Hannibal Board of Public Works General Manager Bob Stevenson's weekly sales pitches for Clean Line Energy Partners are getting sillier.
This week's offering accuses investor owned utility Ameren of keeping its transmission lines "overloaded" in order to maximize profit. In order to get there, Bob completely overlooks the efforts of the Midcontinent Independent System Operator (MISO) to plan and operate the regional transmission system.
Bob supposes that Ameren manipulates its transmission lines to increase economic congestion and that only a non-MISO transmission proposal can fix it.
Impossible!
Here's what MISO, a federally regulated regional transmission system operator, does:
This week's offering accuses investor owned utility Ameren of keeping its transmission lines "overloaded" in order to maximize profit. In order to get there, Bob completely overlooks the efforts of the Midcontinent Independent System Operator (MISO) to plan and operate the regional transmission system.
Bob supposes that Ameren manipulates its transmission lines to increase economic congestion and that only a non-MISO transmission proposal can fix it.
Impossible!
Here's what MISO, a federally regulated regional transmission system operator, does:
- Reliability Assurance - "...we provide enhanced operating and monitoring of the regional electric grid and more efficient use of the region’s transmission infrastructure." Including Ameren's!
- Transmission and Resource Planning - "MISO facilitates value-based regional planning for reliable generation and transmission of energy. Our ongoing studies and evaluations consider seasonal demand fluctuations, growing consumer needs and the integration of renewable energy." MISO plans and orders transmission lines needed for reliability, economics (including transmission line congestion), and public policy purposes. If the region needs a new transmission line to make electric delivery more reliable, more economic, or to meet public policy goals, MISO planners find the most robust and economic solution, and orders the project to be built through a competitive process.
- Competitive Markets - "We use a five-minute commitment process that provides market liquidity and transparent pricing while also minimizing congestion and maximizing efficient energy transmission." Including Ameren's!
- Tariff Administration - "As a regional transmission organization, we are the sole decision-making authority on the provision of transmission service in accordance with our FERC-approved tariff. Additionally, we coordinate transmission use and administration with other tariffs in the region." How transmission is priced and paid for in the region, according to the tariff, which prevents utilities like Ameren from gaming the system.
Bob's accusations against Ameren are unfounded. Moreover, they simply couldn't happen because of all the things MISO does.
If Ameren creates economic congestion (which, in simplest terms, means that the cheapest generation cannot reach every community), then MISO would order a new transmission line to decrease congestion and lower prices. However, it isn't always economic or desirable to eliminate all congestion. Congestion will always exist and even the most careful planning may do nothing but shift it around. When eliminating certain congestion will provide more benefit than cost, MISO will order transmission to eliminate it.
MISO did not create a Clean Line in its regional transmission plan, nor order it to be built!
Clean Line could have presented its transmission plan to MISO and requested it be studied to solve existing or anticipated reliability, economic or public policy purposes, and whether it passed a cost/benefit analysis. If MISO had agreed that a Clean Line served some purpose, it would have included it in its plan, ordered it to be built, with the costs allocated to regional electric ratepayers. Instead, Clean Line chose to proceed with its project outside MISO's planning process. Therefore, there is no documented need for a Clean Line. It is completely extraneous -- a market-based proposition that will succeed or fail based on market need for such a project.
In short, MISO has not found a need for Clean Line. Not to "accommodate new wind farms." Not to "redesign and expand the transmission system." Not to alleviate economic congestion. Not to prevent Ameren from exercising market power. Not for any reason.
Moreover, Clean Line's own presentation to Hannibal detailing "wind options" for the city showed several economically-comparable options that most likely used Ameren-owned transmission lines (at transmission prices much, much less than the purported price of transmission via a Clean Line).
Our transmission system is perfectly adequate for its intended purpose. That's what MISO does.
MISO does not sit around watching the transmission system rot while waiting for foreign investors to propose extraneous transmission projects to meet need. That's ridiculous!
That's Bob! For this week!
If Ameren creates economic congestion (which, in simplest terms, means that the cheapest generation cannot reach every community), then MISO would order a new transmission line to decrease congestion and lower prices. However, it isn't always economic or desirable to eliminate all congestion. Congestion will always exist and even the most careful planning may do nothing but shift it around. When eliminating certain congestion will provide more benefit than cost, MISO will order transmission to eliminate it.
MISO did not create a Clean Line in its regional transmission plan, nor order it to be built!
Clean Line could have presented its transmission plan to MISO and requested it be studied to solve existing or anticipated reliability, economic or public policy purposes, and whether it passed a cost/benefit analysis. If MISO had agreed that a Clean Line served some purpose, it would have included it in its plan, ordered it to be built, with the costs allocated to regional electric ratepayers. Instead, Clean Line chose to proceed with its project outside MISO's planning process. Therefore, there is no documented need for a Clean Line. It is completely extraneous -- a market-based proposition that will succeed or fail based on market need for such a project.
In short, MISO has not found a need for Clean Line. Not to "accommodate new wind farms." Not to "redesign and expand the transmission system." Not to alleviate economic congestion. Not to prevent Ameren from exercising market power. Not for any reason.
Moreover, Clean Line's own presentation to Hannibal detailing "wind options" for the city showed several economically-comparable options that most likely used Ameren-owned transmission lines (at transmission prices much, much less than the purported price of transmission via a Clean Line).
Our transmission system is perfectly adequate for its intended purpose. That's what MISO does.
MISO does not sit around watching the transmission system rot while waiting for foreign investors to propose extraneous transmission projects to meet need. That's ridiculous!
That's Bob! For this week!
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