ISO New England Inc. has released the 2010 Regional System Plan (RSP10), a comprehensive report on New England’s electric power system including progress to date, an outline of transmission upgrades and resource additions needed to provide a reliable supply of electricity, and challenges and opportunities through 2019.

The Board of Directors of ISO New England, the operator of the region’s bulk power system and wholesale electricity markets, approved RSP10 today. The planning document is the result of a year’s collaboration among the ISO, policymakers, regulators, industry representatives, consumer advocates, and other stakeholders. RSP10 is the tenth regional system plan issued since the ISO assumed planning responsibility in 2000.

“RSP10 illustrates the benefits of long-term planning and New England’s regional system planning process,” said Gordon van Welie, president and CEO of ISO New England. “Significant transmission upgrades identified in the regional planning process as well as needed resource additions have already addressed many of the areas where reliability was a concern, and other needed system improvements are underway. The partnership with our stakeholders and implementation of past system plans have built a solid foundation for a regional power grid that produces and delivers a reliable supply of competitively priced electricity to New England consumers, when and where they need it. The region is well positioned to meet many of the future challenges facing the region.”

Outlook

Capacity—Assuming no generator retirements, New England should have the resources needed to meet consumer demand and maintain bulk power system reliability through 2019.

Demand forecast —Energy consumption is projected to grow an average 0.9% annually over the next 10 years, while summer peak demand is expected to grow by 1.4% per year.

Transmission upgrades needed—RSP10 identifies transmission upgrades needed in all six New England states to meet reliability requirements, including the Greater Springfield (MA) Reliability Project, the Rhode Island Reliability Project, the Maine Power Reliability Program, and the Vermont Southern Loop Project. The need for the Interstate Reliability Project in Connecticut has been reassessed and reaffirmed, and final alternatives are under development, while the Central Connecticut Reliability Project is being reassessed. In all, more than 180 projects, representing an investment of $5 billion, have been proposed to reinforce the reliability of New England’s power system.

Progress Report

Transmission—The region has completed seven major 345 kilovolt transmission upgrades required for power system reliability. From 2002 to the end of 2010, a total of 341 transmission projects will have been put into service, representing a $4.3 billion infrastructure investment in all six states.

These transmission upgrades have lead to significant reductions in congestion costs and have maintained system reliability. According to the U.S. Department of Energy (DOE) in its 2009 National Electric Transmission Congestion Study, New England currently experiences little system congestion because of the efforts of the ISO and stakeholders to implement transmission improvements within the context of “a comprehensive set of policy, pricing, and planning tools.” As a result, DOE removed New England from its list of “congestion areas of concern,” where the region had been placed in 2006.

Generation—Competitive wholesale markets have encouraged the construction of nearly 12,900 MW of new generation in the region since 1997.

Demand resources—The Forward Capacity Market has encouraged the expansion of demand-side resources, such as energy efficiency, that can help lessen or delay the need for new infrastructure. More than 1,900 MW of demand resources are available in 2010, and more than 3,200 MW of demand resources are committed through the fourth capacity auction for 2013–2014.

Planning for the Future Grid

Initiatives—Later this year, the ISO will complete a two-year study on the integration of large-scale wind resources into operations, markets, and planning. The ISO continues to take steps to integrate active demand resources into system operations and markets.

A variety of smart grid technologies are under development in New England, including electricity storage technologies such as flywheels and plug-in electric vehicles. A three-year, $18 million grant from the DOE will help fund installation of over 30 high-speed sensors to improve monitoring and operation of the power system in all six New England states.

Economic planning studies—The 2030 Power System Study conducted in 2009 by the ISO for the New England governors analyzed the region’s significant potential for onshore and offshore wind resources that could be added to the grid but would require appropriate transmission expansion. At the request of the New England States Committee on Electricity, the ISO is conducting a follow-up study of the effects of replacing aging coal- and oil-fired power plants with low-pollution-emitting natural gas plants, wind resources in New England, and renewable imports.

Role of Planning

The annual Regional System Plan is developed to meet requirements established by the Federal Energy Regulatory Commission, including: the development of annual and peak load forecasts; the provision of information about the amounts, locations, and characteristics of market responses that could meet defined system needs; and a description of needed transmission projects for the region. Each RSP is a snapshot in time, and the results are revisited as needed based on the latest available information. Each plan is developed in a year-long, collaborative process that includes state regulators and other government entities, transmission owners, end-users, market participants, and other stakeholders.