Relationship-Based Member-Driven Independence Through Diversity Evolutionary vs. Revolutionary Reliability & Economics Inseparable

Transcription

1 COST ALLOCATION WORKING GROUP MEETING Conference Call May 9, 2017 S U M M A R Y O F A C T I O N I T E M S Action Items from May 9, 2017 Meeting: 1. Agenda approved for May 9, 2017 meeting 2. Meeting Minutes approved from the April 4, 2017 meeting Relationship-Based Member-Driven Independence Through Diversity Evolutionary vs. Revolutionary Reliability & Economics Inseparable

2 Regional State Committee/Southwest Power Pool, Inc. COST ALLOCATION WORKING GROUP MEETING Conference Call May 9, 2017 M E E T I N G M I N U T E S 1. Call to Order, Introductions and Administrative Items Chair Adam Mckinnie (MOPSC) called the May 9, 2017 CAWG meeting to order at 8:30AM and a quorum was established. Jon Thurber (SDPSC) held proxy for Greg Rislov (SDPSC). Mckinnie introduced the draft April 4, 2017 CAWG meeting minutes for review and approval. Meena Thomas (PUCT) made a motion to approve the minutes; Christine Aarnes (KCC) seconded the motion and the motion was approved unanimously. Mckinnie introduced the May 9, 0217 CAWG agenda for review and approval. Cindy Ireland (APSC) made a motion to approve the agenda; Jason Chaplin (OCC) seconded the motion and the motion was approved unanimously. 2. Review of Past Action Items Ben Bright (SPP) reviewed the list of past action items included in the background materials. CAWG Action Item 043 will be modified to reflect the current request from the RSC to get a proposal on the timing and substance of future CAWG reviews of the Safe Harbor limit and criteria. 3. Regional State Committee Report Mckinnie briefly reviewed the April 17, RSC meeting held in Dallas, TX. The topics covered include: ND Commissioner Randel Christmann participated in his first RSC meeting Commissioners Libby Jacobs and Donna Nelson last meeting with the RSC RSC approved the Seams Projects Policy white paper RSC approved 100% regional cost allocation for the Morgan Transformer interregional project with AECI RSC approved several Revision Requests RSC approved a RARTF proposal to modify the timing on RCAR studies from a minimum of 3 years to 6 years RSC next meeting is July 23, 2017 in Denver, CO. There will be an annual retreat prior to the meeting. 4. Derating Facilities & Cost Allocation Lanny Nickell (SPP) reviewed the common reasons why facilities may be de-rated by a utility. Those reasons range from decisions made by the local TOs to changes being imposed by NERC or the Transmission Provider. A couple of examples were provided during the discussion to help better understand the issues with cost allocating projects that are needed as a result of facility de-rating. It was determined that the Transmission Working Group would be the best situated to review this issue and start to develop a potential regional standard. Some concern was also expressed about the utilities responsibilities regarding de-rated facilities and the obligations under the SPP Membership Agreement and Bylaws. Staff will reach out to Travis Hyde (OGE) the TWG chair to request his presence at the June 2017 CAWG meeting to be part of the discussion over de-rating facilities. Relationship-Based Member-Driven Independence Through Diversity Evolutionary vs. Revolutionary Reliability & Economics Inseparable

