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. “
1
Agenda
Time
Topic
Presenter
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
2
Standards 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."
3
NTTG 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.
4
NTTG 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.
5
NTTG 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.
6
NTTG 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.
7
Planning Straw Proposal
“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. “
8
Northern Tier Transmission Group
Member Transmission System
Major Western
Transmission
Black:
ColumbiaGrid:
BPA, Tacoma,
Seattle, Grant,
Chelan, Douglas,
PSE, AVA
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
Red: Northern Tier:
NWC, PAC, IPC,
DSGT, UAMPS
Blue:
Other Western
US and Canada EHV
Grid Transmission
9
Planning: 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.
10
NTTG Straw Proposal
Development 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
11
FERC Order 890 Principles
& NTTG Straw Concepts
1.
2.
3.
4.
5.
6.
7.
8.
9.
Coordination: Three level Local, Sub-regional & Regional
Coordination
Openness: Open architecture and stakeholder/customer process,
unfettered Board
Transparency: Data, criteria, ATC methods, etc. disclosure to all
customers/stakeholders
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
Comparability: All similarly situated customers/stakeholders equal in
processes
Dispute Resolution: NTTG ADR to use WECC ADR with member
agreement to use for planning related disputes
Regional Participation: Participation in WECC TEPPC, NWPP’s
NTAC, coordination with neighboring sub-regional planning groups
Economic Studies: Economic and re-dispatch/congestion studies in
planning cycle that influence plan; incorporates direction and analysis
from Transmission Use committee
Cost Allocation: Multi-state Cost Allocation Committee to develop and
apply cost allocation principles
12
Related: Re-Dispatch & Conditional Firm
Non-Rate Terms & Conditions (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 Redispatch 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
13
NTTG Planning Straw Proposal
- 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
14
NTTG Planning Process
Key Features, continued
• Three level integrated process produces synchronized,
coordinated single system plan with local, subregional, 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.
15
NTTG Planning Process
Key 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
16
NTTG Planning Process
Key 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
17
Two Step Planning and Implementation Process
Step 1: Northern Tier Transmission Group Planning Process
1.Annual NTTG Planning
Process:
Identify Needs, Least Cost
Expansion Project
Alternatives, Technical
Benefits, Project Costs
2. Expansion
Plan & Projects
With
Benefits Parsed
3. Cost Allocation:
Applies Principles
& Recommends
Likely Cost Allocation
4. Draft Annual
Expansion Plan
5. NTTG
Steering Committee
Plan Approval
Approved
9. Formal OATT
Transmission
Service Process:
NT Need & PTP Requests,
Firm Need & Reliability
Planning
Step 2
8. Customer Decision
Process
Informed Customers,
Stakeholders
Other Interested Parties
7. Plan with Estimates for
Congestion & Re-Dispatch,
Expansion Projects,
ATC Added, Cost, &
Cost Allocation
6. Final Annual
Plan: Includes Likely
Cost & Benefit
Allocation Estimates for
Given Planning
Assumptions
18
Two Step Planning and Implementation
Process - continued
Step 2: Individual Transmission Provider Project Implementation Process
10. Service Request
Aggregation
Process
Via NTTG Open Season or
Coordination
11. Coordinated
Queue &
Refined
Requests
12. Transmission
Provider
OATT Process
13. Construction
Plan, Permitting,
Build
14. TP
Regulatory
Approval
and Rate
Process
19
Three Level Planning Process
in the West
Level 1
Local
Individual TP
Individual TP
Individual TP
Individual TP
Individual TP
Local Planning Process
IRP, NT L&R, OATT
Requests, Reliability Plan
Local Planning Process
IRP, NT L&R, OATT
Requests, Reliability Plan
Local Planning Process
IRP, NT L&R, OATT
Requests, Reliability Plan
Local Planning Process
IRP, NT L&R, OATT
Requests, Reliability Plan
Local Planning Process
IRP, NT L&R, OATT
Requests, Reliability Plan
NWPP NTAC
Level 2
Sub-Regional
Level 3
Regional
NTTG Sub-Regional
Planning Process
Overlapping Project
Coordination in
NWPP footprint
Aggregated Planning Requests,
Cost Allocation Estimates,
Coordination with other Subs and Regional
Other Sub-Regional
Planning Processes
Aggregated Planning Requests,
Cost Allocation Estimates,
Coordination with other Subs and Regional
WECC TEPPC PCC,
CREPC, WGA
Coordination, Reliability & Economic Data, Base Cases, Annual Study Plan
Economic and Congestion Studies, Policies, Standards
20
Native Load,
Wholesale Customers
Stakeholders
12
13
WECC Wide
Region
Biennial
Study, Planning
& Coordination
Cycle
2
1
Ann TP
OATT &
Planning
Process
2
15
A
C
D
8
