Transmission 101B Open Access Transmission Tariffs Ancillary Services Generator Interconnection Proc

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Transmission 101B Open Access Transmission
Tariffs Ancillary Services Generator
Interconnection Procedures and AgreementsMarch
8, 2004
www.stoel.com

• Prepared by
• Stephen C. Hall
• Stoel Rives LLP
• 900 SW Fifth Avenue, Suite 2600
• Portland, Oregon 97204
• [phone]
• schall_at_stoel.com

O r e g o n W a s h I n g t o
n C a l I f o r n I a
U t a h I d a h o
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Open Access Transmission Tariff

• FERC Order 888
• Unbundling
• Open access
• Pro forma Open Access Transmission Tariff (OATT)

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Who is Required toHave an OATT?

• Jurisdictional utilities
• Public utilities that own, control or operate
  facilities used for transmitting electric energy
  in interstate commerce (i.e., IOUs)
• Non-jurisdictional utilities (e.g., municipals
  and PMAs)
• Reciprocity

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Types of Transmission Service

• Point-to-Point Transmission Service
• Firm, non-firm
• Long term, short term
• Network Integration Transmission Service

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What is OASIS?

• Open Access Same-time Information System
• Electronic interface for reserving and buying
  transmission.
• 18 CFR 37.

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Ancillary Services

• Pro Forma OATT
• Those services that are necessary to support the
  transmission of capacity and energy from
  resources to loads while maintaining reliable
  operation of the Transmission Providers
  Transmission System in accordance with Good
  Utility Practice

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Ancillary Services

• Ancillary services that transmission providers
  must offer and transmission customers must
  purchase from the transmission provider.
• System Control and Dispatch
• Reactive Supply and Voltage Control from
  Generators

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Ancillary Services

• Ancillary services that transmission providers
  must offer, but which transmission customers may
  purchase from the transmission provider, third
  parties, or self-provide.
• Regulation and Frequency Response
• Energy Imbalance
• Operating Reserve---Spinning
• Operating Reserve---Supplemental

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Ancillary Services

• Ancillary services that FERC does not require
  transmission providers to offer
• Load following
• Back-up supply
• Real power loss replacement
• Dynamic scheduling
• System black-start
• Network stability services

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Generator Interconnection

• Interconnection Service
• Transmission Delivery Service

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Generator Interconnection Agreements

• Purpose
• Identify and allocate costs associated with
  interconnection
• Define technical and operational parameters for
  the physical interconnection

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FERCs Order 2003Standardization of Generator
Interconnection Agreements and Procedures

• Final Rule issued July 24, 2003
• Compliance filings due January 20, 2004
• RTOs and ISOs
• Existing Generator Interconnection Agreements

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Two Types of Interconnection Service

• 1. Energy Resource Interconnection Service
• Allows generator to connect to the Transmission
  System and be eligible to deliver electric
  output using existing firm or nonfirm
  transmission on an as available basis.
• 2. Network Resource Interconnection Service
• Allows generator to connect to the Transmission
  System
• (a) in a manner comparable to that in
  which the TP integrates its generating
  facilities to serve native load customers, or
• (b) in an RTO or ISO with market based
  congestion management, in the same manner as
  all other Network Resources

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Transmission Interconnection Getting Started

• 1. Submit a completed application including
  location and technical data
• 2. 10,000 deposit
• 3. Identify type of Interconnection
  ServiceNetwork or Energy
• 4. Demonstrate Site Control or deposit an
  additional 10,000

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Transmission InterconnectionReceipt, Queuing,
Scoping

• 1. Transmission Provider (TP) acknowledges
  receipt and identifies any deficiencies with five
  (5) business days.
• 2. Interconnection Customer (IC) has ten (10
  business days to provide the information
  necessary to constitute a valid request.
• 3. Queue position based on the date of the valid
  request.
• 4. Scoping meeting held within thirty (30)
  calendar days of a valid request.
• 5. Interconnection Request posted on OASIS.

