The Federal Energy Regulatory Commission (FERC) today submitted a staff report to Congress on the North American Reliability Corporation’s (NERC) Interregional Transfer Capability Study (ITC Study), concluding that despite its limitations, the ITC Study represents an advancement in existing transfer analysis and modeling processes.
The Fiscal Responsibility Act of 2023 required NERC to complete the ITC Study and submit it to FERC for public comment, followed by a report by the Commission to Congress. Stakeholders submitted a total of 50 comments to FERC.
"Increasing interregional transfer capability can be a potent tool in addressing reliability issues and warrants further examination. However, it is crucial to recognize that this measure is not a cure-all solution and should be considered in conjunction with potential economic impacts and other reliability strategies," Chairman Laura V. Swett said.
The ITC Study analyzed how electricity moves between regions, identified potential opportunities to strengthen connections between neighboring regions to ensure there is enough power to meet demand, and examined ways to optimize operating reserves by increasing interregional transfer capabilities. It used a common approach and consistent assumptions across regions to account for the weather’s simultaneous effect on multiple regions across a wide area.
The staff report finds that evaluating the need for more interregional transfer capability could be beneficial. It also points out that the ITC Study is not a recommendation for transmission development, and that other solutions exist to meet future reliability needs. It finds that, by focusing on the power available in each hour, the ITC Study provides a more comprehensive understanding of energy deficiencies under extreme conditions and highlights the need for energy sufficiency on a more granular basis than conventional studies. It also points out that transfer capability alone is not sufficient without excess generation to transfer; thus, any proposal to add transfer capability between regions should examine more closely the regions’ combined load, internal generation, and existing transfer capability.