os-grainbeltexpress

FAQ

As questions regarding the Open Solicitation process are asked by parties participating, the answers will be posted here, along with any necessary supporting files.

Questions can be asked by e-mailing ism-grainbeltexpress-os@brattle.com.

Answers to some frequently asked questions regarding the project are available at https://grainbeltexpress.com.

Potential respondents to this Open Solicitation are responsible for conducting their own due diligence regarding applicable market rules, regulations, traiff provisions, and applicable transaction costs. 

  1. 1. How many MWs of capacity on Grain Belt Express will be allocated through this Open Solicitation?

Grain Belt Express anticipates transferring up to 800 MW of the remaining Phase 1 capacity through this Open Solicitation (“OS”) process. 

2. Is it possible for renewable energy projects located in SPP, but not in Western Kansas, to bid into this solicitation? If so, how would the projects interconnect to the line?

Yes, renewable energy projects located in other regions of SPP are eligible to purchase transmission service on the Project and, therefore, can participate in the Open Solicitation. However, the renewable energy project would be responsible for securing the transmission service (and any associated approvals) necessary to deliver the power from the renewable resource to the Grain Belt Express converter station located near Dodge City, KS. 

  1. 3. Please explain why the current solicitation is for 800 MW of the Phase 1 project capacity of 2,500 MW.

Grain Belt Express is exploring possible sales or leases of ownership interests in portions of the project and elected to offer 800 MW via this OS. If interest in the OS exceeds this amount, GBX may consider entering into TSAs for a greater amount of capacity. 

  1. 4. Please provide a timeline for the open solicitation for the remaining capacity on Phase 1.

The Open Solicitation schedule posted on the OS website specifies the OS process timeline. While subject to change, there is no additional OS process currently contemplated for the balance of Phase 1 capacity.

  1. 5. How much capacity will Grain Belt Express provide by the first quarter of 2029 given that all required network upgrades may not be completed until 2030?
  2.  
  3. Under the currently effective MISO OATT, there is no option for limited operations for MHVDC projects. MISO has assured Grain Belt that they plan to initiate in their stakeholder process this update in addition to other updates to improve their processes for MHVDC project connections.  If the MISO OATT is amended to include limited operations for MHVDC projects, the amount of capacity that Grain Belt Express will be able to inject to MISO will likely depend on the MISO quarterly operating limit studies that will be conducted by MISO in Q1 2029 and thereafter until the network upgrades are complete.
  1. 6. Are the Indicative Prices requested in the Expression of Interest Form expected to be in 2024 or 2029 dollars?

  2. Indicative Prices should be expressed in 2029 dollars.
  1. 7. Please confirm whether previous Transmission Service Agreements made with Grain Belt Express are still valid.

  2. Previous Transmission Service Agreements made with Grain Belt are still in place, subject to FERC acceptance after a forthcoming compliance filing.
  1. 8. Are there MISO and/SPP transmission tariff charges in addition to the transmission tariff charged by Grain Belt Express?

  2. Interested parties are responsible for determining any additional transmission charges required to schedule energy deliveries between SPP and MISO or AECI.
  1. 9. Will Grain Belt Express LLC consider offers for equity in the project?

  2. Grain Belt Express is offering this solicitation for the provision of transmission service. Sales or leases of equity interests in the project are not a provision of transmission service and are therefore not part of this solicitation.
  3.  
  4. 10. Under which Open Access Transmission Tariff (OATT) will the Grain Belt Express facility be placed?

Grain Belt Express has committed to joining one of the two RTOs with which Phase 1 of the project will interconnect (SPP or MISO). OATT selection will be made prior to transmission line energization.

  1. 11. Please describe the planned operational framework for the Grain Belt Express.

The NERC Reliability Functional Model specifies certain functional roles.  The intended division of those roles for the Grain Belt Express is as follows:

  • Grain Belt Express LLC will be Transmission Owner (TO), Transmission Operator (TOP), and Transmission Planner (TP).
  • The RTO selected through the OATT negotiation process will act as Reliability Coordinator (RC), Balancing Authority (BA), Planning Authority/Coordinator (PA/PC), and Transmission Service Provider (TSP).
  1. 12. What are the availability/up-time and electric loss assumptions of the Grain Belt Express project?

