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Commonwealth North

ERO History in the Pacific Northwest

IRP, Governance Models, and Standards

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Historical ERO Governance

Governance has been quite challenging in the West (WECC) and Northwest, somewhat less so in California

The State of California mandated that the State would control the CAISO so that was easier
Conversion to an independent Board and sector representation for WECC was tough- it required a couple of westwide system blackouts and a couple of FERC Orders
For the Pacific Northwest, there has been historical tension between the Federal (BPA and WAPA), State( PUD’s and Cities) and the IOU’s over who would be in control

Each one of the entities has different statutes and requirements
It is difficult for the Federal Government to cede authority to a non-Federal entity
The PUD’s and Cities do not want to lose local control
The IOU’s are regulated both by the State and the FERC
The Northwest Power Pool is a service corporation governed by a self perpetuating Board (but that will most likely change in 2022)

The most successful models require the transmission and generation providers to retain ownership and operational control

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Potential ERO Governance Model for Commonwealth North

Fully Independent Board
One model: Sector voting for selection of Board members

All sectors have votes. As an example:

Transmission / Generation owners
Independent power producers
State representation
Alaska Native Corporations
Public interest organizations
Retail customer advocacy
Industrial customer advocacy
Load serving entities

Voting weighted towards “those who pay” so that the ERO does not become “deep pocket” social benefits company - (501(c)3 versus 501(c)6 status

Staggered three year Terms with a “Three Term” limit?

Need to ascertain that cost of Governance and control does not exceed ERO benefits!

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Integrated Resource Plan / Project Preapproval

There are many models for mature integrated resource planning such as:

Resource Planning in the Northwest:

Has been successful for decades
Based on two separate staff functions, Independent staff and Policy / Commission staff
Is generally not a “preapproval model”

Guidance for the plan may be provided, but
Cost recovery is almost universally post project completion

Resource planning has reduced costs in the Northwest, and has helped move the LSE’s towards the State’s carbon reduction goals while protecting consumer’s cost interests

If a preapproval model is used for either resource or transmission projects (or both), there should be:

Post approval oversight to minimize cost overruns, but
No additional post approval constraints on cost recovery (not “two bites at the apple”)

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Standards

Don’t reinvent the wheel, the existing NERC Standards are mature and (generally) reasonable
There will be a number of NERC Standards that will not apply to the RailBelt utilities – sort out only what you really need

There are numerous resources for understanding the NERC Standards:

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ERO Rules

What are the Objectives for the ERO?

Reduced costs for consumers?
Greater system efficiencies?
Increased governmental control?
Something else?
You need to understand what you are trying to achieve before new regulations are promulgated!

If costs do not exceed benefits, the ERO could provide for standards, compliance, and coordinated transmission and resource planning… but

The ERO should NOT own facilities!
The ERO should NOT be involved in day to day operations!
Run the Financials before decisions are made!

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Future Overall System Coordination

Coordination

No RTO, but eventually maybe a single transmission rate ramped in over time?
Maybe an Resource Adequacy program sooner or later?

Potentially better oversight of resource additions?
Perhaps a more efficient market?
Run the numbers!

Costs and Benefits

Run a cost / benefit analysis for additional layers of control!

Where have ISO / RTO savings generally come from?

Reserve Sharing (the much larger portion), and to a much lesser extent,
Markets

If the above savings have already been captured the “benefits pie” may be too small to cover cost of additional oversight

Bottom line: Understand the objectives and run the numbers!

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Contact Info

Scott A Waples

Founder, CEO

Waples PicoGrid

swaples@cet.com

https://www.linkedin.com/in/scott-waples-15044140/

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Commonwealth North

RailBelt “Extended”

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Railbelt “Extended”

Some ideas:

Overarching goal is to make Alaska more industrially competitive and energy independent

“Inexpensive” system enhancements
Inexpensive is relative to other options
Implement the easy projects first even if they are not the highest rate of return

Potential “Projects”:

Transmission Between Homer and Anchorage (North of Bradley (retired 50kV))
Distribution as transmission
“New” Generation options
Electrify the Rail System
Small wind projects for small non-interconnected loads
Long term goal - Savings fund to fund new projects?

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Railbelt “Extended”

What opportunities might there be?

