Developing a comprehensive methodology for valuating transmission impacts for new generation developments

This technical paper describes a methodology which can be suitably employed by any load serving entity (LSE) in NERC region for including transmission costs in the request for offer (RFO) overall evaluation process for the procurement of new generation resources. This valuation process can be based on applicable merit order or optimization criteria as deemed appropriate by the investors owned utilities (IOUs). The Federal Energy Regulatory Commission (FERC) has established a standardized process for interconnecting new generation that should be applied by responsible planning coordinators (ISO/RTO/TO). The process used by the California Independent System Operator (CAISO) was filed with FERC in a document called the large generator interconnection procedure (LGIP). The LGIP was established to ensure non-discriminatory access to the transmission system by providing interconnection on a first-come, first-served basis.