Northern Tier Transmission Group Stakeholder Meeting Boise, Idaho July 22, 2009

Transcription

1 Joint Initiative Update Northern Tier Transmission Group Stakeholder Meeting Boise, Idaho July 22,

2 Northern Tier Transmission Group Membership Participating Utilities Deseret Power Electric Cooperative Idaho Power Company Northwestern Energy PacifiCorp Portland General Electric Utah Associated Municipal Power Systems Participating State Regulatory Utility Commissions Idaho Public Utility Commission Montana Public Service Commission Oregon Public Service Commission Utah Public Service Commission Wyoming Public Service Commission State Consumer Advocacy Groups Montana Consumer Counsel 2

3 WestConnect Membership Arizona Public Service El Paso Electric Imperial Irrigation District Nevada Power Company Public Service Colorado Public Service New Mexico Sacramento Municipal Utility District Salt River Project Sierra Pacific Power Company Southwest Transmission Cooperative Transmission Agency of Northern CA Tri-State G & T Association Tucson Electric Power Western Area Power Administration - Rocky Mountain Region - Desert Southwest Region - Sierra Nevada Region - CRSP Management Office 3

4 ColumbiaGrid Membership Avista Bonneville Power Administration Chelan County PUD Grant County PUD Puget Sound Energy Seattle City Light Tacoma Public Utilities 4

5 Goal Encourage and facilitate Western Interconnection parties to develop and implement high-value cost-effective regional products Broader focus than integration of variable generation, but immediate wind and solar integration issues provide significant motivation 5

6 Structure Joint Initiative Think Tank - Participation open to all interested parties Joint Initiative Infrastructure Strike Team -Membership open to parties who are responsible for infrastructure development, are seriously considering entering Into implementation agreements, and who commit to attend all meetings and perform assignments between meetings Implementation Agreements (e.g., Dynamic Scheduling System) - Critical mass of parties agree to move forward - Agreement covers detailed design; cost responsibility; Implementation Joint Initiative Products/Services Strike Team - Membership open to parties seriously considering entering Into implementation agreements who commit to attend all meetings and perform assignments between meetings Implementation Agreements (e.g., I-TAP) - Critical mass of parties agree to move forward - Agreement covers detailed design; cost responsibility; Implementation 6

7 Approach Beginning focus is narrow, could be expanded after initial successes Joint Initiative Strike Teams develop business case proposal Interested parties move to implementation agreement when critical mass is achieved; may not involve all Joint Initiative parties 7

8 Relationship with Integration of Variable Generation Uniquely situated to assist with timely integration of renewable resources Short timeframe Initial products straightforward (do not require tariff amendments) Focus is on more efficient use of existing transmission, including greater ease in accessing system flexibility both within and outside of Balancing Authority areas 8

9 Joint Initiative Products and Services Update 9

10 Within-Hour Transmission Purchase and Scheduling Business Practices Strike Team recommends that Transmission Service Providers (TSP) accept within-hour schedule changes to the extent the schedules can be accommodated within TSP s existing infrastructure and without negatively impacting reliability of its system Strike Team recommends that TSPs sell hourly transmission products to commence within the current hour 10

11 Within-Hour Transmission Purchase and Scheduling Business Practices BAs/TSPs already allow within-hour schedules to address Emergencies Broader use of within-hour scheduling to be accomplished through TSP business practices or corresponding BA operating procedures No new transmission products No modifications of existing tariffs 11

12 Within-Hour Transmission Purchase and Scheduling Business Practices Strike Team has posted proposed business practices As each system is different, proposed practices take a fill in the blank approach, e.g., Approval Process Nature of Transmission How often and when within-hour schedules will be implemented Appropriate straddle ramp, the ramp duration, and the required notice Recognize that adjacent systems will need to coordinate on some elements 12

13 Within-Hour Transmission Purchase and Scheduling Business Practices NV Energy already has in place (predated Joint Initiative) TSPs/BAs coordinating finalization and implementation PacifiCorp, Puget Sound Energy, and Avista have posted draft business practices; BPA has announced pilot for new wind schedules to commence in 12/09; others will post in the near future 13

14 I-TAP Facilitate intra-hour bilateral transactions within and outside of BA s area by providing information, communications links, and user interfaces Not limited to intra-hour, but anticipate that this is where it will provide greatest benefit Not centralized market User optionality 14

15 I-TAP Automated Information Exchange Information regarding state of participating systems, including individual generator s ability and prices to move up (inc) or down (dec) Leads to greater visibility regarding needs, opportunities, and costs Automated Mechanisms to access system flexibility swiftly and efficiently Communications links Links to OASIS Links to e-tag author and approval 15

16 I-TAP Business case and RFP to be completed in July Operational timeframe targeted for December

17 Current Products and Services Strike Team Participants APS (Transmission) PowerEx Avista (Transmission) PPC BPA (Trans/Merch/Corp) PSE (Transmission) ColumbiaGrid Seattle City Light Grant County PUD Snohomish Northwestern (I-TAP) Tacoma OATTi WECC PacifiCorp (Trans/Merch) WestConnect PGE (Merchant) Xcel (Merchant) 17

18 Joint Initiative Infrastructure Strike Team Dynamic Scheduling System Update 18

19 Dynamic Scheduling System (DSS) Dynamic Schedule System (DSS) Communications infrastructure exchanges dynamic signals via e-tag and ICCP links Provides participants the ability to schedule between multiple BAs at any scheduling granularity, depending upon need and capability 19

20 DSS DSS allows participants to take advantage of load and resource diversity Replaces the month s it takes today to negotiate and make system changes with a one-time DSS implementation that can accommodate any number of future dynamic schedules Contract negotiations can follow the same process used today for striking block energy deals, but taking just minutes rather than months 20

21 DSS facilitates DSS Benefits Development of intermittent resources More efficient use of generating resources Potential reduction in imbalance charges Potential market opportunities that may result in lower portfolio costs NERC and WECC standards and business practices 21

22 DSS 17 Balancing Areas have executed the DSS Agreement of Interest Final Participant Agreements and Contract Award by early September 2009 Operational timeframe targeted for Spring

23 Signatories to the DSS Agreement of Interest Arizona Public Service Co. BCTC Bonneville Power Grant County PUD Idaho Power Imperial Irrigation Northwestern Energy PacifiCorp Portland General Public Service of New Mexico Puget Sound Energy Seattle City Light Salt River Project SW Transmission Co-op Tri-State G&T WAPA Xcel Energy 23

24 Target Timeline April 09 Dynamic Scheduling Business Case Complete and Agreement of Interest Offered; I-TAP RFI Initiated July 09 I-TAP Business Case Complete and Agreements Offered Summer/ Fall 09 Sept 09 Within-Hour Transmission Business Practices In Place DSS Contract Award Spring 10 I-TAP Operational Dynamic Scheduling Operational 24

25 Input from Recent Think Tank Meeting Appreciation for initial successes Support for continuation of Joint Initiative (possible tasks further stages of DSS, I-TAP, and Within-Hour Transmission Business Practices, etc.) Sub-committee of interested participants will identify and analyze staged options for Virtual Balancing Authority, and potential DOE funding opportunities Next Think Tank Meeting will be in October 25

26 Contacts Products and Services Co-Facilitators Charlie Reinhold ( ) Kristi Wallis ( ) Infrastructure Facilitator Sharon Helms ( ) Joint Initiative materials posted on CG website 26

27 Questions 27