-TEPPC Update NTTG Implementation of FERC Order 1000 Regional Planning WECC Offices Salt Lake City, Utah February 11-12, 2015 Regional Planning Orders Date FERC Issues July, 2011 Order No. 1000 First 1st Order on NTTG's Oct. May, 2013 2012 Commpliance Filing FERC's 2nd Order on NTTG's April, 2014 Sept. 2013 Compliance Filing Dec. 8, FERC's 3rd Order on NTTG's 2014 June 2014 Compliance Filing NTTG Responds October, 2012 Compliance Filing 1 September, 2013 2 June, 2014 3 December, 2014 4 The trigger for NTTG to start implementing FERC Order 1000 Regional Transmission Planning. 2 Biennial Planning Cycle Order 1000 Action Q8 Prior Cycle Pre-Qualification Project Sponsors for Cost Allocation Q1 Data Gathering and Project Submittal Q2 Development of the Biennial Study Plan Q3-4 Q7 Preparation of the Draft Regional Transmission Plan Stakeholder Review and Comment on Draft Regional Transmisison Plan and Update to Q1 Data and Submission of New Unsponsored Projects Update Biennial Study Plan; Cost Allocation Scenario Anslysis; and Draft Final Regional Transmission Plan Draft Final Regional Transmisson Plan Review Q8 Regional Transmission Plan Approved Today Q5 Q6 3 Data Collection 4 Sponsored Project Requesting Regional Cost Allocation One Project Received • Sponsor: Great Basin Transmission (LS Power) • Project: SWIP-North • Sponsor was Pre-Qualified for Regional Cost Allocation • Regional Cost Allocation applies if project is selected in NTTG’s Final Regional Transmission Plan SWIP North 5 Transmission Projects Sponsor Type Non-Committed Projects LTP Gateway West Project LTP B2H Project Voltage Circuits 500 kV 2 500 kV – 230 kV 2 500 kV 1 500 kV 1 230 kV 1 Idaho Power Great Basin Transmission Sponsored (1) LTP NorthWestern Energy LTP Southwest Intertie Project North Broadview – Garrison Upgrade Millcreek – Amps Upgrade LTP Gateway South Project 500 kV 1 LTP Gateway West Project 500 kV – 230 kV 5 LTP Blue Lake - Gresham 230 kV 1 +600 kV DC 1 PacifiCorp East Portland General TransWest Express (1) (2) Merchant Transmission TransWest Express Developer (2) Sponsored Projects and Unsponsored Projects identified by the Planning Committee will be evaluated through the use of Change Cases. Per customer request, the TransWest Express (Merchant) project will not be evaluated this planning cycle as an Alternative Project for selection in the Regional Transmission Plan. 6 Public Policy Request One Request Received • Sponsor: Renewable Northwest Project • Request: Public Policy Consideration – – – – – Retire 610 MW Colstrip Units 1&2 Units in MT Replace with 610 MW wind as two 305 MW wind farms New wind to be modeled at Broadview Sub, MT Change occurs in 2020 No new transmission lines • Study to be completed in Q6 • Study results informational 7 Technical Analysis 8 Draft Regional Transmission Plan Evaluation • Goal is to identify the most efficient or cost effective Regional Transmission Plan • Analysis – Stressed hours selection (production cost model) – Reliability analysis (power flow model) – Metric analysis for benefit determination • Analysis performed on – Initial Regional Transmission Plan • “Roll up” of the Transmission Providers transmission plans – Change Cases without non-Committed projects – Change Cases with addition of Alternative Projects and without non-Committed project 9 Draft Regional Plan Analysis • No significant reliability problems were identified – N-0 (steady-state), N-1 (single-contingency), N-2 (credible double-contingency) • Voltage/thermal issues evaluated and resolved • Change Cases evaluated non-Committed projects – Boardman to Hemmingway (B2H), Energy Gateway (EG), SWIP North • One unsponsored non-Committed project was defined as a result of the quarter 3-4 analysis 10 Metric Analysis 11 Metric: Change in Energy Losses • • This metric captures a transmission plans’ change in energy losses NTTG incremental energy loss computed for the 5 cases studied – – Computed: loss without the non-Committed project less the loss with the non-Committed transmission project Benefit = reduction in losses • Average the 5 case results, annualize the