Dennis Reed September 17, 2012 1 To provide an overview of the - - PowerPoint PPT Presentation

Dennis Reed September 17, 2012

1

To provide an overview of the

October/November Compliance filing

The general layout of the proposed Tariff

language

Solicit input from various Working Groups

• Input must be received by the RTWG prior to its

September 26-27 meeting

2

Order 1000 impacts planning and who builds

approved projects

Must eliminate the Federal Right of First

Refusal (ROFR) for any projects approved through a regional plan for purposes of regional funding

• Elimination of the ROFR is not universal
• Affects new lines over new right-of-ways (“green

field” projects)

ROFR is retained for most projects

• Upgrades/rebuilds of existing facilities
• If required by State or local laws
• Does not receive Regional Funding (i.e. multi zonal)

3

• Attachment O defines how projects are

selected and which Transmission Owner (TO) gets to build it

1. If an upgrade to an existing facility, then the

• wner gets the NTC

2. If a new line,

• If the facilities the new line is connected to on both

ends of the line is owned by one TO, that TO gets the NTC

• If the end points of the new line are owned by

different TO.s, then both get an NTC

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Transmission Service Generation Interconnect ITP Customer Signs Agreement Customer Signs Agreement BOD Approves Projects Published in STEP NTC (s) issues as needed

Host TO builds and NTC(s) issued as needed

NTCC issued

Is NTCC Needed ?

NTC issued

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Sponsored Projects Sponsor signs agreement

Y N

General policy related to the planning and ROFR

issues was approved by the SPC and the BOD in April with more detailed information in July

Tariff language is based upon those reports The RTWG did change some of the terminology

for Tariff purposes – References to entities that applied or were qualified to participate in the RFP process as “TOs” could be confusing

• Applicant TO = Applicant
• Qualified TO = Qualified RFP Participant
• Many references to the BOD selecting a DTO were

changed to “selected RFP proposal”

• Selected TO = Selected RFP proposal

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Transmission Service Generation Interconnect ITP Customer Signs Agreement Customer Signs Agreement BOD Approves Projects

All Projects Published in STEP

NTC (s) issues as needed (ROFR) Host TO builds and NTC(s) issued as needed (ROFR)

NTC issued

Is NTCC Needed ?

NTCC issued

Does the Project meet criteria? TO(s) Selected using current process (ROFR) TO Selection Process

Y Y N N

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Sponsored Projects Sponsor Agrees to pay

Project Tracking

Cost OK? Review Project- Still proceed?

Cancel Project

Y Y N N

Attachment O

Sections I Sections I and II and II Opening and general information Sectio Section V n V STEP Report and approval / endorsement of projects Remaining Sections Remaining Sections VII VII to XI to XI

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Sectio Section III n III ITP Planning Sectio Section III.8 (b) n III.8 (b) Detailed Project Proposal ** NEW ** ** NEW ** Sectio Section IV n IV Other Planning Processes Sectio Section VI n VI Construction of Transmission Facilities (Parts moved to Attachment Y)

Attachment Y:

Transmission Owner Designation Process

Section ction I I: Ov Overview erview Describes the subsequent Sections of the Attachments Defines which projects go through TO Selection Process in Section III All other projects go through Incumbent TO process Section IV Sec Section II: Defi n II: Defini nitions Section ction I III: II: T TO Selection lection Pr Proc

• cess for

ss for Competitiv etitive U e Upgr grades ades Qualification Process Selection Process/RFP/Scoring

• Incentive Points (Detailed Project

Proposal) Selected DTO can not assign project Default by DTO Sec Section n IV: Incum IV: Incumbent TO TO Sel Selection n Process Process Basically, current Attachment O, Section VI.6 language. Maintains ability of TO to assign a project Sect Sectio ion V: n V: Notifi Notificat cation to to Construct Construct Basically the same as in current Tariff, Attachment O, Section VI.6 All entities being assigned a project through either Section III or Section IV will get an NTC Defines an NTC for a cost estimate Sec Section VI: n VI: Projec Project Track t Tracking ng Process Process All projects are tracked by the TP Project costs changes are reported ITP Upgrad ITP Upgrades GI Upgrad GI Upgrades es When neede When needed QRP can QRP can get get Inc Incent ntive points points For DPP For DPP Spons Sponsored red Upgr Upgrades es Wh When n en needed eeded Meets c s condition ition Does not Does not Meet Meet cond condition Selected Selected entity entity gets gets An NTC An NTC

