THE BRATTLE GROUP

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that reduce the planning reserve margin and generation capacity needed to meet resource adequacy standards. 7. Apply benefit-to-cost thresholds to interregional projects that are no more stringent than those applied within each region. Since interregional projects are projects that regions evaluate jointly, a single joint benefit-to-cost threshold should be sufficient. If the regions jointly find that a certain interregional project or portfolio of projects offers benefits in excess of costs, the participating regions should be able to agree on a cost allocation such that each region enjoys a share of the overall benefits that exceeds its share of the costs. The analytical approaches used to determine benefit-to-cost ratios for interregional projects should look beyond “base cases” or “business-as-usual cases” and explicitly consider a broader range of plausible market conditions, system contingencies, and public policy environments to capture the short- and long-term flexibility benefits and insurance value that a more robust interregional transmission infrastructure can offer in terms of shielding customers from high-cost outcomes. 40 | brattle.com
List of Acronyms BPS Bulk Power System CAISO California Independent System Operator CBBRP Cross-Border Baseline Reliability Project CBMEP Cross-Border Market Efficiency Project CSP Coordinated System Plan DOE U.S. Department of Energy EISPC Eastern Interconnection States Planning Council EPA U.S. Environmental Protection Agency ERCOT Electric Reliability Council of Texas FERC Federal Energy Regulatory Commission HVDC High-Voltage Direct Current IPSAC Interregional Planning Stakeholder Advisory Committee ISO Independent System Operator ISO-NE Independent System Operator of New England JCM Joint and Common Market Committee JOA Joint Operating Agreement JPC Joint Planning Committee kV Kilovolt MEP Market Efficiency Project MISO Midcontinent Independent System Operator MTEP MISO Transmission Expansion Plan MVP Multi-Value Project MW Megawatt NARUC National Association of Regulatory Utility Commissioners NERC North American Electric Reliability Corporation NIPSCO Northern Indiana Public Service Company NYISO New York Independent System Operator OMS Organization of MISO States PJM PJM Interconnection PVD2 Palo Verde to Devers No. 2 RMR Reliability Must Run 41 | brattle.com
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THE BRATTLE GROUP Johannes Pfeifenb
Page 3 and 4: WIRES Preface Purpose of This Repor
Page 5 and 6: promote low-carbon strategies. 4 Be
Page 7 and 8: een called “anticipatory transmis
Page 9 and 10: Toward More Effective Transmission
Page 11 and 12: Table of Contents Executive Summary
Page 13 and 14: From this perspective, today’s pl
Page 15 and 16: I. Introduction In 2013, WIRES publ
Page 17 and 18: The remainder of this report is org
Page 19 and 20: account only those expected costs a
Page 21 and 22: is clear that utilities have made s
Page 23 and 24: III. The High Costs and Risks of In
Page 25 and 26: A. INSUFFICIENT SYSTEM FLEXIBILITY
Page 27 and 28: project were rejected in a planning
Page 29 and 30: As the PVD2 analysis further shows,
Page 31 and 32: other words, building the project w
Page 33 and 34: industry) 21 and has already been e
Page 35 and 36: $12 million. 26 This focus on relia
Page 37 and 38: C. INEFFICIENCIES OF CURRENT PLANNI
Page 39 and 40: planning regions. So far, we find t
Page 41 and 42: interregional transmission capabili
Page 43 and 44: These studies thus suggest that at
Page 45 and 46: generation the estimated benefit of
Page 47 and 48: enefit metrics that are even narrow
Page 49 and 50: investment costs, reduced costs of
Page 51 and 52: long-term flexibility benefits and
Page 53: actively encourage and support such
Page 57 and 58: Bibliography American Transmission
Page 59 and 60: Federal Energy Regulatory Commissio
Page 61 and 62: Pfeifenberger, J., K. Spees, K. Car
Page 63 and 64: Appendix A: Case Study of Transmiss
Page 65 and 66: Figure A‐1 Benefits and Costs of
Page 67 and 68: Figure A-2 also documents the fact
Page 69 and 70: Figure A‐3 Range of Projected Soc
Page 71 and 72: Appendix B: Addressing Uncertaintie
Page 73 and 74: The simulation of short-term uncert
Page 75 and 76: transmission issues and solutions a
Page 77 and 78: Expansion Plan (RTEP) criteria; and
Page 79 and 80: Requiring projects to pass the join
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THE BRATTLE GROUP

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