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Utility proposes $238/kW transmission adder and Denver Metro locational credit; debate centers on method and scale
Summary
Xcel proposed a $238-per-kW "transmission adder" for modeling and a separate Denver-Metro locational credit to reflect incremental transmission costs and congestion relief. The adder would be applied to all transmission-connected bids and the locational credit to projects in mapped feeder areas that relieve the Denver metro constraint.
Lede: Xcel Energy's resource-planning witness defended a proposal to include a $238-per-kilowatt modeling adder to represent typical incremental transmission costs when the optimization chooses transmission-connected generation, and to apply a separate Denver Metro locational credit for projects that reduce congestion feeding the Denver metro area.
Why it matters: The adder and locational credits affect how capacity-expansion models rank and select projects. They can push the model to favor projects sited inside constrained areas (to capture local benefits) or to penalize out-of-area projects whose selection would likely trigger more transmission investment. Those adjustments can materially change selected portfolios and customer costs.
What the company proposed: John Landrum, director of resource planning for the company's Colorado operations, said the transmission adder was derived by averaging transmission-cost estimates from four scenarios in the joint transmission study (JTS), including a scenario that assumed the Harvest…
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