COST ALLOCATION WORKING GROUP MEETING 12, 2013 SPP
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1 Regional State Committee/Southwest Power Pool, Inc. COST ALLOCATION WORKING GROUP MEETING June 12, 2013 SPP Corporate Office 201 Worthen Drive, Little Rock, AR Action Items June 12, Agenda for June 12, 2013 Meeting approved 2. Minutes for May 8, 2013 Meeting approved 3. Minutes for May 29, 2013 Teleconference approved Page 1 of 8
2 Regional State Committee/Southwest Power Pool, Inc. COST ALLOCATION WORKING GROUP MEETING June 12, 2013 SPP Corporate Office MINUTES Agenda Item 1 Call to Order, Introductions and Administrative Items Chairman Tom DeBaun, Kansas Corporation Commission, called the meeting to order at 9:00 A.M. on June 12, 2013, and a quorum was declared. There were 48 persons in attendance either in person or by phone. Chair DeBaun asked if there were any changes to the May 8, 2013 minutes, May 29, 2013 minutes, or the June 12, 2013 agenda. There were none. Pat Mosier, Arkansas Public Service Commission (APSC), made a motion to approve both sets of minutes, Adam McKinnie, Missouri Public Service Commission (MoPSC) second. Pat Mosier (APSC) made a motion to approve the agenda, Meena Thomas, Texas Public Utility Commission (TXPUC), second. All items were approved via voice vote. Agenda Item 2 Long-Term Congestion Rights John Krajewski, Nebraska Power Review Board (NPRB), shared the Long-Term Congestion Rights Task Force Design Proposal Plan to meet the specified goal. By July 2013, the expectation is that the Cost Allocation Working Group (CAWG) members will reach a clear consensus so that the plan can later be presented to the Regional State Committee (RSC). There were no objections from CAWG members as they were in agreement with the direction that the design is currently headed. Mike Proctor provided CAWG members with the Long-Term Transmission Rights presentation which he explained the nomination strategy and approach. Mr. Krajewski and Mr. Proctor s presentations can be found in the background materials for this meeting. Agenda Item 3 Seams Steering Committee Update JOA Issues Adam McKinnie, Missouri Public Service Commission (MoPSC), provided an update on the May 17, 2013, SPP-MISO Joint Operating Agreement (JOA) meeting. SPP and MISO are continuing to work towards their FERC mandated Market-to-Market amendment to their JOA, which must be filed by June 30, It appears that no other changes to the JOA will be included in that filing. The next scheduled meeting between SPP and MISO will be August 6, 2013, location to be determined. Mr. McKinnie s full report can be found in the background material for this meeting. Agenda Item 4: Lunch Agenda Item 5 FERC Issues Sam Loudenslager, SPP Staff, provided an update on FERC Order 1000 and a review of FERC decisions regarding MISO and NorthWestern (MAPP). The following were FERC Order 1000 decisions for MISO: Approved MISO s proposed revisions to modify the cost allocation method for reliability projects. Page 2 of 8
3 Declined to adopt the Clean Line request that MISO be directed to allow transmission developers to submit merchant transmission projects for full evaluation in the MISO regional planning process. The following were FERC Order 1000 decisions for NorthWestern Corporation: NorthWestern (NW) is the only FERC jurisdictional member of MAPP Order only address the NorthWestern s South Dakota OATT services (not Montana) NW is to revise the definitions in its OATT of public policy requirements and public policy requirement transmission projects to explicitly include local laws or regulations along with state or federal laws or regulations. NW cannot require that potential transmission developer to perform load flow (steady state, contingency, and loss analysis), transient stability, voltage stability, small signal stability, and economic analyses in order to propose a project in the regional transmission planning process. Mr. Loudenslager s full presentation can be found in the background material for this meeting. Agenda Item 6 Renewables Survey Meena Thomas, Texas Public Utility Commission (TXPUC), spoke to CAWG members about the disclaimer that is in the process of being added to the Energy Renewables Survey. Erin Cullum, SPP Staff, explained the intent and purpose of the disclaimer as a statement that allows members to explain why the numbers referenced in the Energy Renewables Survey may or may not be used in a given setting. The disclaimer itself is currently in the process of being drafted. The final draft of the verbiage will be voted on by the Economic Studies Working Group (ESWG), and will be added to the Energy Renewables Survey accordingly. Agenda Item 7 RARTF Report (May 31, 2013 Meeting) Sam Loudenslager, SPP Staff, provided a brief update on the Regional Allocation Review Task Force (RARTF) meeting on May 31, SPP Staff will continue to implement Regional Cost Allocation Review (RCAR) and include Model Review by the ESWG. Upon completion of the RCAR Report, a faceto-face meeting of the RARTF will be held to review the report. Agenda Item 8 Aggregate Study Waiver Steve Purdy, SPP Staff, presented the CAWG with the Aggregate Study Waiver presentation for the Kansas City area which runs from Hawthorn-Birmingham to Liberty South. He explained that the resource is located in the KCPL zone and that the resource is not a wind farm. A summary of the waiver request is provided below: OASIS Request Aggregate Study: 2012-AG1 Customer: Kansas Municipal Energy Agency (KMEA) Type: NITS, Designated Resource Path: KCPL-WR Amount: 15 MW Term: 10 years (6/1/2013 6/1/2023) Allocated E&C Cost of SPP upgrades $9,500,000 in AFS3 Safe Harbor Limit: $2,700,000 Directly Assigned Upgrade Cost: $6,800,000 SPP recommends that the cost of the project not be allocated to KMEA s request. CAWG members are in agreement with this recommendation. Page 3 of 8
4 Mr. Purdy s full presentation can be found in the background material for this meeting. Agenda Item 9 Working Group Updates CAWG members heard working group updates for the Business Practices Working Group (BPWG), Seams Steering Committee (MISO), Long-Term Congestion Rights Task Force, Market Working Group (MWG), Change Working Group (CWG), Markets and Operations Policy Committee (MOPC), and the Economic Studies Working Group (ESWG). Working Group Reports/Updates can be found in the background material for this meeting. Agenda Item 10 Action Items Schedule a CAWG WebEx/Teleconference, which will be determined at a later date. Agenda Item 11 Future Meetings July 10, 2013 Omaha, NE August 7, 2013 St. Louis, MO September 4, 2013 Austin, TX Agenda Item 12 Adjournment With no further business to discuss, Chairman Tom DeBaun adjourned the meeting at 1:40 pm. Respectfully Submitted, Tamika Barker CAWG Staff Secretary Page 4 of 8
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