nttg 0rder 1000 stakeholder meeting march 28, 2012 radisson hotel portland, oregon

NTTG 0rder 1000 Stakeholder NTTG 0rder 1000 Stakeholder MeetingMeeting

March 28, 2012

Radisson HotelPortland, Oregon

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2

10:00 am – 10:15 am Welcome and Introductions

10:15 am – 10:30 am O1K Planning Compliance Workgroup Status Update

10:30 am – 11:10 am Draft Tariff Revisions

11:10 am – 11: 30 am Draft Planning Committee Charter Revisions

11:30 am – 12:00 pm Draft Planning Practices Document

12:00 pm – 12:45 pm Lunch Break

12:45 pm – 1:30 pm Continue Draft Planning Practices Review

1:30 pm – 2:00 pm Cost Allocation Workgroup Status Update

2:00 pm Next Steps and Adjourn

AgendaAgenda

Draft Tariff RevisionsDraft Tariff Revisions

Order 1000 Stakeholder UpdateMarch 28, 2012


3PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

4

Draft Tariff Revision materials are Draft Tariff Revision materials are posted to the NTTG Websiteposted to the NTTG Website

To access the Draft Tariff Revision materials

click on the following:

• Redline – Click Here

• Clean – Click Here

PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

http://nttg.biz/site/index.php?option=com_docman&task=doc_download&gid=1613&Itemid=31

http://nttg.biz/site/index.php?option=com_docman&task=doc_download&gid=1614&Itemid=31

Planning Committee CharterPlanning Committee Charter




6

Overview of Proposed Changes - Overview of Proposed Changes - (NTTG Planning Committee Charter)(NTTG Planning Committee Charter)

General Changes: a. Deleted paragraph on “Authority of Planning committee” and “Project

facilitation” – too obvious

b. Moved the Principles and Footprint/Coordination to an Appendix

c. Deleted “Biennial Transmission Planning Cycle”, “Footprint/Coordination” and “Confidentiality of Data”– already in Attachment K document

Partitioned the document into nine major sections as follows:

I. Purpose – edited extensively

II. Duties and Responsibilities – new section

III. Committee Operating Structure

IV. Committee Chair

V. Committee Meetings

VI. Decision Making

VII. Technical Work Group - new

VIII. Budget

IX. Change ControlPROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

I. PurposeI. Purpose• The purpose of the NTTG Planning Committee is to:

1. Provide a forum where all stakeholders are encouraged to participate in the

planning, coordination, and development of a more efficient and more cost

effective Regional Transmission Plan.

2. Prepare a Regional Transmission Plan consistent with applicable NERC and

WECC system reliability standards and criteria, and public policy needs.

3. Ensure the Regional Transmission Plan satisfies FERC Order 890 and 1000

compliance requirements..

• The broad stakeholder participation envisioned in this process (including

transmission owners, customers and state regulators) is intended to result in

a Regional Transmission Plan that meet a variety of needs and has a broad

basis of support.


II. Duties and ResponsibilitiesII. Duties and Responsibilities of the Planning Committee of the Planning Committee

• The NTTG Planning Committee reports to the NTTG Steering Committee and is responsible for:1. Developing the study plan for each biennial cycle,

2. Obtaining NTTG Steering Committee approval of the study plan,

3. Performing and documenting the assessments as defined in the study plan,

4. Conduct stakeholder economic studies requests for the NTTG,

5. Coordinating transmission planning with adjacent regional planning groups,

6. Coordinating planning with the WECC planning committees, and

7. Publishing, on a biennial basis a Steering Committee approved regional Transmission Expansion Plan.


No changes applied to:No changes applied to:

III.III. Committee Operating Structure Committee Operating Structure

IV.IV. Committee Chair Committee Chair

V.V. Committee MeetingsCommittee Meetings

VI.VI. Decision MakingDecision Making


V. Technical Work Group – V. Technical Work Group – “New” “New”

• The NTTG Planning Committee will form and over see a Technical Work Group

(TWG) having the proper technical skills, experience, tools and resources to perform

the detailed analysis and studies required to support the biennial study cycle and the

plan development overall. The TWG will be responsible for performing the bulk of the

technical studies and analysis required by the most recent approved biennial regional

transmission study plan. The Planning Committee will select individuals from the

Planning Committee members based on transmission planning experience, access to

and ability to use power system analysis and/or production cost simulation software,

power system modeling expertise, and overall knowledge of the NTTG transmission

footprint and the western interconnection.


