Conditional Firm
October 6, 2006
Public Stakeholder Review
Portland, Oregon
Meeting Objective and Agenda
 Objective:

Initiate a collaborative process to identify opportunities,
issues and solutions to PacifiCorp’s offering of a
conditional firm product
 Agenda:
 Discuss goals for implementation of a conditional firm
product
 Discuss proposed process for stakeholder input and
product formulation
 Review historical compilation of PacifiCorp system
schedules
 Discuss concerns with product implementation and
possible remedies
Commitment
 MEHC and PacifiCorp will support the Bonneville Power
Administration in its development of short-term products such as
conditional firm.
 No less than three months following the close of the transaction,
PacifiCorp will initiate a process to collaboratively design similar
short-term transmission products and will include stakeholders in
this process.

On June 16, 2006, PacifiCorp provided notice describing steps it
will take to comply with the merger commitment



Conduct a review of operational and technical requirements
necessary to offer service
Conduct a historic firm contract schedule and flow audit of specific
commercial paths
Schedule stakeholder meetings
 PacifiCorp will make every reasonable effort to complete a
product by the end of 2008.
Process Overview/Timeline
 Stakeholder/Customer meetings
 Portland – October 6
 Salt Lake City – October 23
 Comment submittal - via PacifiCorp internet (Q4 2006)
 PacifiCorp review of comments and proposed product




description (Q4 2006)
Publish schedule for additional public meetings
(January 2007)
Review of FERC 888 NOPR Reform Order (Q1 2007)
Final comment session (via electronic public forum)
(Q2 2007)
Product analysis, finalization, and FERC filing process
(Q4 2007)
Conditional Firm Goals and Guiding
Principles
 Goals
 Optimize the use of existing transmission system
 Increase product flexibility for customers
 Guiding Principles for Product Development
 Maintain reliability of transmission system
 Avoid diminishing firm rights to existing network and
PTP customer contracts
 Avoid cost shifts between customers or customer
classes
 Limit economic risk to other transmission customers
Current PacifiCorp Products/Services
 PacifiCorp OATT


Network Integration Service
Point to Point

Firm
 Long term (greater than one year)
 Partial Firm (seasonal, or as allowed by capacity)
 Short term

Non-firm
PacifiCorp System Specifics
 PacifiCorp system specifics
 Many paths are scheduled near capacity a high
percentage of time
 High usage long term schedules are not always
“grouped” in specific seasons or months
 Limited ability to re-dispatch thermal generation
 Network load increasing at fast rate
 Limited ability to accurately forecast load growth over
long term
Elements of Current Proposed BPA
Conditional Firm Product
 Only available to customers requesting long term firm Point to
Point service where ATC is determined not to be available for at
least one month in a twelve month period
 Maintains original long term firm queue position
 Firm for specified months (when ATC is available)
 Curtailment

Pro Rata with all other firm
 Conditional firm in months where ATC is not available


Conditional firm hour limits fixed at contract initiation (either
annual or monthly limits)
Curtailment priority



Before all firm
After all Point to Point non-firm
Tagged as “Network – Non-Firm” - NERC curtailment priority 6
BPA Proposed Curtailment Position
Product
NERC Curtailment Priority
PTP Secondary
1
Hourly NF
2
Daily NF
3
Weekly NF
4
Monthly NF
5
Network NF
6
Firm
7
Conditional Firm
Concerns with BPA Conditional Firm
Proposed Product Design
 Network upgrade cost allocation
 Queuing position

Queue blocked by un-resolved long term firm
requests
 Limited ability to forecast native load growth
to determine hourly curtailment limits

