Queue Management Process

Transcription

1 SPP and MISO Queue Management Process By: Noumvi G. Ghomsi Utility Engineering Specialist II Missouri Public Service Commission 200 Madison Street Jefferson City, MO (573) November 5, 2012

2 What is a Queue? The interconnection queue (queue) refers to the process of getting a new power generator connected to the (BES) Bulk Electric System. The queue is a waiting line for new generators. There are several mandatory requirements to stay in the queue and advance toward an interconnection agreement. 2

3 Basic Queue Process Overview of the necessary requirements to get into and through a MISO / SPP queue. 3

4 Basic Queue Process (cont.) 1. Interconnection Customer (IC) must submit a completed application. Includes Deposits D1 and D2, and all M1 Milestones. 2. The application is reviewed to make sure it has been completed appropriately. 3. Feasibility study Looks at the applicant s impact on the System and determines whether the system would be capable of accommodating the applicant 4

5 Basic Queue Process (cont.) 4. System Planning and Analysis (SPA) - MISO / Preliminary Interconnection - SPP Determines the network upgrades that will reliably and efficiently integrate the applicant onto the System. Provides preliminary estimates of cost and time for upgrades. Utilizes a System Impact Study(SIS) 5

6 Basic Queue Process (cont.) 4. System Planning and Analysis (SPA) - MISO / Preliminary Interconnection - SPP Determines the network upgrades that will reliably and efficiently integrate the applicant onto the System. Provides preliminary estimates of cost and time for upgrades. Utilizes a System Impact Study(SIS) 5. Applicant submits Deposit D3 when they meet all M2 Milestones. Considered Cash at Risk. - MISO 6

7 Basic Queue Process (cont.) 6. System Impact Study Review Possible restudy or a new SIS 7. Facility Study Estimates the cost and time to construct upgrades necessary to interconnect with the System Applicant meets M3 Milestones, proceed with Facility Study -SPP Includes draft appendices to the Generator Interconnection Agreement (GIA) Once finalized, the GIA must be filed with FERC 8. Interconnection Agreement 7

8 Queue Reform Proposed and actual changes to SPP s (Southwest t Power Pool) queue management process 8

9 Queue Reform (cont.) SPP, with the approval of FERC (Federal Energy Regulatory Commission), conditionally reformed its interconnection procedures on July 31 st, Transitioned from a Serial Study to a Cluster Study. The Serial Study evaluates system impacts of generator interconnection requests, estimates additional facility or other system upgrades needed to accommodate these requests, and assigns costs for such facilities on an individual basis. 9

10 Queue Reform (cont.) SPP s queue reform reduces the inefficiency of the Serial Study by analyzing interconnection requests in groups or clusters. This new process is referred to as the Cluster Study. Cluster Studies are interconnection requests submitted in 6 month windows to be studied d together in a cluster study format as well as requests separated by geographic g location and electrical relatedness. 10

11 Queue Reform (cont.) SPP replaced its existing interconnection queue with three separate queues, each having different deposit and milestone requirements. The three queues are the (i) Interconnection Feasibility Study ("IFS") queue; (ii) Preliminary Interconnection System Impact Study ("PISIS") queue; and d( (iii) Definitive Interconnection System Impact Study ("DISIS") queue. Each queue is studied on a cluster-study basis. The Cluster Study is expected to reduce a backlog of 255 generator interconnection requests accounting for 57,000 megawatts ("MW") of generation. 11

12 Queue Reform (cont.) Proposed and actual changes to MISO s (Midwest Independent d System Operator) queue management process 12

13 Queue Reform (cont.) MISO, with the approval of FERC (Federal Energy Regulatory Commission), reformed its queue management process in 2008 MISO transitioned from a pre 2008 first-in, firstserved model to a first-ready, first- served model. FERC conditionally approved MISO s proposed reforms on March 31, 2012 as it transitioned to the onward first-ready, first-served (Cash-at-Risk) model. 13