No ChangeNo Change

VIII. Budget VIII. Budget


IX. Change Control ProceduresIX. Change Control Procedures

• Changes to the Planning Committee structure, functions

and responsibilities including its Charter will be

conducted through open stakeholder processes currently

in use by NTTG and any changes will subsequently be

approved by the NTTG Steering Committee.


PROCESS AID FOR DISUCSSION PURPOSES ONLY AND SUBJECT TO CHANGE 13

Regional Planning PracticeRegional Planning Practice




Information from NTTG’s Regional Information from NTTG’s Regional Planning Practice documentPlanning Practice document


Index1. Objective of NTTG’s Regional Transmission Planning

Process

2. Biennial Planning Cycle

3. Information Gathering from Transmission Providers and Stakeholders

4. Regional Transmission Plan Evaluation Process

5. Study Plan

Objective Regional Planning Objective Regional Planning ProcessProcess


• Develop an initial regional transmission plan from a roll up of the local transmission plans

• Improve upon that plan, if possible, • Develop a Regional Transmission Plan that

meets the regional transmission needs more efficiently and cost effectively than the roll up of the transmission providers local transmission plans

Planning Practice Pg 3



Process




5. Study Plan


18

Biennial Planning Process


Gather Information * 01 Receive Requests * 01

Develop Study Plan, Assumptions * 02 Perform Studies 02

Perform Draft Plan Analysis * 03 Report and Review * 03

Perform Draft Plan Analysis * 04 04

Draft & Review Report and Gather Info * 05 Receive Requests * 01

Final Plan Analysis & Cost Allocation * 06 Perform Studies 02

Prepare & Review Final Report * 07 Report and Review * 03

Obtain Final Plan Approval 08 04

* Stakeholder Input

NTTG EIGHT-QUARTER BIENNIAL PLANNING PROCESS

Ye

ar O

ne

Ye

ar T

wo

Eligible Customer & Stakeholder Economic

Congestion Study

Biennial Planning Cycle

While the resulting Regional Transmission Plan is not a construction plan, it will provide valuable regional insight and information for all stakeholders to

consider and potentially modify their respective plans.




Process




5. Study Plan


20

Type of Project SubmittedType of Project SubmittedTypes of projects potentially in the regional transmission

plan

a)projects with potential regional impact rolled up from one or more local transmission providers’ transmission plan(s)

b)merchant developer projects

c)new “unsponsored” regional project identified through the regional planning process

d)interregional projects

e)non-transmission alternative projects

f) transmission projects to satisfy existing or future public policy needs required by state or federal law or requirements

PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGEPlanning Practice Pg 5

21

ProjectProjectSubmittalSubmittalProcessProcess


Transmission Provider

Non Incumbent/MerchantDeveloper

For Consideration in Regional Transmission Planning Process

Test Information against

Qualification Criteria

Prior to Start of Biennial Cycle Submit Sponsor Qualification

Data

Cure deficiency

Fail

Project Submittal to the Regional Plan

Submit Qtr 1Project

Information

Project for Regional Cost Allocation ConsiderationProject Not for

Regional Cost Allocation

Consideration

Submit Qtr 1Additional Cost Allocation Data

ANDProject Information Data

Pass


Submitted in Plan for Cost AllocationSubmitted in Plan for Cost Allocation


Category Qualification Data1. Name and address2. Years in business 3. Operating environment (what is the nature of your business?)1. Management’s experience in the industry2. Scope of sponsor’s technical expertise (in house expertise and/or out sourced expertise) 3. Name and location of a project of similar scale that demonstrates the sponsor’s technical expertise1. Balance sheet or annual report (if appropriate)2. Credit worthiness

a. Rating agency reports (if applicable) b. Two most recent audited year-end financial statements plus any available quarterly financial statements for current fiscal year (if applicable)c. Material issues that could impact the credit decision including but not limited to litigation, arbitration, contingencies, or investigations (if applicable)

3. Other information supporting sponsor’s financial expertise

3 Project sponsor financial expertise to develop, construct, own the proposed facility

Sponsor Qualification Data – Submit Prior to Biennial Cycle BeginsProject Submitted for Selection in Regional Plan for Regional Cost Allocation

