Transmission and Distribution Analysis

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 24022.040(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 24022.040(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 affiliatebuilt 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 nonadvanced 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 24022.080(5). (D) Before the utility includes nonadvanced 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. AUTHORITY: sections 386.040, 386.250, 386.610, and 393.140, RSMo 2000.* This rule originally filed as 4 CSR 240-22.045. Original rule filed Oct. 25, 2010, effective June 30, 2011. Moved to 20 CSR 424022.045, effective Aug. 28, 2019. *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.