ATSS Backlog Clearing Process (BCP) Customer Workshop October 4, 2013.

ATSS Backlog Clearing Process (BCP) Customer WorkshopOctober 4, 2013

Purpose

• Provide overview and details of the Backlog Clearing Process (BCP), including timelines and requirements

• Capture questions to include in posted documents

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Overview• Overview of the Backlog Clearing Process (BCP)• ATSS Completion Agreement (ACA) • Study Procedure• Third-party Impact Process • Make-Whole Payment (MWP)• Open Season Extension• One-Time Cost-Causer Exemption

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Definitions• Current Process

– The currently-effective aggregate study process• Backlog Clearing Process (BCP)

– The process to be implemented upon FERC acceptance of SPP’s filing in ER13-2164

– Requested effective date of October 12, 2013• New Process

– A new aggregate study process – still in development in SPP’s working groups – for future implementation with a date to be determined

– No tariff changes have yet been approved or filed

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Aggregate Study is an iterative process that continues until no customers withdraw.

Open Season

(4 months)

Open Season

(4 months)

Facilities Study

(60 days)

Facilities Study

(60 days)

Letter of Intent Response Period

(15 days)

Letter of Intent Response Period

(15 days)

Restudy Needed

?

Restudy Needed

?

Write Service

Agreement

Write Service

Agreement

YESYES

NONO

Current Aggregate Study Process

Are New Completion

Requirements Met?

Are New Completion

Requirements Met?

ACA Completion Requirements1.Maximum directly-assigned upgrade cost2.Maximum 3rd party upgrade cost3.Latest acceptable deferred start date4.Accept interim redispatch5.Maximum Letter of Credit


Overview of the Backlog Clearing Process

Post AFS-4 and Tender ATSS Completion

Agreement (ACA)


Agreement (ACA)

Facilities Study

Facilities Study

Accept all requests and Tender Service

Agreements


Agreements

NO

YES

Collect Make-Whole Payments from

Customer, if required



Customer Executes

ACA

Customer Executes

ACA

Customer Does Not

Execute ACA

Customer Does Not

Execute ACARequest

WithdrawnRequest

Withdrawn

Customer Confirms Service (and

Executes Service Agreement)



Customer Does Not Confirm

Service


Service

StartStartNO

YES

Customer with 3rd

party impacts may

move to next study

Customer with 3rd

party impacts may

move to next study

Customer with 3rd Party impacts postpones action


Customers with requests that did not meet

parameters may withdraw or must execute ACA

amendment to remain



amendment to remain

Did any customers withdraw?


StopStop

Customer Action

Customer Action

SPP Staff Action

SPP Staff Action

AGGREGATE STUDY COMPLETION AGREEMENT (ACA)

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ATSS Completion Agreement (ACA) and Process• ACA tendered only for studies that are first in queue and

after AFS-4

• ACA covers the request through the completion of the study

• Customer commits either to accept service offered within the ACA parameters or to pay a make-whole payment

• Baseline values are the values from the pre-ACA study iteration and customers can enter greater “acceptable” values

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ACA Contents

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Additional components of ACA:•Agreement with Table 1 for OASIS requests •Appendix 1 – Study parameters•Appendix 2 – Mutually exclusive requests

ACA – Table 1• ACA Table 1 will list all OASIS requests covered by

agreement:

• Any related GI study number should be included in the ‘GI Study Number’ column

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ACA – Appendix 1

13

Customer selects study option at top of Appendix 1.Remain: Items 1-5 must be completed.Sign and date at bottom.

ACA – Appendix 1

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Customer selects Expedited Service, Accepts ATC or Withdraws, then skip items 1-5 and sign and date at bottom.

ACA – Appendix 1 – cont.

(1) Directly Assigned Upgrade Costs (DAUC)– Customer can specify a maximum amount, but no less

than its DAUC from the iteration prior to signing the ACA– If no maximum amount is provided in (1)(b), the value

from the most recently posted study will be utilized

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ACA – Appendix 1 – cont.(2) 3rd Party Upgrade Costs

– Customer can specify a maximum amount, but no less than its costs from the iteration prior to signing the ACA

– Customer can elect to either remain in the current study or move to the next highest priority study in queue if the 3rd party cost is non-zero or listed as indeterminate

– If no maximum amount is provided in (2)(b), the value from the most recently posted study will be utilized

– If no selection is made for (2)(c), the request will remain in study

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(3) Deferred Start Date without redispatch– Customer can specify the latest acceptable start date– If date in (3)(b) is left blank, the Start Date from Most

Recently Posted Study will be the default date

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(4) Interim Redispatch, if it can provide an earlier Start Date

– Customer can specify if Interim Redispatch is acceptable– If no selection is made, then ‘No’ will be the default

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(5) Letter of Credit (if required)– Customer can specify a maximum amount– If no maximum amount is provided in (5)(b), the value

from the most recently posted study will be utilized

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ACA – Appendix 2

• Mutually-exclusive requests– Post AFS-4, customer must select only one (1) request to

remain in study. – Customer will withdraw any remaining requests

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BCP STUDY PROCEDURE

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Are New Completion

Requirements Met?

