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

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.