EEI Transmission Projects At A Glance 2011 (E-K) · PDF file · 2012-12-10• FirstEnergy’s transmission operations include 20,000 miles of high-voltage lines ... new Welton Spring

EDISON ELECTRIC INSTITUTE 19

FIRSTENERGYCompany Background:

• FirstEnergy is a diversified energy company dedicated to safety, reliability and operational excellence. Headquartered in Akron, Ohio, its ten electric distribution companies comprise the nation’s largest investor-owned electric system, serving six million customers in the Midwest and Mid-Atlantic regions. Its diverse generating fleet features non-emitting nuclear, scrubbed baseload coal, natural gas, and pumped-storage hydro and other renewables, and has a total generating capacity of approximately 24,000 megawatts. The company recently completed its merger with Allegheny Energy and has $48 billion in assets and $16 billion in annual revenues.

• FirstEnergy’s transmission operations include 20,000 miles of high-voltage lines and three regional transmission operation centers. Stretching from the Ohio-Indiana border to the New Jersey shore, the company operates a vast infrastructure of more than 194,000 miles of distribution lines.

• Between 2001 and 2009 FirstEnergy invested nearly $1.16 billion in its transmission system.

Potomac – Appalachian Transmission Highline (PATH) ProjectCompany Background:

• Note: On February 28, 2011, FirstEnergy and American Electric Power announced their affiliates filed to withdraw their applications for state regulatory approval of the PATH Project following an announcement by regional grid operator PJM Interconnection that the project has been suspended.

• In September 2007, the former Allegheny Energy and American Electric Power (AEP) formed a joint venture to build the PATH Project to address anticipated reliability violations in the PJM Region. Most of the PATH Project in West Virginia will be owned by PATH West Virginia Transmission Company, LLC (PATH-WV) which is controlled by FirstEnergy and AEP. The remainder of the PATH Project in West Virginia will be owned by PATH Allegheny Transmission Company, LLC (PATH-Allegheny) which is controlled by FirstEnergy. In Virginia, the project will be owned by a subsidiary of PATH-Allegheny. In Maryland, the project will be owned by PATH Allegheny Maryland Transmission Company, LLC which is owned by PATH-Allegheny and The Potomac Edison Company, also a part of FirstEnergy.

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TRANSMISSION PROJECTS: AT A GLANCE — FIRSTENERGy

PATH 765 kV ProjectProject Description: The PATH 765 kV Project con-sists of approximately 275 miles of new single-circuit, 765 kV transmission line from AEP’s Amos Substa-tion in Putnam County, West Virginia, through the new Welton Spring Substation in Hardy County, West Virginia, and continuing through Virginia to the new Kemptown Substation in Frederick County, Maryland. The project includes construction and modifications to the Amos Substation and construction of the two new substations. The project will utilize advanced control technology in substations and will enhance reliability and efficiency of the PATH Project.

The Federal Energy Regulatory Commission has granted the following rate incentives for the project: an incentive return on equity for new transmission; recovery of a return on 100 percent of prudently incurred transmission related Construction Work in Progress prior to the project’s in service date; recovery of all startup business and administrative costs incurred prior to the time that rates go into effect; and authorization to recover all prudently incurred development and construction costs if the PATH Project is abandoned as a result of factors beyond the control of PATH-WV or PATH-Al-legheny or their parents.

Project Cost: Based on current plans, the total project is estimated to cost approximately $2.1 billion. FirstEnergy’s investment in the project will be approximately $1.4 billion and AEP’s investment will be approximately $700 million.

Project Status: While annual studies since 2007 have reaffirmed the need for the project, PJM’s latest analyses indicate the required in service date for the project has moved well into the future. PJM has requested that the company suspend further development of the project while PJM conducts a more rigorous analysis of the need for the project. In response the company has sought to withdraw its sit-ing applications filed with the West Virginia Public Service Commission, Maryland Public Service Commission and the Virginia State Corporation Commission.

Project Investment Partners: AEP.

