Cost-Benefit Study of the Proposed GridFlorida RTO

Categorized Under: Energy



Written by Kojo Ofori-Atta, Judah Rose, Chris McCarthy, Himali Parmar, Ken Collison, Shanthi Muthiah, and Elliot Roseman of ICF International, December 12, 2005. This study prepared for GridFlorida LLC examines the benefits and costs to peninsular Florida consumers of a GridFlorida Regional Transmission Organization (RTO) under two possible centralized modes of operation: a Day-1 RTO and a Day-2 RTO. The overall outcome of net benefits to peninsular Florida consumers depends on both quantitative and qualitative aspects of the RTO structure and start-up costs. The combined benefits of a "Greenfield" Day-1 RTO with all new systems and physical facilities are not nearly as large as the costs. In the case of a Day-2 RTO, although the quantified benefits were almost US$1 billion, the cost of a Greenfield Day-2 RTO was approximately 28 percent higher. Thus if the qualitative Day-2 RTO benefits are worth approximately US$285 million, then the proposed GridFlorida RTO could break even.

Authored By

  • Judah Rose

    Senior Vice President and Managing DirectorICF International

    Judah Rose joined ICF International in 1982 and has 30 years of experience in the energy industry with clients such as electric utilities, financial institutions, law firms, government agencies, fuel companies, and independent power producers (IPPs). He is an ICF Distinguished Consultant, an honorary title given to three of ICF's 4,500+ employees. He has served on the ICF Board of Directors as the management shareholder representative.

    Mr. Rose has supported the financing of tens of billions of dollars of new and existing power plants and is a frequent counselor to the financial community. He provides expert testimony and litigation support, addressed approximately 100 major energy conferences, and authored numerous articles.

    Mr. Rose has a B.S. degree in Economics from Massachusetts Institute of Technology and an M.P.P. degree from the John F. Kennedy School of Government at Harvard University.

  • Himali Parmar

    Senior ManagerICF International

    Himali Parmar performs analysis in generation, transmission, and ancillary services valuation; transmission studies; and utility restructuring. Her expertise includes forecasting transmission congestion and losses and their effect on locational power prices and plant dispatch in the U.S. power markets.

    After earning a master’s degree in Electrical Engineering from University of Wisconsin, she was an intern with the American Transmission Company. She did load flow and contingency analysis to develop short-and long-term transmission system plans for the transmission planning group. While a student at University of Wisconsin, Ms. Parmar was a teaching assistant for undergraduate courses in the Electrical Engineering Department.

  • Ken Collison

    Vice PresidentICF International

    Ken Collison, who joined ICF International in 2002, has expertise in transmission studies, power system reliability studies, critical infrastructure protection, transmission and ancillary services valuation, generation analysis, utility restructuring, and strategic studies.

    Mr. Collison has developed full alternating current (AC) nonlinear power flow models for detailed power system engineering studies, including power system reliability assessment, contingency analysis, and total transfer capability analysis for the networks of several power pools in the United States. In several power markets, he has led studies to determine the impact of major proposed transmission projects on the ability of the market operators to reliably meet system demand.

  • Shanthi Muthiah

    Vice PresidentICF International

    Shanthi Muthiah manages work in wholesale power market assessments and asset valuation. Her power industry experience spans regional markets in North America, Europe, Australia, and Asia. Her transactional experience encompasses energy markets advisor for the Calpine Unsecured Creditors Committee and NRG Energy in the bankruptcy and restructuring process; financing due diligence support for various independent power producers (IPPs) and utilities, including for gas, coal, hydro, and wind projects and portfolios; acquisition and auction support for potential bidders and sellers; and advisor to power companies in developing, contracting, and asset optimization.

    Ms. Muthiah has a B.S. in Electrical Engineering from Massachusetts Institute of Technology and dual M.S. degrees in Technology and Policy and Environmental Engineering from Massachusetts Institute of Technology. She has addressed numerous power industry forums and has published several articles in Public Utilities Fortnightly and Electric Power & Light.

  • Eliott Roseman

    Vice PresidentICF International

    A senior advisor with 30 years of energy industry experience, Elliot Roseman has expertise in policy analysis, strategic planning, regulatory and legislative strategy, project development, and financial analysis. He supports clients in evaluating energy and electric transmission opportunities, analyzing markets, and developing regulatory and business policies. His experience includes developing business, policy, and regulatory strategies; evaluating potential impacts of specific transactions; and conducting project due diligence.

    Mr. Roseman has managed major policy assignments for private and public utilities, independent power generators, transmission developers, multilateral institutions, regulators, and government officials. He is an adjunct professor at George Washington University, teaching a graduate course on “Worldwide Energy Challenges.”

Insight Details

Published: Dec 12, 2005
Authors: , , , , , Kojo Ofori-Atta, Chris McCarthy

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