ISO-NE RTEP04 PUBLIC MEETING

Boston, MASeptember 9, 2004

Larry MansuetiOffice of Electric Transmission and

DistributionU.S. Department of Energy

Comments of the U.S. Department of Energy

August 14, 2003 Blackout

Source: NOAA/DMSP

Effects of the Blackout

August 14, 2003 Blackout2x Size of largest previous blackout in North America (in MW lost)8 U.S. states affected 1 Canadian province affected3 Deaths 50 Million people without electricity$4.5 - $10 Billion in U.S. economic losses.12 Airports closed23 Cases of looting in Ottawa250+ Power plants shut down9,300 Square miles affected61,800 MW of power lost1.5 Million Cleveland residents without water

U.S.-Canada Power System Outage Task Force

• Final Report of Task Force included 46 recommendations

• “Trim your trees, train your operators, and ensure that your systems work, and the risk of blackout is greatly reduced”.– Jimmy Glotfelty, DOE, in

IEEE Spectrum, Aug. 2004

Key Accomplishments Since the Blackout

• Massive joint U.S.-Canada-NERC-investigation identified the causes of the blackout

• NERC and Task Force issued recommendations

• Direct causes of blackout were addressed through remedial action under NERC oversight by June 30

• NERC conducted 23 readiness audits of control areas and reliability coordinators in the Eastern Interconnection

• Virtually all grid operators received five days of emergency preparedness training before June 30

• U.S. and Canada established Bilateral ERO Oversight Group to ensure coordinated response to reliability governance concerns

• Government agencies tracking progress on implementing the Task Force’s recommendations

• NERC extended life of its Urgent Action Standard 1200 to August 2005 and is developing a successor version

This report can be accessed athttp://www.electricity.doe.gov/news/blackout.

cfm?section=news&level2=blackout

“…it's clear that the power grid needs an overhaul. It

needs to be modernized. As we go into an exciting

new period of American history, we want the most

modern electricity grid for our people… we need

more investment; we need research and

development…”

George W. BushSeptember 15, 2003

Office of Electric T&D Mission: Electricity Modernization

National Transmission Grid Study

51 Recommendations

The National Interest in Relieving Transmission Bottlenecks Next Steps Toward Relieving Transmission Bottlenecks

Relieving Transmission Bottlenecks By Completing the Transition to Competitive Regional Wholesale Electricity Markets

Establishing RTOs Increasing Regulatory Certainty and Focus

Relieving Transmission Bottlenecks Through Better Operations

Pricing Transmission Services to Reflect True Costs Increasing the Role of Voluntary Customer Load Reduction, and Targeted

Energy Efficiency and Distributed Generation Using Improved Real-Time Data and Analysis of Transmission System

Conditions Ensuring Mandatory Compliance with Reliability Rules

Relieving Transmission Bottlenecks Through Effective Investments

Implementing Regional Transmission Planning Accelerating the Siting and Permitting of Needed Transmission Facilities Ensuring the Timely Introduction of Advanced Technologies Enhancing the Physical and Cyber Security of the Transmission System

DOE's Commitment and Leadership Topic

Completing Market

Transition12

Improving Operations

12

Investing Effectively

23

Other 4

Office of Electric T&D

Electric Systems RD&D Transmission Reliability

Electric Distribution Transformation

Electricity Storage

Superconductivity

OETD

RD&D Analysis

Electricity Policy Modeling and Analysis Provide Check/Balance to the FERC

Electric Markets Technical Assistance Electricity Exports

Including Presidential Permits Power Marketing Administration Liaison

Electric Power Systems

Operations and Analysis

OETD Funding Profile

“Congressionally Directed” (earmarks) FY02 – 25,209 FY03 – 30,437FY04 – 25,750

* Includes 4,905for blackout

studies

Activity FY02 FY03 FY04 FY05 Req.

