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Open Stakeholder Meeting May 23, 2007 Salt Lake City, Utah. “To ensure efficient, effective, coordinated use & expansion of the member’s transmission systems in the Western Interconnection to best meet the needs of customers & stakeholders. “. Agenda. Standards of Conduct. - PowerPoint PPT Presentation
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Open Stakeholder MeetingOpen Stakeholder Meeting
May 23, 2007Salt Lake City, Utah
““To ensure efficient, effective, coordinated To ensure efficient, effective, coordinated use & expansion of the member’s use & expansion of the member’s
transmission systems in the Western transmission systems in the Western Interconnection to best meet the needs of Interconnection to best meet the needs of
customers & stakeholders. “customers & stakeholders. “
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AgendaAgenda
TimeTime TopicTopic PresenterPresenter
9:00 – 9:05 Agenda Overview and SOC Announcements
Sharon Helms
9:05 – 9:15 Opening Statements Marsha Smith, NTTG Co-Chair
9:15 – 10:30 NTTG Straw Proposal Rich Bayless, PacifiCorp
10:30 – 11:45 Cost Allocation Lou Anne Westerfield, Idaho PUC
11:45 – 12:45 Fast Track Planning Update Kip Sikes, Idaho Power
12:45 – 2:30 Fast Track Project Candidates
PacifiCorp – Darrell Gerrard
Idaho Power – Kip Sikes
Northwestern – John Leland
2:30 – 2:45 ATC Update Brian Weber. PacifiCorp
2:45 – 3:00 Wrap Up Marsha Smith, NTTG Co-Chair
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Standards of ConductStandards of Conduct
• It is the policy of the Northern Tier Transmission Group (“Northern Tier”) not to facilitate the improper distribution of non-public transmission information.
• In furtherance of this policy, no participant in any Northern Tier meeting shall discuss non-public transmission information unless Northern Tier’s Standards of Conduct Safeguards are satisfied."
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NTTG Standards of ConductNTTG Standards of Conduct
1. Advance notice of a public meeting at which transmission information will be disclosed must be posted on the transmission provider’s OASIS at least 10 business days prior to the meeting.
2. All “Eligible Customers,” as that term is defined in the pro forma OATT, must be invited to attend the public meeting.
3. Telephone participation must be provided.
4. If handouts are going to be provided during the meeting, the handouts must be posted on OASIS prior to the start of the meeting, and a contact person must be identified to assist with problems downloading the materials.
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NTTG Standards of ConductNTTG Standards of Conduct
5. Meeting notes must be taken during the meeting by an individual approved as the note-taker by the transmission provider’s Chief Compliance Officer (“CCO”).
6. Meeting notes must be promptly posted on OASIS following the conclusion of the meeting.
7. If the meeting is attended by employees of the transmission provider’s Marketing Affiliate or Energy Affiliate, then a representative of at least one additional Eligible Customer must be in attendance at the meeting during the entire period that the Marketing Affiliate or Energy Affiliate employees are in attendance.
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NTTG Standards of ConductNTTG Standards of Conduct
8. Without prior approval by the transmission provider’s CCO, meetings may not occur more than twice per month.
9. Even if all the above standards are satisfied, the transmission provider’s CCO retains the discretion to (a) prohibit the transmission provider’s Transmission Function employees from distributing transmission information at the meeting, (b) prohibit the transmission provider’s Transmission Function employees from presenting transmission information during the meeting, and (c) place any other conditions on its transmission function employees as the CCO believes are necessary.
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NTTG Anti-Trust PolicyNTTG Anti-Trust Policy It is the policy of the Northern Tier Transmission Group to
fully comply with federal and state antitrust laws. Participants shall be mindful that an essential objective of NTTG is promoting or enhancing competition. Discussions in the following areas in particular can be very problematic and in some cases prohibited, and require careful attention for antitrust compliance:
• your company’s prices for products or services;
• prices charged by your competitors;
• allocating markets, customers, or products;
• limiting production; and
• excluding dealings with other companies.