3 5. Aggregate Study Safe Harbor Criteria Update Nicole Wagner (SPP) discussed the 180K Safe Harbor limit calculations that have been used in the past and a staff proposed calculation that could be used in future reviews. The results of the proposed calculation were very close to the previously developed 180K limit; the new calculation produced a $184K limit. Staff will circulate the slides presented and the accompanying results to the CAWG exploder and seek further comments from stakeholders on the calculation and the frequency of review of the limit and safe harbor criteria. 6. Discuss Frequency and Approach to CAWG s Annual Review of Safe Harbor Criteria Mckinnie presented two potential options for the CAWG to review regarding the frequency and approach that could be proposed to the RSC for future Aggregate Study Safe Harbor Limit reviews. The second option discussed that included a limited annual review and more detailed rigorous review every three years. The group generally agreed that this option seemed to make the most sense for future reviews. 7. Project Tracking Update John O Dell (SPP) updated the CAWG on the most recent SPP Project Tracking Report and highlighted that no projects were out of band-width in the last quarter, that 15 NTCs with a value of $77M were approved or modified and 7 NTCs with a value of $38M were withdrawn after the 2017 ITPNT. 8. SPP MISO IPSAC Update Adam Bell (SPP) reviewed the current status of the SPP MISO interregional study. Bell reviewed all the projects considered including the one project that is being recommended by both SPP and MISO to be evaluated in their respective regional review processes. The current benefit split is 81.5% to MISO and 18.5% to SPP; this also reflects the cost split between the two regions on this project. 9. Morgan Transformer Project Update Bell briefed the group on the current status of the Morgan Transformer project that is being negotiated with AECI. Bell stated that this will be discussed at the May 24, 2017 AECI Board meeting. Bell will keep the CAWG updated on the AECI discussions. 10. MWG RR Updates John Krajewski (NPRB) discussed two RRs that reflect changes in the TCR process. RR225 (LTCR/ILTCR Cleanup) reflects minor language changes to distinguish LSE vs Non-LSE language for ILTCRS. Krajewski concluded this change was purely ministerial and did not warrant any RSC action. The CAWG reviewed this RR. RR226 (TSR EESL Compliance) reflects language changes directed by FERC in ER Krajewski concluded this change was purely ministerial and did not warrant any RSC action. CAWG reviewed this RR. This discussion led to SPP staff taking an action item to draft a proposal regarding future RR reviews and what items warrant RSC review. 11. Z2 Task Force Update Meena Thomas (PUCT) reviewed the recent work of the Z2 Task Force. The task force is still working on 5 options and plans to draft a final recommendation in their May 10 meeting. 12. Working Group Updates Marisa Choate (SPP) updated the CAWG on draft RR230 that would allow the SPP utilities to reduce their reserve margins to 10.7% (12% capacity margin) beginning in June This is consistent with the RR187 Resource Adequacy policy approved through the SPP Stakeholder process and filed at FERC. Relationship-Based Member-Driven Independence Through Diversity Evolutionary vs. Revolutionary Reliability & Economics Inseparable

4 13. Summary of Action Items Modify CAWG Action Item 043 to reflect the more current RSC request Contact TWG Chair Travis Hyde to attend June CAWG to participate in the discussion of facility de-rates Staff send out Safe Harbor 180K Limit materials to the CAWG exploder for further review and comments Staff to provide ongoing updates on the AECI/SPP negotiations for the Morgan Transformer project Staff to develop a proposal for future RR reviews 14. Closing Items None. 15. Future Meetings 2017 Meeting Schedule June 6, 2017 Dallas, TX (AEP Office) July 6, 2017 Dallas, TX (AEP Office) August 8, 2017 WebEx/Teleconference September 7, 2017 Dallas, TX (AEP Office) October 3, 2017 Dallas, TX (AEP Office) November 14, 2017 WebEx/Teleconference December 5, 2017 Dallas, TX (AEP Office) 16. Adjournment The meeting was adjourned at 11:10 AM. Respectfully Submitted, Ben Bright CAWG Staff Secretary Relationship-Based Member-Driven Independence Through Diversity Evolutionary vs. Revolutionary Reliability & Economics Inseparable

5 Attendance List Adam McKinnie (MOPSC) Christine Aarnes (KCC) Cindy Ireland (AR PSC) Heidi Pitts (New Mexico PRC) Jason Chaplin (OCC) John Krajewski (NPRB) Jon Thurber (SD PUC) Meena Thomas (PUCT) Scott Bents (IUB) Victor Schock (NDPSC) Aaron Doll (EDE) Aaron Shipley (SPP) Adam Bell (SPP) Ben Bright (SPP) Bernie Liu (Xcel Energy) Bill Leung (NPRB) Blaine Erhardt (Basin) Brenda Fricano (SPP) Brian Johnson (AEP) Brian Rounds (AESL) Chris Cranford (SPP) Chris Giles (TCEC) Chris Haley (SPP) Christy Dinges (OGE) David Binkley (ITC) David Kays (OG&E) Denise Martin (SPP) Dennis Reed (Sunflower) Don Frerking (KCP&L) Ella Caillouette (Northwestern) Frederic Belanger (Hydro QC) Gayle Freier (SPP) Jack Clark (NextEra) Jamie Hajek (Northwestern) Jason Mazigian (Basin) Jeff Knottek (SPRM) Jenni Sudduth (AECC) Jim Jacoby (AEP) John Bell (KCC) Relationship-Based Member-Driven Independence Through Diversity Evolutionary vs. Revolutionary Reliability & Economics Inseparable

6 John Boshears (SPRM) John O'Dell (SPP) John Stephens(SPRM) John Tennyson (SPRM) John Varnell (Tenaska) Kristen Kitchens (SPP) Marisa Choate (SPP) Michael Moffet (Sunflower) Mo Awad (Westar) Nicole Wagner (SPP) Ray Bergmeier (Sunflower) Ray Brush (Northwestern) Rob Janssen (Dogwood Energy) Robert Pick (NPPD) Robert Safuto (Customized Energy Solutions) Robert Shields (AECC) Rodney Massman (MOPSC) Ron Thompson (NPPD) Ruth Sakya (XCEL SPS) Shawnee Claiborn-Pinto (PUCT) Shelly-Ann Maye (BHE) Steve Gaw (Wind Coalition) Tim Hall (Southern Power) Tom Hestermann (Sunflower) Sam Loudenslager (SPP) Kandi Hughes (SPP) Lanny Nickell (SPP) Relationship-Based Member-Driven Independence Through Diversity Evolutionary vs. Revolutionary Reliability & Economics Inseparable

