Maine Power Reliability Program

Summary

Central Maine Power Company (CMP) created the Maine Power Reliability Program (MPRP) to comprehensively analyze the reliability of the company's bulk power transmission system to clearly identify future system needs and assure reliable and safe electricity delivery for Maine's homes and businesses.

The program developed and analyzed alternative solutions to cost-effectively maintain the reliability of the system for the future in accordance with national reliability standards, and to make appropriate investments in the company's transmission system in accordance with the Independent System Operator for New England's (ISO-NE) Regional System Planning requirements, approved by the Federal Energy Regulatory Commission.

Benefits

CMP expects to invest up to $1.4 billion to keep its bulk power grid reliable and as a part of a broader effort to address economic and environmental concerns of electricity customers statewide. The Maine Power Reliability Program (MPRP) is expected to provide the following benefits to CMP customers:

1. Maintain or enhance electrical reliability
2. Maintain or enhance electrical transmission system reliability;
3. Maintain or enhance electrical power quality;
4. Ensure a safe and secure supply of power for commercial and residential service by reducing vulnerability to natural disasters;
5. Improve operating efficiency by reducing line losses through installation of modern transmission equipment or other appropriate solutions which may help keep transmission prices stable for customers;
6. Enhance the prospects for new jobs in Maine based on a more robust electrical infrastructure;
7. Construction will create 6,000 jobs in Maine;
8. Support development of clean, renewable electricity resources in Maine to help reduce greenhouse gasses and dependence on high-priced oil and natural gas

Needs Assessment Study

In January of 2007, the MPRP began a comprehensive needs assessment of CMP's bulk power transmission system in coordination with the Independent System Operator for New England (ISO-NE). ISO-NE, a non-profit corporation, is a Regional Transmission Organization (RTO) composed of electric utilities serving Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and Connecticut. ISO-NE operates New England's bulk electric power system and oversees the regional electric energy market. ISO-NE has lead responsibility for the reliability of the region's bulk electricity supply, including meeting reliability standards set by the North American Electric Reliability Council (NERC), www.nerc.com, and the Northeast Power Coordinating Council (NPCC), www.npcc.org. Regional benefit upgrades, which can include reliability and economic upgrades, are paid for by all transmission customers of participating transmission operators in New England.

The scope of the system study included the following:

• A 10-year load forecast to evaluate the system in Maine and how it will continue to interface with the surrounding region;
• A comprehensive analysis of the current system, including planned upgrades to determine transmission system reliability and performance under numerous system conditions and operating scenarios;
• An evaluation of the performance for the current 345 kV and 115 kV system by computer modeling normal and extreme disturbances in accordance with national and regional reliability standards;
• A needs assessment for 345 kV and 115 kV system expansion or upgrades to satisfy performance requirements and minimize reliability risks;
• An assessment of the Maine 345 kV and 115 kV alternative solutions and identification of the most cost-effective solution to achieve the required reliability;

Following several months of intense study, CMP and ISO-NE completed the draft “Final Report, Maine Power Reliability Program, Needs Assessment of the Maine Transmission System”, on June 19, 2007. The study was based upon forecasted peak load for 2017. The final draft identified a number of significant reliability issues, which are described in the executive summary (Read the Needs Assessment Study).

After completing the needs assessment, the MPRP team went to work to study possible solutions. This included both transmission and non-transmission alternatives, before designating its preferred solution.

Non-Transmission Alternatives Study (NTA)

The MPRP commissioned a study by LaCapra Associates to evaluate non-transmission alternatives to potential transmission system solutions, including how new generation, conservation, energy efficiency, and demand-side management programs might mitigate or delay the need for additional transmission construction.

The Non-Transmission Alternatives Study (Read the Non-Transmission Alternatives Study) is based upon the areas identified and framed by the needs assessment. It identified options for alternative solutions including demand and supply. It considered combinations of energy efficiency, demand response, and new strategically located generating plants. It verified solutions to the reliability problems; and evaluated cost/benefit and overall economic benefit to customers.

The study found that while cost effective energy efficiency, and Demand Response programs are economically attractive under any situation, they cannot provide the reliability required to displace or delay the transmission projects that are proposed.

New local generation could be a solution in some cases, but it carries its own challenges with regard to reliability and siting issues, and would not be cost effective for most Maine customers.

The findings of the NTA Study were factored into the overall evaluation of potential transmission alternatives to determine the best solutions to meet the reliability requirements for the Maine transmission system through 2017 and beyond.

