Western governors encourage private transmission effort

By JEANIE WRIGHT
Editor

The governors of four western states agreed Monday to partner on the Frontier Line, a project which calls for substantial construction of power generators and transmission lines. Both of the plans’ main recommendations squarely target Converse County and eastern Wyoming.

Gov. Dave Freudenthal, California Gov. Arnold Schwarzenegger, Nevada Gov. Kenny Guinn and Utah Gov. Jon Huntsman agreed to create a four-state partnership with a goal to deliver Wyoming energy to consumers across the West. Although most of the actual construction would occur in the Mountain States, additional power in the western grid would address growing demand in California and other states, according to the governors.“

The Frontier Line proposal reflects real progress in creating a regional solution to existing transmission bottlenecks, and real opportunity to provide benefits by way of lower-cost electricity to consumers across the region,” Freudenthal said. “Detailed feasibility and financial planning remains to be done, but this project is the result of nearly two years of dedicated planning by stakeholders in the West.

This proposal could be a huge opportunity for the West to remove obstacles that prevent low-cost, diverse electricity sources from satisfying growing customer demand.” The agreement creates the Frontier Line Task Force, consisting of one member from each state, which will manage the project until it gains momentum and is hopefully picked up by private industry.

The states involved do not intend to fund the project but are doing the groundwork to show investors that the proposals can pencil out financially. According to a release from Freudenthal’s office, the task force will likely turn to the Rocky Mountain Area Transmission Study (RMATS) for guidance.

The study was launched in 2003 by Wyoming and Utah “because the electric power industry has been reluctant to invest in new transmission infrastructure,” according to the RMATS executive summary. Now finished, the study finds the investment in the Frontier Line would be between $3.5 billion and $5 billion for transmission lines and between $10 and $15 billion for power generators.

On the other hand, the estimated annual benefit to the Mountain States would run right around $1 billion. California alone stands to reap yearly benefits in the neighborhood of $400 million, according to the governor’s office. Up front in the recommendations portion of RMATS is a section which specifically targets Converse County as a location for construction of transmission lines and power generators.

The study outlines both coal-fired power plants and wind generation as possibilities. Recommendation One proposes three expansions: Montana Upgrades, Bridger Expansion and the Wyoming-to-Colorado Project. (See chart.) The new capacity will meet an expected rise in electricity consumption in the Rocky Mountain region, the study says.

The Wyoming-to-Colorado portion proposes a 345 kilovolt (kV) line originating somewhere near Antelope Coal mine in northern Converse County and continuing to substations at the Dave Johnston Power Plant near Glenrock, the Laramie River Station near Wheatland and another in the Cheyenne area. The line would end in the Green Valley area of northern Colorado. Estimated construction time is five years.

The Montana Upgrades would take about two years and would pump up capacity on the current system in central Montana by 500 megawatts and enable exports of power to the Pacific Northwest. The Bridger Expansion would take up to five years and calls for a 345kV transmission system from Miners to Bridger in Wyoming and from Bridger to northern Utah and southern Idaho.

Capital outlay for the three-prong recommendation is estimated at $970 million for power lines and $6.6 billion for construction of generators.“ These three projects are economic, producing annual net savings of between $61 million and $531 million,” the study reads.

 “While each project is discrete, the three projects together provide the greatest benefit to the region.” Converse County is also included in RMATS long-term Recommendation Two, which hinges on Recommendation One being completed. This part of the plan includes more 345kV lines from the Antelope Coal area to Laramie River Station and from Dave Johnston to Bridger, based on enough power generation having been constructed as a result of Recommendation One. Converse Area New Development Organization has been in regular contact with the governor’s office as talks have proceeded and is heavily involved with pursuing clean coal and coal gasification proposals.

“We are very pleased with the progress, and we will be diligent in pressing for further progress and appropriate sitting of the transmission lines,” CANDO Executive Director Joe Coyne said. The next steps outlined in RMATS are to bring together the governments, energy providers and utilities affected in each area. The study suggests the Wyoming-to-Colorado portion of the project be addressed by the governors’ offices organizing a meeting between industry representatives and the states’ public service and public utilities commissions.

On a broader scale, the states involved will have to iron out details such as pricing principals as plans move along, according to RMATS. Unless and until investors step forward, the RMATS study and the states’ hopes for a solution to the ever-increasing demand for electricity may remain on paper, however.

To find out more visit:  http://www.douglas-budget.com/headline-1.htm