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Planning Straw ProposalPlanning Straw Proposal
““To ensure efficient, effective, coordinated To ensure efficient, effective, coordinated use & expansion of the member’s use & expansion of the member’s
transmission systems in the Western transmission systems in the Western Interconnection to best meet the needs of Interconnection to best meet the needs of
customers & stakeholders. “customers & stakeholders. “
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Major Western Transmission
Black: ColumbiaGrid: BPA, Tacoma, Seattle, Grant, Chelan, Douglas,PSE, AVA
Red: Northern Tier: NWC, PAC, IPC, DSGT, UAMPS
Blue: Other Western US and Canada EHV Grid Transmission
Northern Tier Transmission Group Northern Tier Transmission Group Member Transmission SystemMember Transmission System
NTTG - Similarly situated, like minded members & stakeholders (geography, demographics, characteristics, institutions) combining systems to provide commercial benefits of larger single integrated system:
•Virtual Control Area Consolidation•Transmission Use & Uniform Products•Combined Planning•Multi-State Cost Allocation Committee
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Planning: Order 890 RequiresPlanning: Order 890 Requires
• Each TP must:– Perform coordinated, open, transparent transmission
planning on both Local & Regional level– Draft, Post & File Straw Planning Proposal:
• To be filed May 29, 2007 • Facilitates FERC Technical Conference in Park City June 13• Assist the participants in developing the appropriate regional
planning groups to the extend they do not already exist– Prepare an Attachment K for Pro Forma OATT
describing planning process that complies with the nine principles, concepts, & requirements in Order 890
– Planning process must be developed with customers, neighboring TPs, state authorities, & stakeholders such that processes and resulting plans are not unduly discriminatory.
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NTTG Straw Proposal NTTG Straw Proposal Development Process & StatusDevelopment Process & Status
– 890 Order issued Feb. 16, 2007 (Posted in Federal register March 14)– NTTG Planning Committee assigns Straw Proposal Work Group to draft
straw: • Short Straws: Rich Bayless, Chuck Durick, Ray Brush
– March 14 Stakeholder Meeting (PDX) NTTG open Straw Proposal development process initiated
– March 22 initial coordination meeting of planning groups in the “Northwest” NWPP’s NTAC, ColumbiaGrid, NTTG,
• Subsequent conference calls, • Open summit meeting April 6
– CREPC meeting review April 10– WECC TEPPC Workshop April 12,
• Subsequent conference calls, • Last meeting May 18
– NTTG draft 1 Straw Proposal posted for comment April 16 on www.nttg.biz– Comments received and new drafts posted– Present draft is Draft 5 version 2– Final Comments received today will be incorporated into Straw to be filed on
Tuesday 5-29
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FERC Order 890 PrinciplesFERC Order 890 Principles& NTTG Straw Concepts& NTTG Straw Concepts
1. Coordination: Three level Local, Sub-regional & Regional Coordination
2. Openness: Open architecture and stakeholder/customer process, unfettered Board
3. Transparency: Data, criteria, ATC methods, etc. disclosure to all customers/stakeholders
4. Information Exchange: Planning information coordinated and open; exchanged with WECC, IRPs, Stakeholder/customers, other Planning groups; native load, NT & PTP data exchanged on comparable basis
5. Comparability: All similarly situated customers/stakeholders equal in processes
6. Dispute Resolution: NTTG ADR to use WECC ADR with member agreement to use for planning related disputes
7. Regional Participation: Participation in WECC TEPPC, NWPP’s NTAC, coordination with neighboring sub-regional planning groups
8. Economic Studies: Economic and re-dispatch/congestion studies in planning cycle that influence plan; incorporates direction and analysis from Transmission Use committee
9. Cost Allocation: Multi-state Cost Allocation Committee to develop and apply cost allocation principles
