Transmission studies diverge on cost savings seen from competitive bidding

摘要

A new study commissioned by a group of utilities suggested pumping the brakes on calls to expand the scope of transmission projects selected through competitive solicitations and called into question an April report that claimed competitively bid projects offered significant cost savings when compared with incumbent-developed projects. The study from Concentric Energy Advisors challenged a Brattle Group report that estimated potential cost savings from expanding competitive processes could range from 20% to 30%. The Brattle Group report prepared for LSP Transmission Holdings found that “at an estimated cost savings of 25%, the potential customer value from expanding competitive processes from 3% to 33% of all planned US transmission investments would be approximately $8 billion over the course of five years.”