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ENERGY TECH
New Colorado - Wyoming Transmission Offering
by Staff Writers
Cheyenne WY (SPX) Apr 01, 2008


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A new transmission line connecting the Front Range of Colorado with the wind-rich high plains of eastern Wyoming is planning to offer capacity rights in an open auction in June 2008. The Wyoming-Colorado Intertie (WCI) Project has announced its time line for an Open Season auction for up to 900 MW of transmission capacity between the two states.

If the auction is successful the project sponsors will complete the siting and permitting, construct the line and begin operation by mid-2013. It is expected that much of the capacity will be committed for delivering Wyomings high-quality wind resources to the benefit of consumers in Colorado.

The WCI Project is a public/private development partnership involving the Wyoming Infrastructure Authority (WIA), Trans-Elect Development Company (Trans-Elect), and the Western Area Power Administration (Western), with Trans-Elect managing the development effort. The partnership was first announced September 27, 2005 and the pending Open Season culminates over two years of intensive development activity.

Colorado Governor Bill Ritter Jr. and Wyoming Governor Dave Freudenthal both praised the transmission initiative. Governor Ritter said, "this project embodies a regional, collaborative approach that will strengthen the New Energy Economy in Colorado as well as in Wyoming. When this line is energized it will enhance the reliability and affordability of wind power for Colorado consumers and at the same time help enhance Wyomings renewable energy business. This is another step toward a more secure environmental, economic and energy future for these two states.

Governor Freudenthal added, "this transmission line will serve as a critical artery for the delivery of Wyoming's world-class wind power to growing markets along the Front Range. It is important that states work together to support such efforts as they will prove valuable in the future as we work to blend renewable energy sources with power generated in more traditional ways."

It is anticipated that the new transmission line will be regulated by the Federal Energy Regulatory Commission (FERC) and the Open Season has been designed to comply with federal regulatory policy. CRA International, Inc. has been retained by the Project to design and implement the auction and to evaluate bids.

The timing of the Open Season has also been scheduled to be compatible with the Public Service Company of Colorados (PSCos) new resource plans, which includes purchasing 500 MW of wind with deliveries beginning in 2013. PSCo plans to issue a bid for this wind energy later this year after the plan is approved by the Colorado Public Utilities Commission.

A draft of the Open Season documents describing the process, timeline, products to be offered, bidder qualification, and bidding rules are posted on the WCI website. Utilities, generation developers and other market participants considering bidding in the WCI auction are encouraged to review these documents and provide comments by April 21 in accordance with the instructions on the website.

Steve Waddington, WIA executive director, said the WCI Open Season is the culmination of a regional effort over several years to eliminate a long-standing transmission constraint between Colorado and Wyoming.

Once commitments for the project capacity have been made through the Open Season, the benefits of Wyoming resources can be added to Colorados resources and delivered to consumers along the Front Range. We expect utilities will also benefit because increased opportunities to sell and buy short-term power will be created between the two states.

Robert Mitchell, CEO of Trans-Elect, stated that Trans-Elect is proud to have worked with its partners to bring the WCI Project to this critical position. We are optimistic that electric utilities and wind developers will make the commitments necessary for the project to proceed.

Tim Meeks, Western Area Power Administration (Western) administrator, pointed out, Western and Trans-Elect have a proven track record for success in getting transmission built. In a public-private partnership with Pacific Gas and Electric Co., we completed the $250 million, 84-mile transmission expansion project in California known as Path-15. The project was electrified in 2004, ahead of schedule and substantially below budget.

Trans-Elect, based in Bethesda, Maryland with regional offices in Denver and Chicago, formed in 1999 as the first independent transmission company in North America to pursue the development of independently owned electric transmission with the twin objectives of increasing the reliability of the system and lowering costs to consumers. Trans-Elect is affiliated with AES, a global energy development corporation.

Created in 2004 by the State of Wyoming, the WIA's mission is to diversify and expand the states economy through improvements in Wyomings electric transmission infrastructure to facilitate the consumption of Wyoming energy.

The Authority can participate in planning, financing, constructing, developing, acquiring, maintaining and operating electric transmission facilities and their supporting infrastructure. Legislation provided the WIA with bonding authority, and other powers, to promote transmission development in the state and throughout the region. It also provided the State Treasurer, with the approval of the State Loan and Investment Board, the authority to invest in WIA bonds.

Part of the U.S. Department of Energy, Western annually markets and transmits more than 10,000 MW of power from hydroelectric power plants owned and operated by the Bureau of Reclamation and the Army Corps of Engineers in 15 central and western states. Western is the operator of the transmission lines that currently link Colorado and Wyoming.

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