National Electric Transmission Congestion Study - W2agz.com

National Electric Transmission Congestion Study - W2agz.com National Electric Transmission Congestion Study - W2agz.com

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Several of MISO’s transmission constraints are reliability-oriented, such as the Minnesota to Wisconsin limits. However, most of the constraints reflect the desire of wholesale electricity buyers and potential generators to move more low-cost power from resource-rich areas to load centers. Significant additional transmission investments are likely to be required to enable increased flows of coal-fueled and nuclear power from the Midwest (Illinois, Ohio, Indiana and Kentucky) into PJM and New York, and to deliver wind power from the North Central Plains (the Dakotas) to Chicago and other Midwest markets. Constraints in the Southwest Power Pool region SPP reports the first six of the following constraints as having the most frequently refused firm transmission requests for the first 3 quarters of 2005 (see Figure 3-5): 1. Elk City Transformer 2. Redbud-Arcadia 3. Valliant-Lydia and Pittsburg-Seminole 4. Ft. Smith Transformer 5. Iatan-Stranger Creek 6. Nebraska to Kansas 7. Kansas Panhandle wind development (from SPP’s “Summary of Congestion in SPP and Potential Economic Expansion Alternatives,” 2006) Three major congestion patterns are observable in SPP: East to west flows of electricity toward Oklahoma City, flows from Western Oklahoma into Western Texas, and flows from Nebraska and West Kansas into Central Kansas. As elsewhere, reliability requirements determine which constraints are binding, while the directions of the power flows reflect the underlying economics of the available power sources. Constraints in the SERC Reliability Corporation region Figure 3-6 shows the following constraints in the SERC Reliability Corporation region: Entergy 1. Southeast Missouri to Northeast Arkansas 2. Central Arkansas to Southern Arkansas 3. Ft. Smith 6. Southeast Louisiana to Western Louisiana 5. Flow into New Orleans 6. McAdams Autotransformer Figure 3-5. Constraints in the Southwest Power Pool Region (SPP) Figure 3-6. Constraints in the SERC Reliability Corporation Region 24 U.S. Department of Energy / National Electric Transmission Congestion Study / 2006

As shown in Figure 3-6, major constraints within the Entergy portion of the SERC 21 area are limiting flows from Missouri to Arkansas, Central to South Arkansas, flows into the SPP system (Arkansas to Oklahoma), flows from Alabama to Mississippi, and—until recently—flows into New Orleans. Tennessee Valley Authority (TVA) 7. Volunteer Transformer Bank and Sullivan Transformer Bank (now upgraded) 8. Cumberland-Davidson and Johnsonville- Davidson 9. Tennessee to Georgia In the TVA area, the most limited flow directions are Tennessee to Georgia (Chattanooga-Huntsville to Atlanta), West to Central Tennessee (flows between Cumberland Fossil Plant and Nashville) and Tennessee to Kentucky (mostly flows from Cumberland into the LGEE system in Kentucky). Southern Company and VACAR (non- Dominion) 10. Southeast into Florida 11. Eastern South Carolina 12. Atlanta Problems in the Southern area reflect import limitations into Atlanta and limited flows from Georgia to Florida (limited by constraints on the Florida end). Congestion problems in the VACAR (non- Dominion) portion of SERC are largely concentrated around Charleston, South Carolina. 3.2. Results from Simulations of the Eastern Interconnection Interpreting the modeling results Electric system simulation modeling is performed for many purposes, including valuation of existing or proposed generation or transmission assets, long-range system planning, forecasting of electricity prices or transmission congestion contracts, or cost-benefit studies to assess regulatory reforms or market re-design options. For all these purposes, it is necessary to validate the data, modeling assumptions and simulation algorithms. The validation approach varies depending on the goal or purpose of the modeling. In most cases, modelers focus on how realistically the simulation results reflect historically observed inter-regional flows of power and whether the simulated patterns of congestion are similar to those observed in real systems. In this study, the process of model validation particularly focused on comparing simulated patterns of congestion against those historically observed. Thus, while the model calculates and optimizes electricity production costs subject to reliability constraints, it has been validated for transmission metrics—flows, limits, and congestion results— rather than power production costs. The congestion modeling process followed an iterative approach in which congestion results were benchmarked against validated data, the differences were closely examined, assumptions were revisited and input data verified until discrepancies were ultimately resolved or understood. This is the first interconnection-wide study of eastern congestion. There are certain questions about data quality and modeling effectiveness—particularly with respect to reactive power, reliability limits and treatment of line losses—that merit further examination. With those uncertainties in mind, the absolute values of congestion metrics for each transmission path or constraint are less important than their relative weights. The goal here has been to identify those paths and areas that are especially congested, not to calibrate exactly how congested each area is now or may become. The Department of Energy is responsible for identifying areas where congestion is now or is likely to become especially severe, and if appropriate, facilitating mitigation of such problems through the designation of National Corridors. For that purpose, determining the relative rankings of the congestion associated with specific constraints is a very useful model result. By contrast, the estimates of power production costs should not be regarded as valid predictors for the 21 The SERC Reliability Corporation (SERC) is the Regional Reliability Organization (RRO) responsible for promoting, coordinating and ensuring the reliability and adequacy of the bulk power supply systems in the Southeast, excluding Florida. U.S. Department of Energy / National Electric Transmission Congestion Study / 2006 25