14 Queue Reform (cont.) MISO replaced M3 milestones with Cash at Risk M2 Milestone, with FERC approval. Instead of MISO moving projects to Definitive Planning Phase (DPP), Interconnection Customers make that choice when they are ready to pay Cash at Risk M2. System Planning & Analysis group now is more like a consulting shop that performs CUSTOM STUDIES for the Customer to help them determine if their project is ready before they pay M2. 14

15 Queue Reform (cont.) Reform allows projects to wait in SPA indefinitely until they are ready, not in DPP. The only requirement is that they have an updated study scope every 18 months while they sit and wait in SPA. 15

16 MILESTONES Description of the milestones required as an applicant progresses through the queue 16

17 MILESTONES There are 3 different sets of milestones that must be completed: M1, M2 (MISO) and M3 (SPP) Milestones: technical and non-technical There are 3 deposits (D1, D2, and D3) that are not milestones, but must be paid in conjunction with a milestone 17

18 M1 Technical Milestones Generic Stability Model - Simplified stability model that approximately mimics the dynamics behavior of the Generating Facility Point of Interconnection (POI) - Location of the POI -The information provided d should be descriptive enough to locate the POI in a power flow model Impedance from collective substation to POI - Impedance of the radial line from generator substation(gsu) to POI - Impedance is the measure of the opposition that a circuit presents 18

19 M1 Technical Milestones Generic Stability Model - Simplified stability model that approximately Technical data to run studies - Other technical data (as applicable) required to run studies such as sequence impedances, Generating Facility reactance, saturation curves, etc. 19

20 M1 Technical Milestones One-line diagram - Diagram of the Generating Facility clearly showing the Interconnection Facilities and POI Generation output (MW) - Gross and Net MW output of the Generating Facility under Summer and Winter conditions Step-up p transformer data - Specifications of the Generating Facility Step-up transformer 20

21 M1 Non-Technical Milestones Application - Interconnection Request that is fully completed and correct Proof of Site Control - Documentation demonstrating ownership, leasehold interest, or a right to develop a Generating Facility on specified site - Prove that 50% of land area is available to support proposed p Generating Facility (MISO) - $100,000 refundable deposit in lieu of site control - (For wind generators, SPP requires 30 acres/mw for sufficient site control.) 21

22 M1 Milestones There are no financial milestones attached to M1 However, there are two required deposits due with the application: D1 and D2 - D1 is a non-refundable application fee (MISO), re-fundable (SPP) -D2 funds System Planning Analysis Any unused funds will be returned to applicant upon withdrawal 22

23 M1 Milestone Complete Once all of the primary milestones and deposits are received, request for queue position is acknowledged 23

24 M2 Technical Milestones Detailed stability Model - Actual stability model representing dynamics of the Generating Facility Definitive Point of Interconnection - POI before entering the Definitive Planning Phase(DPP) - Any material changes after this point will result in withdrawal of the request from the queue 24

25 M2 Technical Milestones Definitive one-line diagram - Diagram before entering the DPP - Any material changes after this point will result in withdrawal of the request from the queue Definitive generation output (MW) - Generation output before entering the DPP. Any material changes after this point will result in withdrawal of the request from the queue 25

26 M2 Non-Technical Milestones Proof of Site Control - Re-validation of site control demonstrated at M1 milestone submission - Deposit submitted in lieu of site control at M1 becomes non-refundable if site control is not demonstrated by the tenth (10) business day after the start of the DPP (MISO) 26

27 M2 Non-Technical Milestones Any two of the following six milestones(miso) : 1. Equipment on order - Demonstration that generation turbines have been ordered 2. Necessary permits* -Submitted application for required federal, state or local permits 3. Regulatory approval* - Approval of the facility by a state utility regulatory commission 27

28 M2 Non-Technical Milestones 4. Board of Directors approval* - Approval to proceed with project from Interconnection Customer s Board of Directors or its highest level of authority *letter of credit or deposit may be used in lieu of milestone 5. Contract Sale of Inclusion of Resource Adequacy Plan* - Execution of a contract for sale of electric energy or capacity from the Generating Facility, or statement attesting that the Generating Facility is included in an applicable state resource adequacy plan 28

