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The Myth of the Transmission Deficit

The grid does not need a Marshall Plan for new investment.
Fortnightly Magazine - November 1 2003
  1. grid. The greater use of non-firm service wrings the maximum efficiency out of the system.
  2. Compiled from monthly summaries on the NERC Web site, http://www.nerc.com/~filez/Logs/index.html.
  3. Another way to look at it is that in a reliable system there is always a set of fuel prices for which congestion is zero, i.e., it is all about economics.
  4. A good example of this is the increase in reported congestion in PJM that arose from the addition of Allegheny Energy as PJM West. With integrated dispatch, efficiency increased from what it was before. But PJM's reported congestion went up with Allegheny now part of PJM. See , p. 103. It is also important to distinguish gross congestion cost from net congestion cost (net being the congestion cost to load that is not hedged by fixed/financial/firm transmission rights [FTRs]). Taking PJM as an example, gross congestion cost was $430 million in 2002, , at 101, but net congestion cost was $115 million, W. Scott Miller III, "A Call for Reason," , June 1, 2003, at 14.

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