1.
Please provide your organization’s comments on the mitigation measures:
The Bay Area Municipal Transmission Group (BAMx)[1] appreciates the opportunity to comment on the CAISO 20-Year Transmission Outlook (20-Year Outlook, hereafter) presented at the CAISO Stakeholder meeting on April 18, 2024. BAMx acknowledges the significant effort of the CAISO staff in developing this material.
BAMx Applauds CAISO’s High-Level Benefit-Cost Analysis of Transmission Alternatives to Access OOS Wind
During the April 18th presentation, the CAISO indicated that the new transmission projects could either bring the Out-of-State (OOS) wind to the border of the CAISO system, requiring additional transmission within the CAISO system, or could be brought to interconnection points within the CAISO, such as Tesla and Lugo substations as examples. In our January 18th comments, BAMx had requested that any high-level assessment of both alternatives performed as part of the 20-Year Outlook assessment should compare the total cost of the connections to the border and required internal upgrades versus the total cost of the connections to interconnection points/substations within the CAISO and required internal upgrades. BAMx is thankful that the CAISO has determined that connection of the out-of-state wind to a substation closer to the load centers in the CAISO system could potentially be beneficial as compared to interconnecting out-of-state wind power to a substation at the CAISO border and then reinforcing CAISO system to deliver power from the border to the load centers.[2]
Further Technical Evaluation of OSW Transmission Projects Needs to Be Accompanied By High-Level Permitting/Feasibility/Environmental Assessment
Integrating North Coast Offshore Wind (OSW) is a challenging objective with technical, environmental, and scheduling risks. Such risks suggest value in staging transmission improvements so that decisions on higher-cost and technically challenging elements are made later in the process once better information is available. The choice between the terrestrial alternatives (Fern Road or Collinsville) will likely depend on environmental factors, among other things. We understand the CAISO has not yet fully considered the environmental and permitting constraints of these transmission options because these alternatives are still in their early development stage.
It appears that transmission options for integrating North Coast OSW, namely Option A and Option B, are based on the transmission alternatives considered in the Schatz Energy Research Center’s Northern California and Southern Oregon Offshore Wind Transmission (NCSO-OWT) Study.[3] For example, the California portion of two options considered by the CAISO in the 20-Year Transmission Outlook Update closely resembles Alternative 25.8a and 25.8b considered in the NCSO-OWT study.
The NCSO-OWT study also includes a high-level assessment of permitting challenges for transmission routes. It identifies significant permitting challenges for the transmission segments for the options considered by the CAISO. For example, the Humboldt-Fern Road 500kV AC line is deemed to be in the category of high barriers for the following reasons.[4] It runs roughly parallel to Highways 299 and 36 and is ranked as having “high” barriers to development. Here, challenges in permitting are associated with Tribal lands, two national forests, the Humboldt Bay National Wildlife Refuge, and the Trinity Wild and Scenic River. Closer to the coast, both routes would require permitting from the Humboldt Bay Harbor, Recreation, and Conservation District. It is of particular concern as the CAISO has recommended the Humboldt-Fern Road 500kV AC project as a policy-driven project in the 2023-2024 TPP. CAISO’s approval of any green-field policy-driven transmission project without considering the feasibility challenges and environmental permitting constraints for transmission development would be ill-advised and counter-productive. Therefore, BAMx recommends that the CAISO conduct a high-level feasibility and environmental permitting assessment before recommending any particular transmission project to access North Coast OSW. Waiting to perform such an assessment only during a competitive solicitation process when the project is already approved by the CAISO Board may not be the most efficient process in building transmission projects to meet the State policy goals.
Another example of the permitting challenges identified in the NCSO-OWT study is the Cape Mendocino to Bay Hub HVDC and Cape Mendocino – Moss Landing HVDC line segments included in CAISO’s April 18th presentation, which have been ranked with “very high” barriers to development. According to the NCSO-OWT study, “These include potential impacts to state and federal threatened or endangered species and impacts to marine protected areas, national marine sanctuaries, and biologically important areas, as well as potential impacts to San Francisco Bay and the Delta. Cable routing into the San Francisco Bay requires coordination with several additional agencies, further complicating the permitting process.” BAMx urges the CAISO to include a discussion of these potential permitting challenges in the Final 20-Year Outlook Update so that the stakeholders are aware of them as they consider transmission reliability and policy benefits associated with the transmission options to integrate North Coast OSW.
CAISO Should Provide Detailed Breakdown of Transmission Costs
BAMx appreciates the CAISO providing the per-unit cost estimates during the April 18th stakeholder meeting. BAMx requests the CAISO to provide a spreadsheet showing how the overall cost estimates were developed for each transmission element for each option. BAMx is not entirely sure, but we have attempted to calculate the overall cost of offshore wind interconnection under two transmission options, i.e., Option A and Option B, as shown below. Our calculations indicate that they cost approximately $24.5B-$35.4B and $22.9B-$33.0B, respectively. Please confirm these calculations and include similar tables in the Final 20-Year Transmission Outlook Update.