data and multiply by nodal energy price • • Result = monetized annual benefit Power flow analysis 12 Metric: Change in Reserve • Identifies potential benefit of new transmission to lower the reserve capacity costs of two or more entities assuming: – Incremental load and generation additions for the 10 year planning period – Generation capacity based on a simple cycle Frame F ($800/kW) – Reserve event energy costs based on the TEPPC 2024 case zonal gas prices • Four transmission upgrades examined – – – – Gateway (West & South) SWIP North Boardman to Hemmingway Montana to NW Upgrade Bozeman Montana-NW Portland Gateway W Wyoming Boise B2H enabled by Gateway W Gateway S SWIP Salt Lake Desert Southwest 13 Metric: Capital Cost • TEPPC Transmission Capital Cost tool – Validate project capital cost if submitted by project sponsor – Develop capital cost estimate if not submitted • TEPPC annual capital related cost model – Develop the annual capital-related costs over 40 years • Developed incremental costs as the sum of: – – – – Levelized annual capital-related costs Monetized annual energy losses Monetized annual reserves Effects on neighboring regions (mitigated internal to NTTG) 14 Incremental Cost Comparison 2014 M$ Case Configuration B2H=Boardman-Hemmingway EG=Energy Gateway Annual Capital Related Costs Positive = Benefit Incremental Cost* NTTG Losses Reserve $484.95 $0.00 $0.00 $484.95 $389.04 $0.36 $0.00 $388.68 IRP+SWIP North $88.89 $581.63 -$1.94 -$0.22 $0.00 $0.83 $90.83 $581.02 IRP-B2H+SWIP North $485.73 -$0.20 $0.83 $485.10 IRP-B2H-EG+SWIP North $96.68 -$0.44 $0.83 $96.29 Initial Regional Transmission Plan (IRTP) IRTP-B2H IRTP-B2H-EG+Alt Project** * Incremental Cost = Levelized Annual Capital Related Cost – NTTG Loss Benefit – Reserve Benefit ** Alternate Project required an unsponsored non-Committed project from Aeolus to Populus to eliminate reliability problems external to NTTG footprint. 15 Draft Regional Transmission Plan • Based on the studies performed thus far the Draft Regional Transmission Plan is: ― Initial Regional Transmission Plan without the non-Committed projects, and ― Addition of a unsponsored non-Committed project from Aeolus (southern Wyoming) to Populus (Idaho) • Lesson Learned ― The Study Plan did not fully account for transmission service obligations received during the Q1 data submittal period • Revise the Study Plan in Q5 to address this concern 16 Possible Revision to the Biennial Study Plan • Include two threshold requirements – Plan must be a reliable transmission system – Plan must meet the transmission needs: • • • • • Loads Resources Public Policy Requirements Transmission service obligation and Other identified transmission requirements • Implement the revised Study Plan in Q6 analysis • Develop the Draft Final Regional Transmission Plan in Q7 17 NTTG Next Steps NTTG Q4 Stakeholder Meeting Salt Lake City December 18, 2014 Order No. 1000 2015 Near Term Milestones Stakeholder Comments Public Updates and Public Review • Material Updates to Q1 Data Process • Draft Regional Transmission Plan • PPC Draft Study Plan • New Unsponsored Projects Q5 Economic Study Request Window Closes Submission of Economic Study Requests 2015: Q5 February 26 (Portland, OR) Western Regions Planning Coordination Meeting 12 Late March (Portland, OR) Q5 public meeting to discuss NTTG Regional Order 1000 RTP and ESR Process 19 Order No. 1000 High Level Milestones 2015 Q6-Q8 Q6 Updated Biennial Study Plan Updated with Q5 Stakeholder Comments, 2014 TWG Lessons Learned and Updated Q1 data Q7 • Draft Final Regional Transmission Plan Review • Economic Studies Performed • Q7 Stakeholder Mtg: Bozeman, MT Q6 Stakeholder Meeting Late June (Boise, ID) Q6: 2015 Q6 ESR Study Plan Study Plan for Economic Study Requests to be modeled Q6 Cost Allocation CAC allocates costs of projects selected into the Draft RTP Q7-Q8: 2015 Q6 Draft Final Regional Transmission Plan Produced • • • • 12 Q8 NTTG Regional Transmission Plan Approval Regional Economic Study Results Q8 Stakeholder Mtg: SLC, UT NTTG 2016-2017 Project Sponsor PreQualification Process 20 Questions? 21