The Federal Energy Regulatory Commission has accepted proposed tariff revisions submitted by the Southwest Power Pool to establish a Consolidated Planning Process framework to streamline its regional transmission planning and generator interconnection processes.
The order was issued on March 13 (Docket Nos. ER26-414-000 ER26-414-001).
SPP Proposal
To implement the proposed CPP framework, SPP proposes revisions to its open access transmission tariff to combine SPP’s regional transmission planning and generator interconnection processes into a single, integrated process under a new Attachment AY of its Tariff.
SPP’s proposed Attachment AY provides an overview of the CPP and relevant definitions, outlines roles and responsibilities, and contains both the CPP Transmission Assessment Procedures and Generator Connection Procedures (GCP).
SPP explains that the CPP will consist of a series of transmission assessments conducted over a three-year CPP planning cycle, in which SPP will evaluate the transmission system’s long-term performance in recognition of regional transmission planning and future generation needs.
The CPP will consist of two forward-looking planning assessments, a 20-Year Assessment (CPP-20) and 10-Year Assessment (CPP10).
SPP explains that the CPP-20 will be used to determine the generalized rates for interconnection development contribution (GRID-C) and planned interconnection locations (PIL) for the CPP planning cycle, two key CPP features.
SPP explains that the Interconnection Cluster Study (ICS) will be performed as part of the annual CPP-10, and the outcomes of the ICS will be considered in the regional planning assessment phase of the CPP-10, which will recommend transmission system upgrades for inclusion in the regional transmission plan for construction.
The proposed GCP Attachment AY, section V contains provisions regarding the ICS process, including pro forma study agreements and pro forma generator interconnection agreements (GIA) in appendices.
SPP states that the CPP is expected to provide wide and broad benefits to load, interconnection customers, other stakeholders, and the entire SPP community.
Among the specific benefits, SPP identifies reliability benefits through coordinated and timely investment in multi-value transmission upgrades that will enhance the transmission system’s ability to support both existing and future load reliably, especially under scenarios with high demand growth and resource addition.
SPP also states that the CPP framework creates predictable, equitable cost allocation for interconnection customers, enabling improved financial planning and siting – particularly in regions where existing infrastructure is limited or absent. SPP also asserts that the CPP will enable proactive planning that will support more efficient and cost-effective transmission upgrades, reducing long-term congestion and overall system costs and facilitating cost-effective generation siting.
As for transmission planning, SPP states that the CPP is expected to reduce planning process costs by more than $3 million annually, while creating more equitable cost sharing for transmission upgrades, increasing economic benefits, opening new markets for energy, and enhancing reliability and grid resiliency.
Among the benefits to load, SPP states that the CPP aims to support continued regional economic growth and development through increased regional investment.
With more energy and capacity interconnecting in a timelier manner, SPP explains, load is likely to see benefits through reduced overall energy prices, while maintaining resource adequacy margins and reducing the risk of reliability events.
SPP also states that load will benefit from the CPP’s optimization of transmission solutions that minimize or prevent the risks from piecemeal transmission system build-out. SPP also points to benefits from the CPP that are shared by both load and interconnection customers.
In particular, SPP states that process efficiencies from combining transmission planning and generator interconnection will allow SPP to redirect resources to technical analysis and stakeholder collaboration, improving overall process quality and enhancing the transparency and inclusiveness of SPP’s planning process.
SPP states that more efficient transmission buildouts that serve multiple purposes will reduce overall system costs and minimize the risk of stranded or underutilized assets. SPP also argues that the states within its footprint will see significant economic and competitive opportunities because the CPP is designed to facilitate the interconnection of large and new types of loads to the SPP transmission system through a more robust transmission system and the interconnection of an increasing pool of available generation to serve those new loads.
FERC Commissioner Says Order Marks Major Step Forward
In a concurrence to the order, FERC Commissioner David Rosner said the order marks a “major step forward for improved speed and efficiency in generator interconnection and transmission planning that promises to deliver the electrons our country so badly needs.”
Faced with electric demand growth at levels not seen in 25 years, SPP and its stakeholders “have risen to the occasion with one of the most innovative, common-sense proposals presented to the Commission since the inception of open access transmission service,” he wrote.
“This proposal will get transmission built smarter and connect new generation faster, helping to make energy more reliable and affordable in the SPP region. And it has done so with the unanimous support of both its member states and stakeholders,” he said.
CPP delivers these benefits “by eliminating the silos between the transmission planning process and the generator interconnection process, synthesizing and streamlining them into one recurring three-year planning cycle. These two processes are inextricably linked: generators need transmission to sell the electricity they produce, and transmission companies build the grid and sell the transmission services that generators depend on to get their power to customers.”
Rosner said CPP recognizes that generation and load share “one transmission system, and plans for both of their needs holistically. As a result, SPP can reduce interconnection study costs by millions of dollars, potentially avoid over $100 million in duplicative transmission costs every planning cycle, and at the same time deliver some of the shortest generator interconnection timelines in the country.”
