Transmission Joint Action in the Upper Midwest a presentation to the APPA Joint Action Workshop by David A. Berg, P.E. Principal December 7, 2004
Background Public power has a strong presence in the upper Midwest There is a rich tradition of municipal joint action in our region Transmission has become a critical issue in our region and across the country
Transmission Access Policy Study Group (TAPS) June 2004 White Paper "Effective Solutions for Getting Needed Transmission Built at Reasonable Cost" Examines problems and proposes policy solutions for transmission investment needs
TAPS White Paper Problems Identified Transmission investment needed to improve reliability Competitive wholesale market requires added transmission infrastructure Commonly proposed solutions not working Increased return and accelerated depreciation Participant funding
TAPS White Paper Structural Solutions Inclusive Stand-Alone Transmission Companies Shared System Model
TAPS White Paper Regulatory Solutions Ratemaking devices Reduce investment risk Attract capital at reasonable cost Spread cost across broad regions Regional planning to achieve cost- effective and efficient solutions Performance-based rates to hold transmission owners accountable
Midwest Independent System Operator (MISO)
MISO Issues Understanding Membership Congestion Management Ownership Incentives Regional Planning
Why Joint Action?
Single Small Municipal Utility
Small & Large Municipal Utilities
Individual Municipals & Agency
Individual Municipal Regional Presence
Collective Municipal Regional Presence
Midwest Municipal Transmission Group (MMTG) January 2002 formal announcement 120 Iowa & Minnesota municipals (1300 MW) Intervened in TRANSLink filing Goal - get municipal transmission recognized in TRANSLink Goal - invest in new regional highway transmission projects Successful in initial goals Continuing participation in regional transmission arena MISO Investment opportunities
Super Joint Action in the Upper Midwest Idea has been brewing for a while Joint Action Workshop held July 13, 2004 Joint Action Working Group formed Existing agencies "Independent" municipals 6 states Transmission identified as proper focus for expanded joint action
Upper Midwest Regional Focus
Transmission System Planning and Investment Champion TAPS approach Municipals want a seat at the table Investment = Influence
Expanded or Super Joint Action can not only get municipals to the table, it can get them to the head of the table
Current Approach Examining expansion of MMTG Interaction between MMTG Operating Committee and Joint Action Working Group MMTG Benefits Existing organization Multi-state Track record of success
Next Steps Conduct 2-day strategic planning meeting (early 2005) Prepare plan of development Mission Organizational structure Staffing Funding Development timeline Investment strategy Move Forward?
Questions and Discussion