Presentation to the
Western Clean Energy Advocates
May 13, 2011
WHO WE ARE
Energy Future Coalition (EFC)
is a broad
partisan alliance that seeks to
bridge the differences among business, labor,
and environmental groups and identify energy
policy options with broad political support.
National Clean Energy Transmission
supports policies that unlock
renewable energy resources, develop smart
grid technologies, and enable energy
A platform for national action:
its convening power and relationships to make
meaningful change on a national level;
The Coalition has
successfully helped change the dialogue on
energy, creating new possibilities for
interest groups, the Coalition creates strong
partnerships targeted at effective outcomes.
Similar to the Western Clean Energy Advocates,
the Energy Future Coalition is working to make
our nation’s energy grid bigger, smarter, and
Bolster our transmission system to bring
renewable energy resources
like wind in the Great
Plains and solar in the desert Southwest
population centers that need them.
Broadly deploy "smart grid" technologies to
make the grid more reliable, resilient, and secure, and
enable much greater energy efficiency for consumers
: Elevate planning,
, and cost
allocation processes from the state and local level to a
much larger regional level that includes input from all
With input from our Smart Grid Working Group, EFC
is drafting a plan to develop a National Clean
Energy Smart Grid. We believe that the U.S. must:
Develop New Regional Transmission Plans to Bring Renewable
Power to Market.
Congress should enable the grid to maximize the
development of domestic renewable energy by linking resources to
Congress should establish a new process within
the two multi
state power systems that cover the entire country
(except Texas, Alaska, and Hawaii) to plan, site, and recover the
costs for transmission.
Create New Incentives for Investments in Smart Grid
Congress should increase funding for demonstration
projects and provide tax breaks for smart grid investments.
Make Grid Security a Priority.
Congress should ensure that new
grid investments and technologies make our power system safer
and more secure. A smart grid is more adaptive and self
can better manage electricity flows, which helps safeguard our
electric power system from attacks and natural disasters.
WHO IS STANDING IN THE WAY?
The Coalition for Fair Transmission Policy (CFTP)…
…A group of vertically integrated utilities, currently operating in
Members include CMS Energy Corporation, Consolidated Edison, Inc., DTE Energy
Company, Progress Energy, Inc., Public Service Enterprise Group, SCANA Corporation,
Southern Company, and The United Illuminating Company.
The group opposes the allocation of transmission expansion costs to electric consumers
unless there are measurable economic or reliability benefits for those consumers.
CFTP listed the following priorities in their response to FERC’s June 17, 2010 NOPR on cost
The Commission should ensure that state regulatory prerogatives are not pre
empted. Local needs should be satisfied based on
the state legislative and state regulatory policy choices, not those made on their behalf during regional planning processes.
The Commission should not require nor allow regional planning processes to consider non
mandated public policy goals.
Only economic and reliability benefits that can reasonably be projected in planning and other modeling studies should be
considered in determining cost allocation. Generalized “social” benefits or speculative benefits are not rational or sufficie
“COALITION FOR FAIR TRANMISSION POLICY” RHETORIC VS. REALITY
Rhetoric: Building more transmission will increase electric bills for consumers.
Reality: New investment in transmission will reduce energy costs for
millions, and will help control energy costs for everyone.
Rhetoric: Consumers will pay for transmission lines even when they don’t benefit .
Reality: Under FERC’s proposed rule, only those who benefit from new
transmission lines will pay for them.
Rhetoric: The current system works.
Reality: Flawed planning and unworkable cost allocation systems are failing
for consumers, renewable energy, and national security.
Fair guidelines on cost allocation will lower costs
for consumers, open up energy markets to competition, and
bring more renewable power online.
REGULATORY REFORM: SOME PROGRESS
Proposes to change
the way transmission
is planned, built and
Superior to proposals
put forth by Senate or
House to address cost
sharing and planning
final rule, expected in
Midwestern Independent System Operator (MISO)
Filed cost allocation proposal with FERC .
Creates new category of projects
multi value projects (MVPs)
and provides for regional
allocation of these projects.
MVPs have a regional impact and are part of a regional plan, also intended to facilitate state
and federal legislative, regulatory and policy mandates.
Southwest Power Pool (SPP)
Implemented new cost allocation methodology and long
term planning process
Highway / Byway cost allocation provides for regional cost allocation for projects 300kV+
Integrated Transmission Planning (ITP) process is a comprehensive, longer
term planning process
Both were unanimously approved by FERC
HOW CFTP AND
OUR ENERGY FUTURE
Protects power company profits,
holds customers captive
Blocks state and regional efforts to
open markets, develop resources
and create jobs
Places special interests over
national security and
Creates market chaos by exposing
approved business agreements to
CFTP’s ultimate goal is to curb
FERC’s rulemaking authority on
transmission projects, specifically
surrounding the critical element of
CFTP’s opposition activities have
the potential to bring regional
planning and cost allocation to a
CANDIDATE MVP PORTFOLIO ANALYSIS
WHERE “THE RUBBER MEETS THE ROAD”
Value Project (MVP) Cost
Developed over two years, this cost sharing plan accounts
for the broad benefits of transmission and was designed to
ensure consumers had a reliable electricity supply and
efficient distribution network.
FERC’s approval of this formula offers customers protection
from unjustifiable transmission charges. The process
requires projects to be evaluated in an open, transparent
stakeholder planning process.
13 states including Michigan agreed to this plan, following a
vetting process that took almost two years.
Uproar over Michigan’s “Thumb Loop” Project
HV transmission project paid for using MISO MVP cost
Despite initial buy in, political and business opposition has
Gov. Snyder, Rep. Amanda Price’s Resolution,
MI Senate Committee on Energy and Technology, MPSC
The Wall Street Journal
The Detroit News
have strongly supported the opposition’s position
MAKING THE CASE FOR TRANSMISSION
Employment and Economic Benefits of
Transmission Infrastructure Investment in the
U.S. and Canada
orking Group for
The Brattle Group
A new analysis commissioned by WIRES shows that annual investment
in new electric transmission facilities could soon reach $12
$16 billion in
the United States, resulting in $30
$40 billion in annual economic
Economic growth of this kind would support 150,000
200,000 new full
time jobs in the U.S. in each of the next 20 years.
Study predicts that investment in needed transmission will annually
time U.S. jobs in the emerging renewable
energy industry to which transmission capacity is so critical.
Brattle Group analysis suggests that total U.S. transmission investment
could reach $240 billion to $320 billion (in 2011 U.S. dollars) between
2010 and 2030.