Transmission provider and other firm
customers take all risk of congestion occurring
over forecasted limits
Historical Examples of
Firm Schedules on
PacifiCorp Paths
PACE - FC3 (TOT-2B-1)
1/
1/
2
1/ 00
15 5
/2
1/ 00
29 5
/2
2/ 00
12 5
/2
2/ 00
26 5
/2
3/ 00
12 5
/2
3/ 00
26 5
/2
0
4/ 05
9/
2
4/ 00
23 5
/2
0
5/ 05
7/
2
5/ 00
21 5
/2
0
6/ 05
4/
2
6/ 00
18 5
/2
0
7/ 05
2/
2
7/ 00
16 5
/2
7/ 00
30 5
/2
8/ 00
13 5
/2
8/ 00
27 5
/2
9/ 00
10 5
/2
9/ 00
24 5
/2
10 00
/8 5
10 /20
/2 05
2/
2
11 00
/5 5
11 /20
/1 05
9/
2
12 00
/3 5
12 /20
/1 05
7/
20
05
Schedules (MW)
Sum NetworkFirm
Sum PTP Firm (1 year or greater)
TTC minus TRM (MW)
TTC (MW)
900
900
800
800
700
700
600
600
500
500
400
400
300
300
200
200
100
100
0
0
Time
TTC/TRM (MW)
PACE - FC3 (TOT-2B-1)
PACE - FC3 (TOT-2B-1) (TTC vs Schedules)
Sum PTP Firm (<1 year)
PACE - FC3 (TOT-2B-1)
P AC E - F C 3 (T OT -2B -1)
Available U sage H o urs per S iz e o f C on ditio nal Firm C on tract (MW )
(T TC - TR M - N etw ork Firm & P o in t to P o int F irm (> 1 year))
2000
8000
1800
1600
7000
1400
6000
1200
5000
1000
4000
800
3000
600
2000
400
1000
200
0
0
0
0
0
0
0
0
79
76
73
70
67
64
61
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Siz e of C onditional Firm Contract (M W)
58
55
52
49
46
43
40
37
34
31
28
25
22
19
16
13
10
70
0
40
0
U navailable Hours for C onditional Firm
Unavailable Hours for Conditional Firm
9000
10
H ours A vailable for C onditinoal Firm
Hours A vailable for Conditional Firm
PACE – GLC2 (TOT-2B-2)
1/
1/
2
1/ 00
15 5
/2
1/ 00
29 5
/2
2/ 00
12 5
/2
2/ 00
26 5
/2
3/ 00
12 5
/2
3/ 00
26 5
/2
0
4/ 05
9/
2
4/ 00
23 5
/2
0
5/ 05
7/
2
5/ 00
21 5
/2
0
6/ 05
4/
2
6/ 00
18 5
/2
0
7/ 05
2/
2
7/ 00
16 5
/2
7/ 00
30 5
/2
8/ 00
13 5
/2
8/ 00
27 5
/2
9/ 00
10 5
/2
9/ 00
24 5
/2
10 00
/8 5
10 /20
/2 05
2/
2
11 00
/5 5
11 /20
/1 05
9/
2
12 00
/3 5
12 /20
/1 05
7
12 /20
/3 05
1/
20
05
Schedules (MW)
Sum NetworkFirm
Sum PTP Firm (1 year or greater)
TTC minus TRM (MW)
TTC (MW)
400
400
350
350
300
300
250
250
200
200
150
150
100
100
50
50
0
0
Time
TTC/TRM (MW)
PACE – GLC2 (TOT-2B-2)
PACE - GLC2 (TOT-2B-2) (TTC vs Schedules)
Sum PTP Firm (<1 year)
PACE – GLC2 (TOT-2B-2)
P AC E - GL C 2 (TOT -2B -2)
Available U sage H o urs per S iz e o f C on ditio nal Firm C on tract (MW )
(T TC - TR M - N etw ork Firm & P o in t to P o int F irm (> 1 year))
2000
8000
1800
1600
7000
1400
6000
1200
5000
1000
4000
800
3000
600
2000
400
1000
200
0
0
0
0
0
0
0
0
79
76
73
70
67
64
61
0
0
0
0
0
0
0
Siz e of C onditional Firm Contract (M W)
58
55
52
49
46
43
40
37
0
0
0
0
0
0
0
0
0
34
31
28
25
22
19
16
13
10
70
0
40
0
U navailable Hours for C onditional Firm
Unavailable Hours for Conditional Firm
9000
10
H ours A vailable for C onditinoal Firm
Hours A vailable for Conditional Firm
WYOE – TOT 4A
Time
12/31/2005
12/17/2005
12/3/2005
11/19/2005
11/5/2005
1000
900
900
800
800
700
700
600
600
500
500
400
400
300
300
200
200
100
100
0
0
TTC/TRM (MW)
TTC (MW)
10/22/2005
TTC minus TRM (MW)
10/8/2005
Sum PTP Firm (1 year or greater)
9/24/2005
Sum NetworkFirm
9/10/2005
8/27/2005
8/13/2005
7/30/2005
7/16/2005
7/2/2005
6/18/2005
6/4/2005
5/21/2005
5/7/2005
4/23/2005
4/9/2005
3/26/2005
3/12/2005
2/26/2005
2/12/2005
1/29/2005
1/15/2005
1/1/2005
Schedules (MW)