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Related: Re-Dispatch & Conditional Firm Related: Re-Dispatch & Conditional Firm NNon-Rate Terms & Conditions on-Rate Terms & Conditions (PR 901-1164)(PR 901-1164)
– TP is obligated to offer Planning Re-Dispatch and/or Conditional Firm• If Long term Firm ATC is not available
– “Planning” Re-Dispatch: Can be requested by PTP customer if less expensive than expansion– “Reliability” Re-Dispatch: Re-dispatch of network resources to avoid curtailment of network load
– TP to provide “estimates” for re-dispatch, conditional firm, & expansion costs• Ex-Ante (Latin for “beforehand”) estimates required for:
– Planning Re-Dispatch costs (non-binding)– Hours & conditions for firm service for Conditional Firm
– TP required to provide Planning Re-Dispatch with own generation. However, if Re-dispatch is insufficient from owned generation:
• Must identify re-dispatch options on “others” generation within & outside Control Area• Must Coordinate between TP, third party generator & customer
– TP also obligated to offer Conditional Firm • If Planning Re-Dispatch is insufficient (or doesn’t meet customer requirements) from TP
owned resources – TP is required to post:
• Re-dispatch costs & offers of re-dispatch from other’s generation– Issues with Planning
• Planning studies required to include economic studies to ID congestion & re-dispatch $• Identification of Re-Dispatch options on other’s systems• Consistency with Economic and Congestion Planning studies, especially in Base Case• Need to align products (i.e. conditional firm) across multiple control areas • Reconciliation of posted actual costs with congestion studies
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NTTG Planning Straw ProposalNTTG Planning Straw Proposal- - Key Features -Key Features -
• Two step planning & implementation process to inform stakeholders and facilitate implementation of individual or joint projects
• Open architecture structure with Planning Committee open to all interested parties.
• Provides stakeholder/customer input and review process to evaluate transmission service and upgrade alternatives without formal OATT service request process.
• Informs stakeholders on technical performance, benefits, costs, and potential cost allocation of individual and joint plans
• Provides stakeholders/customers analysis of economic benefits (as well as reliability) of projects to inform their decisions on formal service requests and participation
• Within present OATT responsibilities & framework, gives practical level of up-front cost certainty
• Provides method to batch or cluster requests for economic studies• Provides estimates of benefits of aggregated requests in common
areas, re-dispatch costs, and congestion
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NTTG Planning ProcessNTTG Planning Process Key Features, continuedKey Features, continued
• Three level integrated process produces synchronized, coordinated single system plan with local, sub-regional, and regional stakeholders; and neighboring systems.
• Augments member Transmission Provider’s OATT service request study processes.
• Utilizes WECC & WECC TEPPC for congestion and economic studies, base cases, other
• Coordinates with neighboring planning groups via – direct coordination, – joint study teams, – and through WECC
• Stakeholder and member triage process to determine study priority. Process similar to NRTA voting class org.
• Utilizes NWPP TPC’s NTAC to – identify overlapping projects effecting parties outside NTTG but within
NWPP footprint, – Identify & establish joint study teams; – Help triage NWPP footprint study requests to WECC TEPPC.
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NTTG Planning ProcessNTTG Planning Process Key Features, continuedKey Features, continued
• Informed customers can individually or jointly on aggregated basis submit OATT service requests– Via aligned and open season service request process on NTTG
member systems– Multiple party and multiple system requests that would be individually
uneconomic• Balanced Steering Committee
– Composed of member transmission provider execs & footprint State regulatory and consumer agency representatives.