Project Benefits: The PATH Project will maintain the reliability of the power supply system in the PJM Region, allow greater flexibility in scheduling outages for maintenance of critical transmis-sion infrastructure, provide system loss savings and loss savings from advanced conductor will reduce energy needs in the PJM Region by 600 GWh per year offsetting over 300,000 metric tons of CO2 annually, and the project will create jobs in engineering, surveying, construction and related industries.


Trans – Allegheny Interstate Line Company (TrAILCo)Company Background:

• TrAILCo is part of FirstEnergy.

Trans – Allegheny Interstate Line (TRAIL) ProjectProject Description: This TRAIL Project consists of 153 miles of new single-circuit, 500 kV trans-mission line in the former Allegheny Power Trans-mission Zone of PJM from the new 502 Junction Substation in southwestern Pennsylvania to exist-ing substations at Mt. Storm, West Virginia, and Middletown, Virginia, to a point 16 miles south-east of Middletown, Virginia. The line will con-tinue east for another 65 miles in the transmission zones of the former Allegheny Power and Dominion Virginia Power to Dominion Virginia Power’s Loudoun Substation. Dominion Virginia Power will construct this continuation of the line with TrAILCo and Dominion Virginia Power having a 50 percent ownership each in approximately 30 miles of this portion of the line. The portion of the line owned by TrAILCo is known as the Trans-Allegheny Interstate Line.

Project Cost: Approximately $960 million (excludes Dominion Virginia Power portion of the line).

Project Status: Applications for authorization to construct the line have been approved in Pennsylva-nia, Virginia, and West Virginia commissions. Construction is continuing in all three states, and the project is on schedule for an in service date of June 2011.

Project Investment Partners: TrAILCo will finance the portion of the line it will construct as well as its 50 percent interest in the portion of the line to be constructed by Dominion Virginia Power.

Project Benefits: The project has been designated for reliability purposes. The project will signifi-cantly strengthen the existing PJM Transmission System infrastructure by relieving loading on several highly congested facilities, alleviating voltage and thermal limitations in the PJM Region and increas-ing west-to-east transfer capability, making cost-effective generation available to more consumers.

TRANSMISSION PROJECTS: AT A GLANCE — FIRSTENERGy


ITC HOLDINGS CORP.Company Background:

• ITC Holdings Corp. invests in the electric transmission grid to improve reliability, expand access to markets, lower the overall cost of delivered energy and allow new generating resources to interconnect to its transmission systems.

• As the largest independent electric transmission company in the country, ITC operates high-voltage transmission systems in Michigan’s Lower Peninsula and portions of Iowa, Minnesota, Illinois, Missouri and Kansas, serving a combined peak load in excess of 25,000 MWs through its regulated operating subsidiaries: ITCTransmission; Michigan Electric Transmission Company (METC); ITC Midwest; and ITC Great Plains. ITC also focuses on new areas where significant transmission system improvements are needed through ITC Grid Development and its subsidiaries.

• Since the company’s inception in 2003 through 2009, ITC has invested over $1.9 billion in its transmission system.

Green Power Express LPCompany Background:

• Green Power Express LP was established in 2009 to plan and construct the Green Power Express (GPE) project. FERC approved the basic rate terms, including a forward looking formula rate with FERC Order 679 incentives, for the GPE in April 2009, although there are still outstanding rehearing requests.

Green Power ExpressProject Description: The Green Power Express project is a network of transmission lines that would facilitate the movement of power from the wind-abundant areas in the Dakotas, Minnesota and Iowa to Midwest load centers that demand clean, renewable energy.

Project Cost: Approximately $10 to $12 billion.

Project Status: The project is expected to be developed in segments, as they move through the regional planning approval process.

Project Investment Partners: To be determined.


