NYISO files AC Transmission Public Policy Transmission Need assessment with PSC

The New York ISO (NYISO) on Oct. 28 filed with the New York State Public Service Commission (PSC) the AC Transmission Public Policy Transmission Need Viability & Sufficiency Assessment, along with the requested cost allocation methodology analysis.

The NYISO noted that in August 2014, it initiated its Public Policy Transmission Planning Process under its Open Access Transmission Tariff (OATT) by soliciting proposed transmission needs that stakeholders or interested parties believe are driven by public policy requirements and, thereafter, filing the proposed transmission needs for consideration by the PSC. The PSC last December identified numerous public policies that together constituted public policy requirements driving transmission needs associated with the Central East (Segment A) and UPNY/SENY (Segment B) sections of the New York State transmission system.

As noted in the assessment, dated Oct. 27, Segment A is:

Edic/Marcy to New Scotland; Princetown to Rotterdam

Construction of a new 345-kV line from Edic or Marcy to New Scotland on existing right of way (ROW) (primarily using Edic to Rotterdam ROW west of Princetown); construction of two new 345-kV lines or two new 230-kV lines from Princetown to Rotterdam on existing Edic to Rotterdam ROW; decommissioning of two 230-kV lines from Edic to Rotterdam; related switching or substation work at Edic or Marcy, Princetown, Rotterdam and New Scotland

Segment B is:
Knickerbocker to Pleasant Valley

Construction of a new double circuit 345-kV/115-kV line from Knickerbocker to Churchtown on existing Greenbush to Pleasant Valley ROW; construction of a new double circuit 345-kV/115-kV line or triple circuit 345-kV/115-kV/115-kV line from Churchtown to Pleasant Valley on existing Greenbush to Pleasant Valley ROW; decommissioning of a double circuit 115-kV line from Knickerbocker to Churchtown; decommissioning of one or two double circuit 115-kV lines from Knickerbocker to Pleasant Valley; construction of a new tap of the New Scotland-Alps 345-kV line and new Knickerbocker switching station; related switching or substation work at Greenbush, Knickerbocker, Churchtown and Pleasant Valley substations

Upgrades to the Rock Tavern substation

New line traps, relays, potential transformer upgrades, switch upgrades, system control upgrades and the installation of data acquisition measuring equipment and control wire needed to handle higher line currents that will result as a consequence of the new Edic/Marcy to New Scotland; Princetown to Rotterdam and Knickerbocker to Pleasant Valley lines

Shoemaker to Sugarloaf

Construction of a new double circuit 138-kV line from Shoemaker to Sugarloaf on existing Shoemaker to Sugarloaf ROW; decommissioning of a double circuit 69-kV line from Shoemaker to Sugarloaf; related switching or substation work at Shoemaker, Hartley, South Goshen, Chester and Sugarloaf

The NYISO, in its Oct. 28 cover letter accompanying the assessment, said that the PSC identified certain criteria and directed that the NYISO apply such criteria for the evaluation of public policy transmission projects (PPTPs) and other public policy projects (OPPPs) in accordance with the OATT.

The NYISO also noted that it solicited potential solutions to the AC Transmission Public Policy Transmission Need and, by April 29, received 15 proposed PPTPs and one OPPP. The NYISO said that it performed its analysis of the proposed solutions employing certain criteria and presented the draft AC Transmission Viability & Sufficiency Assessment to stakeholders on Sept. 26. After receiving comments, the NYISO said that it posted on its website the AC Transmission Viability & Sufficiency Assessment on Oct. 27.

The assessment determined that 13 of the 16 proposed projects are viable and sufficient to meet the AC Transmission Public Policy Transmission Need based upon certain criteria, the NYISO said.

As noted in the assessment, the NYISO maintains the confidentiality of each proposed solution except for certain basic information until the NYISO determines that the proposed solution is viable and sufficient and the developer consents to the NYISO’s inclusion of its proposed solution and disclosure of details of its project in the public policy transmission planning report.

The projects are:

