Planning refers to system planning- to assess and manage future needs of the electric grid. Both MISO and PJM participate in collaborative regional and interregional planning activities with their own respective stakeholders within their footprints as well as interregional planning activities with their neighbors.
The Planning process, typically 12-18 months examines and evaluates long term system needs to ensure power will be available when we need it today, as well as 10-20 years into the future.
Energy consumers benefit from the utilities and RTOs coordination of short and long-term system planning. Utilizing advanced modeling and research, RTOs help ensure reliable and efficient electricity transmission. Generally speaking, transmission planning processes focus on maximizing value while minimizing the total costs of the system to the consumer. As part of this process, RTOs identify essential transmission projects that will improve the reliability and efficiency of energy delivery. Both MISO and PJM conduct long-range planning studies and analyzes future demands on the transmission system in their regions. These studies identify changes and additions, such as new transmission lines or upgrades to existing equipment, needed to ensure grid reliability and to maintain the successful operation of the wholesale electricity markets. Some of the facts that are considered include but are not limited to:
- Expected growth in the use of electricity (for example, population growth in a specific area would drive up demand- we call this “load growth”)
- Power plant retirements
- Public policy (state, federal or other governmental energy initiatives such as carbon reduction or specific fuel preferences)
- New generator interconnection that determine whether the existing grid can handle power from a new generating plant and what changes are needed to connect the plant
To learn more about long-term planning, please visit: https://learn.pjm.com/three-priorities/planning-for-the-future.aspx and https://www.misoenergy.org/planning