1 Project sponsor description

2 Project sponsor demonstration of technical expertise to develop, construct, own the proposed facility

Planning Practice Pg 7-8

ContinuedContinued


4 Project Sponsor ability to maintain and operate their proposed facility

1. Prior operation experience 2. Prior maintenance experience

5 Project summary 1. Summarize the proposed project

6 Investors 1. Description 2. Interest

7 Demonstration of ability and commitment to register and comply with all NERC standards

1. An attestation form

8 Other relevant or pertinent data or information

1. As appropriate


Additional Cost Allocation DataAdditional Cost Allocation Data


1 Project sponsor name and project description (should be the same as provide on sponsor qualification data, if different provide update)

2 Physical location 3 Detailed Cost Estimate4 Cost/benefit analysis 5 POR/POD 6 Pertinent engineering and/or transmission studies or other reports 7 A copy of any WECC or other regional, interregional or interconnection–wide planning entity

economic and reliability determinations relative to the project 8 Status of any siting process 9 Proposed cost allocation (The sponsor should state how they would see the cost being

allocated and after the modeling show a comparison of the two (ours/theirs)). 10 Proposed Beneficiaries: (tells Cost Allocation committee what the sponsor thinks the cost

recovery looks like).

Additional Cost Allocation Data - Submit During Quarter 1Project Submitted for Possible Selection in Regional Transmission Plan for Cost Allocation


ContinuedContinued



11 Proposed cost recovery, if any other than NTTG regional cost allocation.12 A risk and benefit analysis focusing on the distribution of costs, benefits and risks among the

parties proposed to share in the cost allocation of the project.13 Proposal on dealing with cost overruns 14 Discuss degree of consensus among stakeholders on all of the above 15 How each NTTG cost allocation and Order 1000 principles are applied in the analysis 16 A description of any regulatory rulings needed prior to examination of the project 17 Any NTTG Planning Committee analysis pertinent to the project and a description of how it fits

into the NTTG Annual or Biennial Plan 18 Description of any proprietary or commercially sensitive information applicants believe should

remain confidential during the review process19 Other relevant or pertinent data and information.

Timeline for SubmissionTimeline for Submissionof Qualification Dataof Qualification Data


Oct Nov Dec Jan Feb Mar

Submit Qualification Data

Review Data and Issue Deficiency Notice if Necessary

Time to Remedy

Submit Additional Cost Allocaiton Data

Submit Project Information

Qu

alification

Biennial Cycle

Quarter 1

Projects Consideration for Regional Cost Allocation Timeline


Selecting the Public Policy Needs for Selecting the Public Policy Needs for the Regional Transmission Planthe Regional Transmission Plan



Transmission Provider

Q1 Public Policy Data Submitted

With Stakeholder and State Regulator InputPC Public Policy Recommendation

Q2 (June)Steering Committee Approve Study Plan

Q2 Develop Study Plan Including Public Policy Needs Defined

Stakeholder

For Inclusion in Scenario Analysis

Plans

For Inclusion inRegional Transmission

Plan

Public policy needs will be evaluated with other regional projects rather than considering public policy needs separately from other transmission needs.




Process




5. Study Plan

Biennial Plan Evaluation Biennial Plan Evaluation ProcessProcess


NTTG TP NTTG TPTopology and L&R Topology and L&R

w/Pubic Policy w/Pubic Policy

initial regional transmission plan

Qtr 3-4 Initial Regional Trans Plan AnalysisHigher Level Analysis of Initial Plan

and Scenario Analysis UsingProduction Cost and Power Flow Models

draft regional transmission plan

. . .

Qtr 3 Initial Regional Transmission PlanDefined as the Roll Up of TP Plans for Year 10

Qtr 7 Stakeholder CommentRevise report if appropriate

draft Final Regional Transmission Plan report

Qtr 8 Steering Committee ApprovalFinal Regional Transmission Plan report

Qtr 5 Draft Regional Transmission PlanCollect input to & comment on draft regional transmission

plan

Qtr 5-6 "Final" Regional Plan DevelopmentDetailed analysis of draft regional trans plan with

stakeholder input and Q5 data updates draft Regional Transmission Plan report

Year 1 Year 2





Process




5. Study Plan

The Study PlanThe Study Plan


• Developed during the second quarter• Will be developed in consultation with stakeholders• Will delineate the method of study of evaluation

o of transmission and non-transmission alternatives that have been received

• Will be followed as closely as possibleo any change will coordinate stakeholders o scheduled Transmission Planning committee

meetings


The Study PlanThe Study Plan


The minimum information to be in the study plan will include the following:


Goal of the StudyGoal of the Study


• Determined to be an efficiently and cost effective

• May be different than the local transmission plans.

