Backed by a new process conducted by the New England states, ISO-NE is moving forward with a request for proposals to build new transmission that would bring wind to market from Northern Maine.
The New England States Committee on Electricity presented its request at the ISO-NE Planning Advisory Committee’s meeting Dec. 18. The RTO plans to develop the RFP and release it by March.
“This is the first time that we’re using this process, and so we wanted to focus on investments that we have a high confidence in, that they’ll provide a lot of value for consumers; this concept of least-regrets transmission,” Jason Marshall, Massachusetts deputy secretary and special counsel for federal and regional energy affairs, said in an interview.
The RFP will be the first use of new rules FERC approved in July that allow states to identify a transmission need and then have the RTO run a solicitation to meet it. (See FERC Approves New Pathway for New England Transmission Projects.)
North-to-south transmission capacity in the region has been lacking, with Marshall saying it has limited the ability of generation to move to load centers to the south.
“As a result, resources have been really curtailed up there, and it’s limited our access to low-cost clean energy generation,” he added.
The RFP would also facilitate the interconnection of new wind resources, which have been held back by the lack of transmission to the resource-rich region, Marshall said.
“Strengthening the connections between northern and southern New England will enhance reliability and market efficiency by resolving known constraints on the transmission system and will also position the region to more efficiently integrate affordable resources in coming years,” NESCOE wrote in a memo to the RTO. “There is broad interest in addressing these longstanding system challenges, and strengthening the transmission system in Maine is a reasonable, measured first step toward the region’s needed transmission investment.”
The RFP targets increasing transfer capacity starting at a substation in Pittsfield, Maine — west of Bangor — and down through the southern part of the state into New Hampshire. Several parties asked in comments for the states to issue multiple RFPs based around the multiple needs for new transmission. (See ISO-NE Stakeholders Respond to Potential Long-term Transmission RFP.)
The states have been discussing the option for the multiple RFPs, and they also brought up that issue with the RTO, NESCOE’s Sheila Keane said at the PAC meeting.
“We understand that multiple RFPs could risk an unintended consequence of inefficient investment and extend the timeline for needed investment,” she added. “So, we certainly take that into mind in our final decision, and at this time, we accept that recommendation that a single, comprehensive RFP scope is the most efficient way forward.”
The tariff requires a complete solution for the needs identified, but Keane said the states are interested in maximizing competition in the process, and that could change in future RFPs.
The RFP is just one of several processes that could increase transmission from Northern Maine, where the grid is operated not by ISO-NE but by the Northern Maine Independent System Administrator and is connected to the Eastern Interconnection through New Brunswick.
The U.S. Department of Energy has offered an investment as an initial off-taker for a major line to the region. (See Long Road Still Ahead for Aroostook Transmission Project.)
The Maine Public Utilities Commission has opened a proceeding looking into better connections for the region, and Massachusetts has the authority to do out-of-state procurements for clean energy, Marshall said.
“I think we would view these activities as complementary,” he added. “They are different processes though, but again, at least for our state, we’re in an early phase.”
