Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule specifies the minimum standards
for the scope and level of detail required for transmission and distribution
network analysis and reporting.
(1) The electric utility shall describe and
document its consideration of the adequacy of the transmission and distribution
networks in fulfilling the fundamental planning objective set out in
4 CSR
240-22.010. Each utility shall consider, at a minimum,
improvements to the transmission and distribution networks that-
(A) Reduce transmission power and energy
losses. Opportunities to reduce transmission network losses are among the
supply-side resources evaluated pursuant to
4 CSR
240-22.040(3). The utility shall
assess the age, condition, and efficiency level of existing transmission and
distribution facilities and shall analyze the feasibility and
cost-effectiveness of transmission and distribution network loss-reduction
measures. This provision shall not be construed to require a detailed
line-by-line analysis of the transmission and distribution systems, but is
intended to require the utility to identify and analyze opportunities for
efficiency improvements in a manner that is consistent with the analysis of
other supply-side resource options;
(B) Interconnect new generation facilities.
The utility shall assess the need to construct transmission facilities to
interconnect any new generation pursuant to
4 CSR
240-22.040(3) and shall reflect those
transmission facilities in the cost benefit analyses of the resource
options;
(C) Facilitate power
purchases or sales. The utility shall assess the transmission upgrades needed
to purchase or sell pursuant to
4 CSR
240-22.040(3). An estimate of the
portion of costs of these upgrades that are allocated to the utility shall be
reflected in the analysis of preliminary supply-side candidate resource
options; and
(D) Incorporate
advanced transmission and distribution network technologies affecting
supply-side resources or demand-side resources. The utility shall assess
transmission and distribution improvements that may become available during the
planning horizon that facilitate or expand the availability and cost
effectiveness of demand-side resources or supply-side resources. The costs and
capabilities of these advanced transmission and distribution technologies shall
be reflected in the analyses of each resource option.
(2) Avoided Transmission and Distribution
Cost. The utility shall develop, describe, and document an avoided transmission
capacity cost and an avoided distribution capacity cost. The avoided
transmission and distribution capacity costs are components of the avoided
demand cost pursuant to
4 CSR
240-22.050(5)(A).
(3) Transmission Analysis. The utility shall
compile information and perform analyses of the transmission networks pertinent
to the selection of a resource acquisition strategy. The utility and the
Regional Transmission Organization (RTO) to which it belongs both participate
in the process for planning transmission upgrades.
(A) The utility shall provide, and describe
and document, its-
1. Assessment of the cost
and timing of transmission upgrades to reduce congestion and/or losses, to
interconnect generation, to facilitate power purchases and sales, and to
otherwise maintain a viable transmission network;
2. Assessment of transmission upgrades to
incorporate advanced technologies;
3. Estimate of avoided transmission
costs;
4. Estimate of the portion
and amount of costs of proposed regional transmission upgrades that would be
allocated to the utility, and if such costs may differ due to plans for the
construction of facilities by an affiliate of the utility instead of the
utility itself, then an estimate, by upgrade, of this cost
difference;
5. Estimate of any
revenue credits the utility will receive in the future for previously built or
planned regional transmission upgrades; and
6. Estimate of the timing of needed
transmission and distribution resources and any transmission resources being
planned by the RTO primarily for economic reasons that may impact the
alternative resource plans of the utility.
(B) The utility may use the RTO transmission
expansion plan in its consideration of the factors set out in subsection (3)(A)
if all of the following conditions are satisfied:
1. The utility actively participates in the
development of the RTO transmission plan;
2. The utility reviews the RTO transmission
overall expansion plans each year to assess whether the RTO transmission
expansion plans, in the judgment of the utility decision-makers, are in the
interests of the utility's Missouri customers;
3. The utility reviews the portion of RTO
transmission expansion plans each year within its service territory to assess
whether the RTO transmission expansion plans pertaining to projects that are
partially- or fully-driven by economic considerations (i.e., projects that are
not solely or primarily based on reliability considerations), in the judgment
of the utility decision-makers, are in the interests of the utility's Missouri
customers;
4. The utility documents
and describes its review and assessment of the RTO overall and utility-specific
transmission expansion plans; and
5. If any affiliate of the utility intends to
build transmission within the utility's service territory where the project(s)
are partially- or fully-driven by economic considerations, then the utility
shall explain why such affiliate-built transmission is in the best interest of
the utility's Missouri customers and describe and document the analysis
performed by the utility to determine whether such affiliate-built transmission
is in the interest of the utility's Missouri customers.
(C) The utility shall provide copies of the
RTO expansion plans, its assessment of the plans, and any supplemental
information developed by the utility to fulfill the requirements in subsection
(3)(B) of this rule.
