Transmission Owner Transmission Solutions
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The Transmission Owner Transmission Solutions (TOTS) was a group of three electric power bulk transmission projects constructed on the New York bulk transmission system to increase transfer capability between Upstate New York and Downstate New York. The projects were in-service by June 2016. The projects were proposed by a consortium of the state's seven Investor-Owned Utility (IOU) companies (New York Transco (Transco),[1] composed of Consolidated Edison, Orange and Rockland, PSEG-Long Island, Central Hudson, National Grid, New York State Electric and Gas, and Rochester Gas and Electric) in response to a New York State Public Service Commission (NYSPSC) appeal for Indian Point contingency plans in the event that the 2,060-MW Indian Point power facility were to retire.[2][3] The shutdown of the Indian Point facility has been a policy goal of Governor Andrew Cuomo since before he began his administration in New York in 2011.[4] The TOTS projects are estimated to have costed $240 million[5] to construct. Construction costs were divided between the seven Transco utilities and the New York Power Authority (NYPA). The IOUs are receiving a 10% return on equity (approved by the Federal Energy Regulatory Commission)[6] for construction of the projects which is being recovered through retail consumer rates approved by the NYSPSC.
An Indian Point contingency plan, initiated in 2012 by the NYSPSC under the administration of Cuomo, solicited energy solutions from which the TOTS plan was selected. Proposals were solicited from third party developers and the incumbent transmission IOUs. The TOTS projects consist of 3 separate projects that were projected to provide 450 MW[7] of additional transfer capability across a NYISO defined electric transmission corridor. The NYSPSC approved the Certificate of Public Convenience and Necessity for the TOTS projects (usually required before construction of a project) on behalf of Transco on May 19, 2016 (pursuant to section 68 of the Public Service Law).[7] Most other major transmission projects in New York are subject to Article VII of the Public Service Law.[8] These TOTS projects, with the exception of part of the Staten Island "unbottling" were in service by June 2016. The cost of the TOTS projects are distributed among the various IOUs in their rate cases that were approved by the public service commission. The cost allocation amongst themselves was approved by the Federal Energy Regulatory Commission (FERC). NYPA is also receiving a portion of the cost allocation, which they are recovering through tariffs. The cost of the TOTS projects has been estimated to be in the range of between $27 million to $240 million.[2][9][10][11][12]
Facilities
- Marcy South Series Compensation project: The installation of a 240-MVAR series compensation unit (capacitor bank) at the Fraser Station for a circuit between the Marcy Station and the Fraser Station, reconductoring of a 345-kV circuit between these stations, and the replacement and refurbishment of selected towers.
- Construction of a second Ramapo station to Rock Tavern station 345-kV circuit.
- Staten Island Unbottling project: The splitting of a 345-kV underground circuit in Staten Island.
Cost allocation
| IOU | Cost allocation (%) | Estimated Increase in Rate Base ($ mm) |
|---|---|---|
| Central Hudson | 5.99 | 14.4 |
| Con Edison / Orange and Rockland | 63.18 | 151.6 |
| New York State Electric and Gas / Rochester Gas and Electric | 10.12 | 24.3 |
| National Grid | 12.16 | 29.2 |
| Long Island Power Authority (PSEG-Long Island) | 8.55 | 20.5 |
Note: "Increase in Rate Base" is based on an estimated $240 million total construction cost without including the FERC approved 10% ROE.[5][6]