5.4. ERMUSR 02-20-2007 - Laserfiche WebLink

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-~, `,; CAPX 2020 INTERIM REPORT ~~.w DECEMBER 2004 h~ ~i . . ;.~*~' highway system. A subsequent series of initiatives by the Federal Energy Regulatory a~:• „µ.~, Commission (FERC) has provided further change to industry structure. :: y. ~.y ~ =~~ ~ As a result, the way the electricity industry operates has changed considerably. A key ~ „~ change is the functional separation of transmission from generation to ensure equal access to ~t'"Nr . ' the grid, which the FERC mandated in 1996. The upshot of this change is that generation yC µ„ , :~; and transmission planning must now be performed separately and in a nondiscriminatory '~f manner; transmission planning and development must be prepared to meet the needs of all x'''° regional market participants rather than just those of the individual utility or specific "~ ~ generation resource type. Attachment C provides an overview of these changes, including the transition to regional transmission organizations. .f . THE CAPX 2020 PLANNING EFFORT It is clear that our current transmission network will be unable to accommodate the required new generation and increased customer demand without si ificant u ades and ne ~ pgT w facilities. To identify projects needed to meet customer needs well into the future, CapX 2020 has undertaken two technical studies on major transmission facilities needs in Minnesota: the Vision Study and the Red River Valley Study. We expect both to be completed in May 2005. The Vision Study will outline key infrastructure improvements needed to meet future needs under a variety of possible scenarios. Our planners are considering various potential scenarios of generation development to determine what system investments will be required regardless of location of new power plants. With this study, we will identify projects that will meet our customers' and the region's needs. Our goal is to identify the next major transmission backbone investments required to ensure a robust network capable of accommodating growth and providing continued reliable service well into the future. Transmission investments of this magnitude take several years; therefore, the planning process for meeting these needs has begun. F The Red River Valley Study focuses on near-term transmission needs to address known transmission reliability issues in west-central Minnesota. CapX 2020 undertook the Red River Valley Study to build on a recent study by utility transmission planners that revealed this area to be the most immediately vulnerable. Studies show that within the next three years, low voltages along with potential voltage collapse could occur during winter peak conditions. Additionally, the study will address reliability issues in central Minnesota. While more local in nature, this study will produce detailed information capable of supporting a certificate of need for the projects found to be most appropriate. Concurrent with these technical studies, CapX 2020 is reviewing state processes to determine whether they are able to support development of the required transmission infrastructure in a timely, efficient manner, consistent with the public interest. In particular, CapX 2020 is reviewing current approaches to certification and cost recovery, while also evaluating industry structure, routing and jurisdictional issues. CapX 2020 is committed to working to create an environment that allows needed transmission infrastructure additions and fr 5 ~:. ~. ;'