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Tuesday, 03/28/2006 3:49:31 PM

Tuesday, March 28, 2006 3:49:31 PM

Post# of 7018

This is from the March 06 Newsletter from WAPA.



Western implements Energy Policy Act of 2005
Western’s Administrator Mike Hacskaylo testified before the U.S. House of Representatives Committee on Resources, Subcommittee on Water and Power, March 1 about how Western is implementing selected sections of the Energy Policy Act of 2005 and our FY 2007 budget request. Here are excerpts from his prepared statement:

“Transmission is central to our mission. Western provides reliable, cost-based transmission using an integrated 17,000 circuit-mile, high-voltage system, spanning most of the western half of the United States. While utility regulatory changes and restructuring efforts capture most of the headlines, Western is pursuing a number of initiatives to increase transmission capacity and reliability. Our efforts will support continuing utility industry change, evolving regional needs such as increased interest in renewable resources, and requests from many developers for interconnections to Western’s system.

Joint projects efficiently update transmission grid
“Transmission system modernization is a necessity to support cost effective wholesale electricity markets. Western has been progressive in making incremental improvements to its facilities to enhance grid reliability. We are well served by our continuing commitment to improving our business practices, and successful in our longstanding commitment to jointly plan, develop and finance system enhancements. Robust regional planning processes identifying both economic and reliability needs of the grid are in place in the West, encouraging partnerships for transmission development. Joint ownership of transmission projects has resulted in a highly integrated system that has fostered extensive cooperation and economic coordination among transmission partners.

“Western has existing authority to participate in joint transmission projects, and has done so many times. In 2004, Western constructed the Path 15 Upgrade Project in central California to relieve a major transmission bottleneck. We are currently involved in expanding the regional transmission network in eastern Colorado and western Kansas in a partnership with Tri-State Generation and Transmission Association. Funding for these joint efforts is provided primarily by non-Federal partners. The Energy Policy Act of 2005 expands Western authority to use non-Federal funding to construct or participate in the construction of new transmission that will relieve bottlenecks in ‘national interest electric transmission corridors,’ or is necessary to accommodate an actual or projected increase in demand for transmission capacity.

New technology enhances capability, reliability
“Through state-of-the-art technology and equipment enhancements, we continue to improve transmission system capability as well as performance and reliable operation of the Federal system. These enhancements mitigate some constraints without adding new lines to the grid. We continue to field test high-capacity composite conductors designed to significantly increase the transfer capacity of existing transmission lines in relieving system congestion.


Renewable energy creates additional demand
“Wind generation and other renewable energy options look promising to Western’s customers as solutions to increasing energy needs. Wind energy is the world's fastest-growing energy technology. With the recent passage of the Energy Policy Act of 2005, we expect to see average annual wind capacity expanding at rates exceeding 20 percent. The two-year extension of the Production Tax Credit for renewable resources assures that requests for transmission service and interconnection to Western’s transmission system, mainly from wind generation developers, will continue. However, reinforcement and system upgrades will be necessary to meet these requests and maintain grid reliability. Western’s recently-completed Dakotas Wind Transmission Study (December 2005), authorized and funded by the Energy and Water Development Appropriations Act of FY 2004, provides the engineering analysis which supports this conclusion.
Open access, system reliability require cooperation
“Transmission system modernization is necessary to provide increased open access to Western transmission facilities. We have a longstanding practice of allowing third parties to use available capacity in the Federal transmission system, confirmed through our initial Open Access Transmission Tariff filing in 1997, and revised as filed last year to incorporate the Federal Energy Regulatory Commission’s Large Generator Interconnection standards. Western also joined the Midwest Independent System Operator as a non-transmission owner in 2005, allowing us to better represent our load-serving interests in various MISO committees as a voting member.

“The Energy Policy Act of 2005 strengthens the industry commitment to transmission system reliability by giving FERC expanded authority to approve and enforce reliability standards. We continue to participate in developing binding reliability standards that are effective in protecting the interconnected electric system. Western is proud of its reliability record, as we consistently exceed national system standards set by the North American Electric Reliability Council.

“Western is ‘getting things done’… regional planning is occurring and transmission lines are being rebuilt as we continue to solve transmission and reliability issues to facilitate the use and future expansion of the transmission grid in the West.”

http://www.wapa.gov/newsroom/cct/2006/mar3/28no51.htm
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