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.
Northern Maine Transmission Line and Renewable Energy Projects
Location: Northern Maine
Year: Approved in 2022
Operator: ISO New England Grid
Builder: LS Power Base & Longroad Energy
Overview: The transmission line project will develop a 345 kilovolt (kV) transmission line to connect renewable energy resources located in northern Maine with the New England grid. And the King Pine 1,000 MW wind generation project will transmit power across that transmission line. The competitively bid process saves ratepayers $1.08 billion.
Potential Savings: $1.08 billion
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.
Potential Savings: $3.1 billion
The Gates 500 kV Dynamic Reactive Support Project
Location: California
Year: Approved in 2022
Operator: California Independent System Operator (CAISO)
Builder: LS Power Grid California
Overview: CAISO has selected LS Power Grid California’s proposal for the Gates 500 kV Dynamic Reactive Support Project and has issued the permit to advance the project to construction.
Potential Savings: TBD
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.
