Frequently Asked Questions
Q: What is The Western Transmission Consortium?
A: The Western Transmission Consortium (TWTC) is a pioneering member-owned entity dedicated to building interregional and interjurisdictional transmission infrastructure across the eleven western states. TWTC fills the funding gaps in interjurisdictional transmission projects and brings forth creative solutions to drive collaboration, mitigate barriers, and meet state goals. TWTC has transitioned from its initial development company phase into its operational phase and is currently in the curation process to develop projects across the West.
Q: What is the mission of TWTC?
A: The mission of TWTC is to develop interregional or interjurisdictional transmission infrastructure in the West through a collaborative process involving infrastructure owners and investors, while remaining accountable to state and federal regulators.
Q: Who can join The Western Transmission Consortium (TWTC)?
A: TWTC is open to any Investor-Owned Utility (IOU), Tribe, federal Power Marketing Administration (PMA), public power entity, electric co-operative (Co-Op), Independent Transmission Companies (ITC), or infrastructure investor interested in developing interregional or interjurisdictional transmission infrastructure in the West.
Q: What is the corporate structure and governance of TWTC?
A: The TWTC board and leadership are comprised of business and regulatory thought leaders across the region who advise on internal governance issues and externally advocate for the organization. After an opening cycle of curated projects, TWTC will have a member-representative board and executive team, and “class voting” for load-serving entities and independent transmission companies. TWTC is an LLC, and project companies will likely also be LLCs.
Q: Will TWTC own the transmission infrastructure?
A: No, as specific project opportunities coalesce out of TWTC’s work, TWTC will create individual project companies, and will retain a nominal interest in each project company until commercial operation of the project.
Q: What will the structure of the individual project companies look like?
A: The individual project companies will have flexible structures to meet the needs of the participants in the project, the financial structuring, and the cost allocation among the participants. There also may be pro rata investment opportunities for members in individual project companies.
Q: What is the difference between TWTC and an RTO/ISO?
A: RTO/ISOs cover the full suite of resource adequacy: building, owning and operating transmission infrastructure; along with the market functions. TWTC is focused on developing interregional or interjurisdictional transmission infrastructure in the West to the point of commercial operation. It is a for-profit transmission building entity that would complement any eventual market-making entity in the West and would augment and lend overarching support to the efforts of load-serving entities and independent transmission companies.
Q: Is TWTC a planning entity?
A: No. TWTC is not a planning entity. The Western Transmission Expansion Coalition (WestTEC) is Western Power Pool’s (WPP) West-wide regional planning effort. TWTC will work closely with WestTEC and any other planning entities active in the region. TWTC and WestTec share board members and remain aware of each other’s institutional goals.
Q: Is TWTC limited to certain states?
A: Yes. TWTC has focused project formation efforts in eleven western states: Arizona, California, Colorado, Idaho, Montana, New Mexico, Nevada, Oregon, Utah, Washington, and Wyoming.
Q: How are the interests of TWTC members aligned?
A: TWTC presents a business proposition to solve a west-wide problem by bringing together different business models under a collaborative umbrella to solve different state policy preferences, while retaining accountability to regulators and respecting different values and priorities. TWTC is first a business proposition with incentives to build interregional, interjurisdictional transmission.
Q: What benefits does TWTC membership provide?
A: TWTC membership provides access to a vehicle designed to address the collective action problem preventing interregional and interjurisdictional transmission development in the West. TWTC puts the key western players in the same room to formulate projects and address the different state policy preferences while retaining accountability and respecting different values and priorities. At root, it provides west-wide facilitation, regulatory advocacy and stakeholder campaign roles that are crucial to the success of interregional / interjurisdictional projects but are hard for any one player in the industry to provide. Also, TWTC is structured to fill the gaps needed by members as projects are moved forward.
Q: What financial controls are in place?
A: TWTC has implemented the following controls: a budget reflecting the workstreams to run the project curation process, quarterly reports to members on the budget and workstreams, engaging a fractional CFO, an outside accountant, and an independent auditor. In addition, the Board will provide monthly direct oversight.
Q: How do TWTC participants recoup their membership investment?
A: Participants in TWTC make money in two ways. Primarily, TWTC’s work will open specific opportunities to develop interregional and interjurisdictional transmission infrastructure via investment at the individual project company level. Secondarily, project companies will pay fees to TWTC as projects are developed. Those fees are designed both to incentivize TWTC to focus sharply on getting transmission built and to offset or return member capital contributions.
Q: Will TWTC support LSE efforts to obtain state regulatory approval for the capital investments?
A: Yes. TWTC will support regulatory filings as they are a critical factor in LSEs’ ability to sustain multi-year support and funding to develop interjurisdictional transmission projects. TWTC recognizes getting regulatory assets or accounting treatment will be a bespoke process for each utility unique to circumstances in a given state. Still further, TWTC understands public power and cooperative entities have another lens through which they will secure support for these long-term investments.
Q: How does TWTC interact with the efforts of the Western Power Pool (WestTEC) and Gridworks (Western States Transmission Initiative (WSTI))?
A: The entities are complementary. WestTEC and WSTI focus on transmission planning and project identification. TWTC focuses on project investment. Working together, these efforts can advance transmission development across the West.
Q: How is this different from the other efforts such as the SPP Markets+/CAISO EDAM/Pathways Initiative?
