2013 Wind Conference

Transmission Service Study Process

Steve Purdy

Transmission Service

• Transmission Service Reservation (TSR) reserves a specific amount of – capacity in megawatts (MW)

– across a specific transmission system path

– for a given timeframe

• A Transmission Service Agreement (TSA) is a – legal contract between the customer and SPP

– filed with the Federal Energy Regulatory Commission (FERC)

– publicly available from FERC or SPP website 3

Transmission Service Parameters

• Term– Short-term (hourly, daily, weekly, monthly)

– Long-term (yearly)

• Firmness (priority)– Firm

– Non-Firm

• Class– Network (“NITS”)

– Point-to-Point (“PTP”)

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Network and Point-to-Point

• NITS service is charged a cost based on the customer’s “load-ratio share”, or the customer’s load as a percentage of SPP’s total network load– Network Load

– Network Resources

• PTP service is charged based on the amount of reserved capacity and the path

• Designated Resources serve any load within the SPP region– Network Resources serve specifically Network Load

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• First-come, first-served

• Short-term– SPP Operations

– AFC (Available Flowgate Capacity) process

• Long-term – SPP Engineering

– Study Process

Evaluation of Transmission Service Requests

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Study Processes for LT Transmission Service

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Aggregate Study

Attachment Z1

Aggregate Study

Attachment Z1

Delivery Point Transfer Study

Attachment AR

Delivery Point Transfer Study

Attachment AR

Delivery Point Addition Study

Attachment AQ

Delivery Point Addition Study

Attachment AQ

Transfer of an existing delivery

point from one SPP Network Customer

to another SPP Network Customer

All new PTP requests and re-directs, all requests to designate new resources, any other requests that

don’t fit one of the other processes

New network delivery points, facility

modifications to existing delivery points, and new “block” load additions to existing delivery points

Feb - MayOct - Jan June - Sept

Aggregate Study Process Open Seasons

• All long-term transmission service requests submitted within a 4-month “open season” are aggregated for purposes of evaluation

• Three aggregate studies are started each year

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Aggregate Study is an iterative process that continues until no customers withdraw

Open Season

(4 months)

Open Season

(4 months)

Facilities Study

(60 days)

Facilities Study

(60 days)

Letter of Intent Response Period

(15 days)

Letter of Intent Response Period

(15 days)

Restudy Needed

?

Restudy Needed

?

Write Service

Agreement

Write Service

Agreement

YESYES

NONO

Aggregate Study Process

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Model Build

Contingency Scan

Constraint Analysis

Cost Allocation

28 Models•7 Seasons: Years 1, 2, 5 Summer/Winter peak; Year 10 Summer peak•2 Cases: Base and Transfer•2 Scenarios: Projected Dispatch; Contractual Dispatch

Contingencies and Monitored Elements•N-1 Facilities in SPP•Flowgates for First-Tier areas and beyond

Identify Upgrades•Least-cost Solution•Utilize expansion-plan upgrades where possible

Attachment J, Z1, and Z2•Allocate Upgrade Costs by Flow Impact, including Crediting•Re-dispatch Calculation

Aggregate Facilities Study Stages

NPPDNPPD

AEPAEP

NPPDNPPD

OPPDOPPD

KCPLKCPL

SUNCSUNC WRWR

WFECWFEC OKGEOKGE

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AEPAEPDecrease Generation

Increase Generation

Aggregate Study ProcessMISO

AECI

100 MW

SPP

Aggregate Study Process

• Upgrade Costs– Transmission System upgrades are determined for the entire

aggregate group of requests

– Upgrade costs are allocated to each request, based on its positive MW impact on the upgrade

– The MW impact must meet at least a 3% Transfer Distribution Factor (TDF) to be allocated to a request

• Study Costs– Study costs are allocated to all requests in the first study iteration

– Subsequent re-study costs are allocated to the withdrawing customer that drives the need for the re-study

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Upgrade Funding for Service Upgrades• Designated Resources

– Base Plan “Highway/Byway” Safe Harbor Cost Limit of $180,000/MW

Qualifications

– 5-year term– Designated Resources ≤ 125% Designated Loads– Wind Resources ≤ 20% Designated Loads

– Excess = Directly Assigned Upgrade Costs (“And” Charge)

– Waiver Process

• PTP service – PTP revenue

– Excess = Directly Assigned Upgrade Costs (“Or” Charge)

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Documents Posted on SPP OASIS

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Documents Posted on SPP OASIS

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Informational Documents

SPP Aggregate Study Email Exploder

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Frequently-Asked Questions

• What is a Letter of Credit and when do I have to provide it?– Financial Instrument provided to SPP to cover the cost

of upgrades in case of customer default

– Typically 1-2% of the amount of the LOC

– Required prior to confirmation of service

• Can I request to be a Designated Resource for a Network Service Customer?– Only the Network Customer can request to designate a

new resource

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Frequently-Asked Questions

• What are the steps in finalizing service?– SPP sends email to customer with instructions

– Customer updates OASIS request as needed

– Customer provides documentation as needed Attestation for Designated Resources

Re-dispatch Agreements

Letter of Credit

– SPP accepts OASIS request

– Customer confirms OASIS request

– SPP tenders service agreement18

Current Study Queue

StudyCurrently

Active Iteration

Due DateRequests Currently in Study

MW Currently in

Study

Currently Posted Study

Date Posted

2011-AG2 AFS-10 LOI 6/8/2013 17 1,252 AFS-9 3/13/2013

2011-AG3 AFS-9 7/15/2013 26 2,069 AFS-8 5/1/2013

2012-AG1 AFS-4 10/17/2013* 44 2,870 AFS-3 4/5/2013

2012-AG2 AFS-5 9/15/2013* 40 4,756 AFS-4 3/4/2013

2012-AG3 AFS-4 7/8/2013 49 6,435 AFS-3 4/24/2013

2013-AG1 AFS-2 6/17/2013 57 4,584 AFS-1 4/3/2013

2013-AG2 Open Season ends 5/31/2013

Total 233 21,966

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As of May 30, 2013

Retract requests outside the parameters

Retract requests outside the parameters

Open SeasonOpen

Season

Aggregate Facilities

Study

Aggregate Facilities

Study

Tender Service

Agreements

Tender Service

Agreements

105 Days

Day 1 105

Overview of the Proposed Process

Feb 1Example Dates

Remove requests outside

parameters from analysis

Remove requests outside

parameters from analysis

Aggregate Facilities

Study Agreement

Aggregate Facilities

Study Agreement

Accept/Confirm all requests

within parameters

Accept/Confirm all requests

within parameters

June 1

Process continues without customer intervention

until all remaining requests are within the specified parameters

Process continues without customer intervention

until all remaining requests are within the specified parameters

1. Customer defines maximum acceptable directly-assigned upgrade cost & 3rd party upgrade cost estimates

2. Customer defines acceptable deferred start date

3. Customer defines acceptable re-dispatch criteria

4. Execute study agmt. with obligation to take service.

5. Submit attestation for DR requests

1. Customer defines maximum acceptable directly-assigned upgrade cost & 3rd party upgrade cost estimates

2. Customer defines acceptable deferred start date

3. Customer defines acceptable re-dispatch criteria

4. Execute study agmt. with obligation to take service.

5. Submit attestation for DR requests

Prohibit “mutually-exclusive” requestsProhibit “mutually-exclusive” requests

Post study results with cost estimates

for all requests, including removed

Post study results with cost estimates

for all requests, including removed

Questions

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