Grain Belt Express estimates approximately 92% mechanical availability/up-time on an average annual basis.

In Phase 1, the estimated annualized losses over Grain Belt Express (Kansas converter station to Missouri point of connection) are expected to be approximately 5%. When Phase 2 is operational, the estimated annualized losses over the HVDC system (Kansas converter station to Missouri point of connection) are expected to be approximately 8%.

These estimates are preliminary and subject to change.

  1. 13. Please explain the interconnection study process for Grain Belt Express and how the associated milestones are integrated into the open solicitation process.

The interconnection cluster study is a reliability study that will be conducted to make sure that generators in the cluster achieve a reliable interconnection to Grain Belt Express. Once the cluster study is completed, each generator in the cluster will know the cost of facilities and the timeline to construct in order to reliably interconnect their project to Grain Belt Express. These parameters will be memorialized in the interconnection agreements. Having a completed interconnection study and an interconnection agreement is a prerequisite for any generator directly connecting to Grain Belt Express that wishes to transfer power on the line.  

  1. 14. Are customers that execute Transmission Service Agreements (“TSA”) expected to sign Generator Interconnection Agreements (“GIA”)?

  2.

    A GIA is required to connect an energy resource to Grain Belt Express. Transmission service (as memorialized in the TSA) is needed to move the energy from an energy resource to a Grain Belt Express delivery point. The energy resource can be directly connected to Grain Belt Express, or sourced from an external system.

    All terms and conditions of the Transmission Service Agreement will be made available to interested parties who submit Expressions of Interest selected by Grain Belt Express for further commercial discussions. Grain Belt Express will inform interested parties who submit Expressions of Interest of their selection by April 26th.

  1. 15. When and in what form/amount will security be requested for a Transmission Service Agreement? What are the terms for any of these security amounts?

  2.

    Requested security for the TSA would be dependent on the credit worthiness of the counterparty.

  1. 16. Once executed Transmission Service Agreements for Grain Belt Express are filed with FERC, please describe the process going forward.

  2. Following completion of the OS, Grain Belt Express will submit a compliance filing with FERC. Receipt of FERC approval of the compliance filing represents final regulatory approval of the OS process.
  3.  
  4. 17. If there exists more interconnection requests than available capacity on Grain Belt Express, how will Grain Belt Express determine which customers and interconnection requests will interconnect to Grain Belt Express?

  5.

    Every generator that wishes to interconnect to Grain Belt needs to go through an interconnection study and execute an interconnection agreement with Grain Belt, to assure a reliable interconnection. This study and the interconnection agreement will identify the required facilities, cost, and timeline to interconnect the generator to Grain Belt. An interconnection agreement with Grain Belt does not convey any rights to transmit power on the Grain Belt line, it just provides the right to interconnect to the Grain Belt AC switchyard. In order for a generator to transmit power on Grain Belt, transmission service will be required. Therefore, generation projects that have both an interconnection agreement and transmission service in place will have the right to transmit power on Grain Belt Express.

  6. 18. When will the remaining capacity on Grain Belt Express Phase 1 be made available through an open solicitation? What is the preliminary schedule for Grain Belt Express Phase 2?

Grain Belt Express may hold additional Open Solicitations in the future for Phase 1 capacity. Information about Phase 2 of Grain Belt Express will be made available in the future.

  1. 19. What product does the reservation price represent? How does the reservation price inform developers’ bid price? Should it be viewed as a price floor?

  2.

    The reservation price is a flat (non-escalating) price for long-term firm transmission service and is the minimum price that Grain Belt Express will consider when evaluating Expressions of Interest. The reservation price applies whether the preferred delivery point is MISO or AECI.

  1. 20. What are the other terms of the offer around the reservation price? (tenor, capacity, security, etc.)

  2.

    All terms and conditions of the Transmission Service Agreement will be made available to interested parties who submit Expressions of Interest selected by Grain Belt Express for further commercial discussions. Grain Belt Express will inform interested parties who submit Expressions of Interest of their selection by April 26th.

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