Project Benefits: The Green Power Express will provide substantial benefits both on a stand-alone basis and as a component of the coordinated development of a national high-voltage backbone trans-mission system. By providing efficient access to substantial amounts of wind power, in the range of 20 GWs, and permitting that power to be imported from the upper Midwest to population centers in the Midwest and further east, the Green Power Express supports environmental and policy objectives reflected in local or potential national renewable electricity standards while at the same time enhanc-ing the competitive regional electric market by increasing supply options and reducing congestion on existing facilities. By collecting wind generation over a significant geographic area, the Green Power Express will enhance reliability by evening out the impacts of localized weather on wind generation availability. It is to be geographically situated so that future expansions could be made further west into the Dakotas to access additional, even more productive wind resource areas. Finally, the Green Power Express was conceptualized as a network of transmission upgrades with appropriate redundan-cy so that reliability will be maintained.

ITC Great PlainsCompany Background:

• ITC Great Plains, LLC was formed in July 2006 as a subsidiary of ITC Grid Development, LLC, a wholly owned subsidiary of ITC Holdings Corp., the nation’s only fully independent electric transmission company.

• Headquartered in Topeka, Kansas, ITC Great Plains is a transmission-only utility which seeks to build a more robust electric transmission system providing access to reliable, non-discriminatory, competitive and low-cost energy throughout the Southwest Power Pool (SPP) region.

• ITC Great Plains holds transmission-only utility status in Kansas and Oklahoma with the authority to construct, own, operate, and maintain a regulated, high-voltage transmission system.

Kansas V-PlanProject Description: The Kansas V-Plan proj-ect consists of approximately 180 miles of new double-circuit, 345 kV transmission line designed to connect eastern and western Kansas to improve electric reliability and enable renewable and other energy developers to tap into the transmission grid, further establishing a competitive energy market in the state. This will contribute to a stronger trans-mission grid that will benefit the entire region.

The line is proposed to run south from Spear-ville to a new substation in Clark County, then east to a new substation near Medicine Lodge and on to a location near Wichita for a total of

TRANSMISSION PROJECTS: AT A GLANCE — ITC HOLDINGS CORP.



approximately 180 miles. ITC will build approximately 110 miles of the line from Spearville to Medi-cine Lodge in collaboration with Sunflower Electric Power Corporation and Mid-Kansas Electric Company. Prairie Wind Transmission will construct the third section of the line, from Medicine Lodge to a termination point outside Wichita.

Project Cost: Approximately $300 million for ITC Great Plains’ portion.

Project Status: The Kansas V-Plan was approved by the SPP Board of Directors on April 27, 2010. ITC filed a novation agreement and its siting application for the project in the first quarter of 2011. The project is projected to be in service by late 2014.

Project Investment Partners: Sunflower Electric Cooperative, Mid-Kansas Electric and Prairie Wind Transmission.

Project Benefits: This project will support renewable generation development by providing greater access to renewable energy sources and cheaper conventional generation sources. The project will help to achieve energy security and independence and will improve reliability.

KETA ProjectProject Description: The KETA Project, also known as the Spearville - Axtell transmission line, consists of approxi-mately 225 miles of new 345 kV transmission line that will run from Spearville north to the Post Rock (formerly Knoll) Substation near Hays, then on across the Nebraska border to Axtell. The line will be built in three segments: Spearville to Hays; Hays to the Kansas-Nebraska border; and from the Kansas-Nebraska border to Axtell. ITC will build the first two segments: Spearville to Hays; and Hays to the Kansas-Nebraska border. The Nebraska Public Power District is responsible for building the third segment, from the Kansas-Nebraska border to Axtell. The transmission line will im-prove the reliability and efficiency of the regional grid and make more affordable energy available.

Project Cost: The estimated cost for the ITC portion of project is approximately $203 million.

Project Status: ITC Great Plains broke ground November 4, 2010 on the first phase of the KETA project. ITC received Phase II route approval from the Kansas Corporation Commission (KCC) on June 30, 2010. Rights-of-way (ROW) acquisition and design for Phase II of the project, from Hays to the Kansas-Nebraska border, is now underway. Construction on Phase II is expected to start in late 2011. Phase I of the project is projected to be in service in mid-2012. Phase II of the project is projected to be in service in mid-2013.

Project Investment Partners: Sunflower Electric Cooperative, Mid-Kansas Electric, Midwest Energy and Nebraska Public Power District.