7

8 Southwest Power Pool COST ALLOCATION WORKING GROUP Pending Action Items Status Report May 9, 2017 ID Action Item Date Originated Status Comments 002 Project Tracking Update Ongoing CAWG requested additional detail be added to the report by PCWG. Staff will provide updates quarterly to CAWG 037 SPP Staff to provide quarterly update on AECI and MISO Interregional Planning activities as needed Ongoing 043 Aggregate Study Waiver Requirement Review Scope 044 SPP Staff to provide CAWG with any information related to TCR underfunding and the impact of the changes made in RR CAWG to receive verbal reports on Z2 related items as needed Ongoing CAWG to discuss the direction from the Jan and April 2017 RSC meetings to conduct an annual review of the Aggregate Study Safe Harbor Criteria Ongoing SPP Staff to provide an update to CAWG as needed. by the September 2016 meeting Ongoing 56 CAWG requested SPP Staff to provide updates on Zonal Placement Issues as needed 57 CAWG to revisit Derating Facilities and Cost Allocation, including the number of projects and why they were de-rated 58 Staff to discuss the $180K and Safe Harbor Provisions chart internally, and touch base with Chairman Mckinnie to determine what to bring back to CAWG Ongoing Ongoing Staff to provide updates on TWG s involvement in the derating process, and provide CAWG with more information as it relates to NERC Standards changes and changes made by the entities Ongoing

9 67 Contact TWG Chair Travis Hyde to attend June CAWG to participate in the discussion of facility de-rates 68 Staff send out Safe Harbor 180K Limit materials to the CAWG exploder for further review and comments 69 Staff to provide ongoing updates on the AECI/SPP negotiations for the Morgan Transformer project 70 Staff to develop a proposal for future RR reviews

10 Southwest Power Pool COST ALLOCATION WORKING GROUP d Action Items Status Report May 9, 2017 ID Action Item Date Originated 003 Presentation on RRR File Distribute Seams Project White Paper Status Comments Staff will provide Presentation from 2011 made to the Settlement Users Group to the CAWG. Background for action item CAWG to prepare position for BPWG CAWG will address the ATSS process improvement at the Dec CAWG meeting 007 Discuss Sensitivities for HPILS Economic Modeling 008 SPC - Foundational Strategies/Strategic Initiatives 009 SPC Foundational Strategies/Strategic Initiatives 011 Handle agenda item regarding CAWG s coverage of WGs via Will discuss at January CAWG meeting wind penetration, gas prices, etc CAWG group inputs to Tamika Barker by Jan 27 February 3, Underway Underway d M. Desselle present SPC Strategic Plan review to RSC (Before MOPC in January) Meena Thomas to initiate 012 Study Estimate Design Guide Review Underway John Krajewski to S. Loudenslager 014 Revision of Working Group Coverage List 016 Determine if Non-Disclosure Agreements (NDAs) are needed on a case-by-case basis 019 Schedule teleconference to cover proposed changes to SPP Wind Accreditation, Criteria Underway Underway Underway Meena Thomas to send to Tamika for distribution through exploders Erin Cullum M. Thomas to verify CAWG availability

11 013 Develop a summary document of comments on SPP Strategic Plan for circulation through CAWG prior to March meeting Comments to be submitted to John Krajewski no later than Feb 24, Send findings on action item #10 to the CAWG exploder Determine if CAWG can obtain other WG comments on the SPP Strategic Plan A link to Working Group comments was sent to the CAWG exploder on April 15, Vote on MPRR 171 LTCR Clarifications in April meeting Process of disclosing name and amounts associated with the crediting process 015 PCWG comments on Study Estimate Design Guide Staff reported that SPP will not publicly disclosure the amounts associated with specific utilities. Individual CAWG members may still acquire the information associated with their regulated utilities. Awaiting PCWG action 018 Revision of Working Group Coverage List redistribute to exploder 024 Staff Secretary to distribute additional slides covered on Benefits Metrics during the June 4 th CAWG meeting to the exploder Adam Mckinnie to provide periodic reports to CAWG on Seams Project Task Force (SPTF) actions A link to the additional materials was sent to the CAWG exploder on June 5, Discuss Proposed Changes to SPP Wind Accreditation, Criteria 12 in April Meeting 023 SPP Staff to provide an update on ORWG action on Wind Accreditation Criteria revisions at the June 20 th WebEx/Teleconference Underway Underway CAWG will hold a teleconference after the June 2014 ORWG meeting to discuss the impact of the criteria change on IRPs and any updates on GWG actions CAWG will address this item at the July 2 nd meeting. Jason Smith will be available to participate in the call. Formatted: Superscript