Planning Study Will…Planning Study Will…

• Examine a limited number of scenarios

• Identify regional transmission and non transmission improvements and/or new solutions

• Include additional scenarios other public policy needs


Deliverables from the PlanDeliverables from the Plan


• develop a Regional Transmission Plan

• plan meets the regional transmission needs

• more efficiently and

• cost effectively than the initial regional transmission plan

• deliverables may be further defined• during the development of the study plan• with consultation from stakeholder


At a minimum a At a minimum a more efficient more efficient Regional Transmission Plan …Regional Transmission Plan …


• when compared to the initial transmission plan• meets the needs roughly commensurate• equal to or better reliability performance• congestion will not be greater

• can be developed in the proper timeframe• does not accelerate any future problems unless

• total cost with mitigation no greater than initial transmission plan

• there is sufficient time to mitigate the problem


At a minimum a At a minimum a more cost effective more cost effective Regional Transmission Plan …Regional Transmission Plan …


• when compared to the initial transmission plan

• total incremental capital cost is less than or equal to

• total production cost of the is less than or equal to

• or, the sum less than or equal to


The study plan may modify the efficient and cost effective selection criteria after consultation with stakeholders.

Reevaluation of Project Selected in Reevaluation of Project Selected in Regional Plan for Cost AllocationRegional Plan for Cost Allocation


A transmission provider solution maybe displaced during NTTG’s regional biennial planning

and a delay in development of a project selected in the regional plan for cost allocation occurs

Transmission Provider may choose to …•have effects evaluated in the biennial process•revise their local plan back to original solution that was displaced


MethodologyMethodology


The Plan will …

• biennially prepare a long-term (up to 10 year)

• describe the study techniques

• identify the system conditions

• use a recently TEPPC study base case

• discussion the contingencies to be run

• meet applicable NERC and WECC system reliability standards and criteria


PROCESS AID FOR DISUCSSION PURPOSES ONLY AND SUBJECT TO CHANGE 39

Cost Allocation Workgroup Cost Allocation Workgroup Status UpdateStatus Update




NTTG Benefits Brainstorm Sessions:NTTG Benefits Brainstorm Sessions:Part I (Portland 2/17)Part I (Portland 2/17)


RTOs• MISO

• CAISO

• SPP

• NYISO

NTTG Members• MISO LODF

• PJM DFAX

• Bottom Up “Economic Projects”

Benefits and Cost AllocationBenefits and Cost AllocationBrainstorm Part II (Boise 2/29)Brainstorm Part II (Boise 2/29)


Outcome from Boise 2/29 discussion of top down vs. Bottom Approach to Cost Allocation

• Book reports looking at how RTOs arrived at methodologies for determination of benefits and cost allocation

• SPP (Highway/Byway

• MISO

• PJM (DFAX)

• Revised work plan developed

• NYISO

• Bottoms Up Approach

Cost Allocation Methodology Cost Allocation Methodology Assessment PlanAssessment Plan


• NTTG must adopt a cost allocation methodology to meet the compliance requirements of Order No. 1000

• Work plan:– Analyze and prepare “book reports” on methodologies

previously approved by FERC– Determine which metrics used to support these

methodologies may be appropriate for NTTG’s use– Where possible, run modeling scenarios using the

identified metrics to simulate cost allocation results for NTTG

– Based on these analyses and stakeholder input, recommend a cost allocation methodology for approval by the NTTG Steering Committee

Current StatusCurrent Status


• Book Report Results Update

• Direction Forward

nttg 0rder 1000 stakeholder meeting march 28, 2012 radisson hotel portland, oregon

Documents

wecc planning committees

discussion purposes

study plan

nttg websiteto

transmission owners

draft tariff revisions11

stakeholder updatemarch

changeprocess aid