ALJ/CFT/hkr Mailed 6/14/2004
Decision 04-06-010 June 9, 2004
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Investigation into Implementation of Assembly Bill 970 Regarding the Identification of Electric Transmission and Distribution Constraints, Actions to Resolve Those Constraints, and Related Matters Affecting the Reliability of Electric Supply. |
Investigation 00-11-001 (Filed November 2, 2000) |
(See Attachment A for List of Appearances.)
INTERIM OPINION ON TRANSMISSION NEEDS
IN THE TEHACHAPI WIND RESOURCE AREA
TABLE OF CONTENTS
Title Page
INTERIM OPINION ON TRANSMISSION NEEDS
IN THE TEHACHAPI WIND RESOURCE AREA 22
III. The Tehachapi Wind Resource Area 55
IV. Possible Configurations of a Tehachapi Transmission Project 88
V. Application of § 399.25 and Funding
of Tehachapi Transmission Upgrades 1010
VI. Transmission Planning for the Tehachapi Area 1919
VII. Comments on Proposed and Alternate Proposed Decision 3434
VIII. Assignment of Proceeding 4040
ATTACHMENT A........................LIST OF APPEARANCES
INTERIM OPINION ON TRANSMISSION NEEDS
IN THE TEHACHAPI WIND RESOURCE AREA
I. Summary
The Tehachapi area contains the largest wind resource in California and, if more fully developed, could meet a significant portion of the goals for renewable energy development in California. However, the lack of transmission in the area currently prevents new wind installations. Large-scale transmission upgrades capable of transporting power from multiple wind projects would be needed to tap the Tehachapi area's renewable potential most economically. We find that "business as usual" transmission planning approaches, which would plan and size Tehachapi transmission upgrades based solely on transmission needs of generation projects that have submitted interconnection requests, is unlikely to achieve the most cost-effective size, configuration, or timing of Tehachapi upgrades.
We require that a collaborative study group be convened to develop a comprehensive transmission development plan for the phased expansion of transmission capabilities in the Tehachapi area. Commission staff should coordinate the study group, assisted by the California Independent System Operator (ISO) as needed and with participation by Southern California Edison Company (SCE), Pacific Gas and Electric Company (PG&E), wind developers, and any other interested parties. We encourage the California Energy Resources Conservation and Development Commission (CEC) to participate in the collaborative study process.
Each phase of the planned Tehachapi upgrades should be a logical size and configuration based on the magnitude of the identified wind resource, engineering and cost considerations, and recognition of other factors including regional transmission needs. While we ask the study group to address alternative approaches, we envision that construction of each phase may be triggered by acceptance of a threshold amount of bids through the Renewable Portfolio Standard (RPS) process.
We require that SCE, acting on behalf of the study group, file a report in this proceeding within nine months of the effective date of this order containing the study group's findings and recommendations. Parties may file comments and reply comments on the study group report.
In parallel with the study group efforts, SCE should pursue ISO review of Tehachapi transmission upgrades and should file a certificate application for the first phase of Tehachapi transmission upgrades no later than six months from the effective date of this order. Edison's first phase plan should be incorporated into the study group's comprehensive review, and thus the two efforts should be carefully coordinated. In addition, while the Commission does not take specific action using Senate Bill (SB) 1078 authority to allow cost recovery of RPS-related transmission investments absent a FERC allowance for cost recovery (because FERC has not yet had an opportunity to act), we make clear our inclination to use our authority therein to allow cost recovery of prudent expenditures if FERC does not.
We are concerned that the problems we have identified with current transmission planning approaches may extend to the RPS process. After a comprehensive transmission expansion plan is developed for the Tehachapi area, transmission cost adders should be based on that plan.
