Western Area Power
Administration
Transmission Customer Meeting
August 20, 2007
Agenda
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CVP Transmission System – Mariam
Mirzadeh
Compliance with NERC Standards –
Arun Sethi
Western’s OATT – Darren Buck
Western’s Transmission Rate – Melinda
Grow
CVP Transmission Network
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Long Transmission Lines – High Reactive Losses
Integrating CVP Base Resource, Third Party
Generation or Import to Load Hubs or
Designated Loads at Elverta and Tracy and
Other Delivery Points
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Simultaneous Import Limitations – Nomogram
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Internal (local) Generation vs. Import

COI Impact vs. the Parallel 230 kV
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CVP Customer
Loads
50% Direct Connect
50% Off-System
Project Use Loads
50% Direct Connect
50% Off-System
Network Reliability Projects
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Sacramento Valley
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31 Miles of DCKT 230kV O’Banion to Elverta
Folsom Loop
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Loop SMUD’s Orangevale/Lake into Folsom
Substation
Two New 230kV Bays at Folsom
Long Import Lines to Load Center & Delivery Points
Questions/Discussion
Western’s Compliance with
NERC Reliability Standards
Reliability Standards
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Eighty-three mandatory standards, and
700 requirements became effective on
June 18, 2007.
All bulk power system owners,
operators, and users must comply with
these standards.
All entities are required to register with
NERC through the appropriate regional
entities.
NERC Registration
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Western-SNR Operations has registered with
NERC as:
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Transmission Owner (TO)
Transmission Operator (TOP)
Transmission Service Provider (TSP)
Transmission Planner (TP)
Planning Authority (PA)
Western Standards Review
& Compliance
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Western has self-reported 14 Compliance
Violations and Mitigation Plans to WECC.
Six Mitigation Plans have been completed.
All but one of the remaining Mitigation
Plans will be completed in 2007.
Western Compliance Audits
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As a TO and TOP, Western is required to
perform a Self-Certification by December
2007.
Western is scheduled to have a WECC
On-Site Compliance Audit in December
2008.
Questions/Discussion
Western’s OATT
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Transmission Reservation Process
Transmission Upgrades
Western OATT Requests/Planning
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Service or Interconnection Request
Submitted
Feasibility Analysis Performed
System Impact Study (SIS)
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Study of TX and impacts
Must be coordinated with neighboring TX owners
and potentially WECC
Western OATT Requests/Planning
(cont.)
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Facility Impact Study (FIS)
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Substation Impacts
Lands, Environmental
Design
Cost Estimates Determined
Mitigation On Neighboring Transmission
Anticipated Rate Impacts
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Determined from FIS Estimates
Includes existing TX service and additional service as a
result of the new line (if SIS indicates new TX results)
Transmission Service
Constraints
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Transmission Reliability Impacts All Customers
Firm Off-System Sales are Considered Direct Connect
Load and are subject to Schedule Cut like On-System
Cuts due to Transmission Outages are shared Prorata for all customers
All Network Upgrades benefit All Customers
Network VS. Direct
Assignment Upgrades
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Network Upgrades: Modifications or additions to
transmission-related facilities that are integrated with
and support the TP’s overall Transmission System for
the general benefit of all users of such Transmission
System.
Direct Assignment Facilities: Facilities or portions of
facilities that are constructed by the Transmission
Provider for the sole use/benefit of a particular
Transmission Customer requesting service under the
Tariff. Direct Assignment Facilities shall be specified
in the Service Agreement that governs service to the
Transmission Customer
FERC Bright Line Test For Facility
Designation
(1)
whether the new facility additions would improve service to existing system
load (other than the load that requested it);
(2)
whether the additional facilities, that have been demonstrated to be the most
cost-efficient alternative, are needed to maintain the reliability of the existing
transmission system;
(3)
whether the new facilities are mandatory requirements for a load
interconnection to satisfy a utility’s planning criteria, or whether they far
exceed what those criteria require;
(4)
whether customers other than the customer that requested the facilities would
experience a degradation in service if installation of the new facilities at issue
were not undertaken; and
(5)
whether the facilities are integrated with the rest of the transmission system,
and provide integrated benefits to the overall transmission grid.
Questions/Discussion
Transmission Revenue Requirement (TRR)
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Recovered by:
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Firm and Non-Firm Point to Point (PTP) Service
Network Integrated Service (NITS)
Must be fully recovered
Current recovery is estimated at:
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26 % - PTP
74 % - NITS
Estimated Impact on TRR
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Assumptions:
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50 year capitalization beginning in 2012
Revenue impact represented as an annual average
increase
% change reflected based on April 2007 TRR
Interest on loan (from third party) is expensed
based on the amortization of loan payment
Capitalization of project for repayment will probably
be different than represented but the approach
used provides a standardized basis
Estimated Impact on TRR
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“Partial Funding” ($22M) Option Scenario
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Project Capitalization of $92 million
Loan Interest Paid off in 3 years
Year(s)
2012-2014
% Inc to TRR
26.5%
2015-2061
15.0%
Total Repayment
$ 206 million
Estimated Impact on TRR
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“Full Funding” Third Party Option Scenario
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Project Capitalization of $97 million
Loan Interest Paid off in 18 years
Year(s)
2012
% Inc to TRR
42.6 %
2013-2029
32.1%
2030-2061
13.1%
Total Repayment
$ 264 million
Questions/Discussion