– CREPC type decision process with NTTG dispute resolution utilizing WECC ADR
• Cost Allocation Committee in Planning Step (Following)– Comprised of State regulatory & consumer staff, member
representatives– Develops and applies cost allocation principles, determines cost
allocation for projects included in the Plan approved by the Steering Committee
• Planning Process meets 9 principles and philosophy of FERC Order 890
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NTTG Planning ProcessNTTG Planning Process Key Features, continuedKey Features, continued
• Transmission Planning & Use Committee coordination– Consistent definitions of products
• Service types, margins, POD & PORs, ATC definitions• Among NTTG Companies• Between NTTG Planning & Use analysis
– ATC Coordination• analysis generated study requests & study request aggregation• Frequency of ATC determination and coordination with planning cycles
– Website posting of re-dispatch costs & generation re-dispatch availability
• Compilation & validation of re-dispatch costs for NTTG resources & modeling for TEPPC/SRPG database
– Coordination and Development of:• Data submittal processes and standards for use with WECC and TPs• Subregional TP Re-dispatch & Conditional Firm system impact studies with
Regional congestion studies – Pooling of re-dispatch & CF studies
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5. NTTGSteering Committee
Plan Approval
2. Expansion Plan & Projects
WithBenefits Parsed
3. Cost Allocation:Applies Principles
& RecommendsLikely Cost Allocation
1.Annual NTTG Planning Process:
Identify Needs, Least Cost Expansion Project
Alternatives, Technical Benefits, Project Costs
4. Draft AnnualExpansion Plan
6. Final AnnualPlan: Includes Likely
Cost & BenefitAllocation Estimates for
Given PlanningAssumptions
Step 1: Northern Tier Transmission Group Planning Process
8. Customer Decision Process
Informed Customers, StakeholdersOther Interested Parties
7. Plan with Estimates forCongestion & Re-Dispatch,
Expansion Projects, ATC Added, Cost, &
Cost Allocation
9. Formal OATT Transmission Service Process:NT Need & PTP Requests,Firm Need & Reliability Planning
Approved
Two Step Planning and Implementation ProcessTwo Step Planning and Implementation Process
Step 2
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Step 2: Individual Transmission Provider Project Implementation Process
10. Service Request Aggregation
Process
Via NTTG Open Season orCoordination
12. Transmission Provider
OATT Process
11. Coordinated Queue &Refined
Requests
13. Construction Plan, Permitting,
Build
14. TP Regulatory
Approval and Rate Process
Two Step Planning and ImplementationTwo Step Planning and Implementation Process - continuedProcess - continued
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Three Level Planning Process Three Level Planning Process in the Westin the West
Individual TPLocal Planning Process
IRP, NT L&R, OATT
Requests, Reliability Plan
NTTG Sub-Regional Planning ProcessAggregated Planning Requests,
Cost Allocation Estimates,Coordination with other Subs and Regional
WECC TEPPC PCC,CREPC, WGA
Coordination, Reliability & Economic Data, Base Cases, Annual Study PlanEconomic and Congestion Studies, Policies, Standards
Other Sub-Regional Planning Processes
Aggregated Planning Requests,Cost Allocation Estimates,
Coordination with other Subs and Regional
Level 1Local
Level 2Sub-Regional
Level 3Regional
Individual TPLocal Planning Process
IRP, NT L&R, OATT
Requests, Reliability Plan
Individual TPLocal Planning Process
IRP, NT L&R, OATT
Requests, Reliability Plan
Individual TPLocal Planning Process
IRP, NT L&R, OATT
Requests, Reliability Plan
Individual TPLocal Planning Process
IRP, NT L&R, OATT
Requests, Reliability Plan
NWPP NTACOverlapping Project
Coordination inNWPP footprint
21Blue: Level 1 - LocalYellow: Level 2 - Sub-RegionalViolet: Level 3 - Regional
1
2
1
2
Synched UpState IRP Processes
3
3
4
4
5
5
6
6
8
8
9
Ann TPOATT & Planning Process
10
11
Native Load, Wholesale Customers
Stakeholders
12
13
13
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Ann TPOATT & Planning Process
Use CommitteeATC Analysis
7
Northern TierPlanning, Use Committees &
Biennial PlanningCycle 14
A
A B
c
D15
10
11
WECC WideRegionBiennial
Study, Planning & Coordination
Cycle
11
C
C
16
16
16
Other Sub-RegPlanningGroups
Relationship DiagramSynchronized Planning Cycles,
Data and Product Flow
Western InterconnectionWestern Interconnection
B
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NTTG L&R NeedPlanning
