COMPETITION AT WORK
Electricity transmission competition has proven to provide meaningful cost savings to ratepayers and spur more innovative solutions. Below are just a few examples of recent success stories.
COMPETITION AT WORK
Electricity transmission competition has proven to provide meaningful cost savings to ratepayers and spur more innovative solutions. Below are just a few examples of recent success stories.
Hiple to IN/MI State Border 345 kV Competitive Transmission Project
Location: Indiana/Michigan
Year: Approved in 2023
Operator: Midcontinent Independent System Operator (MISO)
Builder: Republic Transmission, LLC
Overview: The transmission line project will develop a 345 kilovolt (kV) transmission line to connect substations in La Grange County, Indiana to Duck Lake, Michigan. The winning bid was 26% less expensive than MISO’s estimate.
Larrabee Tri-Collector Solution (LTCS) Project
Location: New Jersey
Year: Selected in 2022
Operator: PJM Interconnection
Builder: Mid-Atlantic Offshore Development (MAOD), Jersey Central Power & Light (JCP&L)
Overview: The Larrabee Tri-Collector Solution is the first offshore wind project transmission in the United States. MAOD will build a new substation and up to four DC converter stations, and JCP&L will transfer energy collected at the new substation three other substations. The competitive selection process saves New Jersey ratepayers over $900 million and also takes advantage of an additional $2.2 billion in savings through federal tax incentives.
Savings: $3.1 billion*
Crossroads-Hobbs-Roadrunner Transmission Project
Location: New Mexico
Year: Awarded in 2023
Operator: Southwest Power Pool
Builder: NextEra Energy Transmission Southwest, LLC
Overview: The proposed 90.5-mile and 44.5-mile, 345-kilovolt lines will connect the Crossroads, Hobbs and Roadrunner substations in New Mexico and is expected to be completed in 2026.
Savings: $84 million*
Empire State Line
Location: Western New York
Year: Energized in mid-2022
Operator: New York Independent System Operator (NYISO)
Builder: NextEra Energy Transmission New York
Overview: The Empire State Line project upgraded the energy transmission system that serves Western New York with a new, 20-mile 345 kilovolt line. The project was competitively bid and showcased the innovative value of competition.
Savings: $500 Million*
Minco-Pleasant Valley-Draper Transmission Project
Location: Oklahoma
Year: Awarded in 2022
Operator: Southwest Power Pool (SPP)
Builder: NextEra Energy Transmission Southwest, LLC
Overview: The Minco-Pleasant Valley-Draper transmission project, a 48-mile, 345 kV line, was competitively bid, with Southwest Power Pool’s board of directors selecting the cheapest proposal, which included a range of benefits in addition to meaningful cost savings. The project is expected to go online in 2024.
Savings: $26 million*
Wolf Creek to Blackberry Transmission Project
Location: Kansas-Missouri
Year: Awarded in 2021
Operator: Southwest Power Pool (SPP)
Builder: NextEra Energy Transmission Southwest, LLC
Overview: The Wolf Creek to Blackberry transmission project, a 94-mile, 345 kV line, was competitively bid, with Southwest Power Pool’s board of directors selecting the least-expensive proposal, which included a range of benefits in addition to meaningful cost savings. The project is expected to go online in 2025.
Savings: $58 million*
Central East Energy Connect
Location: Central New York
Year: 2021
Operator: NYISO
Builder: LS Power Grid New York and the New York Power Authority (NYPA)
Overview: The Central East Energy Connect project will upgrade transmission lines between Oneida County and Albany County. The project was competitively bid, with the final proposal coming in at $200 million less than the estimated cost provided by NYISO’s independent evaluation.
Savings: $200 Million*
Harry Allen-Eldorado Project
Location: California
Year: 2016
Operator: California Independent System Operator (CAISO)
Builder: LS Power
Overview: CAISO evaluated three proposals before choosing LS Power to build the Harry Allen-Eldorado line. The project was completed under budget in 2020, with an estimated cost savings of up to 29% compared to estimates for the project had it not been competitively bid.
Savings: $203 Million*
Artificial Island Project
Location: New Jersey
Year: Completed in 2020
Operator: PJM Interconnection (PJM)
Builder: LS Power
Overview: PJM received 26 proposals from seven entities, with proposals ranging from $100 million to over $1 billion. PJM awarded the project to LS Power, which offered more comprehensive cost containment with fewer exceptions than other proposals. The project was completed in 2020.
Savings: $591 Million*
Duff-Coleman Line Project
Location: Southern Indiana and Western Kentucky
Year: 2016
Operator: Midcontinent Independent System Operator (MISO)
Builder: Republic Transmission
Overview: Republic Transmission’s proposal was selected ahead of ten competing proposals because it offered several superior features, including a cost estimate 15% lower than MISO’s cost estimate. The final cost of the project was 10%-17% lower thanks to competitive bidding.
Savings: $10 Million*
*NOTE: Project cost savings observed are from RTO estimates to the selected winning bids and may understate the savings attributable to competition, considering incumbent-only final project costs in the absence of competition typically surpass initial RTO cost estimates.