LS Power Subsidiary DesertLink Energizes 500 kV Transmission Project
Project Offers Significant Economic, Reliability and Renewable Energy Integration Benefits
LS Power is pleased to announce that, on August 12, its subsidiary DesertLink, LLC, energized the Harry Allen to Eldorado (“HAE”) 500 kV transmission project, a much-needed development that strengthens the connection between the California Independent System Operator (CAISO) grid and NV Energy’s transmission system, increasing transmission import and export capacity, while providing economic and reliability benefits to California consumers. The project covers approximately 60 miles between NV Energy’s 500 kV Harry Allen substation to the north and Southern California Edison’s 500 kV Eldorado substation to the south.
“DesertLink is yet another example demonstrating how much consumers can benefit from competitive transmission. As developers, we are willing to compete to earn the right to build these projects, and we are voluntarily offering meaningful cost protections and rate concessions when given the chance to compete,” said Paul Thessen, President of LS Power Development. “The DesertLink development is expected to save millions for California consumers. The timely completion of this project within budget represents another success story for FERC’s Order 1000.”
HAE is one of three projects CAISO has awarded to LS Power affiliates through competitive processes that secure the most cost-effective and innovative transmission solutions for Californians.
“Competition leads to innovation and value for consumers, which are core elements of every LS Power project,” said LS Power CEO Paul Segal. “Competitive transmission puts the consumer first by seeking out innovation and reducing risk, which is critical to controlling the cost of reinventing the power grid on our path toward a lower-carbon energy future.”
In selecting DesertLink in 2016 to build, own and operate the HAE transmission line, CAISO concluded that DesertLink’s proposal provided “…more robust capital/construction cost and ROE caps that should result in lower costs and present less risk compared to the proposals of the other two project sponsors, thus benefiting ratepayers.” The CAISO Board of Governors approved the HAE Project in 2014 for its significant economic, reliability and renewable energy integration benefits, including at least 200 MW of increased import capability.
LS Power’s Additional California Transmission Projects
Beyond the HAE project, LS Power, through its subsidiary LS Power Grid California, LLC, was selected earlier this year by CAISO pursuant to its FERC Order 1000 compliant process for two additional competitively procured transmission projects:
- Gates 500 kV Dynamic Reactive Support project
- Round Mountain 500 kV Area Dynamic Reactive Power Support project
Both the Gates and Round Mountain projects were deemed critical reliability projects, for which the CAISO selection report also noted that LS Power’s proposal “provide[s] lower cost, greater rate certainty, and less cost risk than proposals of the other project sponsors.”
LS Power has an additional transmission project in advanced development that would be complementary to the HAE project:
- Southwest Intertie Project (SWIP) North, a 275-mile 500 kV transmission line that will run between Nevada and Idaho. Once energized, SWIP North is expected to provide additional transmission capability, delivering access to renewable wind, geothermal and solar energy resources in areas that would otherwise not have access to these systems. This project will provide bulk system reliability enhancements, congestion relief and economic energy exchange, while addressing energy imbalances by connecting the Northwest and Mountain West electricity markets to the Desert Southwest and CAISO resulting in beneficial generation resource and load diversity.
About DesertLink, LLC
DesertLink, LLC, an LS Power company, is an electric transmission utility company with a mission to ensure reliable and cost-effective electric transmission for the Western Grid, with a specific focus on the California Independent System Operator (CAISO) region.