COMPETITION WORKS

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 WORKS

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.

 

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. 

Potential 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.

Potential 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.

Potential 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.

Potential 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. 

Potential 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.  

Potential 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. 

Potential 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.