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Public Power Daily, Sept. 18, 2012

FERC approves negotiated rates for merchant transmission line to connect Midwest wind farms to TVA


The Federal Energy Regulatory Commission conditionally approved a merchant developer’s request to charge negotiated rates for 75% of the capacity of a planned 750-mile high-voltage, direct-current transmission line to connect Great Plains wind farms to the Southeast, specifically the Tennessee Valley Authority’s system. In a Sept. 7 order, the commission authorized two subsidiaries of Clean Line Energy Partners to negotiate agreements with anchor customers for up to 75% of the capacity of the $2 billion, 600-kV project, which will be capable of transmitting up to 3,500 MW of power from western Oklahoma, southwestern Kansas and the Texas Panhandle to TVA’s system.

In approving the request by Plains and Eastern Clean Line Oklahoma for negotiated rate authority, FERC cited the need for long-term contracts. "As applicants point out, they must secure long-term commitments from creditworthy anchor customers to support financing the project," the commission said.

Signing up TVA as a customer is critical for the project, Mario Hurtado, executive vice president for Clean Line Energy, told the MemphisCommercial Appeal. TVA has been working with Clean Line but has not made a commitment to purchase wind power transmitted via the line, the newspaper reported. That will depend on the delivered cost of power, said David Till, director of transmission strategy for TVA.

Construction is expected to begin by 2015, with commercial operation starting two years later.

Read more Public Power Daily news stories. 

Created By: Jeanne LaBella On: Tue, Sep 18, 2012 01:47 PM

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