This basic question is one that many co-ops are now facing whether the co-op and/or their G&T - power supplier is part of a regional transmission organization (RTO) or not.  Transmission capacity is becoming more scarce at a time when many are attempting to diversify their sources of supply.  This limitation narrows the choice of supply and increases deliverability risks, both in reliability and in costs.

Even as transmission planning, operations and services become more regional in nature, changes are occurring that add location-specific risks which can impact each transmission user differently.  And this is on top of the more traditional transmission issues associated with siting and regulatory approvals, which are growing in complexity each year.

In some parts of the country, regional transmission organizations (RTOs) are operational and actively moving forward (like PJM and MISO).  These organizations have been designed to make diverse sources of supply available across the markets they manage.  At the same time they introduce a whole new universe of Financial Transmission Rights (FTRs), Locational Marginal Pricing (LMP), and capital cost allocations methodologies.   What implications will this have on your delivery costs?  Reliability?  What impact will there be on your cost of power supply?  What about the (real time?) information requirements?

This is definitely not your father’s Oldsmobile! 

And, the jury is still out on whether regional transmission planning and implementation performed by RTOs will create long-term transmission infrastructure in a timely fashion.  The planning process is complicated and in many cases the costs are assignable.  Are you prepared to protect yourself?

In areas where little or no actions are underway to form an RTO, there are likewise little or no efforts to expand the transmission system.  Ultimately your flexibility in developing alternatives for power supply becomes limited as transmission capacity is soaked up by normal system growth.  Long-term transactions become more difficult to negotiate.  Transmission contracts have been a traditional challenge for cooperatives.  The Pro Forma tariffs and Open Access Same Time Information Systems (OASIS) were supposed to make life easier, but have created their own challenges in securing transmission service.

No matter your situation, the bottom line is you probably need help to obtain cost-effective and reliable long-term, firm transmission services.

One of EnerVision's key consulting disciplines is Transmission Services.  This area includes the skills and knowledge required to effectively plan, manage and control transmission assets, as well as the skills and knowledge to plan for and to negotiate and implement transmission service contracts.  And, if you are concerned about ongoing transmission activities in your area, EnerVision can help you understand your options, monitor and influence decisions being made concerning future transmission developments. 

If your co-op does not have the skilled human resources or does not have adequate time available to effectively address these concerns, EnerVision is here to help.

For additional information on EnerVision’s transmission services, contact Charles Askey at 888-999-8840 or email him at charles.askey@enervision-inc.com.