WECCL&R
Compilation
NetworkStakeholder
Input
Indiv StateIRP
TP AnnL&R, SR
Inputs
Other XmssnCustomers
Input
NTTG wide Stakeholder
Meeting
NTTG Study Plan
Development
TP OATT SIS FS
CREPC/WECCRes Adeq WECC/PCC
TEPPCAnn Comb Study
Plan Triage
WECC WideStakeholders
Joint Study Teams
NTTG Studies
WECC/TEPPCSystem Data Bank Coord
TEPPCAnn Economic &
Congestion Studies
WECC PCCAnn Studies
& Reg Plan Proc
NTTGPlan Report & SteeringCommitteeApproval
TPStaff does
studies
TEPPC AnnReport
PCC Ann Reports
Month121110987654321
TP PRD &Cond Firm
L&RAdeq Report
NTTG wide Stakeholder
Meeting
NTTG wide Stakeholder
Meeting
CREPCIRP
Coord
NTTG Cost Alloc
Committee
Cost AllocRecommends
TPAnn Plan
Update
Stakeholders
Regional WesternWECC CREPC
Sub-Regional Northern Tier Transmission Group
Transmission Provider - Local
Annual Combined Synchronized Planning CycleAnnual Combined Synchronized Planning Cycle
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Western TEPPC Synchronized Study CycleWestern TEPPC Synchronized Study Cycle
Modeling Modeling ImprovementsImprovements
TEPPCTEPPCDatabaseDatabase
PreparationPreparation
TEPPCTEPPCCongestion Congestion
StudiesStudies
TEPPCTEPPCEvaluationEvaluationof Studiesof Studies
TEPPCTEPPCCombinedCombined
ReportReport
CombinedCombinedStudy PlanStudy Plan
DevelopmentDevelopment
TEPPCTEPPCHistoricalHistoricalAnalysisAnalysis
Study ReviewStudy Reviewand Requestsand Requests
IdentificationIdentificationOf NeededOf Needed
ImprovementsImprovements
New models needs
Improved models available
for next cycle
Methodology updates and new issues
to be addressed in next cycle
Study issues and new study requests
to be considered in next cycle
All activities are open with stakeholder participation
SubSub--regionalregionalStudiesStudies
SubSub--regionalregionalEvaluationsEvaluations
Adaptive feedback
Study activities
Information Exchanges
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Compliance Tasks Required by Oct. 11, 2007Compliance Tasks Required by Oct. 11, 20071. Attachment K tariff detail and filing2. Develop mechanism to address confidentiality of planning related
information3. Put transmission planning methodology in writing and disclose data
(criteria, assumptions, planning standards, etc.)4. Implement mechanism to make upgrade status available5. Develop guidelines for planning submittals6. Develop ADR for planning disputes7. Coordinate planning with interconnected systems8. Develop method for requesting economic upgrade studies9. Develop a planning method that considers reliability and economics10. Develop a means to allow for clustering of economic studies and posting of
such studies11. Define the information sharing requirements for planning12. Identify the type of projects to be covered by cost allocation principles that
are to be developed13. Coordinate planning with state regulators14. Develop cost recovery proposal for costs of participation in the planning
process.
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NTTG & Member 890 Attachment K NTTG & Member 890 Attachment K Implementation PlanImplementation Plan
• FERC input from Technical Conference on Straw Proposals• Charters, protocols, and agreements for NTTG Committees• Agreement with TEPPC and TEPPC/WECC
– Data and product flow agreements– Stakeholder triage process and meeting schedules– Seams and coordination with adjacent sub-regional planning groups
• Integration of member local planning process and OATT procedures with NTTG Sub-Regional planning process– Development of Open Season and Aggregation Process– Alignment of States on IRP processes
• Agreements with NWPP TPC - NTAC on triage and joint study selection process for NWPP footprint projects that overlap or effect other outside of NTTG within NWPP
• Finalization of NTTG process detail for member’s to reference or incorporate into their OATT Attachment K for filing
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ORDER 890 STRAW PROPOSAL: PRINCIPLE 9 - COST ALLOCATION
““To ensure efficient, effective, coordinated use & To ensure efficient, effective, coordinated use & expansion of the member’s transmission systems in the expansion of the member’s transmission systems in the
Western Interconnection to best meet the needs of Western Interconnection to best meet the needs of customers & stakeholders. “customers & stakeholders. “
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AgendaAgenda• Review Cost Allocation Straw Proposal
• Proposal Development• Cost Types & Principles• Proposed Process• Issues/Comments?