(D) The
utility shall provide a report for consideration in
4 CSR
240-22.040(3) that identifies the
physical transmission upgrades needed to interconnect generation, facilitate
power purchases and sales, and otherwise maintain a viable transmission
network, including:
1. A list of the
transmission upgrades needed to physically interconnect a generation source
within the RTO footprint;
2. A list
of the transmission upgrades needed to enhance deliverability from a point of
delivery within the RTO including requirements for firm transmission service
from the point of delivery to the utility's load and requirements for financial
transmission rights from a point of delivery within the RTO to the utility's
load;
3. A list of transmission
upgrades needed to physically interconnect a generation source located outside
the RTO footprint;
4. A list of the
transmission upgrades needed to enhance deliverability from a generator located
outside the RTO including requirements for firm transmission service to a point
of delivery within the RTO footprint and requirements for financial
transmission rights to a point of delivery within the RTO footprint;
5. The estimated total cost of each
transmission upgrade; and
6. The
estimated fraction of the total cost and amount of each transmission upgrade
allocated to the utility.
(4) Analysis Required for Transmission and
Distribution Network Investments to Incorporate Advanced Technologies.
(A) The utility shall develop, and describe
and document, plans for transmission upgrades to incorporate advanced
transmission technologies as necessary to optimize the investment in the
advanced technologies for transmission facilities owned by the utility. The
utility may use the RTO transmission expansion plan in its consideration of
advanced transmission technologies if all of the conditions in paragraphs
(3)(B)1. through (3)(B)3. are satisfied.
(B) The utility shall develop, and describe
and document, plans for distribution network upgrades as necessary to optimize
its investment in advanced distribution technologies.
(C) The utility shall describe and document
its optimization of investment in advanced transmission and distribution
technologies based on an analysis of-
1.
Total costs and benefits, including:
A. Costs
of the advanced grid investments;
B. Costs of the non-advanced grid
investments;
C. Reduced resource
costs through enhanced demand response resources and enhanced integration of
customer-owned generation resources; and D. Reduced supply-side production
costs;
2. Cost
effectiveness, including:
A. The monetary
values of all incremental costs of the energy resources and delivery system
based on advanced grid technologies relative to the costs of the energy
resources and delivery system based on non-advanced grid
technologies;
B. The monetary
values of all incremental benefits of the energy resources and delivery system
based on advanced grid technologies relative to the costs and benefits of the
energy resources and delivery system based on non-advanced grid technologies;
and
C. Additional non-monetary
factors considered by the utility;
3. Societal benefit, including:
A. More consumer power choices;
B. Improved utilization of existing
resources;
C. Opportunity to reduce
cost in response to price signals;
D. Opportunity to reduce environmental impact
in response to environmental signals;
4. Any other factors identified by the
utility; and
5. Any other factors
identified in the special contemporary issues process pursuant to
4 CSR
240-22.080(4) or the stakeholder
group process pursuant to
4 CSR
240-22.080(5).
(D) Before the utility includes non-advanced
transmission and distribution grid technologies in its triennial compliance
filing or annual update filing, the utility shall-
1. Conduct an analysis which demonstrates
that investment in each non-advanced transmission and distribution upgrade is
more beneficial to consumers than an investment in the equivalent upgrade
incorporating advanced grid technologies. The utility may rely on a generic
analysis as long as it verifies its applicability; and
2. Describe and document the
analysis.
(E) The utility
shall develop, describe, and document the utility's cost benefit analysis and
implementation of advanced grid technologies to include:
1. A description of the utility's efforts at
incorporating advanced grid technologies into its transmission and distribution
networks;
2. A description of the
impact of the implementation of distribution advanced grid technologies on the
selection of a resource acquisition strategy; and
3. A description of the impact of the
implementation of transmission advanced grid technologies on the selection of a
resource acquisition strategy.
(5) The electric utility shall identify and
describe any affiliate or other relationship with transmission planning,
designing, engineering, building, and/or construction management companies that
impact or may be impacted by the electric utility. Any description and
documentation requirements in sections (1) through (4) also apply to any
affiliate transmission planning, designing, engineering, building, and/or
construction management company or other transmission planning, designing,
engineering, building, and/or construction management company currently
participating in transmission works or transmission projects for and/or with
the electric utility.
(6) The
electric utility shall identify and describe any transmission projects under
consideration by an RTO for the electric utility's service territory.
*Original authority: 386.040, RSMo 1939; 386.250, RSMo
1939, amended 1963, 1967, 1977, 1980, 1987, 1988, 1991, 1993, 1995, 1996;
386.610, RSMo 1939; and 393.140, RSMo 1939, amended 1949,
1967.