SPP begins coordinating with states on Clean Power Plan compliance
Now that the final Clean Power Plan has been released, states are beginning to formalize plans on how they will — if they will — comply with the mandate. While some states will go it alone, file lawsuits or refuse to develop a plan, officials at SPP are reminding members that working together is expected to significantly reduce the cost of cutting emissions.
SPP’s webinar brought air regulators from the grid’s 14 states together to discuss the carbon rules. According to EnergyWire, it’s the first time a regional transmission operator has met openly with air regulators to discuss the plan.
“We respect the fact that some of the states will litigate; that’s their right to do so,” said Lanny Nickell, SPP’s vice president of engineering. “We just hope and encourage them to be working a parallel path so that in whatever event occurs, that they’re ready to implement something that will be reliable and cost-effective.”
SPP’s July assessment of compliance costs found more than 15 GW of generation beyond what has already been anticipated could be at risk for retirement without a regional approach. Similar evaluations from grid operators PJM and MISO have also found cost savings and less generation retirement associated with a regional approach.
In that analysis, released before the final rule was made official, SPP used a nominal $45/ton carbon-cost adder to incent dispatch of lower carbon-emitting generation resources. The study also incorporated 5.5 GW of wind resources and 4 GW of gas-fueled resources above currently planned capacity.
