Great Basin Transmission LLC (GBT), LS Power affiliate, has declared a second open season (Open Season 2) for acquiring point-to-point, long-term transmission rights on the Southwest Intertie Project (SWIP). Successful bidders in the Open Season 2 will obtain firm transmission rights to supply energy to liquid power markets in the West. During the first SWIP Open Season (Open Season 1) GBT obtained proposals for the purchase of transmission rights in amounts that exceed the capacity of the SWIP.
However, since the conclusion of the bidding period for Open Season 1 GBT has received significant additional interest in the purchase of transmission rights. A combination of events has contributed to this expanded interest in SWIP transmission rights including, the entrance of the Obama administration with an emphasis on renewable resources and transmission, the passage of the American Recovery and Reinvestment Act of 2009 with its emphasis on building new renewables and transmission, the continued expressions of need by western states for renewable resources and new transmission, the announcement of open seasons on complementary transmission projects, the announcement of new transmission projects including the Overland Intertie Project, and advancements in the development of renewable projects in relevant locations. Because of the increased level of interest, GBT has determined that it will conduct Open Season 2 in parallel with the Open Season 1. In Open Season 2, GBT will also be accepting proposals for the purchase of transmission rights on the Overland Intertie Project (Overland Intertie).
The SWIP is an above-ground 500 kV AC transmission project stretching over 500 miles between southern Idaho and southern Nevada. By providing a new energy connection between the systems in Idaho and Nevada, the SWIP will provide renewable resources with direct and/or viable access to major load centers and attractive energy markets in Nevada, Arizona, and California. The SWIP high-voltage long-distance transmission project can begin construction as early as summer 2009.
The Overland Intertie is an above-ground 560 mile AC or DC transmission project between southern Idaho and eastern Wyoming that is being developed by GBT affiliate Jade Energy Associates, LLC (JEA). The Overland Intertie will connect directly to transmission constrained wind generation in eastern Wyoming and transport the energy to Idaho where the Project will connect with the SWIP. Together with the SWIP, the Overland Intertie will take advantage of the diversity provided from some of the best renewable resources in the US including wind, geothermal, and solar resources from Nevada, Idaho and Wyoming.
Open Season 1 will continue on its current track and any contracts for firm transmission rights entered into prior to the deadline for receiving proposals in Open Season 2 will decrease the amount of capacity available in Open Season 2. Bidders who have submitted conforming proposals in Open Season 1 and have not entered into contracts by the proposal submission deadline for Open Season 2 will be considered together with the Open Season 2 proposals.
GBT will hold a bidders conference in Las Vegas on May 21, 2009, to provide key information about the Open Season process and the Projects.