  • National Grid/Transco’s New York Energy Solution Seg. A project in Segment A (PPTP, AC Transmission)
  • National Grid/Transco’s New York Energy Solution Seg. B project in Segment B (PPTP, AC Transmission)
  • NextEra Energy Transmission New York’s Enterprise Line: Segment A project in Segment A (PPTP, AC Transmission)
  • NextEra Energy Transmission New York’s Enterprise Line: Segment B project in Segment B (PPTP, AC Transmission)
  • NextEra Energy Transmission New York’s Enterprise Line: Segment B-Alt project in Segment B (PPTP, AC Transmission)
    North America Transmission/New York Power Authority’s (NYPA) Segment A +765-kV project in Segment A (PPTP, AC Transmission)
  • North America Transmission/NYPA’s Segment A Base project in Segment A (PPTP, AC Transmission)
  • North America Transmission/NYPA’s Segment A Double Circuit project in Segment A (PPTP, AC Transmission)
  • North America Transmission/NYPA’s Segment A Enhanced project in Segment A (PPTP, AC Transmission)
  • North America Transmission/NYPA’s Segment B Base project in Segment B (PPTP, AC Transmission)
  • North America Transmission/NYPA’s Segment B Enhanced project in Segment B (PPTP, AC Transmission)
  • ITC New York Development’s 16NYPP1-1A AC Transmission project in Segment A (PPTP, AC Transmission)
  • ITC New York Development’s 16NYPP1-1B AC Transmission project in Segment B (PPTP, AC Transmission)
  • AvanGrid’s Connect New York Recommended project in Segments A and B (PPTP, HVDC, with a size of 1,000 MW)
  • AvanGrid’s Connect New York Alternative project in Segments A and B (PPTP, HVDC, with a size of 1,000 MW)
  • GlidePath’s Distributed Generation Portfolio project in Orange, Ulster, Putnam, Greene in New York (OPPP, generation, with a size of 112 MW)

After the PSC confirms that the need for transmission still exists to satisfy the AC Transmission Public Policy Transmission Need and directs the NYISO to evaluate the proposed solutions that were found to be viable and sufficient, the NYISO will evaluate the proposed transmission solutions, which were determined to be viable and sufficient and for which the developers elected to proceed, and rank them based on the quality of their satisfaction of certain metrics. From that evaluation, the NYISO added in its Oct. 28 cover letter, the NYISO may then select the more efficient or cost-effective project, or a combination of projects, that satisfies the identified public policy transmission need.

The NYISO requested that the PSC review the assessment and issue an appropriate order confirming the AC Transmission Public Policy Transmission Need in accordance with its policies and procedures.

The NYISO also noted that the PSC has issued an initial description of a prescribed cost methodology based on a “beneficiaries pay” approach, allocating 75% of project costs to the economic beneficiaries of the reduced congestion and the remaining 25% of the project costs to all customers on a load ratio basis. The PSC requested that the NYISO “apply its expertise and design a more granular cost allocation [of the 75% of the project costs] among downstate entities.”

The NYISO added that in response to that request, it developed an approach to allocate 75% of the project costs to the economic beneficiaries of the reduced congestion, which largely is based on the NYISO’s methodology to allocate costs associated with a transmission project developed and put in service through the NYISO’s economic planning process, known as the Congestion Analysis and Resource Integration Study (CARIS). The overall concept of that approach is to allocate costs to zones based on the ratio of the reduction in energy-related payments by loads, the NYISO said.

As noted in the assessment, dated Oct. 27, the NYISO conducted the assessment to determine whether each proposal submitted by a developer is complete, viable and sufficient to satisfy the public policy transmission need.

The NYISO said that in order to address the AC Transmission Public Policy Transmission Need as identified by the PSC, a sufficient PPTP or OPPP is to meet, at a minimum, such criteria as:

  • Proposed solutions to Segment A must provide at least a 350-MW increase to the Central East interface transfer capability in accordance with normal transfer criteria as defined by the New York State Reliability Council (NYSRC) reliability rules
  • Proposed solutions to Segment B must provide at least a 900-MW increase to the UPNY/SENY interface transfer capability in accordance with normal transfer criteria as defined by the NYSRC reliability rules

Additionally, a sufficient PPTP is to meet, at a minimum, such criteria stated in a PSC order as:

  • No acquisition of new permanent transmission ROWs, except for de minimis acquisitions that cannot be avoided due to unique circumstances. The transfer or lease of existing transmission ROWs property or access rights from a current utility company owner to a developer is to not be considered such an acquisition
  • No crossing of the Hudson River, either overhead, underwater, in riverbed, or underground, or in any other way by any component of the transmission facility

Of the 16 projects, the three that were found to be not sufficient are AvanGrid’s Connect New York Recommended and Connect New York Alternative projects, as well as GlidePath’s Distributed Generation Portfolio, the NYISO said.

For each sufficient project, the project developer is qualified to develop a transmission solution in accordance with the OATT, the solution is technically practicable, and the developer has an approach for acquiring any necessary ROWs, property and facilities. Therefore, the NYISO added, each sufficient project is also viable. Each PPTP provided at least two cost estimates, the NYISO said.

Among other things, the NYISO said that if the PSC concludes that transmission solutions should continue to be pursued to address the AC Transmission Public Policy Transmission Need, the NYISO will evaluate the PPTPs, which were determined to be viable and sufficient and have elected to proceed, for purposes of selecting the more efficient or cost-effective PPTP that is eligible for cost allocation and cost recovery under the NYISO’s tariffs.

The NYISO said that it will rank those PPTPs based on their satisfaction of the metrics set forth in the tariff and in the PSC order, and document its findings in the AC Transmission Public Policy Transmission Planning Report. 

About Corina Rivera-Linares 3067 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.