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Power transmission has moved to the
forefront of the energy investor's
strategic focus. While merchant
power plant development has stalled
and trading activities are under
siege, the 2005 Energy Policy Act
encourages transmission investments
to reduce congestion,. ISOs and
regulators are exploring how best to
reduce congestion costs. LAI has
worked with clients to identify
constrained transmission paths,
quantify congestion costs, and
evaluate proposals to alleviate
bottlenecks. We have been at the
forefront of new merchant
transmission projects in the
Northeast, and have regulatory and
operational issues including
inter-market transfer limitations,
risk management, and the
interconnection process.
LAI is well-versed in the language
of Financial Transmission Rights and
other congestion hedging mechanisms
in PJM, NYISO, and ISO-NE. For a
variety of clients, LAI has assessed
the costs and potential rewards of
procuring hedges. We employ a range
of sophisticated models to determine
the risk-adjusted value of FTR
ownership, and guide our client
through the procurement and
management of such hedging
mechanisms.
LAI assists clients with investment
and contracting questions using our
production simulation model coupled
with PowerWorld, a power flow
optimization model that allows us to
determine nodal prices, identify
transmission criteria violations,
and assess bulk power security. Our
transmission experts are familiar
with the full range of cable
technologies.
LAI can help you in a number of important areas:
 | Forecast nodal and zonal LMPs that capture technology shifts over time |
| Measure the value-added through hedgeable financial instruments |
| Assess load pocket conditions and interface limits |
| Gauge the merit of rival AC and DC transmission projects |
| Assess market structure for merchant transmission investments |
| Coordinate the ISO interconnection process – Scoping meeting, Feasibility Study, System Reliability Impact Study, and Facility Study |
| Measure transmission benefits and risks among rival stakeholders |
| Quantify congestion incentives for new generation and transmission assets |
| Administer transmission tariffs |
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