NTTG 0rder 1000 Stakeholder
Meeting
March 28, 2012
Radisson Hotel
Portland, Oregon
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Agenda
2
10:00 am – 10:15 am
Welcome and Introductions
10:15 am – 10:30 am
O1K Planning Compliance Workgroup Status Update
10:30 am – 11:10 am
Draft Tariff Revisions
11:10 am – 11: 30 am
Draft Planning Committee Charter Revisions
11:30 am – 12:00 pm
Draft Planning Practices Document
12:00 pm – 12:45 pm
Lunch Break
12:45 pm – 1:30 pm
Continue Draft Planning Practices Review
1:30 pm – 2:00 pm
Cost Allocation Workgroup Status Update
2:00 pm
Next Steps and Adjourn
Draft Tariff Revisions
Order 1000 Stakeholder Update
March 28, 2012
Radisson Hotel
Portland, Oregon
3
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Draft Tariff Revision materials are
posted to the NTTG Website
To access the Draft Tariff Revision materials
click on the following:
• Redline – Click Here
• Clean – Click Here
4
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Committee Charter
Order 1000 Stakeholder Update
March 28, 2012
Radisson Hotel
Portland, Oregon
5
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Overview of Proposed Changes (NTTG Planning Committee Charter)
 General Changes:
a.
b.
c.
Deleted paragraph on “Authority of Planning committee” and “Project
facilitation” – too obvious
Moved the Principles and Footprint/Coordination to an Appendix
Deleted “Biennial Transmission Planning Cycle”, “Footprint/Coordination” and
“Confidentiality of Data”– already in Attachment K document
 Partitioned the document into nine major sections as follows:
I. Purpose – edited extensively
II. Duties and Responsibilities – new section
III. Committee Operating Structure
IV. Committee Chair
V. Committee Meetings
VI. Decision Making
VII.Technical Work Group - new
VIII.Budget
IX. Change Control
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
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I. Purpose
•
The purpose of the NTTG Planning Committee is to:
1.
Provide a forum where all stakeholders are encouraged to participate in the
planning, coordination, and development of a more efficient and more cost
effective Regional Transmission Plan.
2.
Prepare a Regional Transmission Plan consistent with applicable NERC and
WECC system reliability standards and criteria, and public policy needs.
3.
Ensure the Regional Transmission Plan satisfies FERC Order 890 and 1000
compliance requirements..
•
The broad stakeholder participation envisioned in this process (including
transmission owners, customers and state regulators) is intended to result
in a Regional Transmission Plan that meet a variety of needs and has a
broad basis of support.
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
II. Duties and Responsibilities
of the Planning Committee
• The NTTG Planning Committee reports to the NTTG
Steering Committee and is responsible for:
1.
2.
3.
4.
5.
6.
7.
Developing the study plan for each biennial cycle,
Obtaining NTTG Steering Committee approval of the study plan,
Performing and documenting the assessments as defined in the study
plan,
Conduct stakeholder economic studies requests for the NTTG,
Coordinating transmission planning with adjacent regional planning
groups,
Coordinating planning with the WECC planning committees, and
Publishing, on a biennial basis a Steering Committee approved
regional Transmission Expansion Plan.
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
No changes applied to:
III. Committee Operating Structure
IV. Committee Chair
V. Committee Meetings
VI. Decision Making
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
V. Technical Work Group –
“New”
•
The NTTG Planning Committee will form and over see a Technical Work Group
(TWG) having the proper technical skills, experience, tools and resources to perform
the detailed analysis and studies required to support the biennial study cycle and the
plan development overall. The TWG will be responsible for performing the bulk of the
technical studies and analysis required by the most recent approved biennial regional
transmission study plan. The Planning Committee will select individuals from the
Planning Committee members based on transmission planning experience, access to
and ability to use power system analysis and/or production cost simulation software,
power system modeling expertise, and overall knowledge of the NTTG transmission
footprint and the western interconnection.
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
No Change
VIII. Budget
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
IX. Change Control Procedures
• Changes to the Planning Committee structure, functions
and responsibilities including its Charter will be
conducted through open stakeholder processes currently
in use by NTTG and any changes will subsequently be
approved by the NTTG Steering Committee.
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
QUESTIONS
?
