Connection Process Update Stakeholder Information Session. Metropolitan Conference Centre Ave SW, Calgary April 16, 2015

Transcription

1 Connection Process Update Stakeholder Information Session Metropolitan Conference Centre Ave SW, Calgary April 16, 2015

2 Agenda Welcome and introductions Connection Process Working Group recommendations and implementation Update on other improvements and current initiatives Next steps 2

3 Connection Process Working Group Recommendations and Implementation Rod Millar Director, Transmission Project Delivery

4 Background Connection Process April 2010 Launch of new Connection Process Transparency, standards, templates, expectations October 2011 AESO s Stakeholder Update October 2012 AESO s Innovation Workshop Continuous education, Quarterly metrics report, Connection Process Working Group 2013 Alberta Department of Energy (DOE) Initiatives to improve process Market Participant Choice, Letter of Enquiry, Distribution Facilities Owners agreements, AUC Rule 007 Review, Abbreviated Needs Approval Process Process is standardized and stable, now introducing new improvements 4

5 Connection Process Working Group The AESO issued a call for interest and Terms of Reference for the Working Group in 2013 Cross-section of industry representatives participated TFOs, DFOs, GFOs, IPCAA, IPPSA, Study consultants, AESO Purpose of Working Group was to identify, review and recommend measures to: Explore opportunities for improvements to the Connection Process Make recommendations on behalf of industry Several workshops and meetings held through

6 What have we heard from Industry? Customers want an improved experience through a process that embodies: Ability to negotiate and influence Efficiency Flexibility Ease Commitment Value ( costs ) 6

7 Connection Process Working Group Recommendations Four recommendations for improvement: AESO Role to shift from Active Management to Active Leadership revised roles and responsibilities Develop education program Develop and publish deliverabledefined metrics Provide opportunities for schedule alignment 7

8 Revised Roles and Responsibilities

9 Revised Roles and Responsibilities - Integrated Project Manager Working Group recommended a shift in AESO Role to provide the flexibility to Market Participants to manage and control their projects AESO introducing the Integrated Project Manager Role which must be assigned as part of the SASR application in Gate 0 Market Participant TFO Study Consultant AESO, upon request Provides the opportunity for Market Participants to lead the pace of their project while still meeting Connection Queue Business Practices 9

10 AESO Role - Active Management to Active Leadership CUSTOMER AESO TFO From Active Management 10

11 AESO Role - Active Management to Active Leadership CUSTOMER AESO TFO From Active Management CUSTOMER AESO TFO To Active Leadership 11

12 AESO s Role in Connection Process - Integrated Project Manager AESO will participate and provide defined deliverables AESO Project Manager will be assigned to lead activities within the AESO and be the point of contact for the AESO AESO retains the right to choose to be the Integrated PM as required AESO will retain the role of governing gate requirements, as Connection Process Queue business practices still apply Ensures studies are valid and the current system topology is up-to-date around the province 12

13 Integrated Project Manager Role Integrated PM is responsible to: Coordinate activities through the life cycle of the project Ensure the project moves at the pace required by the Market Participant, following the Connection Process Queue business practices Organize and coordinate the Project Kick off meeting with all stakeholders involved in the project; upon receipt of the AESO s Gate 0 acknowledgement letter meetings can still be held at the AESO Integrated PM will be responsible to coordinate activities between the various stakeholders 13

14 Market Participant Role Market Participant is accountable to lead the project and may choose to be the Integrated PM or can assign to the TFO, Consultant or request the AESO Accountability to develop the Connection Plan shifts to Market Participant 14

15 Stage 1 to 3 Roles and Responsibilities Kick off Meeting Integrated PM is accountable to lead and set up the kick off meeting with all stakeholders upon receipt of the AESO s Gate 0 Acknowledgement Letter AESO will participate at the meeting Connection Plan Market Participant is now accountable Integrated PM is responsible to finalize the plan Project team, including the AESO, remains involved with review and sign-off Connection Study Scope AESO will retain accountability of the Study Scope Approval as per the AESO s planning mandate Integrated PM is responsible to coordinate completion 15

