/power/transmission/2012/april/ge-to_auction_225.html?cmpid=EnlWeeklyPowerAp
ril132012
GE to auction 225 MW of transmission capacity connecting NYC, PJM power
grids
April 9, 2012
Source: GE
GE (NYSE: GE) unit GE Energy Financial Services announced that it will
auction 225 megawatts of bi-directional electricity transfer capacity from
its Linden variable frequency transformer (VFT) smart grid project at the
intersection of the New York City and PJM power grids.
GE Energy Financial Services will hold the auction in June to sell nine
blocks of 25 megawatts of electric transmission scheduling rights that will
become available on November 1, 2012. These blocks can be used by the
project's customers to sell power capacity and energy sourced in the PJM
Interconnection, the largest centrally dispatched electric grid in the
world, into the New York Independent System Operator (NYISO) and its zone
serving the New York metropolitan area. Linden VFT customers also can route
energy from NYISO to the PJM Interconnection.
The project is capable of transferring 315 megawatts of capacity, enough for
up to 315,000 homes, between PJM and NYISO, through its connection to a
cable running in bedrock 60 feet beneath the Arthur Kill waterway –
originating at GE's 900-megawatt Linden cogeneration power plant – and
connecting to Consolidated Edison's Goethals substation in the New York City
borough of Staten Island.
Since commercial operation began in 2009, the Linden VFT project has
operated with 97 percent availability, and has successfully demonstrated the
flexibility to flow power in both directions between NYISO and PJM. These
variable frequency transformers are helping to stabilize New York City's and
PJM's power grids, increasing energy reliability and providing consumers
with more diverse and lower-cost power sources. The variable frequency
transformers provide a precise control path between electrical grids,
permitting power exchanges previously impossible because of technical
constraints. They enable transmission system operators at PJM and NYISO to
control power flows with high reliability, speed and efficiency, while
offering flexibility in how utilities meet growing energy demand.
Four power marketing and trading companies won an initial auction in January
2007 for the Linden VFT's electric transmission capacity from what GE Energy
Financial Services believes was the first merchant US transmission project
not dependent on a long-term arrangement with a rate-based entity. The smart
grid project builds on GE Energy Financial Services' 30-year legacy of
investment in power transmission and generation. GE Energy Financial
Services holds equity investments in power projects which it either operates
itself or are operated by third parties with a capacity to produce 30
gigawatts.
GE Energy Financial Services will hold an "open season" to allocate
transmission scheduling rights entitling Linden VFT's customers to determine
use of the project. To learn more about the process, interested parties may
visit www.lindenvftauction.com, where they can find an Information
Memorandum that describes the Linden VFT, the transmission scheduling rights
that will be made available, the auction rules and the benefits of owning
these transmission scheduling rights, as well as a calendar and important
announcements regarding the open season. Any questions can be directed to
iam@lindenvftauction.com. The Brattle Group is managing the open season for
GE Energy Financial Services.
Bidders can procure up to nine available 25-megawatt blocks for terms
ranging from a minimum of one year, up to 10 years and seven months. Bidders
are allowed to make multiple offers for the desired number of blocks, where
each offer corresponds to a different contract duration.
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