• Next Step – Finalize for Order 890 Compliance Filing
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Proposal DevelopmentProposal Development
Cost Allocation Principles Work Group– Created by Steering Committee
• Response to Order 890 Planning Principle 9• NTTG Planning Framework
– Starting Point: CREPC White Paper• Transmission Regulatory Principles Work Group
– Work Group Products• Steering Committee discussion draft 4/13• Revised draft 5/15
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Cost TypesCost TypesType 1: Provision of retail service to
transmission owner’s native load– 1-A Single LSE/Single State– 1-B Single LSE/Multi-State– 1-C Multi LSE/Single State– 1-D Multi LSE/Multi-State– 1-E Specific Retail Customer or Customer
Group• Provide Service• Lower Costs• Increase Quality of Service
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Type 1 Purposes
– Provide capacity to serve load
– Fulfill reliability or technical operating requirements
– Lower costs to consumers
– Fulfill Federal or State policy requirements
Cost TypesCost Types
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Type 2: Provision of Wholesale Services (FERC Jurisdictional)
– Sales & purchases
– Generator request
– Transmission service request
Mixed purposes – Types 1 & 2
– Potentially mixed jurisdiction
Cost TypesCost Types
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Type 3: Alternatives to/Deferrals of Transmission Line Costs
– Usually Type 1 Costs
– Distributed Resources
Important Distinction between Projects & Cost Types
– Any given project may have multiple cost types!
Cost TypesCost Types
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Principle 1: Equity
– Cost causers = cost bearers
– Beneficiaries pay
Principle 2: Efficiency
– Supports federal and/or state resource choice policies
– Efficient & stable resource planning processes
PrinciplesPrinciples
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PrinciplesPrinciples
Principle 3: Fair & Full Cost Allocation
– Reasonable opportunity for full cost recovery, but no more
– Order 890 deems this principle critical– Multi-jurisdictional allocations– Not an automatic reallocation mechanism in the event of less than full cost recovery
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Principle 3A: Cost Assignment Follows Benefits
– Elaborates on Principle 1
– Direct cost assignment costs to single or multiple transmission customers based on benefits distribution
Principle 3B: Customer Specific Allocation
– Type 1-E Costs
PrinciplesPrinciples
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Principle 4: Allocation for Wholesale & Merchant Project Costs
– Type 2 Costs
– Outside Scope of NTTG Cost Allocation
– FERC Jurisdictional
PrinciplesPrinciples
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ProcessProcess
Cost Allocation Committee
– Appointed by state agency and publicly- and consumer-owned NTTG members
– Process dovetails with Planning process
– Input from NTTG members & stakeholders through public process
– Steering Committee: Final say & dispute resolution
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Interface with Planning Process
– Study Plan Development & Study Phases: Preliminary & Iterative Analysis
– Plan Report: Recommendations
Responsibility for Providing Sufficient Information
– Project developers, requestors, other interested stakeholders – NOT THE COMMITTEE!
ProcessProcess
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Step 1: Application
Step 2: Review & Response
Step 3: Analysis during Planning Process
Step 4: Recommendations for Plan Report
Steps 5 - 7: Steering Committee
• Determination Letter – Plan & Cost Allocation
• Project Updates/Additional Review
• Dispute Resolution
ProcessProcess
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Cost allocation v. cost recovery
Risk analysis
Reliability benefits
Interface with future State & Federal regulatory proceedings
Negotiated cost allocations
Others???
Issues/Comments?Issues/Comments?
41
SummarySummary
Next Steps:
1. Finalize Cost Allocation Portion of Order 890 Filing
2. Formation of Cost Allocation Committee
3. Get to Work! (Implementation of Planning Process)
Recommended