2011 transmission customer meeting october 12, 2011
DESCRIPTION
2011 Transmission Customer Meeting October 12, 2011. 2011 Transmission Customer Meeting. Agenda Minnesota Power and MISO Rates Structure 2010 True Up 2012 Rates Supporting Documentation Questions. Minnesota Power and MISO Rate Structure. ALLETE Attachment O to the MISO Tariff - PowerPoint PPT PresentationTRANSCRIPT
2011 Transmission Customer Meeting
October 12, 2011
Agenda◦ Minnesota Power and MISO Rates Structure◦ 2010 True Up◦ 2012 Rates◦ Supporting Documentation◦ Questions
2011 Transmission Customer Meeting
◦ ALLETE Attachment O to the MISO Tariff
Develops rates for the AC system
Schedule 7 Firm Point to Point Transactions Schedule 8 Non Firm Point to Point Transactions Schedule 9 Network Transmission Service
Develops rates for the HVDC system
Schedule 7 Firm Point to Point Transactions Schedule 8 Non Firm Point to Point Transactions Schedule 9 Network Transmission Service
Minnesota Power and MISO Rate Structure
◦ ALLETE Attachment GG to the MISO Tariff
Develops rates for the AC system Schedule 26 Network Upgrade Charge
Develops rates for the HVDC system Schedule 26 Network Upgrade Charge
Minnesota Power and MISO Rate Structure
◦ Minnesota Power is required to perform a true up of the 2010 forecasted rates to actual cost during 2011.
◦ This true up has been completed based on the 2010 FERC Form 1 .
◦ Any adjustments as a result of the true up will be included as part of the 2012 forward looking test year.
These adjustments will also include an interest calculation.
2010 True Up
2010 True Up Results
MISO Attachment O True Up Calculation•Annual Transmission Revenue Requirement True Up AC System DC System
Historic Year Actual RR $ 29,913,575 $ 15,754,008
Historic Year Projected RR $ 32,028,415 $ 15,985,088
Historic Year True Up $ (2,114,840) $ (231,080)
•Divisor True Up (KW Peak)Historic Year Actual Divisor 1,488,400
500,000Historic Year Projected Divisor 1,445,500
500,000Difference in Divisor 42,900
0
Historic Year Projected Annual Rate ($/kw/yr) $ 22.157 $ 31.970
Divisor True Up (Rate * Difference) $ 950,549
•SummaryRevenue Requirement True Up $ (2,114,840) $
(231,080)Divisor True Up $ 950,549 $
0Total 2010 True Up Before Interest $ (1,164,291) $
(231,080)
•Interest Calculation $ ( 75,679) $ (15,020)Minnesota Power Average Prime Interest RateInterest for 24 Months (Jan-10 to Dec-11) 3.25% 3.25%
•Total True Up $(1,239,970) $ (246,100)
2010 True Up Results
MISO Attachment GG True Up Calculation
Annual Attachment GG Revenue Requirement True Up AC System DC System
Historic Year Actual RR for GG $ 4,770,799 $ 0 Historic Year Projected RR for GG $ 3,801,425 $ 0
Historic Year True Up $ 969,354 $ 0
Interest Calculation $ 9,965 $ 0
Minnesota Power Short Term Interest RateInterest for 24 Months (Jan-10 to Dec-11) .514%
Total True Up $ 979,319 $ 0
2010 True Up Results
2012 MISO Rate Projections
AC System DC System
Gross Plant in Service (13 month avg.) $291,453,512 $127,421,467CWIP (13 month avg.) $ 33,078,662 Rate Base $ 168,002,502 $ 60,274,065
Attachment GG Credits ( $ 16,192.567)
Net Revenue Requirements $ 38,753,394 $ 16,329,538(Before True Up Credits)
True Up Credits ($,1,239,970) ( $ 231,080)
Net Revenue Req. $ 37,513,424 $ 16,098,458
2012 Projected Peak (MW) 1,520.2 500.0
Annual 2012MISO Transmission Rate $24,677 $32,197 ( Net RR / Peak = $/MW Yr)
2012 MISO Rate ProjectionsRevenue Requirements Based on MP 2012 Budget
AC System DC System
Annual Rates $24,677 $32,197
Monthly Rates (Annual rates / 12)
Schedule 7 (Firm) $2,056 $2,683
Schedule 8 (Non Firm) $2,056 $730*
Schedule 9 (Network) $2,056 N/A
* HVDC Non Firm Transactions are charged $ 1 per MW/Hrdue to non firm losses being incremental
2012 MISO Rate ProjectionsAnnual Rates Converted to Monthly Rates
Comparison of Monthly Rates2011 compared to 2012
2011 2012
AC System $2,223 $2,056
DC System $2,482 $2,683
2012 MISO Rate Projections
◦ AC Load up from 2011. DC Load steady
◦ AC Plant Balances up due to completion of the Phase 1 of the Essar Steel Project, the St. Cloud to Monticello CAPX Line and the Boswell to Bemidji CAPX Line.
◦ CWIP Balances are up to reflect the continuation of the St. Cloud to Fargo CAPX project
◦ AC Revenue Requirements have been offset by $16,192,567 in Attachment GG Credits
2012 Rate Analysis
Schedule 26 Network Upgrade Charge
Until MISO publishes 2012 allocations from all MISO TO’s a complete rate can not be projected. The 2012 allocations will be posted by MISO in December 2011.
Minnesota Power will be collecting revenue requirements for the following projects through Schedule 26 in 2012.
115 KV Badoura Area Upgrades In Service $ 5,930,346
(Includes 2010 True Up Amount)
230 kV Boswell to Bemidji CAPX Project In Service Sept 2012 $ 2,231,332
345 kV St Cloud to Monticello CAPX Project In Service Dec 2011 $ 2,770,511
345 kV St Could to Fargo CAPX Project CWIP $ 4,503,690
115 kV 9 Line Upgrade In Service Dec 2012 $ 1,736,007
◦ A revised Attachment O and GG were posted to the MP page of the MISO OASIS earlier this week
◦ A complete set of working papers can also be found at the same location
◦ https://oasis.midwestiso.org/oasis/MP
2012 Supporting Documentation
Questions
2011 Transmission Customer Meeting
Contacts: Mike [email protected](218) 355-2617
Jeanne [email protected](218) 355-2648
Kara [email protected](218) 355-2869
2011 Transmission Customer Meeting