SPP staff last week said they considered several seams-related projects with MISO in their 2020 Integrated Transmission Planning (ITP) assessment but eventually declined to pursue them over differing methodologies in calculating benefits and costs.
“Rest assured we’re going to continue to look at these areas in the future,” Kirk Hall told the Seams Steering Committee during its Oct. 7 meeting, referring to three 345-kV projects along the Nebraska-Iowa border.
“MISO and SPP staff continue to work on understanding the cost differences,” Hall said. “Hopefully, we’ll come back with something that is agreeable to all parties.”
Hall shared a near-final version of the ITP assessment with the SSC. Staff identified 54 projects in the final portfolio, which includes 92 miles of 345-kV transmission lines and 141 miles of rebuilt high-voltage infrastructure. It estimated $532 million of engineering and construction costs but projected a 4.0-5.2-to-1 benefit-to-cost ratio.
The 2020 ITP takes a 10-year look at system reliability and economic needs. Staff spent more than two years evaluating more than 2,200 solutions, and said the projects will solve 163 system needs, help levelized market prices, improve congestion hedging and facilitate access to low-cost energy.
The ITP assessment will be taken to SPP stakeholders and the Board of Directors later this month for their approval.
Neil Robertson, SPP’s interregional relations senior engineer, said the grid operator remains “committed to coordinating” with MISO. The RTOs once again failed to agree on an interregional project during their fourth coordinated system plan (CSP) study but have since agreed to combine forces on a year-long transmission study to identify “comprehensive, cost-effective and efficient upgrades.” (See MISO, SPP to Conduct Targeted Transmission Study.)
“SPP will … work with MISO and determine how we would rectify costs differences if we decided to factor in whether a project can be recommended or not,” Robertson said.
He said SPP and MISO analyzed 10 needs in their CSP, but no solutions met “fundamental requirements.”
Robertson also discussed the final report of SPP’s joint CSP with Associated Electric Cooperative Inc. The entities will combine forces on what would be the RTO’s first competitive project under FERC Order 1000. (See FERC Approves SPP-AECI Competitive Project.)
M2M Settlements Again Favor SPP
Market-to-market (M2M) settlements once again flowed in SPP’s favor during August, staff told the committee, resulting in a $1.1 million accrual for the grid operator. Temporary and permanent flowgates were binding for 725 hours during the month.
SPP has now accrued $93.82 million in M2M settlements since it began the process with MISO in March 2015.
August marked the 10th time in 11 months, and the 49th time in 66 months, that settlements have ended up in SPP’s favor.