Superconductivity 31,991 38,801 34,129 45,000

Transmission Reliability 18,257 21,576 11,760 10,720

Electric Distribution 10,791 11,072 14,563 5,459

Energy Storage 9,098 8,990 9,015 4,000

Elec Mkts Tech Assist 2,840 4,816 6,925* 5,000

GridWise - - - 5,000

GridWorks - - - 5,500

Exports - - - 1,201

Construction - - 736 -

Program Direction - 3,129 3,690 9,000

Totals 72,977 88,384 80,818 90,880

($000)

“DOE, through a rulemaking, will determine

how to identify and designate transmission

bottlenecks that significantly impact national interests.”

www.ntgs.doe.gov or www.electricity.doe.gov

DOE National Transmission Grid Study Language on Bottlenecks

DOE Bottleneck Work – Next Steps

Delayed by funding and blackout investigation Will identify National Interest Trans. Bottlenecks

regardless of energy bill fate Preliminary scoping work complete Technical conference held July 15, 2004 Federal Register Notice seeks public comment on

process. Comments due Sept. 20 DOE presently considering balance between using

existing regional bottleneck data vs. DOE identification using raw data

Path forward influenced by public comments!

www.electricity.doe.gov/bottlenecks

U.S. Transmission Capacity:Present Status, Future Prospects

Study Prepared by Eric HirstConsultant in Electric-Industry Restructuring

Bellingham, WAEric@Ehirst.com

www.Ehirst.com

funded by U.S. Dept of Energy & Edison Electric Institute

also at www.electricity.doe.gov

Eric Hirst Report: Reviewed 20 Transmission Plans

• NPCC– ISO New England– National Grid– NY ISO

• MAAC– PJM

• SERC– Two reports

• FRCC – nothing available• Midwest: ECAR, MAIN, MAPP

– Midwest ISO– ATC– MAPP– MN electric utilities

• SPP plan

• ERCOT plan

• WECC– SSG-WI study– AZ assessment– California

• ISO• Other studies

– BPA projects

Eric Hirst Report: Transmission Plans Review

• Quality and relevance of plans quite variable

• Transmission planning and expansion varies greatly

• Best plans: ISO New England, National Grid, Midwest ISO, American Transmission Company, ERCOT, SSG-WI

Comments on RTEP04 Draft Report

• “Administration fully supports regional coordination and planning through…voluntary RTOs.” ---

Statement of Admin. Policy, Sept. 10, 2003

– Commend ISO-NE on development and release of RTEP04

• Need for greater grid investment to ensure reliability and economic benefit

– RTEP04 shows the need for greater investment– Continue pressure to make it happen

• Natural gas– RTEP04 points out major risk from gas dependence– Continue your work on sorting out planning connections

on gas/electricity

Comments on RTEP04 Draft Report

– Don’t forget demand-side: “Greater energy efficiency and conservation are vital near-term and long-term mechanisms for moderating price levels and reducing volatility.”

--- Nat’l Petroleum Council Natural Gas Rpt

• Non-transmission alternatives– Are they adequately treated in RTEP04?– Inclusion noted in SW CT RFP– Should they be treated equally? Socialize like

transmission?– Governance role of new “Sector Six” good

• Overall: RTEP04 highlights important issues for New England

Back-up Slides

Blackout Report: Several Areas of Parallel Action

• Fix direct causes of blackout• Conduct readiness audits elsewhere• Tighten and restate existing standards• Develop new standards on key subjects• Improve government oversight, prepare for

implementation of U.S. legislation• Improve emergency preparedness training• Improve real-time tools for operators

OETD’s Portfolio of RD&D

HTS tape to HTS cable

Advanced Conductors

Interconnection Device

Novel storage concept

Diamond Sensor

2kWh Superconductor Flywheel Demonstrator

Superconducting Substation

Supervar System

Ultra capacitors

ETO DC to AC inverters

DOE Eastern Interconnection Phasor Project

Phase I 30 Instruments, most are

already installed but not connected

Work out communications issues

Transfer software tools to users

Establish relationships

Phase III More than 350

Instruments Projected benefits

from previous slide realized

Vendors participating at all levels

Inexpensive instruments and communications available

Phase II ~75 Instruments Immediate benefits from

previous slide realized All major corridors

covered Data available to research

community to begin work on projected benefits

Preliminary DOE Work on Transmission Bottlenecks

Scoping and planning studies to support DOE identification of national-interest transmission bottlenecks

DOE nat’l lab/expert group (CERTS) has prepared 4 reports (listed below):

Survey of current transmission bottlenecks, as reported by ISOs – J. Dyer, Electric Power Group

Review of commercially available transmission bottleneck analysis techniques/models – P. Sigari, KEMA

Assessment of tools under development by national labs that might be available to support bottleneck assessment – S. Thomas, et. al, Sandia Nat’l Lab

Review of recent reports of congestion costs – B. Lesieutre/J. Eto, Lawrence Berkeley Nat’l Lab