Homer to Anchorage Transmission

Electronic flow control on the decommissioned 50 kV line
Use SCADA variable limits for thermally constrained equipment (need LIDAR)
Better utilization of Bradley Lake (more on that later)

Increase benefits from additional water (creek diversion) if a bottleneck is relieved?

Maybe share a lower cost unit(s) for reserves (within a larger “transmission bubble”) if there are fewer “transmission” constraints?

Run the Financials!!!

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Railbelt “Extended”

Additional Opportunities?

Novel flow controlled distribution system interconnections

“Copper (Valley Electric) is King”

Anchorage – Copper Valley
Copper Valley - Fairbanks

Electronic flow control
Use SCADA variable limits for thermal ratings (need LIDAR)

Higher import/export limits between Fairbanks & Anchorage - displace higher cost generation
CVE could participate in the RailBelt energy market
Opportunities for additional reserve sharing

Maybe share units on reserve if fewer “transmission” constraints
Study potential for additional inexpensive distribution enhancements between companies for higher transfer / additional benefits
Study potential for additional inexpensive distribution connections internal to the RailBelt companies if additional transfer capability is needed

Run the Financials!!!

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Railbelt “Extended”

Generation

Pumped storage at Bradley Lake?

Better integration of wind (U of A to study both “present wind” and find “max wind”?)
Use wind energy to cover pumping, generation, and transmission losses!

Examine other pumped hydro potential (perhaps in hard rock mines)?

Electrify the Rail System

Prioritize the routes to electrify

Begin with a “Green Line” for tourists from Anchorage to Denali
Continue with the most heavily utilized routes
Completion of all routes when funding is available

Use pumped storage and wind to help levelize and cover the new rail load

Opportunity for collaboration with the University of Alaska?

Use the rail load for non-spinning reserves
Potentially add the rail load to a “dynamic load shedding” scheme

Opportunity for collaboration with the University of Alaska and/or the NWPP?

Once the rail electrification is complete, use the rail “distribution” for additional emergency transfer capability between Anchorage, Fairbanks and Homer?
If properly configured, rail engines could be used to provide emergency power (perhaps at a lower cost than burning naphthalene?)

Opportunity for collaboration with University of Alaska?

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Railbelt “Extended”

Wind Integration Events – problem for one company, one ”transmission bubble” or the entire system?

A larger system (more inertia) helps (Copper River integration)
Fast pumped hydro absolutely helps (Bradley Lake or others)
Larger controlled load helps (rail electrification)
Load shedding and generator dropping for wind events helps
Controlled air or natural gas compression could help as could batteries
New generation in different windsheds could help

Other interesting things?

Small wind development with potential for transportation and storage for villages

10 or 15 kW turbine with 3 moving parts, and perhaps 12-26 MWhr per year
Pair with smart controls and (perhaps) the batteries in a Ford F-150 Lightning, a Canoo truck, or other electric truck?
Opportunity for collaboration with University of Alaska?

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Railbelt “Extended”

Pool saved funds from the above projects to invest in lower carbon generation, electrification of load, or removing bottlenecks with “ownership shares” in new facilities based on the savings that are contributed by the various projects?

“Aggressive” Construction Timelines (does not include permitting or equipment delays)

Distribution as Transmission -

12 to 24 months for increased transfer
18-24 months for integrated reserve sharing with CVE

Homer to Anchorage transmission - 18 to 24 months
Bradley pumped hydro – 24 to 36 months
Rail electrification – 24 to 60 months
Small Villages

Study work for wind and storage - 12 to 24 months
Initial implementation for a few small villages - 24 to 48 months?

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Railbelt “Extended”

Other ideas

Has the State been serous about weatherization (especially in the small Villages)?
Consider compressing natural gas or air if electric prices are low or for high wind events?
Displace pipeline pumping loads with wind and smart controllers?
Hydrogen or green gas instead of oil in the pipelines (more load to make this)?

“Your Mission (should you decide to accept it)”:

Prioritize projects
Project scope and definitions
Study work
Collaborations with universities and/or others
Construction estimates
Final financial analyses
Set up “savings fund” and target further analysis for projects
Construction

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Contact Info

In the “just so you know” bucket: I have formed a nonprofit company and I’ll be looking for grants and hopefully starting some research starting in 2022 by pairing wind and other generation on an artificially constrained 240 volt “Pico Grid”

Scott A Waples

Founder, CEO

Waples PicoGrid

swaples@cet.com

https://www.linkedin.com/in/scott-waples-15044140/