Powering Our Future: Energy to Build on in Your Township

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1 Powering Our Future: Energy to Build on in Your Township Commissioner John Tuma Minnesota Association of Townships Educational Conference and Annual Meeting November 15-17, 2018

2 Minnesota Railroad and Warehouse Commission

3 A Wave of Innovation is Powering Changes to the World of Electric Utilities Image source: U.S. National Archives and Records Administration Image source: Kleinolive, Wikimedia Commons Image source: MISO Matters Electricity Rural Electrification Big Power Grid Management Grid Modernization

4 The First Great Wave: Introduction of Electricity to Major Cities and Industries

5 Rural Electrification Rural Electrification Act of Created the Rural Electrification Administration. Electricity was commonplace in large cities at the time, but not to rural areas due mainly to cost. The Act stimulated the expansion of electric service to farms, ranches and other rural places. The Act provided loans, which in turn helped establish Rural Electric Cooperatives and the expansion of an electric distribution network to the rural areas of America.

6 Minnesota Electric Utility Service Areas

7 Big Power

8 Bigger was not Always Better

9 Grid Management FERC regulates wholesale rates of electricity in interstate commerce, and monitors and investigates energy markets. FERC is behind the formation of independent system operators (ISOs) and regional transmission organizations (RTOs) or third-party independent operators for the transmission system. The ISOs and RTOs provide fair trade transmission access, which allows for better price transparency, more market flexibility and greater market diversity. FERC also monitors the reliable operation of the nation s bulk power system through development and enforcement of reliability standards by the North American Electric Reliability Corporation (NERC).

10 Midcontinent Independent System Operator (MISO)

11 What s a Little Township to do in This Big System? Bridgewater Township

12 The Next Great Wave of Innovation: Grid Modernization

13 Understanding the Electric Highway

14 Electric Transmission Highway Transmission Lines Carry electric energy in high voltages from one point to another in an electric power system. Can carry alternating current (AC) or direct current (DC). Transmission voltages generally range from 69 kv to 765 kv.

15 Electric Transmission Highway Subtransmission Lines and Distribution Lines Subtransmission carry reduced voltage from transmission system to distribution substations. Subtransmission voltages generally range from 34.5 kv to 69 kv. Distribution lines carry lower voltages from the substation to customers. Distribution lines generally range from 2.3 kv to 34.5 kv.

16 Electric Transmission Highway Substations Substations are used to switch generators, equipment, and circuits in and out of a system, and change voltages from one level to another, or change AC to DC/DC to AC. Step-up substations increase voltage from generating facility for long distance transmission. Step-down substations decrease transmission voltage to subtransmission and distribution voltage. Distribution substations located near end-users and distribute power to customers.

17 Solar Facilities Historically the last to receive access to electric energy, rural communities are now at the forefront nationally with supplying power to the grid via solar energy generation. Utility-scale solar facilities are similar to conventional generators in that they are sited near the energy resource base (i.e., rural areas with abundant sunlight), transmit the energy through transmission, and provide predictability to the regional grid. North Star Solar project in Sunrise and Lent Townships, Chisago County

18 Energy Storage Battery Innovation with But, storage is more than batteries

19 Minnesota Power s Great Northern Transmission System Large Manitoba Hydro Dam MN Power North Dakota Wind Farm 3/wind-energy-proposal-and-coal-backlash-in-north-dakota/

20 Transmission Lines and Substations in Northeast Metro Area

21 How Townships can be Involved in the System Planning Work with the county and nearby cities and townships to develop a comprehensive zoning plan with an energy infrastructure overlay. Education Educate your constituents on where your township sits in the grid and what that may mean for future developments. Partnership Work with the PUC on the energy facility permitting process. Charley Bruce, Public Advisor Energy Facilities Permitting publicadvisor.puc@state.mn.us Telephone: Fax: Website: mn.gov/puc