16 Stage 1 to 3 New IPM Role and Responsibilities Connection Studies/Connection Proposal Market Participant remains accountable Integrated PM will ensure activities are coordinated and studies are submitted to AESO for acceptance Functional Specification/Directions AESO is accountable/responsible to complete deliverables CCD and Needs Identification Document No change from current RACI, AESO accountable PDUP Stage 1 and 2 Market Participant is accountable Integrated PM will coordinate activities PDUP Stage 3 TFO and Market Participant are accountable Integrated PM will coordinate activities 16

17 Stages 4, 5 and 6 New IPM Role and Responsibilities Stage 4 AUC Review PDUP Stage 5 TFO is accountable Integrated Project Manager will coordinate activities Stage 5 and 6 AESO will complete the Energization Checklist with inputs from Market Participant and TFO as required Reporting Metrics AESO is responsible and accountable to report metrics to the industry 17

18 Questions? 18

19 Education Program

20 Education Program AESO will host annual session, open to all stakeholders to: - Provide an overview of all six-stages of the Connection Process - Ensure roles and responsibilities are clear - Provide an update on the results of the quarterly metrics reports - Educate on Connection Process options (MPC, ANAP etc.) AESO to participate in stakeholder outreach led by other industry and/or individually upon request AESO Project Leader available for education and guidance through process for every project Improve aeso.ca website to create a more user-friendly tool for customers to use 20

21 Connection Process Web Tool ROLES AND RESPONSIBILITIES COMPLETED DELIVERABLES SUPPORT TOOLS AND DOCUMENTS TIPS, TRICKS, AND ADDITIONAL INFORMATION 21

22 Connection Process Web Tool 22

23 Questions? 23

24 Opportunities for Schedule Alignment

25 Opportunities for Schedule Alignment Formal opportunities to align project schedule was recommended to increase efficiency and commitment Formal schedule check-in to occur at four points in the Process; driven by Integrated PM The Connection Plan contains high level project schedule A Project Schedule Alignment Template must be completed by the integrated project manager following completion of: Connection Proposal PPS P&L All schedule alignment must be reviewed and signed-off by TFO/AESO/MP AESO PM will update the AESO project schedule upon receipt of Schedule check-in for input into metrics 25

26 Questions? 26

27 Deliverable-Defined Reporting Metrics

28 Deliverable-defined Reporting Metrics Market Participant has accountability to drive their projects forward; however all participants play a role in success Revisions to the metrics were recommended by the Working Group to: Increase transparency, accountability and commitment Increase understanding of inputs and results to drive efficiencies and find opportunities for improvement AESO revised metrics to include deliverable-defined metrics along with stage-driven metrics Q4 report available on website AESO will continue to provide quarterly reports 28

29 Connection Process Update 29

30 Connection Process Update 30

31 Connection Process Update 31

32 Summary Connection Process Working Group recommendations have or are being implemented Revised Roles and Responsibilities (Integrated PM) effective May 1, 2015 Inflight projects may transition to an IPM upon request Formal Schedule Alignment requirements effective May 1, 2015 Education Program Web tool available; improvements ongoing Annual session summer 2015 Revised Deliverable-Defined Metrics Published in Q1 2015; improvements ongoing 32

33 Questions? 33

34 Update on Other Improvements and Current Initiatives Kelly Yagelniski Director, Transmission Program Support

35 Background Several other industry work streams have resulted or will result in other improvements that affect aspects of the Connection Process Cost Estimate Template, Service Proposal Guideline and Instructional Guideline ISO Rule 9.1 Review - Recommendations and Revisions Abbreviated Needs Approval Process Abbreviated Needs Identification 35

36 Cost Estimate Template and Instructional Guidelines In 2012, one of the AESO Recommendations from the Transmission Cost Accountability Recommendation Paper was to enhance the quality of cost estimates The AESO issued a revised Cost Estimate Template (March 19, 2015) to be used for transmission projects for all project stages: Long-term Transmission Plan (LTP) or Order Of Magnitude Needs Identification Document (NID) Proposal to Provide Service (PPS) 180 day PPS and the Approved Cost Estimate (ACE) Final Cost Estimate 36

37 Cost Estimate Template and Instructional Guidelines The revised template will: improve consistency in the way cost estimate information is presented through the project stages increase the AESO s understanding of the cost estimates and changes as they occur, ensuring planning decisions are made with as much information available provide detailed information that will be used to populate the AESO s benchmarking database provide a basis for which final costs can be compared against the estimates reduce cost related information requests sent to the TFOs on reviews of PPS and Change Proposals provide detailed cost estimate information and explanations for project cost reviews to better inform decisions on cost reasonableness and/or prudency 37

