Economic Evaluation of Transmission Interconnection in a Restructured Market. Consultant Report

摘要

Californias high voltage interconnections to neighboring states have played a vital role in meeting the states electricity needs reliably and at great savings to the customers. However, due to changing industry structure and financial uncertainties, construction of transmission capacity has not kept up with the increase in load or with the addition of generation capacity. There is a need for the development of an evaluation methodology that will include strategic benefits from transmission lines. This report addresses the need to capture the long-term benefits of transmission lines, including a perspective that transmission lines are a public good and therefore, should be evaluated using a social discount rate. This report provides recommendations to adapt and modify the CA ISO proposed evaluation methodology to capture the long-term benefits that transmission projects may provide.