Status Report on 2007–2016 Long-Term Reliability Assessment Mark Lauby August 16, 2007 2007 LTRA Schedule Drafting LTRA ● Open Meeting ● August 16 Goals: Increased Transparency Identify Enhancements Finalize Draft ● PC Review ● Board Approval ● Release ● Ongoing August 31 Sept. 11-12 Mid-October October 15 2007 LTRA Emerging Issues Key Observations Capacity Margin ? ? Firm Commitments? ? ? ? ? Transmission? ? Fuel Supply? ? Regulatory? ? Target Level Time ? General Observations ● Difficulty evaluating resource adequacy, ● ● ● ● especially in organized markets Reluctance to commit to long-term resource plans Difficulty judging impact/effectiveness of renewables and demand-side programs Dependence on gas still high; interruptible transportation contracts a big issue More transmission projects announced, but concerns whether they will be built Specific Observations ● Margins tight in: New England MRO-US ERCOT • WECC – RMPA • WECC – CA-MX • WECC – AZ-NM-SNV ● A significant increase in wind farms, Only 1,800 MW in 2007-2016 peak generation The remainder is considered energy-only ● 11,621 MW of new nuclear power capacity: ERCOT (6,176 MW) FRCC (1,125 MW) SERC (4,320MW) Key Observations ● The U.S. DOE has identified two draft National Interest Electric Transmission Corridors (NIETC) Some States have expressed objections ● More Transmission Projects proposed (2007–2011) Transmission/ancillary services to accommodate wind energy ● Investments in Connecticut improving reliability Key Findings & Conclusions ● Continued Dependency on Natural Gas in New England, Florida & California ● Bulk Power System Expansion Plan Uncertainty makes Long-Term Reliability Assessment Opaque ● Grid Investment Needed to Integrate Intermittent Resources ● Regulatory Action impact Reliability Projects High-Level Scenarios Reliability Impacts of … ● Significant penetration of wind energy ● High integration of demand response ● Natural gas unavailability due to supply or delivery limitations ● Possible reductions in capacity as a result of emissions restrictions Questions and Suggestions ● Any issues or concerns not being addressed? ● Additional scenarios to be considered? ● Other suggestions?