Alliance for Clean Energy Supports National Grid Petition for Cost Recovery of Phase 1 Local Transmission Projects

Strategic Insights -

The Alliance for Clean Energy (ACE NY) has submitted comments to the New York State Public Service Commission in support of National Grid's petition for cost recovery of Phase 1 local transmission projects. ACE NY emphasizes the importance of timely approval of these upgrades to unblock renewable energy generation and meet the state's renewable energy mandates. The commission has established that Phase 1 projects are essential to address bottlenecks and constraints limiting the delivery of renewable energy within National Grid's system.

Key Takeaways:

  • ACE NY supports the National Grid Petition for cost recovery because the identified transmission projects need to be completed in a timely fashion to unblock renewable energy generation.
  • Timely approval of these upgrades is essential to renewable energy development and inter-related to the interconnection process, as there is an inextricable link between completion of the necessary transmission infrastructure and bringing renewable energy projects online in the timeframes required.
  • National Grid has staged its proposed Phase 1 projects to align with the timelines for new generation projects, and in certain cases, to enable further Phase 2 upgrades that are critical in generator pocket areas where congestion threatens the successful advancement of many renewable projects.
  • The Commission should direct National Grid to provide semi-annual reports detailing the status of funded Phase 1 transmission solutions, the estimated in-service date, the associated CLCPA benefits, the budgeted and actual costs of the projects, with an explanation of any variances exceeding ten percent, and an explanation of any changes to the schedule or project scope arising since the prior reporting period.
  • Accelerating these upgrades would be particularly pertinent in cases where the upgrades are projected to come online after the date that affected NYSERDA-contracted renewable generators have designated to the NYISO as their Commercial Operation Date.
  • Phase 1 projects provide limited congestion-relief benefits to renewable projects proposed in specific areas of concern, but several of the Phase 1 projects will act as enablers to the expected Phase 2 projects.
  • ACE NY recommends that National Grid also propose Phase 2 projects that will adequately mitigate existing transmission constraints in the areas of concern.

Statistics:

  • 19 Phase 1 projects were proposed by National Grid in its petition.
  • Three of the utilities have filed Phase 1 petitions since the issuance of the Order in February 2021.
  • The Commission has repeatedly demonstrated its commitment to support achievement of CLCPA mandates by pursuing necessary transmission upgrades to support renewable generation development.
  • 70% renewable electricity mandate by 2030.
  • Phase 1 projects provide near-term opportunities to achieve significant CLCPA benefits, as noted in the Commission's February 2021 Order.

Sources:

  • "Petition of Niagara Mohawk Power Corporation D/B/A National Grid for Cost Recovery of Phase 1 Local Transmission Projects" (February 11, 2021).
  • "Order on Phase 1 Local Transmission and Distribution Project Proposals" (February 11, 2021).
  • "Comments on National Grid Petition for Cost Recovery for Certain Phase 1 Local Transmission Projects" (February 28, 2022).