FERC approves negotiated rates for project

Posted In: Energy

By The Associated Press

Saturday, March 20, 2010


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The Federal Energy Regulatory Commission has authorized a proposed transmission superstation to negotiate prices on its services.

The proposed Tres Amigas SuperStation in Clovis, announced last October, would allow electricity to flow more freely across the nation's three massive power grids, breaking down barriers to ramping up alternative energy in the United States.

The project would help route energy from isolated wind and solar installations to urban centers and other places that use the most electricity.

Tres Amigas would build a triangular pathway of underground superconductor pipelines, combined with AC-DC converters that synchronize the flow of power between the interconnections. The equipment allows electricity to be transferred from grid to grid.

Tres Amigas president Phil Harris said the next goal is the announcement of a construction schedule, perhaps as early as September.

The company is in negotiations with PNM Gas Company, Xcel Energy, ITC Holdings Corp. and American Electric Power, Harris said.

The FERC said Thursday it supports development of the concept.

"Tres Amigas is a prime example of the creativity and pioneering thinking that our country needs to expand the ability of the transmission grid to reliably accommodate all sources of electricity generation, including renewable energy," FERC Chairman Jon Wellinghoff said.

However, in a separate order, FERC declined to disclaim jurisdiction over facilities to interconnect the station and the Electric Reliability Council of Texas.

Harris said that means transmission companies from ERCOT must get approval from FERC on a line-by-line basis.

"We didn't want to have to do that because it can be expensive. But we see this as all positive," Harris said.

The commission said it lacked enough information to grant that request from Tres Amigas, and said that if it received an application it could issue orders allowing Tres Amigas to interconnect with ERCOT without conferring FERC jurisdiction over ERCOT utilities.

Harris said that while FERC did not grant a blanket disclaimer, it did tell Tres Amigas know how to move ahead.

___

Information from: Clovis News Journal, http://www.cnjonline.com

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