Project Benefits: This line, from Spearville, Kansas to Axtell, Nebraska, was identified as a project that would bring significant economic and reliability benefits to Kansas and the regional transmis-sion grid. The KETA Project will provide access to more reliable, efficient and affordable electricity in Kansas and the Midwest. It will facilitate the development and export of wind generation from cen-tral and western Kansas and serve as a critical link for Kansas to regain its position as a net exporter of energy while providing access to reliable and affordable energy across the state and region. It will also ease congestion across the transmission network, addressing the lack of high-voltage transmission lines in central and western Kansas which causes inefficiencies in the grid and does not allow power to flow in the most efficient manner.

Oklahoma Hugo - Valiant ProjectProject Description: The Oklahoma Hugo - Valliant Project consists of approximately 18 miles of new 345 kV transmission line that will run from a new substation that ITC will build near the West-ern Farmers Electric Cooperative Hugo Power Plant, west of Fort Towson, to an existing substation southeast of Valliant.

Project Cost: Approximately $37 million.

Project Status: The project is scheduled to begin construction in the spring of 2011 with completion prior to April 1, 2012.

Project Investment Partners: None.

Project Benefits: This project is intended to reduce system congestion and inefficiency, meet increas-ing service requests for transmission and help provide access to more dependable, efficient and afford-able electricity in southeastern Oklahoma and throughout the state.

ITC MidwestCompany Background:

• ITC Midwest’s service area is in Iowa, southern Minnesota and northwest Illinois, serving a population of approximately six million with a system peak load of approximately 3,500 MWs.

• ITC Midwest is a member of Midwest Independent System Operator (MISO).

• ITC Midwest owns 6,800 circuit miles of high-voltage transmission lines (overhead and underground) operating at voltages of 34.5 kV to 345 kV with more than 256 stations and substations.

Transmission Related Smart Grid Initiatives:

• ITC Midwest has begun a project to integrate the operations of the ITC Midwest electric system to an independent ITC EMS/SCADA system. This project will improve transmission system real-time monitoring capabilities and event analysis capabilities by strategically implementing Smart Grid improvements to substations across the ITC Midwest footprint. ITC submitted an application for the U.S. Department of Energy (DOE) Smart Grid funds for this program but did not receive funding.



ITC Midwest Smart Grid ProgramProject Description: The purpose of this project is to integrate the operations of the ITC Midwest electric system to an independent ITC EMS/SCADA system. Also, this project seeks to improve transmission system reliability, real-time monitoring capabilities and event analysis capabilities by strategically implementing the following Smart Grid improvements to substations across the ITC Midwest: upgrading the Communications Infrastructure by deploying an advanced, digital network architecture that provides security, reliability and greatly increased bandwidth; improving Real-Time Monitoring and Controls by deploying Remote Terminal Units (RTUs), substation intelligent alarm-ing and asset health monitoring units that enable enhanced real-time observation and rapid analysis and response to system events; enhancing Event Analysis Capabilities by deploying GPS technology and relay communications networks to enable improved decision support and analytics capability; and migrating from Legacy, Proprietary Protocols to open, interoperable architectures that will bet-ter support additional smart grid technologies, such as SynchroPhasors, through the development of expanded, interoperable technology platforms.

This project encompasses over 150 substation RTU and relay communication networks and seven transformer monitoring units.


Project Status: This project is in the implementation stage. Over 22 substations are in service as of late 2010. The project is forecasted to be completed by 2015. ITC submitted an application for the U.S. DOE Smart Grid funds for this program but did not receive funding.


Project Benefits: This project will fully transfer operations and control of the ITC Midwest electric system from Alliant Energy, the previous owner-entity of the system. The project contributes to fur-thering the development of Smart Grid functions by providing the ability to: develop, store, send and receive digital information relevant to grid operations through intelligent devices; sense and localize disruptions or changes in power flows on the grid and communicate such information instantaneously and automatically for purposes of enabling automatic protective responses to sustain reliability and security of grid operations; detect, prevent, communicate with regard to, respond to, or recover from system security threats, including cyber security threats and terrorism, using digital information, media and devices; and support future Smart Grid technologies (i.e., SynchroPhasors) through the development of an expanded, interoperable technology platform.