38 Cost Estimate Template and Instructional Guidelines Revisions made to the template include: Additional tabs for: Transmission Line - Underground Management: Procurement, Project Management, Construction Management Escalation Contingency Additional columns for: Quantity Types of Materials Subcontract Amount TFO Assumptions Other Considerations: Added summary category for Regulatory and Compliance costs Greater detail for all project material and labour items Additional category for supply and install (turnkey) sourcing Industry-wide use of a single template 38

39 Cost Estimate Template and Instructional Guidelines The AESO has directed all TFO s to use revised template on all projects going forward as per new Directions Alberta Utilities Commission revised AUC Rule 007 which aligns with the revised cost estimate template - effective April 1, 2015 Visit aeso.ca/connect - What s New tab for more information 39

40 Questions? 40

41 Update on Current Initiatives

42 Revisions to ISO Rule AESO s Transmission Cost Accountability Recommendation Paper recommended a review of ISO Rule 9.1 The AESO proposed to consult with key industry groups prior to initiating ISO rule changes Industry Working Group formed to discuss challenges and opportunities with the current ISO Rule The scope of the revisions are to revise ISO Rules 9.1.2, and Several meetings held with Industry Working group throughout 2014 and ongoing 42

43 ISO Rule 9.1 Revisions Three Stages AESO Policy Estimates Draft rule changes Position Stakeholder consultation AESO Replies File with AUC AESO Policy Procurement Draft rule changes Position Stakeholder consultation AESO Replies File with AUC AESO Policy Reporting Draft rule changes Position Stakeholder consultation AESO Replies File with AUC 43

44 Stage 1 - Revisions to ISO Rule (new rule 504.5) Rule will become a new rule Benefits of the new rule are: Consistency of cost estimates throughout the project life cycle Provide flexibility for estimates for different types of projects Improved quality of cost estimates Improved reporting of risks and contingency The AESO also recommends reporting of final actual costs be provided by the TFOs in the same level of detail that is provided in the cost estimates The AESO will direct the Transmission Facility Owner to submit estimates using the AACE practice; i.e. classes, accuracy ranges AUC Rule 007 will require further revisions to align with these changes 44

45 Stage 1 - Revisions to ISO Rule (new rule 504.5) The AESO recommends generally adopting practices developed by the Association of the Advancement of Cost Engineering (AACE) as it: Uses the maturity level of project definition deliverables as the primary characteristic to categorize estimate classes Reflects generally accepted practices in the cost engineering profession Provides a common industry understanding of concepts involved with classifying project cost estimates, in an effort to improve communication among industry stakeholders Avoids misrepresentation of the various classes of cost estimates and avoids; and Could provide for improved accuracy, enhanced project cost predictability and provides a framework for higher consistency between projects and throughout the entire life cycle of the project For more information on this recommended framework, please review the AESO Recommendations posted on October 23,

46 Stage 1 - Revisions to ISO Rule (new rule 504.5) The AESO also recommended and implemented revisions to the Cost Estimate Template that must now be used for all cost estimates for the: Long-term Transmission Plan Needs Identification Document Proposal to Provide Service Facility Application (AUC Rule 007) Approved Cost Estimate Final Cost Estimate Final cost report to be provided in the same level of detail as the cost estimates 46

47 Stages 2 and 3 - Project Reporting and Procurement The AESO has recently submitted a Recommendation Paper to the ISO Rule 9.1 Working Group for comment on Project Procurement (current ISO Rule 9.1.5) Drafting of the new project procurement rule to commence in Q The AESO will compile recommendations for revisions to ISO Rule Project Reporting by the end of the year 47

48 Questions? 48

49 Abbreviated Needs Approval Process

50 Abbreviated Needs Approval Process Background Alberta Energy conducted industry workshops to review the connection process to find opportunities including: improve cycle time to connect loads and generators reduce overlap and hand-offs and address overlapping roles and responsibilities review the need for a needs identification document and approval for certain projects enable market participants to have more control over costs and schedule customize the universal connection process based on project complexity In September 2014, the Transmission Deficiency Regulation was introduced enabling the abbreviated needs approval process 50