A: TWTC’s efforts do not deal with institutional responses such as EIM, EDAM or WEIS and Markets+. TWTC is focused on building transmission and thus agnostic on market expansion efforts in the west.
Q: What if an RTO/ISO expands into or is created in the West?
A: TWTC is accretive to and enables any eventual RTO/ISO emerging across the West. Transacting for energy takes transmission; therefore, we believe TWTC makes market institutions more feasible. The singular focus on transmission building is meant to solve one of the impediments to a more interconnected system while solving the multiple coordination problems that make cooperation and collaboration across the region difficult.
Q: Does TWTC trigger any potential anti-trust implications?
A: TWTC has engaged one of the nation’s foremost experts to help ensure the organization conforms to all applicable antitrust and competition policy laws.
Q: How will TWTC work with regional planning requirements (Order 1000) and integrated resource planning?
A: TWTC focuses on project investment and will need to make its projects compatible with Order 1000 requirements. LSE investment will also comply with state integrated resource planning requirements.
Q: What regulatory issues do you anticipate for multistate projects?
A: One of TWTC’s primary roles will be to coordinate and integrate regulatory filings and advocacy between states. As a unitary voice for transmission in the West, TWTC will be able to illustrate the economic, operational and policy benefits to any given project and provide support on the thorny issue of approval of cost allocation.
Q: How does TWTC anticipate structuring the individual operating companies?
A: The individual operating companies arising under TWTC will be structured to the unique needs of the participants in that given operating company. While common structures and forms may emerge across the anticipated operating companies, TWTC will not predetermine issues like cost allocation or governance.
Q: Will TWTC employ strict cost allocation rules?
A: TWTC will not employ a top-down structured set of cost allocation mandates, such as those found in Order 1000, though similar concepts will apply. Cost allocation determinations will begin with conversations between transmission owners, transmission developers, and load serving entities. Transmission cost allocation is a zero-sum game that will benefit from repeated projects being formed, with cooperation emerging from repeated interactions between entities with long-run relationships. All TWTC cost allocation agreements will be voluntary. TWTC members may agree on arbitration methods to arrive at ultimate cost allocation in each Project Company. Nevertheless, at the outset, TWTC will not prescribe cost allocation formulas.
Q: Will there be a cap on participants for the individual project companies?
A: Members will set the policies; however, a founding principle is that TWTC does not choose winners and losers. It is anticipated that if desired by members, the TWTC may develop processes that blend auctions and mediation (e.g., “mediated bidding”) to resolve issues in project participation.
Q: If a member participates individually (as a Class A member) instead of through a group (as a Class C-2 member), will they have more influence over which projects are curated?
A: Yes. All members can provide input into the curated projects, but Class A members also have the opportunity to invest. Participating in a group does not inherently reduce an individual’s ability to offer input or shape direction. We are flexible in how members participate—whether through a group, individually, or both—and the curation process is structured to identify investment and offtake opportunities for all participants.
Q: Can you explain how the study and project identification process works, and what steps are involved before investment or offtake decisions are made?
A: Based on experience in other regions, we begin by developing a set of potential projects, which we then review and refine through an iterative curation process. Members have opportunities to provide feedback, raise questions, and propose additional projects. The process is designed to engage members deeply, assess feasibility, and align on a set of projects with strong potential for success.
Q: What commitments are required for Class C-2 membership, and is this considered the “non-profit” option?
A: Class C-2 membership involves a $25,000 annual subscription. For those seeking a nonprofit participation vehicle, there is the option to join through TWTC Communities. Both participation routes offer the same level of engagement in the curation process and the same financial commitment.
Q: How does TWTC interact with TWTC Communities?
A: TWTC Communities’ grassroots, collaborative approach is what is required to tackle this challenge and ensure the long-term sustainability of our energy systems in the region, as well as ensure community buy-in and involvement in needed transmission projects. It is the arm of TWTC that interacts with communities to ensure every need is met.
Q: How does TWTC involve Tribes?
A: TWTC has sought the input and participation of Tribes in the West. TWTC aims for tribal participation in every discussion we have. If your tribe is interested in participating, please email us at info@westerntransco.com
Q: What/Who is the TWTC Launch Team?
A: The TWTC Launch consists of team members who have worked on TWTC since its inception. They work with TWTC Members to keep the organization running as a whole. You may find them listed on the “Team” tab on the webpage.
Q: What is TWTC Communities?
A: TWTC Communities seeks to be the voice for transmission in the west. TWTC Communities is a not-for-profit entity designed by its Board, members, and supporters to empower communities, energizing the West. The West’s vast and unique geography has long presented challenges and opportunities for energy transmission. The current grid, though built on a remarkable foundation, must evolve to meet the demands of a growing population and changing resource mix. TWTC Communities is a not-for-profit entity focused on fostering voluntary, bottom-up collaboration among stakeholders that will facilitate building the grid the Western states need to meet our policy goals and client needs.
Q: What is the mission of TWTC Communities?
A: TWTC Communities’ mission is to address the need to build inter-regional and inter-jurisdictional transmission infrastructure in the West. TWTC Communities’ grassroots, collaborative approach is what is required to tackle this challenge and ensure the long-term sustainability of our energy systems in the region, as well as ensure community buy-in and involvement in needed transmission projects.
Q: What can I do to learn more about TWTC?
A: Email us at info@westerntransco.com with any questions!
For press inquiries email media@westerntransco.com
For membership inquiries email mike.nelson@westerntransco.com