This project will make the transmission system monitoring more robust and better able to integrate renewable energy sources. As the penetration of intermittent generation resources, such as wind, are increased on the transmission grid, the need for improved monitoring on the system also increases. Without adequate system monitoring and controls, intermittent generation creates issues for grid reliability, energy scheduling and capacity planning. The project will enable an increased addition of renewable resources on the grid.



ITC TransmissionCompany Background:

• Headquartered in Novi, Michigan, ITCTransmission owns, operates and maintains approximately 2,800 circuit miles of overhead and underground transmission lines, 18,700 transmission towers and poles and 170 stations and substations in southeast Michigan serving a population of 5.1 million with a system peak load of approximately 12,700 MWs.

• ITCTransmission is a member of the Midwest Independent System Operator (MISO).

Michigan Thumb Loop Transmission ProjectProject Description: The Michigan Thumb Loop Transmission Project consists of approximately 140 miles of new double-circuit, 345 kV transmission line and four new substations that will serve as a “backbone” for wind development located in Michigan’s Thumb region.

In October 2008, Michigan passed the Clean, Renewable and Efficient Energy Act (Public Act 295), which includes the state’s first Renewable Portfolio Standard (RPS). The RPS mandates that roughly ten percent of the state’s energy come from renewable sources by 2015, phased in beginning in 2013. It also outlines a process to meet those standards.

As part of that process, Public Act 295 created the Wind Energy Resource Zone Board to study and identify regions with the highest wind potential. The Board’s final report identified four prospective regions. Region 4, located in the state’s Thumb area, displayed the highest potential for wind energy in the state. In accordance with Public Act 295, ITCTransmission submitted a plan for additional transmission lines needed to accommodate future wind development projects in Region 4.


Project Status: MISO has approved the Thumb Loop project as one of the first Multi-Value Projects (MVP) eligible for regional cost sharing as approved by FERC. On August 30, 2010, ITCTransmis-sion applied to the Michigan Public Service Commission (MPSC) for expedited siting approval of the project and received siting approval on February 25, 2011. Public Act 295 required the MPSC to issue a decision within six months of the filing date.


Project Benefits: This project will serve as an efficient transmission “backbone” and is designed to meet the identified minimum and maximum wind energy potential of the Thumb region (2,400 and 4,200 MWs respectively) and is capable of supporting a maximum capacity of about 5,000 MWs.



Michigan Electric Transmission Company (METC)Company Background:

• METC has a service territory covering more than 5,500 square-miles in the Lower Peninsula of Michigan, comprising all or part of 53 counties serving a population of approximately 4.9 million with a system peak load of approximately 9,500 MWs.

• METC owns 5,500 circuit miles of high-voltage transmission lines (overhead and underground) operating more than 93 stations and substations.

• METC is a member of the Midwest Independent System Operator (MISO).

Transmission Related Smart Grid Initiatives:

• METC has begun a project to integrate the operations of the METC electric system to an independent ITC EMS/SCADA system. This project will improve transmission system real-time monitoring capabilities and event analysis capabilities by strategically implementing Smart Grid improvements to substations across the METC footprint.

METC SCADA Redirection ProgramProject Description: The purpose of this project is to integrate the operations of the METC electric system to an independent ITC EMS/SCADA system. Also, this project seeks to improve transmis-sion system reliability, real-time monitoring capabilities and event analysis capabilities by strategically implementing the following Smart Grid improvements to substations across the METC footprint: upgrading the Communications Infrastructure by deploying an advanced, digital network architecture that provides security, reliability and greatly increased bandwidth; improving Real-Time Monitoring and Controls by deploying Remote Terminal Units (RTUs), substation intelligent alarming and asset health monitoring units that enable enhanced real-time observation and rapid analysis and response to system events; enhancing Event Analysis Capabilities by deploying GPS technology and relay communications networks to enable improved decision support and analytics capability; and migrat-ing from Legacy, Proprietary Protocols to open, interoperable architectures that will better support additional smart grid technologies, such as SynchroPhasors, through the development of expanded, interoperable technology platforms.