Tariff Map Tariff Map

Section I: Overview

• If Upgrade meets the following conditions, then the

project is considered a Competitive Upgrade and TO selected in accordance with Section III

ITP Upgrade Nominal operating voltage of >= 300 kV Not a rebuild or expansion of existing facilities Must not violate relevant law

• Otherwise SPP uses the process in Section IV (Incumbent

TO)

• SPP may select a TO for a project under Section IV even if

it meets the criteria of a Competitive Upgrade

If needed for reliability of the grid If the need date can not be met if Section III is followed No other transmission or non-transmission mitigation exists Requires BOD approval

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Section III.1: Application and Qualification

Process

• Any entity which desires to participate in the process

must pre-qualify (Qualified RFP Participant or QRP), including existing T.O.s

Application must be to SPP by June 30 Minimum level qualifications are defined

Managerial and Financial Criteria Must be willing to join SPP as a TO if not a TO already Annual application fee equal to membership fee ($6,000), but the fee is waived if already a member

• Detailed application is good for 5 years

Must submit an recertification letter by June 30 each year attesting that no material changes to its information has

• ccurred
• QRP status may be terminated by SPP if a material

adverse change has occurred

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Section III.2: T.O. Selection Process

• Industry Expert Panel (IEP)
• RFP data, process, and timeline

RFP sent to all QRPs QRP must submit its RFP proposal(s) within 90 days with a complete set of information and RFP fee

• RFP Fee

Fee is paid for each proposal submitted Designed to cover the costs of the selection process Based on actual cost

Initial fee is estimated and “trued up” at the end of the process

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Section III.2(f): Scoring

• Industry Expert Panel (IEP) will score each RFP proposal

1000 base points

200 Engineering 200 Project Management 250 Operations 225 Rate Analysis/Cost to customers 125 Financial Viability and Creditworthiness

• 100 incentive points

The entity which submitted the RFP proposal must have been the stakeholder to suggest the project and the project qualified as a Detailed Project Proposal (DPP) in accordance with Section III.8(b), Attachment O [new process discussed later] This is a all or nothing incentive

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Section III.2: Selection of the Designated

Transmission Owner

• IEP submits a full report to SPP based on the data it

received through the RFP process

The IEP shall recommend one RFP proposal plus an alternate (if more than one respond to the RFP) SPP will produce two reports

The BOD report which has all the information, but with the names of the RFP respondents redacted The public report which is the BOD report, with any confidential information redacted as well

• The BOD will select one proposal, plus an alternate

The entity which submitted the selected proposal has 7 days to accept the project and sign any necessary paperwork If the first entity declines, then the entity which submitted the alternate proposal has 7 days to accept If neither entity accepts, then the SPP goes to the Section IV process to select an incumbent T.O.

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Section III.2: Failure of the DTO to complete

the Upgrade

• If the DTO is unwilling or unable to complete the

Competitive Upgrade then SPP can either: Reevaluate the project to determine if needed Select another TO to complete the Competitive Upgrade

Through the Section III process if time allows or Through Section IV

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Section IV:

• Generally tried to maintain current Tariff language

from Attachment O, Section VI.6

• Gives 90 days for the T.O. to respond to an NTC
• Maintains the ability of the T.O. to assign the NTC

to another entity

The entity getting the assignment must meet the T.O. Qualifications listed in Section III

• If the DTO declines the NTC, and does not assign it,

SPP will find another TO using the selection process in Section III

If no other entity can be found to build the project, the incumbent must construct it in accordance with the membership agreement

