Benefit-cost analysis of New York AC transmission upgrades

For the New York Department of Public Service (DPS) and NYISO, Brattle experts evaluated 21 alternative projects to increase transfer capability from Upstate to Southeast New York. We quantified a broad scope of economic benefits: traditional production cost savings from reduced congestion using GE-MAPS; additional production cost savings considering non-normal conditions; resource cost savings from being able to retire downstate capacity, delay of new entry, and shifting the location of future entry upstate; avoided costs from replacing aging transmission that would have to be refurbished; reduced costs of integrating new renewable resources upstate; and increased local tax receipts. The simulations enabled us to identify projects with the greatest and most robust net present value. The DPS used the analysis to inform its recommendation to the Public Service Commission to declare a “Public Policy Need” to build such a project.