, and the grid. Denmark is starting to hit some of those issues – intermittent sources, when they got to 30% of energy supply, they started to have issues.
Q: Where can we find VELCO’s transmission documents?
A: FERC web site, will also put presentation on the VELCO web site on the Long Range transmission planning page.
Comment: Let’s not forget when we talk about storage that there are wild variations of estimates of when issues would occur, depending on who you talk to. We had 50% generation. Keep technology in mind. [ed note: didn’t get identity of “we”]