12 025 CAWG members to provide feedback on the Value of Transmission presentation at the June 20 th WebEx/Teleconference SPP Staff to circulate the most recent version of the Seams Project Policy White Paper via CAWG exploder CAWG members to prepare to vote on the Seams Policy Project Paper at the September 3, 2014 meeting Underway 031 CAWG members to provide the CAWG Chair with comments on the factors that led to the decisions to vote in favor or against verbiage in the Seams Project Policy Paper Underway 032 CAWG members to consider reducing the number of face-to-face meetings for Underway Tamika will send out the revised CAWG schedule through the exploder. Formatted: Not Strikethrough 034 CAWG members to provide EPA 111(d) related Compliance Cost feedback to Sam Loudenslager. 005 SPP will review draft TRR being considered by SSC 029 SPP Staff to provide an update to CAWG on any changes to BPR Underway RSC did not see the need for compliance cost study until after the final rule is issued next year. Seams Project Task Force meetings underway, expected to conclude by October Formatted: Not Strikethrough Formatted: Not Strikethrough 036 Order 1000 related issues raised at the 2014 November meeting, will be placed on the 2014 December or January 2015 meeting agenda for the purpose of discussion and possible feedback from CAWG members Underway Closed 039 Provide CAWG members with a link to the Fuel Assurance report filed with FERC Forward pages from January 2015 RSC materials to CAWG members (Questions 1-3 under review by RSC and new member process)

13 027 SPP Staff to research statutes for various State s utility status and Certificate of Convenience and Necessity (CCN) 038 Carl Monroe to address history on Bright Line 045 Compliance Filing for ER , Long-Term Congestion Rights 033 CAWG members to receive updates on the new SPP.org beta testing feedback 030 CMTF representatives to provide CAWG with an update 042 Preparation of the New Member Cost Allocation Review Process Scope Underway Closed Underway Underway Ongoing SPP staff will send research results to state regulatory staff for feedback. CAWG members to be prepared to discuss cost allocation for new members at the April RSC Education Session. CAWG/RSC action required during October meetings to approve changes in response to FERC Order on July 16, Receive updates on CMTF activities at future CAWG meetings 001 Z2 Crediting Project Update Ongoing 041 ITP10 Renewable Survey Discussion Ongoing Staff will provide an updates at the Dec CAWG meeting to CAWG monthly, and provide a report to the RSC quarterly. Prior to the next ITP cycle (expected to begin in 2017), CAWG members to discuss the purpose of the Renewable Survey, how the survey is used in Transmission Planning, and if CAWG should be responsible for the survey. 046 Staff to provide updates on Notifications To Construct in relation to Cost Allocation when NTCs are modified 048 CAWG to receive updates on the Deliverability Study at their Feb and Mar 2017 meetings Ongoing Ongoing CAWG to revisit the Policy Survey following the Jan 2017 ESWG review.

14 049 CAWG to receive Seams Projects Policy Update at their Feb and Mar 2017 meeting 50 CAWG to determine if the Morgan Transformer Project meets the criteria in the Seams Project Policy Paper 52 CAWG to vote on Seams Projects Policy Paper in March Ongoing Staff to provide the timeline of approved motions for the Seams Projects Policy Paper and distribute over the exploder 54 CAWG to determine the amount of Wheeling Through and Out benefit that the City Utilities of Springfield received in both the latest ITP and in RCAR II 51 Staff to give a presentation to CAWG on RR Ongoing 55 CAWG to revisit RR 203 (Monthly ARR Allocation Process) at their April 2017 meeting, and prepare to vote CAWG to review presentation for Annual Review of Safe Harbor Criteria and provide direction at April 4, 2017, meeting 60 CAWG member s to review the list of RSC action items and send edits and/or additions to Sam within the next week 61 Staff to review January 2017 RSC motion to verify if it was for specifically for the Wind criteria, or all three criteria 62 CAWG to revisit RR 223 (RCAR Frequency Change) at their April 2017 meeting, and prepare to vote

15 63 CAWG to conduct an vote regarding the ITP Scope numbers involving state renewable portfolio standards Distribute the approved motion that was drafted for RR 202 via the CAWG exploder RSC Action Items updates to be sent to Kandi Hughes Staff to provide Safe Harbor background materials and informational filings to CAWG