WYOE – TOT 4A
WYOE - TOT4A (TTC vs Schedules)
Sum PTP Firm (<1 year)
1000
WYOE – TOT 4A
W YOE - T OT 4A
Available U sage H o urs per S iz e o f C on ditio nal Firm C on tract (MW )
(T TC - TR M - N etw ork Firm & P o in t to P o int F irm (> 1 year))
Hours A vailable for Conditional Firm
Unavailable Hours for Conditional Firm
9000
3000
7000
6000
2000
5000
1500
4000
3000
1000
2000
500
1000
0
0
0
0
0
0
0
0
79
76
73
70
67
64
61
0
0
0
0
0
0
0
Siz e of C onditional Firm Contract (M W)
58
55
52
49
46
43
40
37
0
0
0
0
0
0
0
0
0
34
31
28
25
22
19
16
13
10
70
0
40
0
U navailable Hours for C onditional Firm
2500
10
H ours A vailable for C onditinoal Firm
8000
WYOE – TOT 4B
1/
1/
2
1/ 00
15 5
/2
1/ 00
29 5
/2
2/ 00
12 5
/2
2/ 00
26 5
/2
3/ 00
12 5
/2
3/ 00
26 5
/2
0
4/ 05
9/
2
4/ 00
23 5
/2
0
5/ 05
7/
2
5/ 00
21 5
/2
0
6/ 05
4/
2
6/ 00
18 5
/2
0
7/ 05
2/
2
7/ 00
16 5
/2
7/ 00
30 5
/2
8/ 00
13 5
/2
8/ 00
27 5
/2
9/ 00
10 5
/2
9/ 00
24 5
/2
10 00
/8 5
10 /20
/2 05
2/
2
11 00
/5 5
11 /20
/1 05
9/
2
12 00
/3 5
12 /20
/1 05
7
12 /20
/3 05
1/
20
05
Schedules (MW)
Sum NetworkFirm
Sum PTP Firm (1 year or greater)
TTC minus TRM/WAPA (MW)
TTC (MW)
700
700
600
600
500
500
400
400
300
300
200
200
100
100
0
0
Time
TTC/TRM (MW)
WYOE – TOT 4B
WYOE - TOT 4B (TTC vs Schedules)
Sum PTP Firm (<1 year)
WYOE – TOT 4B
W YOE - TOT 4B
Available U sage H o urs per S iz e o f C on ditio nal Firm C on tract (MW )
(T TC - TR M - N etw ork Firm & P o in t to P o int F irm (> 1 year))
2000
8000
1800
1600
7000
1400
6000
1200
5000
1000
4000
800
3000
600
2000
400
1000
200
0
0
0
0
0
0
0
0
79
76
73
70
67
64
61
0
0
0
0
0
0
0
S iz e of C onditional Firm C ontract (M W)
58
55
52
49
46
43
40
37
0
0
0
0
0
0
0
0
0
34
31
28
25
22
19
16
13
10
70
0
40
0
U navailable H ours for C onditional Firm
Unavailable Hours for Conditional Firm
9000
10
H ours A vailable for C onditinoal Firm
Hours A vailable for Conditional Firm
PACEW – PACE (Monument –
Naughton)
Time
12/3/2005
11/19/2005
11/5/2005
10/22/2005
700
700
600
600
500
500
400
400
300
300
200
200
100
100
0
0
TTC/TRM (MW)
TTC (MW)
10/8/2005
TTC minus TRM (MW)
9/24/2005
Sum PTP Firm (1 year or greater)
9/10/2005
Sum NetworkFirm
8/27/2005
8/13/2005
7/30/2005
7/16/2005
7/2/2005
6/18/2005
6/4/2005
5/21/2005
5/7/2005
4/23/2005
4/9/2005
3/26/2005
3/12/2005
2/26/2005
2/12/2005
1/29/2005
1/15/2005
1/1/2005
Schedules (MW)
PACEW – PACE (Monument – Naughton)
PACEW - PACE (MONUMENT - NAUGHTON) (TTC vs Schedules)
Sum PTP Firm (<1 year)
PACEW – PACE (Monument – Naughton)
PACEW - PACE (MONUMENT - NAUGHTON)
Available Usage Hours per Size of Conditional Firm Contract (MW)
(TTC - TRM - Netw ork Firm & Point to Point Firm (> 1 year))
9000
8000
8000
7000
7000
6000
6000
5000
5000
4000
4000
3000
3000
2000
2000
1000
1000
0
0
0
0
0
0
0
0
79
76
73
70
67
64
61
0
Size of Conditional Firm Contract (MW )
58
55
0
52
0
49
0
46
0
43
0
40
0
37
0
34
0
0
0
0
0
0
0
0
31
28
25
22
19
16
13
10
70
0
40
0
Unavailable Hours for Conditional Firm
Unavailable Hours for Conditional Firm
9000
10
Hours Available for Conditinoal Firm
Hours Available for Conditional Firm
PacifiCorp Conditional Firm Product
Alternative 1
 Conditional firm with transmission customer arranging re-dispatch for
congested periods


