Economic development. Renewable energy. More and more, these terms are tied together as state and federal legislation is passed, requiring some states to achieve certain mandates when it comes to renewable portfolio standards (RPS), such as that in my state of Kansas. Many states and regions are finding one major issue standing between the tie of economic development and renewable energy—and that is transmission. In many cases, renewable energy resources are located in areas where transmission lines are not, or where the transmission infrastructure is aging or insufficient. Stepping up to the challenge of updating the transmission infrastructure, several states have established electric transmission authorities—agencies whose purpose is to advance the transmission of electricity in-state and possibly export electricity to out-of-state markets for profit.
States with renewable energy resources are jumping at the opportunity to develop these resources, whether in wind, solar, hydropower, biomass, geothermal, or others, and are looking at this as an occasion to stimulate the economy as well. The development of renewable energy resources has the potential to create jobs and fuel economies through the sale of renewable energy to other states who need to meet or exceed RPS, which will in turn diversify and expand economies.
In 2009, the legislature passed a bill containing a requirement for RPS, which requires that the net renewable generation capacity of each affected utility’s peak demand be not less than 10% in calendar years 2011 through 2015, not less than 15% in calendar years 2016 through 2019, and not less than 20% beginning in 2020. Plus, imminent legislation and standards from the Environmental Protection Agency to reduce greenhouse gases provides another incentive towards installing renewable energy, as does a nationwide clamor to reduce the consumption of foreign oil and strive towards energy independence.
An electric transmission authority could go by any number of names depending on where you are, whether it be the Energy Resources Authority in Idaho, the Energy Infrastructure Authority in South Dakota, or the Renewable Energy Transmission Authority in New Mexico. Wyoming was the first state to implement its authority, and soon thereafter followed Kansas, South Dakota, North Dakota, Colorado, Idaho, Montana, and Utah. In some of these states, transmission initiatives are being undertaken within a state agency or Governor’s office, such as the Energy Production and Development Division in the Department of Commerce in Montana, or the Governor’s Energy Initiative, UGREEN, in Utah. Many states across the country do not have a transmission authority, nor do they have statutes guiding the siting of new transmission lines.
As noted above, the purpose for transmission authorities varies although there are some basic principles by which most authorities operate. Wyoming’s Infrastructure Authority (WIA) operates as a quasi-governmental instrumentality of the state, with a mission to diversify and expand the economy of the state by improving the electric grid. WIA has the power to plan for, finance, site, own, operate, and promote transmission facilities in the state, with bonding authority to fund those projects.
The Kansas Electric Transmission Authority (KETA) was created for the purpose of ensuring the reliable operation of the electrical transmission system, and like WIA, to diversify and expand the economy. KETA is authorized to build and own or finance transmission lines, but has not needed to exercise that authority to date. One of the drivers for the creation of KETA was to assist the state in developing the wind industry to promote abundant wind energy resources in Kansas and possibly allow for the export of such. KETA reported to the 2010 state legislature and the governor that in 2009, KETA saw the Kansas Corporation Commission, the state’s agency that regulates utilities, approve the siting of the first phase of transmission line identified as KETA’s first project in 2007. KETA’s board of seven directors pushed hard to urge two competing business entities to join together to construct a major high-voltage transmission line, once cost recovery issues were resolved by the regional transmission organization (RTO).
South Dakota, like Wyoming and Kansas, has an Energy Infrastructure Authority (SDEIA) with similar goals of expanding the economy by enabling access to new generation and becoming a net energy exporter. Legislation establishing the Idaho Energy Resources Authority (IERA) specifically states it is in the best interests of the state and its people to develop sufficient and reliable electric generation and transmission resources which enables utilities to meet existing and future demands for electricity and to promote reliability. New Mexico’s Renewable Energy Transmission Authority (RETA) boasts being the first state financing authority with a primary focus on developing infrastructure solely focused on renewable energy, with goals to create world-class solar and wind energy resources.
While these and other authorities and initiatives are being implemented to bolster each state’s respective economy, states still have shown great interest in engaging other authorities to facilitate expansion of transmission throughout various regions that cross state lines. Additionally, some states work closely with RTOs like Southwest Power Pool (SPP), which is currently formulating both a 10-year Integrated Transmission Plan (ITP-10) as well as a 20-year Integrated Transmission Plan (ITP-20), both designed to develop new transmission projects.
Regional transmission initiatives exist through different interstate agreements to plan for transmission in interstate corridors, and are often utilized in cases where a state is not included in an RTO. For example, Idaho, Utah, and Colorado do not belong to a RTO, nor do the vast majority of the states of Montana, Wyoming, South Dakota, or New Mexico. The Wyoming-Colorado Intertie Project addresses a route from the northeast corner of Wyoming into the heart of Colorado, with prospects ranging broadly from wind to coal development. The purpose of a transmission line being built between Montana and Idaho, called the Mountain States Transmission Intertie, is to meet requests for transmission service from customers and relieve transmission constraints in the region, while increasing the tax base and creating job opportunities.
Building transmission infrastructure is a key goal for many areas of the nation, to improve reliability of the electrical system by addressing transmission constraint problems while stimulating the economy and bringing renewable energy resources to markets. Electric transmission authorities have been developed at a crucial time, with some established solely for the transmission of energy and others with a focus on renewables, energy-efficiency, and conservation. All have a goal to gain an understanding of the transmission landscape and peripheral issues facing the nation in the 21st century.
