Transcript Boguslawski Presentation

Restructuring Roundtable
June 12, 2009
Dave Boguslawski
Vice President – Transmission Strategy & Operations
Northeast Utilities
Federal Legislative Focus
FEDERAL PRIORITIES




Address climate change
Reduce dependence on foreign oil
Stimulate economic recovery in the near term
Invest in key infrastructure for the future
FEDERAL ACTIONS
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
American Recovery and Reinvestment Act
(Stimulus Bill)
Proposed Bills (Reid, Bingaman, Waxman/Markey)
• Federal Renewable Portfolio Standards (RPS)
• Transmission

A possible “sea change” in the works involving:
• Transmission Planning
• Transmission Siting
• Transmission Cost-Allocation
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PLANNING:
Two New Approaches Being Considered
1 TOP-DOWN:
A single planning authority
develops plans for each
Interconnection
2 BOTTOM-UP:
The regions work collaboratively,
starting with their regional plans,
to develop a Super-Region Plan
or a “National” Plan
Ontario
IESO
HydroQuébec
ISONew
England
NY ISO
NYISO
PJM
Interconnect
3
SITING:
All Proposals would create a Larger Federal Role
4

Federal siting for all high voltage lines

Federal siting transmission for renewable energy

Strengthen current federal backstop siting authority
COST-ALLOCATION:
Proposals would Spread Cost over Broad Areas
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
Areas defined by FERC either by a predetermined approach
or on a project-specific basis
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An interconnection-wide tax, and

A national transmission tax,
CONCLUSION:
Common Interests, Coordinated Actions
New England States Have Common Interests
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Promote regional planning
Maintain state siting authority
Develop regional renewable generation in a cost-effective manner
Meet state RPS targets and RGGI requirements
Minimize national subsidies to other regions
Success Requires Coordinated Actions
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Show that we can develop regional solutions that align with national energy policy.
Build on the New England Governors' Conference proposal for connecting
renewable resources.
Demonstrate that we promptly complete planned projects.
Seek federal funding and other incentives to help renewable project economics.
Keep the costs to the customer in mind by doing the best projects first.
Major Transmission System Additions Are Required to Import Power
From Northern New England & Canadian Low Carbon Resources
Over 80% of New England’s Load is South of
the North-South Interface
Eastern Canadian Development
H
Newfoundland
& Labrador
H
Exploring development
of large Hydro facilities
H
Quebec
Hydro Quebec plans
to develop a portfolio of
hydroelectric projects
totaling 4,500 MW and
integrate 4,000 MW of
planned wind power by
2015.
H
H
H
H
North-South Interface
W
W
W
B
WEST VIRGINIA
B
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W
W
N
New Brunswick
Exploring development
of 1 or 2 nuclear units
DELAWARE
Biomass
H
Hydro
N
Nuclear
W
Wind
General Movement Of Power
Accessing Canadian Resources: Partnership With
NSTAR, H-Q Announced in December
>
Signed Memoranda of Understanding with NSTAR, Hydro Quebec in
2008 to develop project on an exclusive basis
› 1200+ MW HVDC line between HQ’s hydroelectric system and New
Hampshire
› Power purchase agreement to supply low-carbon energy to New
England load
>
FERC issued declaratory order on May 22 endorsing concept of joint
PPA/transmission arrangement
› HVDC line would be participant-funded
› US portion of HVDC line would be owned by NU and NSTAR
>
Anticipate filing PPA terms with State regulators in 2009
› Intend to offer PPA broadly to New England load through an open
process
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