Open Access Transmission Tariff
Amendment No. 9
Greg Broeking, Chief Financial Officer
March 7, 2012
Background Information
• A cost-of-service study was performed to:
 Update revenue required to serve the District’s transmission
customers
 Accommodate the significant increase of third-party generation
• Additional study
 An additional review of the cost-of-service was conducted for a
reasonability check
 Other rate options were examined and recommended
 The economic development rate on a MWh basis was proposed to
mitigate the Pancaking Effect
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Economic Development Benefits
• The unemployment rate is extremely high in the District’s
service area
 New renewable resources would help create new job
opportunities
• New generation facilities would benefit the ratepayer
 Improving reliability
 Providing additional revenue due to the increase of the throughput
on the District’s transmission system
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Overview of Changes
Revisions to IID’s Open Access Transmission Tariff (OATT)
and Generator Interconnection Agreement (GIA):
• Transmission reserve capacity section
 The economic development rate will be on a MWh basis
 Accommodate the significant increase of third-party generation
• Possible reserved capacity requirement(s) to mitigate
financial risk to the District
 Provide a form of support for the reserved capacity that shall be
reasonable for the required service needs
 A review of the customer’s annual usage may be done to adjust
future transmission capacity reservations
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Overview of Changes (continued)
 An additional fee may be imposed when the committed minimum
usage is not met
 When not utilized, the reserved capacity will be temporarily
released to the District for potential resell to other customers
• Transmission Rate Credits
 Provided for a period of 25 years or the duration of the Power
Purchase Agreement (PPA), whichever is shorter
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Economic Development
• Availability – The rate will be available to eligible new
long-term firm transmission service customers
• Duration – The rate is proposed for a period of 15 years
• Change in rate – The economic development rate is
subject to change if the cost to serve the wholesale
transmission customers increases
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OATT Rates
(Current)
$/kW-mo. ¹
$/MWh ¹
High Load Capacity Customer (80%)
1.92
3.29
Low Load Capacity Customer (25%)
1.92
10.52
Rates with Economic Development
$/kW-mo.
$/MWh
Current Wholesale Transmission Rates
¹ Includes:
Schedule 1 Scheduling, System Control & Dispatch
Schedule 2 Reactive Supply and Voltage Control
Schedule 7 Firm Point-to-Point Transmission
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Economic Development Rate
Proposed Economic Development Rate
Description of Service
Rate per MWh
Firm Point-to-Point Transmission
$3.38
Scheduling, System Control & Dispatch
$0.43
Reactive Supply & Voltage Control
Total - Economic Development Rate
$0.13
$3.94
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Next Steps
• Written comments – Submit by Thursday, March 16, 2012
• Review of comments – A summary of comments with IID’s
responses will be provided on its OASIS at
www.westtrans.net
• Provide input to Board of Directors - Staff will provide
comments and report stakeholder input to the Board
• Final step – Will request Board approval of Amendment
No. 9, to the IID’s OATT
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• Please email comments, suggestions, and questions to
Jamie Asbury, IID Inter-Connect Transmission Contracts
Administrator at jlasbury@iid.com
Thank you for your participation in the stakeholder process.
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