As shown in Figure 3-6, major constraints within<br />

the Entergy portion of the SERC 21 area are limiting<br />

flows from Missouri to Arkansas, Central to South<br />

Arkansas, flows into the SPP system (Arkansas to<br />

Oklahoma), flows from Alabama to Mississippi,<br />

and—until recently—flows into New Orleans.<br />

Tennessee Valley Authority (TVA)<br />

7. Volunteer Transformer Bank and Sullivan<br />

Transformer Bank (now upgraded)<br />

8. Cumberland-Davidson and Johnsonville-<br />

Davidson<br />

9. Tennessee to Georgia<br />

In the TVA area, the most limited flow directions<br />

are Tennessee to Georgia (Chattanooga-Huntsville<br />

to Atlanta), West to Central Tennessee (flows between<br />

Cumberland Fossil Plant and Nashville) and<br />

Tennessee to Kentucky (mostly flows from<br />

Cumberland into the LGEE system in Kentucky).<br />

Southern Company and VACAR (non-<br />

Dominion)<br />

10. Southeast into Florida<br />

11. Eastern South Carolina<br />

12. Atlanta<br />

Problems in the Southern area reflect import limitations<br />

into Atlanta and limited flows from Georgia to<br />

Florida (limited by constraints on the Florida end).<br />

<strong>Congestion</strong> problems in the VACAR (non-<br />

Dominion) portion of SERC are largely concentrated<br />

around Charleston, South Carolina.<br />

3.2. Results from Simulations<br />

of the Eastern<br />

Interconnection<br />

Interpreting the modeling results<br />

<strong>Electric</strong> system simulation modeling is performed<br />

for many purposes, including valuation of existing<br />

or proposed generation or transmission assets,<br />

long-range system planning, forecasting of electricity<br />

prices or transmission congestion contracts, or<br />

cost-benefit studies to assess regulatory reforms or<br />

market re-design options. For all these purposes, it<br />

is necessary to validate the data, modeling assumptions<br />

and simulation algorithms. The validation approach<br />

varies depending on the goal or purpose of<br />

the modeling. In most cases, modelers focus on how<br />

realistically the simulation results reflect historically<br />

observed inter-regional flows of power and<br />

whether the simulated patterns of congestion are<br />

similar to those observed in real systems.<br />

In this study, the process of model validation particularly<br />

focused on <strong>com</strong>paring simulated patterns of<br />

congestion against those historically observed.<br />

Thus, while the model calculates and optimizes<br />

electricity production costs subject to reliability<br />

constraints, it has been validated for transmission<br />

metrics—flows, limits, and congestion results—<br />

rather than power production costs. The congestion<br />

modeling process followed an iterative approach in<br />

which congestion results were benchmarked<br />

against validated data, the differences were closely<br />

examined, assumptions were revisited and input<br />

data verified until discrepancies were ultimately resolved<br />

or understood.<br />

This is the first interconnection-wide study of eastern<br />

congestion. There are certain questions about<br />

data quality and modeling effectiveness—particularly<br />

with respect to reactive power, reliability limits<br />

and treatment of line losses—that merit further<br />

examination. With those uncertainties in mind, the<br />

absolute values of congestion metrics for each<br />

transmission path or constraint are less important<br />

than their relative weights. The goal here has been<br />

to identify those paths and areas that are especially<br />

congested, not to calibrate exactly how congested<br />

each area is now or may be<strong>com</strong>e. The Department<br />

of Energy is responsible for identifying areas where<br />

congestion is now or is likely to be<strong>com</strong>e especially<br />

severe, and if appropriate, facilitating mitigation of<br />

such problems through the designation of <strong>National</strong><br />

Corridors. For that purpose, determining the relative<br />

rankings of the congestion associated with specific<br />

constraints is a very useful model result. By<br />

contrast, the estimates of power production costs<br />

should not be regarded as valid predictors for the<br />

21 The SERC Reliability Corporation (SERC) is the Regional Reliability Organization (RRO) responsible for promoting, coordinating and<br />

ensuring the reliability and adequacy of the bulk power supply systems in the Southeast, excluding Florida.<br />

U.S. Department of Energy / <strong>National</strong> <strong>Electric</strong> <strong>Transmission</strong> <strong>Congestion</strong> <strong>Study</strong> / 2006 25

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