Transmission Alternatives

The MPRP Study Group conducted technical evaluations to assess how the possible combinations of transmission projects would perform during normal, peak, and possible outage scenarios and how those options would support future flexibility. Over 250,000 performance scenarios were evaluated. The study identified 10 alternative transmission projects, in various combinations, as possible solutions. (Read more about the Transmission Alternatives study findings)

CMP selected a transmission solution based on a number of factors, including electrical performance, cost effectiveness, impacts to landowners, and Maine’s environment and robustness under various forecasts of future conditions. The main component of this set of transmission projects, referred to as the N5/S1 Alternative, includes a 345-kilovolt (kV) transmission line from Orrington, Maine (15 miles south of Bangor), to Newington, New Hampshire. The line will follow existing transmission corridors through Detroit, Benton, Windsor, Lewiston, Yarmouth, Gorham, and Eliot. The proposed solution includes investments in new substations, upgrades to existing substations, and improvements to the 115-kilovolt (kV) electric system. The proposed transmission solution passes through 80 Maine towns. (View the Transmission Alternatives map)

Maine Public Utilities Commission Petition

On July 1, 2008, CMP filed a petition with the Maine Public Utilities Commission for a Certificate of Public Convenience and Necessity (CPCN) (Read the petition for Certificate of Public Convenience and Necessity). The system upgrade will also require approvals and permits from the Maine Department of Environmental Protection, approximately 80 local governments and other agencies.

Maine Power Connection Program

In a separate but related project, Central Maine Power Company and Maine Public Service (MPS) are teaming up to introduce the Maine Power Connection (MPC) program. The companies are proposing a bulk power transmission line to link the MPS service area directly to Maine's bulk power transmission system. MPS, which serves approximately 35,000 customers in Northern Maine, is currently connected to the New Brunswick, Canada transmission system.

Within Maine, the MPS system is separated by a 25-mile gap between the MPS lines in Houlton and the transmission lines to southern and central Maine that pass through Haynesville.

On July 1, 2008, CMP and MPC filed a petition with the Maine Public Utilities Commission for a Certificate of Public Convenience and Necessity (CPCN) (Read the news item). Like the MPRP, this system upgrade will also require approvals and permits from the Maine Department of Environmental Protection, local governments, and other agencies.

MPRP Key Events

Program Background

Congress enacted the Energy Policy Act of 1992, setting the stage for a major change in the electric utility industry for power generation and transmission. The Act authorized the Federal Energy Regulatory Commission (FERC) to encourage restructuring of the electric utility industry. FERC has exercised its authority to promote competitive wholesale markets, which in turn has led in many jurisdictions, including Maine, to the separation of generation from transmission.

Deregulation of the power generation industry placed new demands on the national electric grid. Increased consumption of electricity and several widespread blackouts raised increasing concerns over the reliability of the nation's electric power transmission system. In response to these developments the U.S. Department of Energy conducted The National Transmission Grid Study. The study, published in 2002, made it clear that without major improvements and upgrades over the next decade our nation's transmission system will fall short of the reliability standards our economy requires, and could result in higher costs to consumers. Modernization of America's electric system includes the application of new and existing technologies to enhance the reliability and efficiency of the entire electric system.

Those warnings about the nation's transmission system became reality on August 14, 2003, when large portions of the Midwest and Northeast United States and Ontario, Canada, experienced an electric power blackout. The outage affected an area with an estimated 50 million people and 61,800 megawatts (MW) of electric load in the states of Ohio, Michigan, Pennsylvania, New York, Vermont, Massachusetts, Connecticut, New Jersey and the Canadian province of Ontario. The blackout began a few minutes after 4:00 pm Eastern Daylight Time (16:00 EDT), and power was not restored for 4 days in some parts of the United States. U.S.-Canada Power System Outage Task Force - August 14th Blackout: Causes and Recommendations, April, 2004. PDF.

The National Oceanic and Atmospheric Administration (NOAA) published satellite images of the blackout, which are available here.

A study completed in 2005 by Lawrence Berkeley National Laboratory researchers for the U.S. Department of Energy estimates that electric power outages and blackouts could cost the nation about $80 billion annually. "Ofthis, $57 billion (73 percent) is from losses in the commercial sector and $20 billion (25 percent) is from losses in the industrial sector. The reason for the commercial sector's high share of these costs is the large number of commercial sector customers, which includes small as well as large businesses, and the high cost per outage per customer. The industrial sector's cost per outage per customer is significantly higher than those of the commercial customers, but there are only 1.6 million industrial customers, compared to 14.9 million commercial customers." Berkeley Lab news release, February 2, 2005.

