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National Electric Transmission Congestion Study - W2agz.com

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Baltimore area will face numerous violations of<br />

reliability criteria over the next 15 years. 45<br />

There are no easy solutions to these problems. Old,<br />

inefficient power plants should be retired or upgraded,<br />

and there is often opposition to retaining existing<br />

or building new generation within urban areas<br />

where it is often needed to support local voltage and<br />

grid reliability. Air pollution regulations sometimes<br />

limit when and at what output levels existing or new<br />

central station and distributed generation can operate.<br />

In principle, additional transmission capacity<br />

would enable delivery of enough bulk power to<br />

meet customers’ demands. New transmission lines,<br />

however, would go through many <strong>com</strong>munities that<br />

may oppose the construction of new overhead<br />

high-voltage power lines, while utilities and their<br />

customers oppose incurring high costs to make such<br />

lines less intrusive aesthetically by putting them underground.<br />

Energy efficiency, demand response,<br />

and other demand-side measures can reduce loads<br />

and improve the balance between supply and demand,<br />

but those measures must be pursued over extended<br />

periods in order for their impacts to grow to<br />

transmission- or power plant-equivalent quantities.<br />

As planners in PJM, NYISO, and ISO-NE have recognized,<br />

all of these measures should be pursued on<br />

an integrated basis to ensure an adequate response<br />

to the economic and reliability challenges ahead.<br />

<strong>Electric</strong>ity supply and transmission planners in the<br />

Mid-Atlantic area are looking west, particularly to<br />

West Virginia, Kentucky, Ohio and Indiana, where<br />

there are extensive coal resources and the willingness<br />

to host power plants as a means of fostering<br />

economic development. West Virginia and western<br />

Pennsylvania also have significant potential wind<br />

resources. In addition, the Midwest has <strong>com</strong>fortable<br />

reserves of generation for the near term, particularly<br />

low-cost, base-load nuclear and coal generation.<br />

Nonetheless, major transmission upgrades will be<br />

needed in parts of Delaware, Maryland, New Jersey,<br />

Pennsylvania, Virginia, West Virginia, and<br />

perhaps Ohio to enable delivery of enough Midwestern<br />

generation to the Mid-Atlantic area to meet<br />

that area’s growing reliability and economic needs.<br />

Several new high-voltage transmission lines have<br />

been proposed to address these needs, but to date no<br />

region-wide analysis has been published confirming<br />

that the proposed lines would provide the facilities<br />

the region needs to strengthen its overall system<br />

and facilitate greater imports. As the entity responsible<br />

under FERC oversight for transmission planning<br />

within its broad footprint, PJM is the appropriate<br />

entity to respond to this analytic challenge.<br />

New York City’s electricity supply problems are especially<br />

<strong>com</strong>plex and difficult. Building new generation<br />

capacity within the city is extremely challenging<br />

because of air quality restrictions, high real<br />

estate values, fuel supply problems, and local opposition<br />

to power plants. Some additional generation<br />

is being added north of the city to serve the city’s requirements.<br />

Adding major new transmission lines<br />

to the north and northwest would increase the options<br />

available to the city for power. During the<br />

summer the city could be served by excess, relatively<br />

inexpensive hydropower from Canada. The<br />

flexibility provided by new transmission could also<br />

enable the city to tap recently proposed in-state<br />

wind power and clean coal generating capacity, if<br />

they are developed. An alternative is to supply a<br />

portion of the city’s needs by strengthening ties to<br />

PJM and using the PJM network to access coal-fired<br />

generation in western PJM, but this would affect<br />

electricity supplies and costs within PJM.<br />

The organizations directly responsible (under<br />

FERC oversight) for transmission planning across<br />

this area are PJM and NYISO. They perform and<br />

publish analyses for their respective areas on an ongoing<br />

basis, coordinate their activities, and seek to<br />

extend the time horizons of their respective analyses<br />

farther into the future. All of these efforts are<br />

important, and continuation of them is vital.<br />

Additional efforts are needed, however, at the<br />

inter-regional level. The electric systems of the<br />

Mid-Atlantic states and New York have be<strong>com</strong>e so<br />

highly interdependent that it is not possible to address<br />

the Mid-Atlantic problems without affecting<br />

New York’s electric system, and vice versa.<br />

45 Ibid.<br />

U.S. Department of Energy / <strong>National</strong> <strong>Electric</strong> <strong>Transmission</strong> <strong>Congestion</strong> <strong>Study</strong> / 2006 43

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