Pattern Energy Crosses Milestones on Proposed 400-Mile Transmission Line

After steadily breaking news from its wind development division, Pattern Energy Group LP spoke with EnergyBoom about the recent progress it has made on its proposed Southern Cross transmission project.

In its 18 month history, Pattern Energy has grown its wind capacity at light speed. The company has 520 MW of operational wind power capacity and another 1000 MW in its pipeline.

In August, with partner Samsung Renewable Energy Inc., the company signed four separate power purchase agreements with the Ontario Power Authority (OPA) that will supply Ontario with 870 MW of wind energy.  Three weeks later, they followed that announcement by finalizing financing on a 152 MW Spring Valley Wind Project under construction in Nevada. With its burgeoning wind business, it is easy to forget that the Pattern Energy is also developing transmission projects.

In his conversation with EnergyBoom, Pattern Media advisor Matt Dallas, was quick to highlight that Pattern has "extensive experience in Transmission."

This expertise has led Pattern's transmission team to propose the Southern Cross Project -- a major transmission line that would allow for Southeastern States to access the abundant wind supply in Texas. 

Based on studies it conducted in 2008, Pattern Energy believes that states in the SERC region have "limited economically efficient wind resources" and concludes that building a transmission line from Electric Reliability Council of Texas (ERCOT) would be less expensive then a line from the Central Plains.

Southern Cross would span nearly 400 miles -- starting at a new 345 Kv ERCOT Switchyard in Rusk County, Texas, running through Louisiana and ending at one or more existing 500 Kv Switchyards in Northeastern Mississippi.

Early last week Pattern said it had come to a Settlement Agreement with Oncor Electric Delivery Company LLC, CenterPoint Energy Houston Electric LLC, and municipal-owned electric utility Garland Power & Light, regarding the terms and conditions for the interconnection of the project with ERCOT.

The company also requested an order from the Federal Energy Regulatory Commission (FERC) directing Garland to interconnect the project with ERCOT and directing Oncor and CenterPoint to provide transmission service into and out of ERCOT.  In, a separate application to FERC, Pattern also requested authority to sell transmission service on Southern Cross at negotiated rates with interested shippers. 

These are significant developments says project developer Chris Shugart. As the project moves past the key FERC regulatory filings, Shugart says the "near term focus will be on contracting shippers on the line and completing the transmission interconnection process." If these steps are successful he estimates Southern Cross "could be moving into routing, permitting, and land acquisition in 2012, followed by construction working towards a 2016 online date."

When asked what the project will cost, Shugart put it simply, "This will be a substantial project at well over $1 billion in total cost."

Indeed, compared to Pattern's previous transmission project, Southern Cross is massive. In 2010 the Trans Bay Cable project came online. The Trans Bay Cable is a 53 mile innovative submarine transmission line that is capable of transmitting up to 40% of the peak power needs for the city of San Francisco.

Shugart said the development phase of Southern Cross is being funded from Pattern’s internal equity funds until the project is expected to enter construction. The company has not established financing for the construction phase.

Getting the electricity from wind power generating facilities to the cites that require it has been a major challenge for renewable energy developers.

In 2009, the lack of transmission lines essentially halted T. Boone Pickens' plans to build 1,000 MW wind farm in Texas. But where T. Boone Pickens was deterred, Pattern is proposing a solution -- to build the infrastructure it needs to grow its wind generation capacity and tap one of Texas largest energy resources.

Image Credit: The U.S. National Archives via Flickr