This project encompasses over 90 substation RTU and Relay communication networks, 31 transform-er monitoring units, 27 Digital Fault Recorders (DFR) and 20 capacitor bank controls.


Project Status: This project is in the final stages of construction and is anticipated to be complete in 2011.




Project Benefits: This project will transfer operations and control of the METC electric system from Consumer Energy, the previous operating entity of the system. The project contributes to furthering the development of smart grid functions by enabling the ability to: develop, store, send and receive digital information relevant to grid operations through intelligent devices; sense and localize disrup-tions or changes in power flows on the grid and communicate such information instantaneously and automatically for purposes of enabling automatic protective responses to sustain reliability and security of grid operations; detect, prevent, communicate with regard to, respond to, or recover from system security threats, including cyber security threats and terrorism, using digital information, media and devices; and support future Smart Grid technologies (i.e., SynchroPhasors) through the development of expanded, interoperable technology platforms.


KANSAS CITY POWER & LIGHT (KCP&L)Company Background:

• Operating from its headquarters in Kansas City, Missouri, KCP&L is a full-service energy provider.

• KCP&L services more than 800,000 customers in 47 northwestern Missouri and eastern Kansas counties; a service territory of approximately 18,000 square-miles.

• KCP&L has 6,000 MWs of owned generating capacity.

• KCP&L has 2,600 miles of transmission lines and 392 substations. KCP&L’s transmission system includes approximately 448 miles of 345 kV lines, 1,452 miles of 161 kV lines, and 691 miles of 69 kV lines.

• Between 2001 and 2009 KCP&L has invested approximately $173 million into its transmission system.

Iatan - Nashua 345 kV Transmission LineProject Description: The Iatan - Nashua 345 kV Transmission Line project consists of ap-proximately 30 miles of new 345 kV transmission line from Iatan Substation to Nashua Substation in Missouri. This project will connect with the existing Hawthorn - St. Joseph 345 kV transmis-sion line. A new 345 kV ring bus will be con-structed at Nashua Substation.


Project Status: This project was approved in the summer of 2009 by the Southwest Power Pool (SPP) Board of Directors for construction. Rout-ing, siting, engineering, materials, and construc-tions processes are currently underway. This project is anticipated to be in service by June 2015.


Project Benefits: This project provides trade and production cost benefits by virtue of the additional transmission segments reducing transmission constraints.


TRANSMISSION PROJECTS: AT A GLANCE — KANSAS CITy POwER & LIGHT (KCP&L)

Sibley - Nebraska City 345 kV Transmission LineProject Description: The Sibley - Nebraska City 345 kV Transmission Line project consists of approximately 175 miles of new 345 kV trans-mission line from KCP&L’s Sibley Generat-ing Station to Omaha Public Power District’s (OPPD) Nebraska City Substation. KCP&L will construct and own 170 miles of the project and OPPD will construct and own five miles of the project. KCP&L will also install a new 345 kV Maryville Substation at a midpoint in the line.

Project Cost: Approximately $404 million, of which approximately $384 million will be KCP&L’s responsibility.

Project Status: This project was approved in June 2010 by the SPP Board of Directors. KCP&L and OPPD accepted obligations to construct the project in September 2010. Routing, siting, engineering, materials, and construction processes are cur-rently underway. This project is anticipated to be in service by June 2017.

Project Investment Partners: OPPD.

Project Benefits: This transmission line project is part of SPP’s regional Priority Project set providing increased regional trade and production benefits, congestion relief and large-scale wind integration in northwest Missouri.

Documents

EEI Transmission Projects At A Glance 2011 (E-K) · PDF file · 2012-12-10• FirstEnergy’s transmission operations include 20,000 miles of high-voltage lines ... new Welton Spring