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RTO UPDATE FOR Energy Northwest Board Operations

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States, Public Power, IPPs, Interest Groups and RTOW Filing Utilities (FUs) RTO FUs Goals: ... Flow-based ATC calculation. Independent market monitoring function ... – PowerPoint PPT presentation

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Title: RTO UPDATE FOR Energy Northwest Board Operations


1
RTO Updatefor CAE/Legislators Briefing 11/13/2003
2
Revived RRG Process
  • Restarted Regional Representatives Group Process
    (RRG) in June 2003.
  • States, Public Power, IPPs, Interest Groups and
    RTOW Filing Utilities (FUs)
  • RTO FUs Goals
  • Ensure a solution that is focused on regional
    needs
  • Develop broad regional consensus.

3
RRG Process Accomplishments To Date
  • Bottoms up approach
  • Striving for a Consensus Based approach to
    decision making.
  • Dozen all day meetings
  • Reached consensus on regional problems and
    opportunities (www.rtowest.com)
  • Planning Expansion
  • More efficient use of the existing transmission
    system
  • Market monitoring and oversight
  • Pricing/rate pancaking
  • Reliability/Control Area consolidation/Ancillary
    Services

4
  • Reached consensus that a status quo (do
    nothing) approach is not a
  • realistic solution and that significant
    change is needed.
  • Worked on 3 solution options
  • Coordination-based
  • Independent Administrator
  • RTOW Stage 2 reloaded

5
Option 1 Coordination -Based
  • Independent Transmission Management Committee
  • Regional Transmission Plan via NTAC
  • One-Stop-Shop via NW OASIS (separate tariffs)
  • Flow-based ATC methodology.
  • New conditional firm service products offered.
  • Voluntary inc/dec market to clear congestion
  • Voluntary control area consolidation.
  • Independent PNSC able to order changes in
    generation and load to
  • maintain reliability.
  • Rate Pancaking remains
  • State/Federal agreement to establish an
    independent market monitor.
  • Existing rights preserved

6
Option 2 Independent Administrator
  • Independent entity and Governing Board
  • IA develops regional transmission plan and has
    backstop
  • authority for reliability projects.
  • IA provides One-Stop-Shop via single OASIS
  • IA administers flow-based ATC methodology.
  • New conditional firm service products offered.
  • IA runs voluntary inc/dec market to clear
    congestion.
  • Voluntary Control Area consolidation
  • IA is the independent market monitor
  • Existing rights preserved.

7
Option 3 Stage 2 Reloaded
  • Independent entity and governing board
  • RTO develops regional plan and has backstop
    authority for reliability
  • and commercial needs.
  • RTOW accepts all schedules, limited by
    feasible dispatch (later)
  • RTOW acquires inc/dec to clear congestion and
    charges incremental
  • users
  • RTOW administers a single tariff
  • Rate pancaking is eliminated
  • Existing rights preserved

8
  • Flow-based ATC calculation
  • Independent market monitoring function
  • Partial control areas consolidation and RTOW
    is system operator
  • RTOW acquires and provides ancillary services
    provider of
  • last resort.
  • Phased implementation approach

9
Common Elements
  • Independent decision-making
  • Single Regional Transmission Plan with dispute
    resolution
  • Being sure transmission plans get built is
    critical (backstop)
  • Independent flow-based ATC calculation
  • One-stop-shopping
  • Preservation of existing rights
  • Independent market monitor
  • Voluntary inc/dec to clear congestion
  • Enhanced short-term reliability
  • Phased/staged implementation.

10
Differences/Remaining Issues
  • Governance/How independence is achieved
  • Control area consolidation (cost issue)
  • Rate pancaking
  • Accept all schedules vs. new quasi-firm
    products/Congestion Management
  • Single tariff vs. Individual TO tariffs
  • Ancillary Service provider of last resort.

11
Next Steps
  • Try to find convergence in remaining areas of
    difference
  • 3 Workgroups formed at 10/9/2003 RRG
  • Convergence
  • Governance
  • Congestion Management
  • New workgroup formed at 10/29-30 RRG to develop
    straw hybrid proposal
  • Next RRGs 11/19-20 and 12/10-11
  • Goal is to reach a preferred approach by end of
    the year
  • It will take 6-12 months to fully develop a
    preferred approach and
  • initiate the approval process (BPA, states,
    FERC)
  • Implementation will be phased in over several
    years.
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