Agenda

Fundamentals of the Clean Power Plan

How CPP Affects Transmission Development

Challenge: Planning Under Uncertainties

Solution: Scenario-Based Planning While Considering Costs and Risks of Inadequate Planning

Final Clean Power Plan

Who: Existing Generation Units (EGUs) considered affected units under the 111(d) applicability criteria are grouped into two categories:

  • Steam Units: Coal and oil/gas-fired steam turbine units
  • NGCCs: Natural gas-fired combined cycle units
  • Not Included: Combustion turbine units

When:

  • Thursday! January 21, 2016: End of comment period on Federal Implementation Plan and Clean Energy Incentive Program
  • Sept 6, 2016: Initial submission of State Implementation Plan (SIP), necessary to request extension to 2018
  • Sept 6, 2018: Final submission of SIP
  • 2022 – 2029: Annual EGU standards, with three interim compliance periods
  • 2030 and beyond: Final EGU standard

GHG Emission Rate Standards in the Final Rule

Rate reductions are phased-in from 2012 Baseline to 2030 goals. The largest reductions in the West are targeted in MT and WY. Next group includes CO, NM, UT, WA and AZ).

Similar pattern to reductions required under Mass-Based Standards

CPP-Mandated Emissions Reductions

  • States that are most affected by the rule will likely look to lowest cost approach for compliance.
  • CPP does not address transmission directly and the requirements themselves do not drive transmission.
  • However, transmission investments are needed due to:

    • Additional need and cost competitiveness of renewable generation
    • Carbon pricing will increase desirability of renewable energy
    • Reliability needs associated with coal plant retirements
    • Likely regional market Formation

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