PROCESS AID FOR DISUCSSION PURPOSES ONLY AND SUBJECT TO CHANGE
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Regional Planning Practice
Order 1000 Stakeholder Update
March 28, 2012
Radisson Hotel
Portland, Oregon
14
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Information from NTTG’s Regional
Planning Practice document
Index
1. Objective of NTTG’s Regional Transmission Planning
Process
2. Biennial Planning Cycle
3. Information Gathering from Transmission Providers and
Stakeholders
4. Regional Transmission Plan Evaluation Process
5. Study Plan
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Objective Regional Planning
Process
• Develop an initial regional transmission plan
from a roll up of the local transmission plans
• Improve upon that plan, if possible,
• Develop a Regional Transmission Plan that
meets the regional transmission needs more
efficiently and cost effectively than the roll up
of the transmission providers local
transmission plans
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 3
Information from NTTG’s Regional
Planning Practice document
Index
1. Objective of NTTG’s Regional Transmission Planning
Process
2. Biennial Planning Cycle
3. Information Gathering from Transmission Providers and
Stakeholders
4. Regional Transmission Plan Evaluation Process
5. Study Plan
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Biennial Planning Process
NTTG EIGHT-QUARTER BIENNIAL PLANNING PROCESS
Biennial Planning Cycle
Obtain Final Plan Approval
02
03
04
05
06
07
08
Year Two
01
Year One
*
Develop Study Plan, Assumptions
*
Perform Draft Plan Analysis
*
Perform Draft Plan Analysis
*
Draft & Review Report and Gather Info *
Final Plan Analysis & Cost Allocation *
Prepare & Review Final Report
*
Gather Information
Eligible Customer &
Stakeholder Economic
Congestion
Study* 01
Receive
Requests
Perform Studies
02
Report and Review * 03
04
Receive Requests * 01
Perform Studies
02
Report and Review * 03
04
* Stakeholder Input
While the resulting Regional Transmission Plan is not a construction plan, it
will provide valuable regional insight and information for all stakeholders to
consider and potentially modify their respective plans.
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 4
Information from NTTG’s Regional
Planning Practice document
Index
1. Objective of NTTG’s Regional Transmission Planning
Process
2. Biennial Planning Cycle
3. Information Gathering from Transmission Providers and
Stakeholders
4. Regional Transmission Plan Evaluation Process
5. Study Plan
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Type of Project Submitted
Types of projects potentially in the regional transmission
plan
a) projects with potential regional impact rolled up from
one or more local transmission providers’ transmission
plan(s)
b) merchant developer projects
c) new “unsponsored” regional project identified through
the regional planning process
d) interregional projects
e) non-transmission alternative projects
f) transmission projects to satisfy existing or future public
policy needs required by state or federal law or
requirements
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 5
Project Submittal to the Regional Plan
Non Incumbent/
Merchant
Developer
Transmission
Provider
Project
Submittal
Process
Project for Regional Cost Allocation
Consideration
Project Not for
Regional Cost
Allocation
Consideration
Prior to Start of Biennial Cycle
Submit Sponsor Qualification
Data
Fail
Test Information
against
Qualification
Criteria
Pass
Submit Qtr 1
Project
Information
Cure
deficiency
Submit Qtr 1
Additional Cost Allocation Data
AND
Project Information Data
For Consideration in Regional Transmission Planning Process
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 6
Submitted in Plan for Cost Allocation
Sponsor Qualification Data – Submit Prior to Biennial Cycle Begins
Project Submitted for Selection in Regional Plan for Regional Cost Allocation
Category
Qualification Data
1 Project sponsor description
1. Name and address
2. Years in business
3. Operating environment (what is the nature of your
business?)