Schedules would be firm - customer responsible to arrange their own
re-dispatch to alleviate congestion
If re-dispatch is not completed upon congestion per agreement, then
schedule will transform to a non-firm tag subject to curtailment
 Benefits



Allows greater utilization of transmission system
Limit economic risk to other transmission customers
Protects existing rights of other network and firm customers (check)
 Concerns



Transmission customer curtailment hours not limited
Transmission customer takes risk of marginal prices of redispatch
May not be a long-term solution
PacifiCorp Conditional Firm Product
Alternative 2
 Bridge product




Initial schedules would be firm with committed-to hourly
curtailment limits by PacifiCorp
Network upgrades to allow firm service per current PacifiCorp
OATT
Product duration would be subject to Network Upgrades being
completed on timely basis
No rollover – Service would transfer to firm after Network
Upgrades are completed per current OATT provisions
 Benefits



Allows for transmission usage while network upgrades are
under construction
Limits economic risk to other transmission customers
Protects existing rights of other network and firm customers
 Concerns

Cost of network upgrades may preclude implementation
PacifiCorp Conditional Firm Product
Alternative 3
 Two (existing) product approach
Utilize existing partial firm product for un-congested months
 Utilize existing non-firm product for higher usage months
 Arrange LT firm via Network Upgrades, and transfer service
to LT firm after Network Upgrades are complete
 Benefits


Limits economic risk to other transmission customers
Protects existing rights of other network and firm customers
 Allows for transmission usage while network upgrades are
completed
 Concerns
 Transmission customer curtailment hours not limited

Next Steps
 Submit comments to PacifiCorp by December 10,
2006

CFDevelopment@pacificorp.com
 All comments and replies will be posted on
PacifiCorp’s web portal

http://www.pacificorp.com
 News and Info
 Conditional Firm Development
 Publish schedule for additional public comment
sessions by January 10, 2007