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Generally tried to maintain current Tariff language

from Attachment O, Section VI.6 for NTCs

Any project where the TO is selected through either

Section III or IV of Attachment Y must receive an NTC

• Basic NTC information (no change)
• DTO must accept NTC within either 7 days (Section III) or 90

days (Section IV)

Defined that an NTC may be issued for SPP to get a

better cost estimate (new)

• If the revised cost estimate is within a defined bandwidth

Baseline cost is set and a construction NTC is issued

• If the revised cost estimate is outside a defined bandwidth,

SPP may:

Accept the refined cost estimate Modify the project Replace the project with an alternative solution Cancel the project

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The TO must use due diligence to complete the

project as specified in the NTC

The TO must report to SPP if it can not meet one

• r more of the terms in the NTC

SPP Staff will study the issue(s) and propose a

course of action to the BOD, including but not limited to:

• Accept the changes as proposed
• Withdraw the NTC from the original TO and give it to

another TO

• Withdraw the NTC and replace it with an alternative

solution or

• Withdraw the NTC and cancel the project

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All transmission projects approved for

construction under the Tariff shall be tracked by SPP

• This includes Competitive Upgrades
• DTO will submit updates at least quarterly
• If the project cost varies significantly from the

baseline cost, the project can be reevaluated

• Also allows for “resetting” the baseline cost if

approved by the BOD

18

Several new defined terms: DTO, NTC and

Oversight Committee

Modified definition of TO to work with new

processes and modified Membership Agreement

Attachment O, Section III.8

• Added a process for stakeholders to submit a

Detailed Project Proposal (DPP) as part of the ITP Process

Attachment O, Section VI

• Removed TO selection process (Section VI.4)
• Created pointers to Attachment Y for ITP, GI and

TSR upgrades

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To Qualify for Incentive points as part of the TO selection

process of Attachment Y, the project must be a DPP (Section III.8(b) of Attachment O)

A DPP project must be submitted during a 30 day window

identified by SPP as part of the ITP planning process

• A list of specific information must be supplied by the stakeholder

submitting the proposal

• A DPP must solve one or more issues identified by SPP for that ITP

study

• A submitted DPP will be held in confidence until the 30 day

window closes

• It is possible for more than one entity to submit the same project

If a DPP is approved, the stakeholder(s) which submitted

the DPP remains the sole entity qualified for incentive points for that DPP for any ITP study done for the remainder of the 3 year ITP cycle

• The stakeholder must update the information for the DPP for the

subsequent ITP study as appropriate

• If the stakeholder does not update the information, SPP may still

use the project as a solution, but the stakeholder is not qualified for incentive points

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How Approved Upgrades are constructed under

the Tariff is still handled in Section VI

Section VI.1 – clean up items Split Section VI.2 into 2 numbered paragraphs Section VI.4 – Sponsored Upgrades (was VI.3)

• Sponsor must be willing to pay for the upgrade and put

the facility under the Tariff

• Sponsor is eligible for Credits under Attachment Z2
• If the Sponsored Upgrade is an upgrade of an existing

facility, the owner of the facility performs the upgrade

• If the Sponsored Upgrade is a new facility:

Allows the sponsor of a Sponsored Upgrade to be the TO for the upgrade if it qualifies to become a TO as defined in Attachment Y, Section III If the sponsor can not qualify as a TO or does not want to be the TO, SPP will select a TO in accordance with Section IV of Attachment Y

21

Current Sections VI.4 and VI.6 of Attachment

O are deleted

• These Sections were moved to Attachment Y,

Section IV

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RTWG is still cleaning up Tariff language RTWG is beginning the process of sending the

draft Tariff changes to various Working Groups:

• PCWG – NTC and Cost Tracking
• CAWG – General update
• TWG – Impacts to planning
• BPWG – Fair warning related to necessary Business

Practices that will need updating or creating

Comments should be back to the RTWG prior to

its September 26 / 27 meeting

• Be nice to have them no later than Sept. 21

Tariff Changes have to be given to the MOPC by

• Oct. 8 for posting

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