29 M2 Non-Technical Milestones 6. Deposit or Letter of Credit - Equal to the requested megawatts times the rate for one month of drive-out Point-to-Point Transmission Service based on the MISO average rate. - Replaced M3 milestones with Cash at Risk M2 Milestone. Deposit funds the Definitive Planning Phase *letter of credit or deposit may be used in lieu of milestone. 29

30 M2 Non-Technical Milestones Any one of the following 8 milestones (SPP) : 1. Security equal to $2000/MW of the plant size (refundable at commercial operation or if GIA is not executed by Interconnection Customer); or 2. An executed contract (or comparable evidence) for the sale of electric energy or capacity from the Generating Facility; or 3. Statement signed by an officer or authorized agent of the Interconnection Customer attesting that the Large Generating Facility is included in an applicable state resource plan; or 30

31 M2 Non-Technical Milestones 4. Other information that the Transmission Provider deems to be reasonable evidence that the Large Generating Facility will qualify as a Designated Resource; or 5. Purchase Order for generating equipment specific to Queue Position or statement signed by an officer or authorized agent of the Interconnection Customer attesting that the Generating Facility is included to be supplied with turbines with a manufacturer's blanket purchase agreement that Interconnection Customer is a party. This agreement shall be provided to Transmission Provider; or 31

32 M2 Non-Technical Milestones 7. Application for an air permit (if applicable); or 8. Filing a Notice of Proposed Construction or Alteration with the Federal Aviation Administration (if applicable). 32

33 M2 Milestones Complete Once all M1 and M2 milestones are received and Feasibility Study results are within acceptable limits, a project will be placed in the Definitive Planning Phase. 33

34 M3 Non-Technical Milestones There are no technical M3 milestones 30 Calendar Days to submit Facility Study Agreement or be withdrawn after DPP SPP One of the seven Milestones: 1. Letter of credit or payment of Interconnection Customer's share of estimated Network Upgrades less any amounts already provided (refundable if GIA is not executed dby Interconnection Customer). 2. An executed contract (or comparable evidence) for the sale of electric energy or capacity from the Generating Facility; or 34

35 M3 Non-Technical Milestones There are no technical M3 milestones 3. Statement signed by an officer or authorized agent of the Interconnection Customer attesting that the Large Generating Facility is included in an applicable state resource plan; or 4. Other information that the Transmission Provider deems to be reasonable evidence that the Large Generating Facility will qualify as a Designated Resource; or 35

36 M3 Non-Technical Milestones There are no technical M3 milestones 5. Purchase Order for generating g equipment specific to Queue Position or statement signed by an officer or authorized agent of the Interconnection Customer attesting that the Generating Facility is included to be supplied with turbines with a manufacturer's blanket purchase agreement that Interconnection Customer is a party. This agreement shall be provided to Transmission Provider; or 6. Application for an air permit (if applicable); or 7. Filing a Notice of Proposed Construction or Alteration with the Federal Aviation Administration (if applicable). 36

37 COMPLETED MILESTONES In the event an applicant fails to meet M2 & M3 milestones, the project will be withdrawn from the queue. If all milestones are met, queue position is set. 37

38 MISO & SPP Webpage Links Outlining Queue Process for Applicants: / ERATORINTERCONNECTION/Pages/Proce duresrequirements.aspx And /d / / ssion/studies/interconnection%20request%20gui delines%20for%20posting.pdf gp 38

39 Sample MISO & SPP Generator Interconnection Agreements g/ y/ p y/ ariff/ferc%20filings/ %20Docket%20No.%20ER %20(PUBLIC%20G830).pdf And 23_ Ensign%20GIA%20- %20SA%202208R1_ER pdf 39

40 FERC Generator Interconnect Agreement Template g / / / act/gi/stnd-gen.asp 40

41 Any Questions? Noumvi Ghomsi Utility Engineering g Specialist II Missouri Public Service Commission P.O. Box 360 Jefferson City, MO (573) Noumvi.ghmosi@psc.mo.gov