SPP Membership Update

Transcription

1 Jody Sundsted, VP of Power Marketing for Upper Great Plains Region Northwest Public Power Association Power Supply Conference August 2, 2016 Portland, Oregon

2 SPP Update Background Integration Current Operations Merchant Settlements Transmission/Reliability Summary Questions 2

3 Where UGP Gets Power: Pick Sloan Missouri Basin, Eastern Division 3

4 Missouri River Mainstem System Storage Zones and Allocations Exclusive Flood Control 6% Annual Flood Control & Multiple Use 16% Historic max Storage In MAF Carryover Multiple Use 53% Historic min Permanent Pool 25%

5 5

6 Missouri River Mainstem System Annual Runoff above Sioux City, IA Million Acre-Feet Historic Drought Periods Forecast 30 Median

7 UGP Firm Power Customers 7

8 Integrated System W/E W/E And Other Facility Owners: Missouri River Energy Services NorthWestern Energy 8

9 TLR Schedule Cuts for Market to non Market Congestion Management East West MISO Future market access was the predominant issue. SPP 9

10 Bilateral Trading Partners* partners Lost Due to MISO or gone out of business partners SPP Marketer Lost Due to SPP Day 2 Mkt 11 partners Limited Benefits 5 partners 0 Internal * * Excludes ~4 entities in the Western Interconnect 10

11 11

12 12

13 Integration into SPP: Public Process Public Comment period Noticed in Federal Register November 1 December 16, 2013 Authorization to move forward: Issued January 9, 2014 Staff notified to pursue formal negotiations for membership in SPP 13

14 Integration into SPP: Tariff Negotiations started January 2014 with SPP membership SPP Board approval in June 2014 SPP filed Tariff, By laws, Membership Agreement changes in June 2014 FERC conditionally accepted filing November

15 Tariff Integration FERC Proceedings almost completed Western active in several filings of other Transmission owners joining SPP 15

16 Integration into SPP: Task List IS transmission service converted to SPP Operational changes within the SPP footprint Market registration for loads and generation Load serving coordination with Co suppliers Generation coordination with Corps of Engineers Market meter installation and data distribution Operational and financial data interface with SPP 16

17 Task List Equipment and software development requirements UGP Transmission Rate filing West system agreement with SPP Market Trials Staff Training Reliability Coordinator Services transfer from MISO to SPP Planning Coordinator Services transfer from MAPP to SPP Discussion on Markets: 17

18 Current Operations: Cut Over Midnight October 1, 2015: UGP transferred operational control over to SPP Smooth transition: No significant issues Discussion on Markets: 18

19 Current Operations: Merchant Hydro generation offered into the SPP Day ahead Integrated Marketplace Hourly load obligation is coordinated with cosuppliers Regulation Up/Down, Spin, and Reserves offered but mostly not accepted Continue to evaluate market strategies 19

20 Current Operations: Settlements UGP receives a weekly invoice from SPP for market activities and monthly SPP transmission invoices Re organized distributed settlements and power billing work into one new Settlements division Settlements analytics are key to understanding financial results of your activities Discussion on Markets: 20

21 Current Operations: Transmission/Reliability Merged WAPA east side (WAUE) Balancing Authority (BA) into SPP BA No longer calculating and controlling to an Area Control Error signal (ACE) Now have several plants on control instead of only one Still doing after the fact checkouts with the adjacent Local BA s and BA s The Miles City DC tie is no longer an internal tie, now a tie between SPP and WAPA west side BA (WAUW) Discussion on Markets: 21

22 Oahe Generation: Actuals April 9 th, 2016 (4 second data) 22

23 Oahe Generation: Actuals April 9 th, 2015 vs 2016 (4 second data) 23

24 Summary SPP provides greater flexibility Creates more options for buying and selling Reduces constraints in delivering power Helps keep costs low for customers 10 Months of Operation 42 market invoices 8 transmission invoices Alternate Operations Study $11.5 M net benefits predicted initial year savings/cost avoidance Savings estimated to be greater than the AOS 24

25 Thank you 25