Transmission Facility
|
Option A (M$)
|
Option B (M$)
|
2nd 500 kV line From Humboldt to Fern Road
|
$980-$1,400
|
$-$
|
500 kV line From Del Norte to Fern Road
|
N/A
|
$1,540-$2,200
|
Cape Mendocino to Bay Hub HVDC
|
$5,124-$7,320
|
$2,562-$3,660
|
Cape Mendocino – Moss Landing HVDC line
|
N/A
|
$2,996-$4,280
|
2GW HVDC converter station (12 – 14)
|
$5,600-$8,400
|
$4,800-$7,200
|
Del Norte to Humboldt HVDC (3 HVDC lines)
|
$1,470-$2,100
|
$1,470-$2,100
|
Del Norte to Humboldt HVDC (1 HVDC lines)
|
$490-$700
|
N/A
|
Cape Mendocino - Humboldt HVDC line
|
$1,750-$2,500
|
$1,750-$2,500
|
500 kV HVDC line to Collinsville
|
$1,813-$2,590
|
$1,813-$2,590
|
3GW HVDC converter station (4)
|
$2,400-$3,600
|
$2,400-$3,600
|
230 kV AC cables to Potrero, East Shore, Los Esteros
|
$990-$1,320
|
$990-$1,320
|
230 kV AC cables to San Mateo, Newark, Monta Vista
|
$1,425-$1,900
|
N/A
|
Fern Road to Vaca Dixon to New Tesla (2 x 500 kV lines)
|
$2,532-$3,545
|
$2,532-$3,545
|
Total (M$)
|
$24,574-$35,375
|
$22,853-$32,995
|
Data Source: CAISO April 18th Presentation, pp. 32, 48, 49.
Also, please clarify why the cost associated with the 500 kV HVDC line to Collinsville, i.e., $1,813M-$2,590M, assumes only a single HVDC line, while the diagrams for both Option A and Option B show two lines.
BAMx appreciates the CAISO’s due diligence in considering the routing challenges of the undersea cables. For example, the seemingly significant mileage (nearly 250 miles?) for the Cape Mendocino—Humboldt HVDC line reflects topographical challenges because of the deep underwater canyons in the region, adding significant cable lengths. As mentioned earlier, the CAISO needs to extensively discuss the routing and permitting associated with the transmission options in the final 20-Year Outlook Update report.
One thing that all stakeholders will do upon the CAISO’s issuance of the 20-Year Transmission Outlook Report (expected in June 2024) is to compare it with the earlier 20-Year Outlook report issued in May 2022. And some questions will be asked, such as
- Are the recommended transmission upgrades envisioned in the June 2024 report incremental to May 2022, or do they purely replace them?
- Why are the transmission upgrades identified in the June 2024 report so different from those in the May 2024 report? What are the drivers?
BAMx encourages the CAISO to include the explanations behind the differences between the two reports in the June 2024 report. These may include changes in the assumed resource mix, transmission projects approved in the last two TPP cycles, per-unit transmission cost assumptions, etc., and to what extent these drivers have contributed to the differences.
Detailed Assumptions and Results Should be Provided Well in Advance to Interpret the Preliminary High-Level Technical Assessment Results Meaningfully
BAMx appreciates the preliminary results of the High System Need (HSN) scenarios provided by the CAISO during the meeting on January 4th, but were not discussed during the April 18th meeting. The summary results in the January 4th presentation also did not give a complete picture. For instance, which N-1 contingency under the High OSW scenario causes a potential overload on the Embarcadero - Potrero 230 kV line is unclear.[5] Also, these summary results do not provide much insight into how those findings align with the HSN scenario results for the Sensitivity Case in the 2023-2024 TPP.[6] For instance, the summary results do not show any overload on the Collinsville – Pittsburg 230 kV line Constraint leading to the need for Collinsville 230 kV Reactor or North Dublin - Vineyard 230 kV Constraint triggering reconductoring. BAMx requests that the CAISO provide detailed assumptions and results in the final 20-Year Outlook report.
Grid-Enhancing Technologies (GETs) Need to be Fully Evaluated and Reported
BAMx applauds the CAISO for including the advanced conductors for the Greater Bay Area 500kV and 230kV line reconductoring upgrades in its evaluation of mitigation measures.[7] However, we did not notice consideration of any additional Grid-enhancing technologies (GETs) beyond advanced reconductoring, such as dynamic line ratings, power flow controllers, topology optimizations, etc. BAMx encourages the CAISO to include additional Grid-enhancing technologies (GETs) as potential alternatives and explain why they were rejected relative to the proposed mitigation measures in the final 20-Year Outlook report.
[1] BAMx consists of City of Palo Alto Utilities and City of Santa Clara, Silicon Valley Power.
[2] CAISO’s April 18th Presentation, p.42 and 50.
[3] See https://urlisolation.com/browser?clickId=EDD8A372-468E-4E00-B4BD-852A9B8E7E90&traceToken=1714003662%3Bcaiso_production2%3Bhttps%3A%2Fschatzcenter.org%2Fpublicat&url=http%3A%2F%2Fschatzcenter.org%2Fpubs%2F2023-OSW-R2.pdf
[4] Ibid, p.53.
[5] January 4th presentation, p. 43.
[6] “PG&E Humboldt Area Offshore Wind Interconnection Alternatives Related Results,” CAISO 2023-2024 Transmission Planning Process Stakeholder Meeting, November 16, 2023, pp.95-110.
[7] CAISO’s April 18th Presentation, pp.34-36.