By William Opalka
WESTBOROUGH, Mass. — A transmission project intended to release bottled wind resources in Maine may not be cost-effective, according to a draft report issued at the ISO-NE Planning Advisory Committee meeting last week.
The needs assessment for the Keene Road market efficiency transmission upgrades showed relatively small annual savings in energy production costs of $1.35 million to $1.38 million (2015 $) if the export limits were raised from the current 165 MW to 195 MW.
An additional increase to 225 MW would save another $100,000 to $180,000. No additional savings are realized if the limit is further raised to 255 MW. The assessment measured the four export limits for the years 2020, 2025 and 2030.
A preliminary economic study from last year estimates the project could save ISO-NE ratepayers $1.4 million to $5.7 million by allowing additional wind development in the area and displacing more expensive hydropower.
The PAC set the parameters for determining if Keene Road could qualify as a market efficiency project in September. (See ISO-NE Outlines Keene Road Tx Upgrade Study.)
“This has the look of providing a de minimis benefit, so you have to ask if it’s worth doing,” said Bob Stein of Signal Hill Consulting Group, who represents Hydro-Quebec and other power generators.
Michael Henderson, ISO-NE’s director of regional planning and coordination, said those were “questions more properly dealt with at a later date.”
The RTO has not released any estimates on the cost of the upgrades, which would be eligible for competitive bidding under FERC Order 1000.
Under the RTO’s Tariff, the cost of a market efficiency project must be less than the resulting production cost savings. “If the ISO does issue a request for proposals and no developer provides a proposal that meets this cost threshold, then no regionally funded transmission project would move forward,” ISO-NE spokeswoman Marcia Blomberg told RTO Insider on Thursday.
A final discussion of the results will be held at the December PAC. In January, the committee will discuss whether to move toward a competitive solicitation for bids from potential developers.