MUSO Cost Estimation Guide for PREP
MUSO Cost Estimation Guide for PREP
At each converter station, MISO assumes the installation of a ground electrode except in the instance of an
interchangeable transmission line. Historically, HVDC electrodes have been installed to provide a low-
resistance path during both monopolar and bipolar operations, using earth as a conductive medium.
Although this return path option in HVDC is less expensive, there are environmental and regulatory
implications. For the purpose of the cost estimate, MISO assumes that those concerns are permitted by
respective authorities and addressed by the developer.
The ground electrode is a structure with a conductor, or a group of conductors embedded in the soil directly
or surrounded by conductive medium providing an electric path to ground. The electrodes are generally
located relatively close to the converter stations. MISO’s unit cost of a ground electrode includes the
engineering study, permitting, material, labor and land. In addition to the ground electrode, there is also the
ground electrode line, which is an electrical connection between conversions and ground electrode. The
cost of overhead ground electrode line includes supporting structures, foundations, conductor material and
labor. MISO assumes 20 miles of ground electrode line at each of the HVDC transmission line.
LCC stations are composed of thyristor valves and are located indoors to provide a safe, clean and
controlled operating environment. The cost of a bipolar converter station valve hall includes land and land
acquisition, the building, and DC switching station equipment including DC filters, converter transformer,
insulation, control devices and services. LCC stations require AC filters which are included in the converter
station costs. Reactive power compensation is assumed to be a Static Var Compensator, which the costs are
shown in section 3.2.
Table 2.4-1: Converter station line commutated converter (LCC) – one end
Voltage class ± 250 kV ± 400 kV ± 500 kV ± 600 kV ± 640 kV
Power Transfer 500 MW 1,500 MW 2,000 MW 2,400 MW 3,000 MW
Assumed Reactive
167 MVAR 500 MVAR 667 MVAR 800 MVAR 1,000 MVAR
Power Need
Ground electrode
20 miles 20 miles 20 miles 20 miles 20 miles
line length
Valve hall $34.7M $127.4M $173.7M $214.3M $267.9M
AC filters $3.5M $12.7M $17.4M $21.4M $26.8M
Reactive power $19.1M $57.1M $76.2M $91.4M $114.2M
AC Substation $12.4M $18.2M $26.4M $26.4M $35.3M
Ground electrode $3.1M $4.2M $4.3M $4.5M $4.7M
Ground electrode $4.6M $11.6M $13.9M $17.4M $18.8M
line
Voltage source converter (VSC) stations are composed of insulated-gate bipolar transistor (IGBT) valves
and are located indoors to provide a safe, clean and controlled operating environment. The cost of a bipolar
converter station valve hall includes land and land acquisition, building, and DC switching station equipment
including DC filters, converter transformer, insulation, control devices and services. It is assumed that VSC
converter stations do not require any additional reactive power support and they can inherently provide
power with a 0.95 leading to a 0.95 lagging power factor.
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Transmission Cost Estimation Guide for MTEP24
Table 2.4-2: Converter station voltage source converter (VSC) – one end
Voltage class ± 250 kV ± 400 kV ± 500 kV ± 600 kV ± 640 kV
Power Transfer 500 MW 1,500 MW 2,000 MW 2,400 MW 3,000 MW
Ground electrode
20 miles 20 miles 20 miles 20 miles 20 miles
line length
Valve hall $83.4M $266.4M $359.1M $440.2M $535.7M
AC Substation $12.4M $18.2M $26.4M $26.4M $35.3M
Ground electrode $3.1M $4.2M $4.3M $4.5M $4.7M
Ground electrode $4.6M $11.6M $13.9M $17.4M $18.8M
line
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Transmission Cost Estimation Guide for MTEP24
3. Initial Assumptions
To create a cost estimate, MISO makes initial assumptions about the scopes of work for potential projects.
As more information becomes known, scope of work assumptions is refined. The assumptions are not an
indication of how a potential project should be built, but merely an instrument to provide a cost estimate.
The transmission line length is a consideration for determining its cost estimate for a potential project. For
exploratory and planning cost estimates, the line length is determined by the straight-line distance between
the two substations plus a 30% line length adder. This 30% line length adder accounts for routing
constraints that will be determined upon further development of the potential transmission line project. For
scoping cost estimates, the line length is determined by a MISO-created proxy route based upon a desktop
study. For new potential projects, MISO considers new right-of-way. For retrofit/reconductor projects,
MISO assumes an adequate existing right-of-way. MISO does not share its assumed proxy route information
with stakeholders, as the route could be perceived as a MISO-endorsed or preferred route. MISO’s proxy
route is merely an instrument to support the MISO’s transmission line cost estimate. MISO utilizes Google
Earth to determine route length, land types, and terrain types encountered.
Right-of-Way Width
The right-of-way widths that MISO assumes are intended to be indicative of right-of-way widths for
transmission lines in each voltage class (Table 3.1-1). Different project conditions in different locations may
have a wider or narrower right-of-way width than the indicative value MISO assumes.
MISO makes indicative assumptions about the quantity of structures per mile required in transmission line
cost estimates (Tables 3.1-2, 3.1-3 and 3.1-4). The indicative assumptions are not connected to any specific
project. For AC transmission, MISO assumes a steel pole structure type for 69 kV – 765 kV. For HVDC,
MISO assumes a steel pole structure type for 250 kV, and a steel tower structure for 400 kV – 600 kV.
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Transmission Cost Estimation Guide for MTEP24
Conductor Selection
Conductor selection for MISO’s exploratory cost estimates are shown in tables 3.1-5 and 3.1-6. The
conductor selected is intended to be typical for a circuit in the voltage class. Specific solution ideas may
necessitate different conductors from those shown.
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Transmission Cost Estimation Guide for MTEP24
A significant cost driver for transmission line projects is the land and terrain types encountered. MISO’s cost
estimates account for differences between states in MISO’s footprint by using different assumptions for
each state’s unique land and terrain (Table 3.1-7). The indicative assumptions are not tied to any specific
project and are intended for the sole purpose of providing MISO’s exploratory cost estimate.
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Transmission Cost Estimation Guide for MTEP24
3.2 AC Substations
MISO’s substation exploratory cost estimates use indicative assumptions for the ratings and quantity of
equipment required for substation upgrades and for new substations (Tables 3.2-1 through 3.2-5). The
indicative assumptions for substation equipment are not tied to any specific project and are intended for the
sole purpose of providing MISO’s exploratory cost estimate.
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Transmission Cost Estimation Guide for MTEP24
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Transmission Cost Estimation Guide for MTEP24
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Transmission Cost Estimation Guide for MTEP24
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Transmission Cost Estimation Guide for MTEP24
4. Exploratory Costs
In the planning process, exploratory cost estimates allow quick assessment of many different project ideas
to check potential viability. MISO provides high-level, exploratory cost estimates for projects with low levels
of scope definition. MISO does not recommend using exploratory cost estimates for any solution idea in the
regular planning cycle due to the breadth of the assumptions used to derive the unit costs and lower level of
granularity regarding specific project components. The exploratory cost estimates provided in sections 4.1,
4.2 and 4.3 are based on the assumptions and cost data shown in this guide. Before a potential project is
recommended for approval to MISO’s Board of Directors, MISO completes a thorough scoping cost
estimate, the details of which are shared with stakeholders for their review and comment. MISO provides its
exploratory cost estimate in a $/mile cost as defined by its voltage class and, in most cases, by the state in
which the potential project would be developed.
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Transmission Cost Estimation Guide for MTEP24
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