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StudiesInterconnection Feasibility Study

• 1. TP offers a signed study agreement.
• 2. IC returns the fully executed agreement with a
  10,000 deposit.
• 3. TP to use reasonable efforts to complete the
  study within forty-five (45) calendar days.
• 4. Study will include
• a. Power flow
• b. Stability and short circuit analysis
• c. List of required facilities
• d. Non-binding good faith cost estimates
• e. Time to construct
• 5. TP will meet with the IC to discuss the study
  results.

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StudiesInterconnection System Impact Study

• 1. TP offers a signed study agreement.
• 2. IC returns the fully executed agreement with a
  US 50,000 deposit.
• 3. A Queue Cluster Window of up to 180 calendar
  days may be used to collect and initiate
  Interconnection System Impact Studies for
  projects with Interconnection System Impact Study
  agreements executed during the cluster window.
• 4. TP will use reasonable efforts to complete the
  study within ninety (90) calendar days after
  close of the Queue Cluster Window.
• 5. TP will coordinate study of the affected
  systems.
• 6. Study will include
• a.       Power flow
• b.       Stability and short circuit analysis
• c.        List of required facilities
• d.       Non-binding good faith cost estimates
• e.       Time to construct
• 7. TP will meet with the IC to discuss the study
  results.

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StudiesInterconnection Facilities Study

• 1. TP will offer a signed study agreement.
• 2. IC returns the fully executed agreement with a
  US 100,000 deposit.
• 3. TP will use reasonable efforts to issue a
  draft Interconnection Facility Study within
  ninety (90) calendar days with /- 20 cost
  estimates or within (180) calendar days with /-
  10 cost estimates.
• 4. The draft study will include a plan of service
  and cost estimates for any TPs Interconnection
  Facilities and Network Upgrades and the time to
  construct.
• 5. TP will meet with the IC to discuss the
  results.
• 6. IC may provide written comments on the draft
  study.
• 7. TP will issue the final study after addressing
  the written comments.

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Standard Large Generator Interconnection
Agreement (LGIA)

• 1. Within 30 calendar days of the draft
  Interconnection Facility Study Report the TP
  shall tender the completed draft LGIA with
  appendices.
• 2.  Within 60 calendar days of the tender of the
  Final Interconnection Facility Study Report the
  TP and IC shall negotiate any disputed provisions
  of the appendices to the draft LGIA.
• 3.  Within 15 business days of the completion of
  the negotiation process the TP shall provide the
  IC a final LGIA.
• 4.  Within 15 business days of receipt of the
  final LGIA the IC will provide reasonable
  evidence of continued Site Control or post a US
  250,000, non-refundable additional security
  which shall be applied toward future
  construction.
• 5.  Within 15 business days, the IC shall either
  execute two originals of the tendered LGIA or
  request in writing that the TP provide service
  under an unexecuted LGIA.

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Construction Options

• Standard (default) Option
• Reasonable efforts to complete Interconnection
  Facilities and Network Upgrades.
• Alternate Option
• Date certain for completion with liquidated
  damages not to exceed 20 of the cost of the
  Upgrades.
• Option to Build
• Generator self-build if cannot agree on date
  certain.
• 4. Negotiated Option

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Engineering Procurement Agreement

• Prior to executing a Large Generator
  Interconnection Agreement the IC may request that
  the TP offer an Engineering Procurement
  Agreement to begin engineering and procurement of
  long lead-time items.

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Order 2003 Pricing Policy

• Interconnection Facilities
• Network Upgrades
• - IC financed
• - Transmission credits

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March 3, 2004FERC Reaffirms Order 2003

• Reimbursement
• Use of credits for transmission delivery services
• Unused credits
• Pricing
• Network upgrades are priced at the higher of the
  incremental cost rate or an average embedded cost
  rate for the entire transmission system
  (including the cost of the upgrades)