2 Project sponsor demonstration of
1. Management’s experience in the industry
technical expertise to develop,
2. Scope of sponsor’s technical expertise (in house
construct, own the proposed facility
expertise and/or out sourced expertise)
3. Name and location of a project of similar scale that
demonstrates the sponsor’s technical expertise
3 Project sponsor financial expertise to
1. Balance sheet or annual report (if appropriate)
develop, construct, own the proposed
2. Credit worthiness
facility
a. Rating agency reports (if applicable)
b. Two most recent audited year-end financial
statements plus any available quarterly financial
statements for current fiscal year (if applicable)
c. Material issues that could impact the credit decision
including but not limited to litigation, arbitration,
contingencies, or investigations (if applicable)
3. Other information supporting sponsor’s financial
expertise
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 7-8
Continued
4 Project Sponsor ability to maintain and
operate their proposed facility
5 Project summary
1. Prior operation experience
2. Prior maintenance experience
1. Summarize the proposed project
6 Investors
1. Description
2. Interest
1. An attestation form
7 Demonstration of ability and commitment to
register and comply with all NERC
standards
8 Other relevant or pertinent data or
information
1. As appropriate
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 7-8
Additional Cost Allocation Data
1
2
3
4
5
6
7
8
9
10
Additional Cost Allocation Data - Submit During Quarter 1
Project Submitted for Possible Selection in Regional Transmission Plan for Cost Allocation
Project sponsor name and project description (should be the same as provide on sponsor
qualification data, if different provide update)
Physical location
Detailed Cost Estimate
Cost/benefit analysis
POR/POD
Pertinent engineering and/or transmission studies or other reports
A copy of any WECC or other regional, interregional or interconnection–wide planning entity
economic and reliability determinations relative to the project
Status of any siting process
Proposed cost allocation (The sponsor should state how they would see the cost being
allocated and after the modeling show a comparison of the two (ours/theirs)).
Proposed Beneficiaries: (tells Cost Allocation committee what the sponsor thinks the cost
recovery looks like).
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 9
Continued
11 Proposed cost recovery, if any other than NTTG regional cost allocation.
12 A risk and benefit analysis focusing on the distribution of costs, benefits and risks among the
parties proposed to share in the cost allocation of the project.
13 Proposal on dealing with cost overruns
14 Discuss degree of consensus among stakeholders on all of the above
15 How each NTTG cost allocation and Order 1000 principles are applied in the analysis
16 A description of any regulatory rulings needed prior to examination of the project
17 Any NTTG Planning Committee analysis pertinent to the project and a description of how it fits
into the NTTG Annual or Biennial Plan
18 Description of any proprietary or commercially sensitive information applicants believe should
remain confidential during the review process
19 Other relevant or pertinent data and information.
25
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 9
Timeline for Submission
of Qualification Data
Projects Consideration for Regional Cost Allocation Timeline
Biennial Cycle
Quarter 1
Oct Nov Dec Jan Feb Mar
Qualification
Submit Qualification Data
Review Data and Issue Deficiency
Notice if Necessary
Time to Remedy
Submit Additional Cost Allocaiton
Data
Submit Project Information
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 10
Selecting the Public Policy Needs for
the Regional Transmission Plan
Q1 Public Policy Data Submitted
Transmission Provider
Stakeholder
Q2 Develop Study Plan
Including Public Policy Needs Defined
With Stakeholder and State Regulator Input
PC Public Policy Recommendation
For Inclusion in
For Inclusion in
Regional Transmission
Scenario Analysis
Plan
Plans
Public policy needs will be
evaluated with other regional
projects
rather
than
considering public policy
needs separately from other
transmission needs.
Q2 (June)
Steering Committee Approve Study Plan
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 11
Information from NTTG’s Regional
Planning Practice document
Index
1. Objective of NTTG’s Regional Transmission Planning
Process
2. Biennial Planning Cycle
3. Information Gathering from Transmission Providers and
Stakeholders
4. Regional Transmission Plan Evaluation Process
5. Study Plan
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Biennial Plan Evaluation
Process
Year 1
NTTG TP
Topology and L&R
w/Pubic Policy
...
