Improving Existing Infrastructure
Instead of using maintenance dollars — largely residing in expense budgets — on aging equipment, utilities can leverage new capital spending to upgrade existing transmission assets. Existing transmission rights-of-way already serve current population centers. Identifying the right asset strategy using new capital dollars to upgrade this infrastructure is a clear winner for ratepayers, transmission customers and investors. West Coast utilities should begin outlining improvements — such as new towers, poles and upsizing of conductors — as investment opportunities. Deploying composite conductors, using transmission topology tools and dynamic substation controls, and upgrading to high-temperature power lines are additional possibilities to improve the operations of existing infrastructure. Expanding transmission capabilities while repurposing assets is financially beneficial, enhances the reliability of service and increases safety while not burdening ratepayers.
Leveraging Transmission Interconnections
From the San Onofre Nuclear Generation Station in Southern California to the Centralia coal-fired power plant in the state of Washington, various older facilities are being reevaluated or retired. Such shuttered facilities can still play a role in the energy future, however, as their substations, switchyards and land can be leveraged for offshore wind interconnection.
Using new capital spending to redesign and renew these facilities provides new interconnection opportunities for offshore wind. Utilities and regulators should evaluate how aging and retired assets and infrastructure can be utilized and improved with new investments. Once these key locations are identified, both the utilities and regulating agencies should push to use these existing assets and locations for onshoring the offshore projects.
Recapitalizing Existing Rights of Way
Vegetation management and facilities maintenance in rights-of-way and easements is critical for improving safety, significantly reducing the threat of fire. New technologies, procedures and requirements have been developed to help reduce hazards, but they require investment. By leveraging existing rights-of-way, new capital investment can help utilities meet safety and environmental standards and mitigate risk.
New capital spend made available as part of new transmission projects in existing rights of way can also be deployed to upgrade infrastructure, replace towers, upsize assets for greater transmission capacity and lower the risk of aging assets. Recapitalizing along existing rights-of-way does not require additional land purchases, leases or new easements, reducing long-term costs while facilitating reinvestment. Improvements increase reliability, minimize environmental impacts and reduce safety risks.