Dive Brief:
- The Midcontinent Independent System Operator on Friday asked federal regulators to approve a fast-track review process for large loads and the new generation that would supply them.
- The proposed 120-day Large Load Addition Resource Study process would be offered to loads larger than 200 MW and generation that is within the same local resource zone, according to the proposal at the Federal Energy Regulatory Commission. There are 10 local resource zones in MISO’s footprint, generally aligning with state boundaries.
- “LARS provides MISO with a targeted tool to address the intersection of significant large load additions, optimized network upgrades with generation and load, generation development, and supports resource adequacy,” MISO said. It asked FERC to issue a decision by Dec. 2 so the grid operator could open the first study period early next year.
Dive Insight:
Like other grid operators, potential data centers and manufacturing facilities are driving MISO’s demand forecasts. The grid operator told FERC it expects its load will grow by 1% to 3% a year through 2044.
MISO’s LARS process process is partly in response to FERC’s mid-June finding that its rules related to large loads are inadequate, including for integrating “proximate” loads and generation onto the grid, according to the grid operator’s application.
Under MISO’s proposal, the grid operator will study up to 10 LARS applications during three annual study periods. Applicants face various requirements, such as non-refundable deposits, that aim to weed out speculative projects.
Running parallel large load and generation interconnection studies will produce more efficient network upgrade solutions, according to MISO, which operates the grid and wholesale power markets in 15 states from Louisiana to Minnesota.
“The goal of LARS is not necessarily to find the lowest cost solution for either the load or generation but to identify the solution that best fits both the generation and load needs at the lowest cost,” the grid operator said. “MISO expects LARS to produce more cost-effective solutions that are more efficient for the grid overall.”
Under the proposal, the commercial operation date for the generating facility and the in-service date for the associated large load must be within three years from the date the LARS application is submitted, according to MISO.
The load can begin receiving service in phases, but must start service for the full amount of transmission service requested in the LARS application by the time the generating facility begins operating. Under certain conditions, the load can be served by multiple generating facilities.
The proposal requires that the generation and load remain paired for at least 15 years.
The LARS process won’t affect generating projects that are in MISO’s standard generation interconnection queue, according to the grid operator. Also, the LARS process will evaluate proposed load and generation to the same standards as MISO’s other interconnection processes, the grid operator said.