Year 2
NTTG TP
Topology and L&R
w/Pubic Policy
Qtr 3 Initial Regional Transmission Plan
Defined as the Roll Up of TP Plans for Year 10
initial regional transmission plan
Qtr 3-4 Initial Regional Trans Plan Analysis
Higher Level Analysis of Initial Plan
and Scenario Analysis Using
Production Cost and Power Flow Models
draft regional transmission plan
Qtr 5 Draft Regional Transmission Plan
Collect input to & comment on draft regional transmission
plan
Qtr 5-6 "Final" Regional Plan Development
Detailed analysis of draft regional trans plan with
stakeholder input and Q5 data updates
draft Regional Transmission Plan report
Qtr 7 Stakeholder Comment
Revise report if appropriate
draft Final Regional Transmission Plan report
Qtr 8 Steering Committee Approval
Final Regional Transmission Plan report
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 13
Information from NTTG’s Regional
Planning Practice document
Index
1. Objective of NTTG’s Regional Transmission Planning
Process
2. Biennial Planning Cycle
3. Information Gathering from Transmission Providers and
Stakeholders
4. Regional Transmission Plan Evaluation Process
5. Study Plan
30
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
The Study Plan
• Developed during the second quarter
• Will be developed in consultation with stakeholders
• Will delineate the method of study of evaluation
o of transmission and non-transmission alternatives
that have been received
• Will be followed as closely as possible
o any change will coordinate stakeholders
o scheduled Transmission Planning committee
meetings
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 13
The Study Plan
The minimum information to be in the study plan will
include the following:
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 14
Goal of the Study
• Determined to be an efficiently and cost effective
• May be different than the local transmission plans.
Planning Study Will…
• Examine a limited number of scenarios
• Identify regional transmission and non
transmission improvements and/or new solutions
• Include additional scenarios other public policy
needs
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 14
Deliverables from the Plan
• develop a Regional Transmission Plan
• plan meets the regional transmission needs
• more efficiently and
• cost effectively than the initial regional
transmission plan
• deliverables may be further defined
• during the development of the study plan
• with consultation from stakeholder
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 14
At a minimum a more efficient
Regional Transmission Plan …
• when compared to the initial transmission plan
• meets the needs roughly commensurate
• equal to or better reliability performance
• congestion will not be greater
• can be developed in the proper timeframe
• does not accelerate any future problems unless
• total cost with mitigation no greater than initial
transmission plan
• there is sufficient time to mitigate the problem
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 14
At a minimum a more cost effective
Regional Transmission Plan …
• when compared to the initial transmission plan
• total incremental capital cost is less than or
equal to
• total production cost of the is less than or
equal to
• or, the sum less than or equal to
The study plan may modify the efficient and cost effective
selection criteria after consultation with stakeholders.
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 15
Reevaluation of Project Selected in
Regional Plan for Cost Allocation
A transmission provider solution maybe displaced
during NTTG’s regional biennial planning
and a delay in development of a project selected
in the regional plan for cost allocation occurs
Transmission Provider may choose to …
• have effects evaluated in the biennial process
• revise their local plan back to original solution
that was displaced
37
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 15
Methodology
The Plan will …
• biennially prepare a long-term (up to 10 year)
• describe the study techniques
• identify the system conditions
• use a recently TEPPC study base case
• discussion the contingencies to be run
• meet applicable NERC and WECC system
reliability standards and criteria
38
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 16-17
QUESTIONS
?
PROCESS AID FOR DISUCSSION PURPOSES ONLY AND SUBJECT TO CHANGE
39
Cost Allocation Workgroup
Status Update
Order 1000 Stakeholder Update
March 28, 2012
Radisson Hotel
Portland, Oregon
40
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
NTTG Benefits Brainstorm Sessions:
Part I (Portland 2/17)
RTOs
NTTG Members
• MISO
• MISO LODF
• CAISO
• PJM DFAX
• SPP
• Bottom Up “Economic
Projects”
• NYISO
41
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Benefits and Cost Allocation
Brainstorm Part II (Boise 2/29)
Outcome from Boise 2/29 discussion of top down
vs. Bottom Approach to Cost Allocation
• Book reports looking at how RTOs arrived at
methodologies for determination of benefits and
cost allocation
• SPP (Highway/Byway
• NYISO
• MISO
• Bottoms Up
Approach
• PJM (DFAX)
• Revised work plan developed
42
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Cost Allocation Methodology
Assessment Plan
• NTTG must adopt a cost allocation methodology to
meet the compliance requirements of Order No.
1000
• Work plan:
– Analyze and prepare “book reports” on methodologies
previously approved by FERC
– Determine which metrics used to support these
methodologies may be appropriate for NTTG’s use
– Where possible, run modeling scenarios using the
identified metrics to simulate cost allocation results for
NTTG
– Based on these analyses and stakeholder input,
recommend a cost allocation methodology for approval
by the NTTG Steering Committee
43
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Current Status
• Book Report Results Update
• Direction Forward
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PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE