Post on 05-Jun-2018
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• Make the benefits of an economically efficient energy market
available to customers by identifying transmission projects which
provide access to electricity at the lowest total electric system cost
• Provide a transmission infrastructure that upholds all applicable
NERC and Transmission Owner planning criteria and safeguards
local and regional reliability through identification of transmission
projects to meet those needs
• Support state and federal energy policy requirements by planning
for access to a changing resource mix
• Provide an appropriate cost allocation mechanism that ensures
that costs of transmission projects are allocated in a manner
roughly commensurate with the projected benefits of those
projects
• Analyze system scenarios and make the results available to state
and federal energy policy makers and other stakeholders to
provide context and inform the choices they face
• Coordinate planning with neighboring planning regions to seek
more efficient and cost-effective solutions
MISO
Board of
Director
Planning
Principles
Fundamental
Goal
The development of a comprehensive expansion plan that meets
reliability needs, policy needs, and economic needs
Guiding Principles: MISO Transmission Expansion Plans
MISO Value Based Planning
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• Objective of value based
planning is to develop the
most robust plan across a
variety of scenarios – not
the least-cost plan under a
single scenario
– The “best” transmission
plan may be different in
each policy-based future
scenario
– Transmission plans that
provide value under a
range of scenarios should
offer the most future
value in supporting the
future resource mix
The Road to the First Multi Value Project Portfolio
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2005
2006
2007
2010
Board of Directors Guiding Principles
2008
Value-Based Planning Process
MTEP 06 Energy Market Planning Analysis
Joint Coordinated System Plan
2009
FERC Order 890
6 States in MISO have Renewable Portfolio Standards
10 States in MISO have Renewable Portfolio Standards
Regional Generation Outlet Study I
Regional Generation Outlet Study IIOMS Cost Allocation and Regional Planning Work Group Created
Multi Value Project FERC OrderCandidate Multi Value ProjectPortfolio Analysis
2011
FERC Order 1000
Multi Value Project Tariff Development
Upper Midwest Transmission Development Initiative Created
Midwestern Governors Association supports Energy Zones Methodology
2003 MTEP03 Exploratory Study
MTEP 05 Exploratory Study
First Multi Value Project Portfoliorecommended to BOD
Explorations of the policy, processes, and transmission solutions required to provide the best value for consumers began in 2003
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Before transmission is built a
number of conditions must
be met
- Increased consensus on
energy policies (current
and future)
- A robust business case
that demonstrates value
sufficient to support the
construction of the
transmission project
- A regional tariff that
matches who benefits with
who pays over time
- Cost recovery mechanisms
that reduce financial risk
Conditions Precedent to
Regional Transmission Build
Policy ConsensusState Renewable Portfolio Standards
• MISO believes an informal consensus has been reached regarding appropriate planning for energy policies.
• This belief is based on the widespread implementation of Renewable Portfolio Standards across the MISO footprint and the work of many stakeholders, spearheaded by the:
� Midwest Governor’s
Association
� Upper Midwest Transmission
Development Initiative
� Organization of Midwest ISO
States Cost Allocation and
Regional Planning
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Wind Zone Development Was Key to Establishing Transmission Needs
The low cost approach to wind generation siting, when both
generation and transmission capital costs are considered, is
a combination of local and regional generation locations. 8
Transmission Portfolio of 17 Projects Developed
92011 Approved Multi Value Project Portfolio
Proposed Multi Value Project
Existing/Planned Transmission
345 kV Proposed
765 kV Proposed
345 kV
500 kV
735 kV and above
DC Line
Proposed Multi Value Projects (MVPs) State Voltage
Big Stone-Brookings SD 345 kV
Brookings, SD -SE Twin Cities MN/SD 345 kV
Lakefield Jct.-Winnebago–Winco–Burt area & Sheldon–Burt area–Webster MN/IA 345 kV
Winco–Lime Creek–Emery-Blackhawk–Hazleton IA 345 kV
N. LaCrosse-N. Madison-Cardinal & Dubuque Co.-Spring Green-Cardinal WI 345 kV
Ellendale-Big Stone ND/SD 345 kV
Adair-Ottumwa IA/MO 345 kV
West Adair to Palmyra Tap MO 345 kV
Palmyra-Quincy-Merdosia-Ipava & Meredosia-Pawnee MO/IL 345 kV
New Pawnee-Pana IL 345 kV
Pana-Mt. Zion-Kansas-Sugar Creek IL 345 kV
New Reynolds-Burr Oak-Hiple IN 345 kV
Michigan Thumb Loop Expansion MI 345 kV
New Reynolds-Greentown IN 765 kV
Pleasant Prairie-Zion Energy Center WI/IL 345 kV
Fargo-Oak Grove IL 345 kV
Sidney-Rising IL 345 kV
Multi Value Projects reliably and economically
enable established energy policy choices
• Transmission Portfolio creates a robust transmission system that provides value when tested under a wide range of policy, economic, and operating conditions
• Enables 41 million MWh of wind energy to meet renewable energy mandates and goals
• Maintains system reliability by resolving more than 6,700 system conditions
• Provides benefits in excess of costs under all scenarios studied, with its Benefit-to-Cost ratios ranging from 1.8 to 3.0
– Congestion and Fuel Savings; Wind Turbine Investment ; Planning
Reserve Margin; Transmission Line Losses; Future Transmission
Investment; Operating Reserves
– Range based on scenarios
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Multi Value Projects create benefits that are spread across MISO in a manner commensurate with costs
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MISO Local Resource Zones
1.6 – 2.9
2.0 – 3.3
1.6 - 2.8 1.8 - 2.81.8 - 3.2 1.8 - 3.0 1.7 - 3.0
Zone 1:MN, MT,ND, SD,
Western WI
Zone 2:Eastern WIand Upper
MI
Zone 3:IA
Zone 4:IL
Zone 5:MO
Zone 6:IN, KY, OH
Zone 7:Lower MI
Benefit/Cost Ratio RangesLocal Resource Zones
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1 Big Stone-Brookings SD
2 Brookings, SD-SE Twin Cities MN/SD
3 Lakefield Jct. - Winnebago-Winco-Burt area & Sheldon-Burt
Area-WebsterMN/IA
4 Winco-Lime Creek-Emery-Black Hawk-Hazelton IA
5 N. LaCrosse-N. Madison-Cardinal & Dubuque Co.-Spring
Green-Cardinal (a/k/a Badger-Coulee Project)WI
6 Ellendale-Big Stone ND/SD
7 Adair-Ottumwa IA/MO
8 Adair-Palmyra Tap MO/IL
9 Palmyra Tap-Quincy-Merdosia-Ipava & Meredosia-Pawnee IL
10 Pawnee-Pana IL
11 Pana-Mt. Zion-Kansas-Sugar Creek IL/IN
12 Reynolds-Burr Oak-Hiple IN
13 Michigan Thumb Loop Expansion MI
14 Reynolds-Greentown IN
15 Pleasant Prairie-Zion Energy Center WI
16 Fargo-Galesburg-Oak Grove IL
17 Sidney Risng IL
Proj.
No.
Multi-Value Project Status
StateProject NameReg. Const.
Status
• 3 under construction
• 4 pending state
regulatory hearings
• 10 pending state
filings as necessary