FERC and Transmission Siting

Office of Energy Projects

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FERC and Transmission Siting

Robert J. CupinaDeputy Director

Office of Energy Projects Federal Energy Regulatory Commission

Western Electricity Coordinating CouncilAnnual MeetingApril 20, 2006

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FERC


FERCHelping Markets Work

AdequateInfrastructure

OEP

MarketOversight

OMOI

CompetitiveMarketFERC

EffectiveMarket Rules

OEMR

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FERC’sHydropower Projects

Transmission Line Capacity0 - 59 kV60 - 229 kV≥ 230kV

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FERC’s HydroTransmission Lines

Transmission Line Capacity

Number of Transmission

Lines≥ 230 kV 82

60 – 229 kV 300

< 60 kV 1216

5,800 miles of primary transmission line

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Source: Based on Platts PowerMap

FERC certificatesU.S. interstate natural gas

pipelines

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Existing LNGImport Terminals

LAKE CHARLESLAKE CHARLES

ENERGY BRIDGEENERGY BRIDGE

ELBA ISLANDELBA ISLAND

COVE POINTCOVE POINT

EVERETTEVERETT

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Existing Gas StorageFacilities

Source: Based on Platts PowerMap.

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Siting Infrastructure:Lessons Learned

• Early staff involvement• Proactively identity issues and

alternative siting• Develop advocates not adversaries• Expertise to provide a sound record • Recommendations based on

technical analysis

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Energy Policy Actof 2005

• EPAct 2005 provides for federal siting of interstate electric transmission facilities (§1221) by amending the FPA (§216)- Designation of National Interest Electric

Transmission Corridors (§216(a))- Construction Permit (§216(b))- Coordination of Federal Authorizations

for Transmission Facilities (§216(h))

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EPAct 2005Electric Transmission Corridors

• Conduct study within one year of electric transmission congestion

– Every three years thereafter

• Issue report based on study– Designate any geographic area that

experiences congestion as a “National Interest Electric Transmission Corridor”

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EPAct 2005Construction Permit

• FERC can authorize construction of transmission facilities in a corridor if:

– A state has no authority to either site facilities or consider interstate benefits, or

– A state, with authority to site, either does not act within one year or conditions approval such that there is either no reduction in congestion or is not economically feasible

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EPAct 2005Construction Permit

• Application to be filed with FERC– Filing requirements to be issued

• Comments will be received• Rights-of-way

– Right of eminent domain– Acquired right-of-way used exclusively

for electric transmission facilities

• Compensation

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EPAct 2005Coordination of Federal Authorizations

• Lead agency for permit coordination and environmental review

– Must issue regulations within 18 months– Must enter into an MOU with other

agencies within one year– Provide a pre-filing mechanism

• All permit decisions and environmental reviews shall be completed within one year

– Failure to act within deadlines may be appealed to the President

• DOE delegation to FERC likely

Major Pipeline Projects Certificated (MMcf/d)

2000 to Present

42.5 BCF/D Total8,537 Miles

Transco (204,236,323)

Southern (336,330)

Kern River

(135,886)

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NorthBaja(500)

Tuscarora(96)

Northwest(162,113)

Kern River (282)

TETCO(250)

Northwest(224)

NFS/DTI (150)

GeorgiaStraits (96)

SCG Pipeline (190)

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Northwest(191)

East Tennessee (510)

Tennessee (320)

TETCO (197)

Greenbrier (584)

El Paso (230,320,620)

WBI(80)

ANR(194,750,210,220,

107,143,168)

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TETCO(223)

Cove Point(445)

Ocean Express(842)

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CheyennePlains (560,170)

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13. CIG (282,92) 14. CIG (85,133,118,105) 15. TransColorado (125,300) 16. WIC (120,116,675,350) 17. El Paso (140) 18. Rendezvous (300) 19. Entrega (1,500)

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Calypso (832)

Discovery (150)

Transwestern (150,375)

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Trunkline(1,500)

Cheniere Sabine (2,600)

Trunkline (200)

Questar

(272,102) 6

Petal (700,600)

Horizon(380)

GTN(207)

Otay Mesa (110)

Florida Gas (239,270)


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1. Algonquin (285) 2. Islander East (285) 3. Iroquois (230,85) 4. Columbia (135,270) 5. Algonquin (140) 6. Transcontinental (105) 7. Transcontinental (130) 8. Tennessee (200) 9. Maritimes (80,360)10. Algonquin (301)11. Tennessee (500)12. Mill River (800)

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Millenium (700)9

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Northern Border

(544,130)

Independence (916)

TransUnion (430)

Southern Trails (120)

Gulfstream(1,130)

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Guardian(750)

Trailblazer(324)

1315

El Paso (502)

Center Point (113)

Vista del Sol (1,100)

Golden Pass (2,000)

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1819

San Patricio (1,000)

Dominion South (200)

Columbia (172)

East Tennessee (86)

Tennessee (400,200)

Cheniere Corpus Christi (2,600)


Midwestern(120)

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CaldwellCaldwellOntarioOntario

ClarksvilleClarksville Chamber Springs RoadChamber Springs Road

Mt. EnterpriseMt. Enterprise

TenaskaTenaska

LamarLamar HolcombHolcomb

BrownleeBrownleeOxbowOxbow

SpurlockSpurlock

Tap of Stuart/ W H Zimmer Tap of Stuart/ W H Zimmer

ShorehamShorehamNew Haven HaborNew Haven Habor

FentressFentress

ShawboroShawboro

BeaconBeaconRathdrumRathdrum

SayrevilleSayrevilleWempletownWempletown

PaddockPaddock

Newbridge RoadNewbridge Road

Sources: NERC Summer and Winter Assessments, WECC Existing Generation and Significant Additions and Changes to System Facilities Reports and FERC’s Transmission Database

Since January 1, 2000, 11 interstate transmission lines have been built or

are near completion totaling

461 miles.

Major ElectricTransmission Lines

2000 to Present

345 kV

230 kV

Transmission Projects

DC

345 kV

230 kV

Transmission Projects

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Related Proceedings

• Transmission Investment Pricing Reform– RM06-04– NOPR issued November 18, 2005– Comments due January 11, 2006

• 109 comments filed

– Final rule due in one year (August 2006)

• DOE’s National Interest Electric Transmission Corridor Study– NOI issued February 2, 2006– Conference held March 29, 2006

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Issues forElectric Transmission

• Clear Regulatory Path• Contract Commitment• Pricing Incentives/Cost

Allocation• Market Response - Timing

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What Will MakeThis Work

• FERC staff involvement as early as possible

• Develop a pre-filing process• Start with two points and work the

route• Voluntary agency enlistment• Rational Siting Process

– One federal lead agency, one record for decisions, one avenue of appeal

FERC and Transmission Siting

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