NESCOE

Notice of Hydro Imports Study

correspondence

Dated: June 28, 2013

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New England States Committee on Electricity
Undertaking Study on Increasing Hydroelectric Imports

June 28, 2013 – The New England States Committee on Electricity (NESCOE) has commenced a study to analyze the economic and environmental costs and benefits of incremental levels of imported Canadian hydroelectricity. The study will inform policymakers’ assessment of hydroelectric resource potential and associated high-level transmission issues. To capture the synergy of analytical work currently underway by Black and Veatch on NESCOE’s Gas-Electric Study, and to maximize efficiencies, Black and Veatch is conducting the additional hydroelectricity analysis (the Hydro Study).

The purpose of the Hydro Study is to evaluate for policymakers, at a high level, the current and future imported hydroelectric capacity potential and deliverability, hydroelectric supply and demand dynamics of neighboring electricity systems, and emissions-related impacts of Canadian imports. The Hydro Study will research planned and existing hydroelectric capacity in Canada available for export. It will also simulate the pricing and environmental effects of incremental imports into New England. Further, it will analyze high-level, directional transmission costs, as well as various commercial issues. The Hydro Study is not a detailed transmission study and will not identify specific potential transmission pathways. The analysis will include a diverse range of Canadian hydroelectric resources in different geographic locations and various potential representative transmission configurations in several increments. NESCOE’s objective, here as elsewhere, is to ensure that consumers have reliable electric service at the lowest cost over the long-term consistent with environmental quality.

The Hydro Study, which will be in the form of an executive level report and associated presentation, is scheduled for completion at the end of August 2013. The Black and Veatch Hydro Study will be presented to policymakers together with a paper prepared by NESCOE that will provide additional information and context. NESCOE will make final study material available at www.nescoe.com.