Transmission Access

The establishment of an accessible transmission highway throughout the U.S. has created significant challenges for electric utilities, unregulated utility subsidiaries, merchant power project developers and large electricity end-users. The ongoing formation of Independent System Operators (ISO), Transmission Service Organizations (TRANSCO), and Regional Transmission Organizations (RTO) has created a host of new ground rules and procedures for interconnecting to, and/or purchasing and selling power through the transmission grid. Numerous issues exist today concerning the physical and transactional aspects of transmission access by third party users. ERG staff have extensive experience in assisting clients in successfully meeting the challenges of the evolving transmission highway.

ERG has extensive experience in assisting clients in successfully meeting the challenges of the nation’s transmission highway.

Regional Transmission Organizations

Members of the Firm have the necessary experience to assist clients on the complex integration matters involved in joining organized markets in an RTO.

  • Auction Revenue Rights
  • Congestion Management
  • Financial Transmission Rights
  • Governance & Independence Issues
  • Resource Adequacy Requirements
  • Day Ahead Real Time Market Participation
  • Locational Marginal Price Effects
  • Capacity Auctions
  • RTO Tariff Compliance
  • Resource Scheduling
  • Seams Issues
  • Transaction Settlements

Preliminary Screening and Interconnection Studies

In conjunction with opportunities for merchant generators to propose and construct new market serving resources, ERG provides support to its clients to help them understand the Integrated Resource Plan (IRP) rules of different markets, the timing of resource evaluation needs, and the opening of the bidding intervals. ERG conducts objective preliminary screening studies of proposed generating project sites utilizing loadflow analysis methods, and provides advice relative to the selection of sites with potential to require the least transmission upgrades. In addition, ERG provides assistance in evaluating the proposed locations of facilities with respect to the capacity and ownership interests of existing transmission infra-structure taking into account any known or planned resources and the future availability of Available Transmission Capability (ATC). ERG provides comprehensive interconnection studies in support of specific project proposals.

Transmission Policy and Pricing Matters

In support of providing valuable advice to its clients, ERG maintains current knowledge concerning the ongoing development of FERC interconnection rules and standards, pricing schemes, standardized market design (“SMD”) policy issues, and proposed transmission rules. ERG is experienced in evaluating Participant Funding versus “rolled-in” pricing charges as it applies to the effects upon the ratepayers of utilities considering RTO participation, and assists project sponsors in evaluating the viability of proposed projects based upon the rate policies of the transmission provider.

Transmission Resource Maximization

ERG has experience with the real-time monitoring of transmission lines to increase allowable flows and assists clients in exploring generation displacement schemes which are designed to provide realistic solutions that can be exploited with diverse assets and loads.

Load Serving Entity Considerations

In connecting with load serving entities switching power suppliers, ERG provides assistance to load serving entities (LSE) in evaluating the transmission needs of new resource portfolios and the consequent changes that must be made to existing transmission tariffs. The loss of “Grandfathered Agreement” status and moving to a Transmission Provider OATT may have serious consequences for the LSE if the Transmission Provider will be joining an RTO that will be operating or creating LMP and FTR based markets. In addition, generation owning LSE may have financing covenants related to maintaining the quality of the existing transmission contracts. In this regard, ERG provides assistance in analyzing the potential financial impacts associated with the use of FTRs in comparison to physical transmission rights.

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