8
7
10
3
4
10
Synched Up
State IRP
Processes
4
13
16
3
16
6
Ann TP
OATT &
Planning
Process
Blue:
Yellow:
Violet:
11
6
1
7
A
5
5
Use Committee
ATC Analysis
Level 1 - Local
Level 2 - Sub-Regional
Level 3 - Regional
9
11
Northern Tier
Planning, Use
Committees &
Biennial Planning
Cycle
B
Relationship Diagram
Synchronized Planning Cycles,
Data and Product Flow
Western Interconnection
16
C
B
Other
Sub-Reg
Planning
Groups
c
21
WECC Wide
Stakeholders
Regional Western
WECC CREPC
WECC/TEPPC
System Data Bank Coord
WECC
L&R
Compilation
CREPC/WECC
Res Adeq
CREPC
IRP
Coord
WECC PCC
Ann Studies
& Reg Plan Proc
WECC/PCC
TEPPC
Ann Comb Study
Plan Triage
L&R
Adeq Report
PCC Ann
Reports
Stakeholders
TEPPC
Ann Economic &
Congestion Studies
TEPPC Ann
Report
Sub-Regional Northern Tier Transmission Group
Other Xmssn
Customers
Input
NTTG wide
Stakeholder
Meeting
NTTG wide
Stakeholder
Meeting
NTTG wide
Stakeholder
Meeting
NTTG
Study Plan
Development
NTTG
Studies
NTTG
Cost Alloc
Committee
NTTG
L&R Need
Planning
Cost Alloc
Recommends
NTTG
Plan Report
& Steering
Committee
Approval
Joint Study
Teams
Network
Stakeholder
Input
Transmission Provider - Local
Indiv State
IRP
TP Ann
L&R, SR
Inputs
1
Month
2
TP OATT
SIS FS
3
4
TP
Staff does
studies
TP PRD &
Cond Firm
5
6
7
8
TP
Ann Plan
Update
9
10
11
Annual Combined Synchronized Planning Cycle
12
22
Western TEPPC Synchronized Study Cycle
Study activities
All activities are open with
stakeholder participation
Adaptive feedback
SubSub-regional
Studies
TEPPC
Historical
Analysis
Combined
Study Plan
Development
TEPPC
Database
Preparation
Improved models available
TEPPC
Congestion
Studies
Information Exchanges
Sub-regional
Evaluations
TEPPC
Evaluation
of Studies
TEPPC
Combined
Report
Modeling
Improvements
for next cycle
New models needs
Methodology updates and new issues
to be addressed in next cycle
Study issues and new study requests
to be considered in next cycle
Identification
Of Needed
Improvements
Study Review
and Requests
23
Compliance Tasks Required by Oct. 11, 2007
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Attachment K tariff detail and filing
Develop mechanism to address confidentiality of planning related
information
Put transmission planning methodology in writing and disclose data
(criteria, assumptions, planning standards, etc.)
Implement mechanism to make upgrade status available
Develop guidelines for planning submittals
Develop ADR for planning disputes
Coordinate planning with interconnected systems
Develop method for requesting economic upgrade studies
Develop a planning method that considers reliability and economics
Develop a means to allow for clustering of economic studies and posting of
such studies
Define the information sharing requirements for planning
Identify the type of projects to be covered by cost allocation principles that
are to be developed
Coordinate planning with state regulators
Develop cost recovery proposal for costs of participation in the planning
process.
24
NTTG & Member 890 Attachment K
Implementation 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
25
ORDER 890 STRAW PROPOSAL:
PRINCIPLE 9 - COST ALLOCATION
“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. “
26
Agenda
• Review Cost Allocation Straw Proposal
•
•
•
•
Proposal Development
Cost Types & Principles
Proposed Process
Issues/Comments?
• Next Step – Finalize for Order 890
Compliance Filing
27
Proposal 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
28
Cost Types
Type 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
29
Cost Types
Type 1 Purposes
– Provide capacity to serve load
– Fulfill reliability or technical
operating requirements
– Lower costs to consumers
– Fulfill Federal or State policy
requirements
30
Cost Types
Type 2: Provision of Wholesale Services
(FERC Jurisdictional)
– Sales & purchases
– Generator request
– Transmission service request
Mixed purposes – Types 1 & 2
– Potentially mixed jurisdiction
31
Cost Types
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!
32
Principles
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
33
Principles
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
34
Principles
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
35
Principles
Principle 4: Allocation for Wholesale &
Merchant Project Costs
– Type 2 Costs
– Outside Scope of NTTG Cost Allocation
– FERC Jurisdictional
36
Process
Cost Allocation Committee
– Appointed by state agency and publiclyand consumer-owned NTTG members
– Process dovetails with Planning process
– Input from NTTG members & stakeholders
through public process
– Steering Committee: Final say & dispute
resolution
37
Process
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!
38
Process
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
39
Issues/Comments?
Cost allocation v. cost recovery
Risk analysis
Reliability benefits
Interface with future State & Federal
regulatory proceedings
Negotiated cost allocations
Others???
40
Summary
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)
41