51 Abbreviated Needs Approval Process TRANSMISSION DEFICIENCY REGULATION Abbreviated needs approval process 4(1) The ISO must make rules or establish practices for an abbreviated needs approval process for (a) each system access service interconnection, and (b) each transmission facility project of a nature, size and cost determined by the ISO rules. (2) In making rules or establishing practices under subsection (1), the ISO (a) must consult with the Commission, (b) must comply with any Commission directives or orders respecting an abbreviated needs approval process and the nature, size and cost of an interconnection or project referred to in subsection (1), and (c) may, where the ISO considers it appropriate to do so, omit any requirement respecting a needs identification document that is provided for in the Transmission Regulation (AR 86/2007) or modify how any such requirement applies in respect of an abbreviated needs approval process. (3) The ISO and Commission must each periodically review the nature, size and cost provisions of the rules made under this section. (4) Disputes respecting decisions made by the ISO resulting from the abbreviated needs approval process may be submitted to the Commission for determination. A new ISO rule is being developed to support ANAP with procedural activities incorporated into aeso.ca/connect 51

52 Abbreviated Needs Approval Process PROPOSED NEW ISO RULES SECTION ABBREVIATE NEEDS APPROVAL PROCESS Proposed Section was issued for consultation on March 26, 2015; consultation period ended April 15, 2015 Eligibility criteria for system access service requests proposed in Section 501.3: the request for system access service is less than 45 MW the connection to the transmission system can be provided for through substation additions, rebuilds and reconfigurations, or through the salvage or decommissioning of transmission facilities within the existing substation fenced area the costs classified as system-related in accordance with the ISO tariff are estimated to be less than $2,000,000, if any, in the service proposal; and the connection studies set out in subsection 3(a)(ii) below do not identify any transmission constraints, including constraints causing curtailments, under Category A or Category B conditions as described in the Alberta Reliability Standards (N-0, N-1) Eligibility criteria for system projects proposed in Section 501.3: Minor system (less than $2 million) additions, upgrades, enhancements or (c)other modifications to a transmission facility, not made pursuant to a request for system access service 52

53 Abbreviated Needs Approval Process AESO Connection Process KEY CHANGES No Changes Anticipated Language in TFO Directions and PIP material will likely need to change to accommodate ANAP ANAP eligibility assessment following the receipt of PPS and cost estimate Approval letter sent to the market participant; cc TFO S39 Direction to File sent to TFO TFO submission to AUC with AESO approval No Changes Anticipated Stage 0 Identify Project Stage 1 Connection Study Scope Stage 2 Connection Proposal All the regular activities and documentation leading up to writing the need application are performed. Stage 3 NID & Facility Application Brief overview posted on AESO website, same overview provided to TFO for PIP Stage 4 Application Filings & AUC Approval A Need Identification Document is not filed with the Commission Stage 5 Construct & Prepare to Energize Stage 6 Energize, Commission & Close ANAP Approval Letter posted on AESO website Modifications to aeso.ca/connect will incorporate ANAP process 53

54 Abbreviated Needs Approval Process Next Steps ISO Rule Abbreviated Needs Approval Process Prepare AESO replies to stakeholder comments - April/May 2015 Post AESO replies to stakeholder comments on the AESO website - May 2015 File the rule with the AUC - June 2015 Target Effective date - July

55 Abbreviated Needs Identification

56 Abbreviated Needs Identification AUC amended Rule 007, changes effective April 2015 include: Repealed AUC Rule 008 Rules Respecting Use of Abbreviated Needs Process ANID requirements in progress; excerpt from AUC Rule 007 The Transmission Regulation also enables the Commission to omit any requirement of the Transmission Regulation in respect of an abbreviated needs identification document. The details regarding the omissions and requirements of an abbreviated needs identification document are being developed. Further changes to AUC Rule 007 are required to implement ANID The key change with ANID will be related to the need application what needs to be in included and what doesn t need to be included; no changes are expected to other activities; no other significant process changes are expected 56

57 Questions? 57

58 Next Steps Rod Millar Director, Transmission Project Delivery

59 Summary Anonymous survey will be distributed please complete Information available on aeso.ca/connect What s New Questions/Comments please contact: Phone: customer.connections@aeso.ca 59

60 Thank you