The Midcontinent Independent System Operator’s (MISO) Board of Directors on July 25 unanimously approved a portfolio of long-range transmission projects, which represent a $10.3 billion investment.
This Tranche 1 portfolio is the first of four planned tranches in MISO’s Long-Range Transmission Planning (LRTP) process. The projects are needed to begin to integrate new generation resources outlined in MISO member and states plans and increase resiliency in the face of severe weather events, MISO said.
Analyses conducted as part of the LRTP initiative indicate the Tranche 1 benefits are conservatively well in excess of costs, with a benefit-to-cost ratio of at least 2.2 for all resource zones in the MISO Midwest Subregion, MISO said.
Benefit metrics include congestion and fuel savings, avoided capital costs of local resource investment, avoided transmission investment, resource adequacy savings, avoided risk of load shed and decarbonization.
The cost allocation approach for this portfolio has been approved by the Federal Energy Regulatory Commission.
“While Tranche 1 represents an important start, further work is needed to ensure reliability,” said Aubrey Johnson, MISO’s vice president of system planning. “Tranche 2 will focus on the MISO Midwest Subregion, Tranche 3 in MISO South, and Tranche 4 will address the limitations on power exchange between the MISO Midwest and South Subregions.”