Texas Panhandle, Tulsa among areas experiencing most localized congestion in August

Areas experiencing the most localized congestion during August were the Texas Panhandle, Kansas City – Omaha corridor, Tulsa area and Central Kansas, the Southwest Power Pool (SPP) Market Monitoring Unit said in its August report, published on Sept. 16.

The Arkansas Public Service Commission directed SPP in October 2008 to file the Energy Imbalance Service (EIS) Monthly State of the Market Report contemporaneously as it is provided informally to FERC via posting on SPP’s website.

Wind capacity and generation continues to increase across the system – the EIS market footprint now has more than 8,000 MW of installed wind capacity, SPP added.

Wind capacity factor for August was 27%, which is an increase from 19% in August 2012, SPP said, noting that wind capacity increased by 9% from August 2012 to August 2013, while total wind generation increased by almost 60% in that same period.

SPP also said that the average locational imbalance price (LIP) for the SPP EIS market for August was $26.39 per MWh, a 2% decrease from July.

For the second consecutive month, many of the market participants in the northern part of the SPP EIS footprint had monthly averages above the SPP system-wide monthly average LIP. Historically, SPP added, the northern part of the EIS market footprint has experienced the lowest average load-weighted LIP.

SPP also noted that transmission owner revenue in August was $101.6m, compared with $91.7m in August 2012, $77.7m in August 2011 and $65.1m in August 2010. Transmission owner revenue in July was $108.7m and $99.8m in June.

Projects that are expected to provide some positive mitigation with regards to congestion by shadow price impact, include the Elk City – Gracemont 345-kV line in the Texas Panhandle, with an estimated in-service date of March 2018; the Iatan – Nashua 345-kV line in the Kansas City – Omaha Corridor, with an estimated in-service date of June 2015; and the Muskogee – Seminole 345-kV project in the Tulsa area, with an estimated in-service date of December.

About Corina Rivera-Linares 3106 Articles
Corina Rivera-Linares, chief editor for TransmissionHub, has covered the U.S. power industry for the past 15 years. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines. She can be reached at clinares@endeavorb2b.com.