Transmission System Planning and Expansion
If the RTO has a “pro-active” transmission planning process how will it determine where and what new transmission is needed to mitigate the exercise of market power? Would such a determination be made in advance of evidence that market power is being exercised or would the RTO wait to amass information that market power is being exercised? Who would it charge for the new transmission in this case?
If the “pro-active” planning process is exercised to promote fuel diversity in generation, who would be charged for the transmission upgrades?
If a non-transmission alternative is more cost effective than new transmission, will the RTO be able to cause the lower cost alternative to be implemented? How?
For example, assume that the California RTO has a pro-active planning process and RTO West has a reactive planning process. The California RTO wants to expand north to south transfer capacity along the West Coast and such expansion requires expanded transmission in Idaho. How would the evaluation of transmission expansion proceed in this example?
Order 2000 excerpt
California ISO Coordinated Planning Process
http://www1.caiso.com/docs/2001/06/11/2001061116583410598.pdf