Enhancing Transmission Infrastructure for Reliable and Efficient Energy Delivery

Interregional transmission plays a crucial role in ensuring energy reliability and cost efficiency, especially during extreme weather events. Connecting areas with diverse net load reduces costs and enables significant power transfers. Investing in bigger transmission lines leads to lower losses and cost savings. Utilizing existing grid infrastructure efficiently through regional power markets and advanced technologies helps in cost containment and maximizing transmission capacity.

• Transmission infrastructure
• Energy reliability
• Cost efficiency
• Interregional transmission
• Power transfer

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1. Transmission policy Transmission policy for low delivered energy costs for low delivered energy costs Rob Gramlich

2. Interregional Transmission Keeps the Lights On Interregional Transmission Keeps the Lights On in Winter Storm Uri Feb 2021 in Winter Storm Uri Feb 2021 MISO imported 13 GW, ERCOT only 0.8 GW (East to West flow) MISO imported 13 GW, ERCOT only 0.8 GW (East to West flow) Eastern polar vortex incidents in 2014, 2018 served by Midwest power (West to East flow) Eastern polar vortex incidents in 2014, 2018 served by Midwest power (West to East flow) For transmission planning and cost allocation For transmission planning and cost allocation beneficiaries are on both sides beneficiaries are on both sides 2

3. Connecting areas with net load diversity reduces cost Connecting areas with net load diversity reduces cost 10s of GWs of power transfer 10s of GWs of power transfer back and forth back and forth across and between regions Benefit > cost with 2 Benefit > cost with 2- -3x increase in national transmission capacity 3x increase in national transmission capacity across and between regions Modeled flows NREL Seam study Modeled flows NREL Seam study https://www.cell.com/joule/fulltext/S2542 https://www.cell.com/joule/fulltext/S2542- -4351(20)30557 4351(20)30557- -2 2 https://cleanenergygrid.org/wp https://cleanenergygrid.org/wp- -content/uploads/2020/11/Macro content/uploads/2020/11/Macro- -Grids Grids- -in in- -the the- -Mainstream Mainstream- -1.pdf 1.pdf 3

4. Bigger transmission uses less money and land Bigger transmission uses less money and land 765kv lines have ~1/6 the losses as 345 kV 765kv lines have ~1/6 the losses as 345 kV Bigger lines Bigger lines Lower $/MW Lower $/MW- -mile mile p. 4 https://web.ecs.baylor.edu/faculty/grady/_13_EE392J_2_Spring11_AEP_Transmission_Facts.pdf 4

5. Cost containment Cost containment #1 Get the most out of the existing grid #1 Get the most out of the existing grid Regional power markets Regional power markets reduce artificial congestion reduce artificial congestion Grid Grid- -Enhancing Technologies Enhancing Technologies Power Flow Control Push and pull power, modular, scalable, movable Dynamic Line Ratings Adjust path rating based on ambient conditions, allows capacity forecasting Topology Optimization Software to optimize transmission assets, eg circuit breakers Storage as Transmission Maximize capacity on existing rights of way Maximize capacity on existing rights of way Reconductor with advanced, more resilient and efficient conductors EIMs and RTO spot energy markets EIMs and RTO spot energy markets 5

6. Cost containment Cost containment #2 Plan efficient infrastructure expansion #2 Plan efficient infrastructure expansion Balance trade- -off between transmission and generation cost off between transmission and generation cost Proactively plan for future generation and load Proactively plan for future generation and load Capture economies of scale Plan network portfolios, not single purpose lines Plan network portfolios, not single purpose lines Capture economies of scope Incorporate realistic scenarios including severe weather Incorporate realistic scenarios including severe weather At these times, 40 year investments can pay for themselves in a few days Maximize net benefits to consumers and assign costs to wholesale consumers Maximize net benefits to consumers and assign costs to wholesale consumers considering all benefits considering all benefits Review local upgrades for more efficient regional solutions Review local upgrades for more efficient regional solutions Plan through planning process, not interconnection process Plan through planning process, not interconnection process Transparent inclusive process Transparent inclusive process Review benefits, costs, alternatives Balance trade 6

7. Widespread lack of effective transmission planning Widespread lack of effective transmission planning Brattle, Grid Strategies: https://www.brattle.com/insights-events/publications/transmission-planning-for-the-21st- century-proven-practices-that-increase-value-and-reduce-costs/ 7

8. Seek lowest delivered cost of energy Seek lowest delivered cost of energy (generation + transmission) (generation + transmission) https://cdn.misoenergy.org/MTEP17%20MVP%20Triennial%20 Review%20Report117065.pdf at p. 31. 8

9. Cost containment Cost containment #3 other policies #3 other policies Set ROE based on competitive rates to attract sufficient capital Set ROE based on competitive rates to attract sufficient capital Independent Transmission Monitors Independent Transmission Monitors Identify efficient options Federal support Federal support IIJA Bipartisan Infrastructure Law Tax credit for regionally significant transmission FERC oversight FERC oversight Increase transparency, staff expertise, review 9