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National Electric Transmission Congestion Study - W2agz.com

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7. Next Steps Regarding <strong>Congestion</strong> Areas and<br />

Considerations for Future <strong>Congestion</strong> Studies<br />

As the first congestion study conducted under section<br />

1221(a) of the Energy Policy Act of 2005, this<br />

analysis has identified significant amounts of congestion<br />

and projected congestion on the Nation’s<br />

transmission networks. (See Chapter 5.) Chapter 6<br />

provides details on DOE’s request for <strong>com</strong>ments<br />

concerning possible designation of <strong>National</strong> Corridors<br />

to help ease congestion in two Critical <strong>Congestion</strong><br />

Areas. This chapter discusses next steps for<br />

DOE and others related to alleviating congestion<br />

elsewhere and improving the value of future congestion<br />

studies.<br />

7.1. Next Steps Regarding<br />

<strong>Congestion</strong> Areas<br />

Role of regional transmission<br />

planning organizations in finding<br />

solutions to congestion problems<br />

DOE expects that regional transmission planning<br />

organizations will take the lead in working with<br />

stakeholders and industry transmission experts to<br />

develop solutions to the congestion problems identified<br />

above in their respective areas. DOE expects<br />

these planning efforts to be inter-regional where appropriate,<br />

because many of the problems and likely<br />

solutions cross regional boundaries. In particular,<br />

the Department believes that these analyses should<br />

en<strong>com</strong>pass both the congestion areas and the areas<br />

where additional generation and transmission capacity<br />

are likely to be developed. The Department<br />

will support these planning efforts, including convening<br />

meetings of working groups and working<br />

with the Federal Energy Regulatory Commission<br />

and congestion area stakeholders to facilitate agreements<br />

about cost allocation and cost recovery for<br />

transmission projects, demand-side solutions, and<br />

other subjects.<br />

DOE anticipates that regional—and where appropriate,<br />

inter-regional—congestion solutions will be<br />

based on a thorough review of generation, transmission,<br />

distribution and demand-side options, and that<br />

such options will be evaluated against a range of<br />

scenarios concerning load growth, energy prices,<br />

and resource development patterns to ensure the robustness<br />

of the proposed solutions. Such analysis<br />

should be thorough, use state-of-the-art analytical<br />

methods and publicly accessible data, and be made<br />

available to industry members, other stakeholders,<br />

and regulators.<br />

<strong>Congestion</strong> area progress reports<br />

Each of the congestion areas identified above involves<br />

a somewhat different set of technical and<br />

policy concerns for the affected stakeholders. The<br />

Department will work with FERC, affected states,<br />

regional planning entities, <strong>com</strong>panies, and others to<br />

identify specific problems, find appropriate solutions,<br />

and remove barriers to achieving those solutions.<br />

Having identified certain areas as Critical <strong>Congestion</strong><br />

Areas, <strong>Congestion</strong> Areas of Concern, and Conditional<br />

<strong>Congestion</strong> Areas, the Department intends<br />

to monitor congestion and its impacts in these areas,<br />

and publish annual reports on progress made in<br />

finding and implementing solutions. The first progress<br />

report will be issued on August 8, 2007, the second<br />

anniversary of the enactment of the Energy Policy<br />

Act.<br />

In these reports the Department will note progress<br />

in <strong>com</strong>mitments and/or construction of new transmission<br />

facilities, generation capacity, and expansion<br />

of energy efficiency and demand response<br />

efforts to alleviate or moderate the congestion problems<br />

identified, and the parties responsible for such<br />

progress. In the four <strong>Congestion</strong> Areas of Concern<br />

(New England, the Seattle – Portland area, the San<br />

Francisco Bay area, and the Phoenix – Tucson<br />

area), more information and analysis are needed to<br />

assess the magnitude of the congestion and the<br />

U.S. Department of Energy / <strong>National</strong> <strong>Electric</strong> <strong>Transmission</strong> <strong>Congestion</strong> <strong>Study</strong> / 2006 63

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