Chapter 4.6: Long Term Transmission Rights (LTTR) Analysis Results

Chapter 4.6: Long Term Transmission Rights (LTTR) Analysis Results

MTEP involves, among other objectives, evaluating the ability of the Transmission System to fully support the simultaneous feasibility of Long Term Transmission Rights (LTTR). To that effect, MISO performs an annual review of the drivers of the LTTR infeasibility results from the most recent annual Auction Revenue Rights (ARR) Allocation and determines the sufficiency of MTEP upgrades in resolving this infeasibility.

MTEP provides for reliable and economic use of resources, reducing the likelihood of infeasible LTTRs

This chapter details the financial uplift associated with infeasible LTTRs for MISO Central, North and South regions (Table 4.6-1) and documents planned upgrades that may mitigate the drivers of LTTR infeasibility identified using the annual Financial Transmission Rights (FTR) auction models (Table 4.6-2).

As part of the annual ARR allocation process, MISO runs a simultaneous feasibility test to determine how many ARRs, in megawatts, can be allocated. This test determines to what extent LTTRs granted the prior year can be allocated as feasible LTTRs in the current year. The remaining unallocated LTTRs are deemed infeasible, and their cost is uplifted to the LTTR holders.

Consistent with the ARR market design, this second ARR planning year for the MISO South region reflects the first opportunity for infeasibile LTTRs in that region. As such, the MTEP15 study is the first year incorporating infeasibility or uplift information for the South region.

Factors that may have resulted in lower overall prices and higher overall MW allocated when compared to the prior year include: several upgrades throughout the footprint (including East Winamac and West Franklin); and improved constraint modeling in the South region due to more historical information on the congestion pattern. The LTTR infeasibility uplift ratio decreased from 5.06 percent in MTEP14 to 3.43 percent in MTEP15 (Table 4.6-1), as noted in the 2015 Annual ARR Allocation. The 2015 allocation of total infeasible uplift for MISO is $16.4 million out of total LTTR payments of $478.5 million.

Region Total Stage1A
Total LTTR
Payment ($M)
(including infeasible Uplift)
Total Infeasible Uplift ($M) Uplift Ratio
MISO-wide 450.7 478.5 16.4 3.43%
Central, North 323.5 286.5 7.4 2.6%
South 127.2 192 9 4.7%
Table 4.6-1: Uplift costs associated with infeasible LTTR in the 2015 Annual ARR Allocation

Infeasibility in any annual allocation of LLTRs can occur due to near-term conditions and their impact on the ARR allocation models. However, as MTEP projects are completed, reliability limits are eliminated and economic congestion is reduced across the transmission system. This provides for the more reliable and efficient use of resources associated with LTTRs in general, resulting in reduced infeasibility of financial rights over time.

Planned mitigations associated with limited LTTR feasibility are listed in Table 4.6-2. Binding constraints are filtered for those with values greater than $200,000. Other constraints will continue to be monitored in the annual allocation

Constraint Summer 2015 Fall 2015 Winter 2015 Spring 2016 Grand Total Planned Mitigation
Melbourne – Calico Rock 161 kV FLO Independence – Dell 500 kV $441,131 $287,267 $728,398
Newton – Robinson Marathon 138 kV FLO Newton-Casey West 345 kV $299,584 $137,318 $42,658 $31,416 $510,976
Grimes Transformer 1 345/138kV FLO Grimes Transformer 2 345/138 kV $37,310 $181,508 $160,181 $55,226 $434,225
Ottumwa – Wapello Line 1 161 kV FLO Ottumwa – Wapello Line 2 161 kV $(4,704) $407,932 $403,228
Nelson East Transformer 1 500/230 kV FLO Hartburg – Cypress 500 kV $55,338 $124,613 $50,880 $99,428 $330,260 Upgrade in-service, but not modeled in time for allocation
Dolet Hills 345/230 kV transformer FLO Longwood – Sarepta 345 kV $20,690 $430 $41,039 $228,908 $291,067
Chariton – Lucas 69 kV FLO Ottumwa – Wapello Line 2 161 kV $24 $10,583 $278,431 $289,039
Grimes Transformer 1 345/138 kV FLO Grimes Transformer 2 345/138 kV $286,028 $286,028
Gillisburg – Amite 115 kV FLO McKnight – Franklin 500 kV $74,749 $207,730 $282,479
Ottumwa – Bridgeport 161 kV FLO Ottumwa – Tri-County 161 kV $232,910 $232,910 Project ID: 8020  Pleasant Corner-Beacon 161 kV Line & Terminal

ISD: June 2016

Rising Transformer 1 345/138 kV FLO Clinton – Brokaw 345 kV $228,707 $3,830 $232,538
Market Street Transformer 1 230/115 kV FLO Michoud Transformer 1 230/115 kV $34,905 $94,005 $28,387 $56,130 $213,427
Dolet Transformer 345/24 kV A Base $207,655 $207,655
Table 4.6-2: Infeasible uplift to binding constraints from the 2015 annual FTR Auction