In response to a growing number of national and regional energy concerns, including those affecting the generation and delivery of electricity, the United States Congress enacted the Energy Policy Act of 2005. The Act mandated the National Electric Transmission Congestion Study (August 2006), which identified critical "bottlenecks" and deficiencies affecting the capacity and reliability of our national electric power grid, including several constraints in New England. Download a PDF of the study here.

At the regional level, the Independent System Operator for New England (ISO-NE) is responsible for transmission system planning and operation, including generation dispatch and the capacity and energy markets throughout New England. The ISO-NE Regional System Plan (October 2006), calls for significant new investment to address the electric power transmission needs for New England over the next 10 years. Download a PDF of the plan here.

Maine Grid

Bulk electric power transmission in Maine and throughout New England is primarily handled by a 345 kV (345,000 volt) and associated 115Kv (115,000 volt) transmission system, which interconnects to systems in Eastern Canada and the rest of North America to the west.

The Central Maine Power (CMP) transmission system is responsible for carrying bulk electricity from generators throughout Maine and the rest of New England and Canada, and distributing this power to users throughout Maine. It consists of high capacity power lines, capacitors, transformers, circuit breakers and other equipment used for transmitting, switching, and controlling electrical power. The bulk transmission system in CMP's service territory operates at two voltage levels: 345kV and115kV.

The 345kV system is the backbone of the bulk power transmission system. The 345kV transmission lines carry more power than any other lines in the entire system. They are the main connection between CMP and bulk power systems to the north, in New Brunswick, Canada, and to the south, in New Hampshire and Massachusetts. 345kV transmission lines are responsible for delivering electricity from New Brunswick to the rest of the New England Power Pool (NEPOOL) and vice versa. The 345kV substations in Maine are Chester, Orrington, Maxcys, Mason, Surowiec, Buxton, Maine Yankee (Wiscasset), South Gorham, and W. F. Wyman. By operating transmission lines at such a high voltage, line losses and voltage drops can be minimized while the lines deliver large amounts of energy to customers throughout the system.

The 115kV system is the workhorse of the transmission system. It is responsible for transmitting power from the 345kV autotransformers and intermediate-sized generation throughout the entire service territory. 115kV transmission lines are the main arteries for electricity, carrying it to and from every geographical area CMP serves. Many large industrial customers are served directly from the 115kV transmission system. CMP currently operates over one thousand miles of 115kV transmission lines, connecting over 60 substations. There are also five 115kV lines which connect CMP to neighboring utilities to the north (Bangor Hydro Electric Company) and south (Public Service Company of New Hampshire).

CMP annually invests many millions of dollars to maintain its bulk power transmission system and ensure a reliable and stable supply of electric power to its customers. These investments require careful planning to ensure adequate capacity to meet the increasing demand for electric power and to replace or upgrade major capital equipment as it becomes obsolete or reaches its expected lifespan in service.

CMP's 345kV transmission system was built and put into service in 1971. Since then power consumption has more than doubled. In recent years, both CMP and ISO-NE have identified certain reliability issues with the 345kV system that need to be assessed and addressed.

The ISO-NE Regional System Plan (RSP), which is updated annually with input from CMP and other transmission owners has found, consistent with CMP's view, that a comprehensive study of CMP's system is timely and that "several areas of Maine and New Hampshire have serious reliability issues." The Regional System Plan (RSP06) concluded that "the northern New England transmission system is weak and faces numerous transmission security concerns. The most significant issues facing the area have been to maintain the general performance of the long 345kV corridor and the reliability of supply to meet demand. The region faces thermal and voltage performance issues and stability concerns and is reliant on several special protection systems that are subject to incorrect or undesired operation."

Additionally, the U.S Department of Energy's National Electric Transmission Congestion Study also indicates that a close examination of the northern New England system is warranted.

In response to reliability concerns, Bangor Hydro Electric recently constructed a second 345kV transmission line, called the Northeast Reliability Interconnect (NRI), between New Brunswick and Orrington, Maine. Given the growing demands on the CMP 345kV system, the additional Bangor Hydro Electric line, and the increasing issues identified by CMP and ISO-NE, the time has come to comprehensively evaluate the bulk power system in Maine and determine what investments should be made to ensure reliable service for the future.