Are New Completion

Requirements Met?



BCP Study Procedure

Facilities Study

Facilities Study


Agreements


Agreements

NO

YES

NO

YES

3rd Party Process3rd Party Process



amendment to remain



amendment to remain



• BCP Facilities Study begins once initial ACAs are returned

• Parameters evaluated from ACA Appendix 1 and 2

• Requests that don’t meet one of the parameters may be• Withdrawn• ACA Amended

• Requests that meet all parameters will remain in study

• Restudy, if needed

• If no requests are withdrawn, begin finalizing study• “Next Steps” emails• Accept all requests• Tender Service Agreements

• 3rd Party Process

Customer Action

Customer Action

SPP Staff Action

SPP Staff Action

3RD PARTY IMPACTS

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3rd party impacts

• The customer with 3rd party impacts has three options prior to executing the ACA and entering into BCP– Option 1: Withdraw the

request

– Option 2: Move to next study

– Option 3: Continue in study subject to make-whole payment

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Are New Completion

Requirements Met?

Are New Completion

Requirements Met?



Request Withdrawn

Request Withdrawn

3rd Party Impacts – cont.


Agreement (ACA)


Agreement (ACA)

Facilities Study

Facilities Study


Agreements


Agreements

NO

YES





Customer Executes

ACA

Customer Executes

ACA

Customer Does Not

Execute ACA

Customer Does Not

Execute ACA






Service


Service

StartStartNO

YES

Customer with 3rd

party impacts may move to next

study

Customer with 3rd


study





amendment to remain



amendment to remain



Issue NTCs, if required


Project TrackingProject

Tracking

StopStop

Customer Action

Customer Action

SPP Staff Action

SPP Staff Action

Customers with unresolved 3rd party impacts may

choose to move to the next aggregate study prior to

execution of the ACA

Are New Completion

Requirements Met?

Are New Completion

Requirements Met?



Request Withdrawn

Request Withdrawn



Agreement (ACA)


Agreement (ACA)

Facilities Study

Facilities Study


Agreements


Agreements

NO

YES





Customer Executes

ACA

Customer Executes

ACA

Customer Does Not

Execute ACA

Customer Does Not

Execute ACA






Service


Service

StartStartNO

YES

Customer with 3rd


study

Customer with 3rd


study





amendment to remain



amendment to remain






Tracking

StopStop

Customer Action

Customer Action

SPP Staff Action

SPP Staff Action

Customers with un-resolved 3rd party

impacts after study completion may

postpone the decision to confirm service

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3rd Party Impacts – Postponing Service

Agreement is not reached with

3rd party or time expires

Agreement is not reached with

3rd party or time expires

Request is Accepted and Service

Agreement is Tendered

Request is Accepted and Service

Agreement is Tendered

Make Whole Payment (MWP) is collected

from Customer

Make Whole Payment (MWP) is collected

from Customer

3rd Party clears Request

3rd Party clears Request





Request is Declined and Sponsored

Upgrade Agreement is Tendered

Request is Declined and Sponsored

Upgrade Agreement is Tendered

Customer with 3rd Party impacts

postpones action

Customer with 3rd Party impacts

postpones action

Timer Starts(1 year or

Service Start Date)

Timer Starts(1 year or

Service Start Date)

Applicable 3rd Party

Evaluation Process

Applicable 3rd Party

Evaluation Process

Customer Action

Customer Action

SPP Staff Action

SPP Staff Action

3rd Party Action

3rd Party Action

Are New Completion

Requirements Met?

Are New Completion

Requirements Met?



Request Withdrawn

Request Withdrawn



Agreement (ACA)


Agreement (ACA)

Facilities Study

Facilities Study


Agreements


Agreements

NO

YES





Customer Executes

ACA

Customer Executes

ACA

Customer Does Not

Execute ACA

Customer Does Not

Execute ACA






Service


Service

StartStartNO

YES

Customer with 3rd


study

Customer with 3rd


study





amendment to remain



amendment to remain






Tracking

StopStop

Customer Action

Customer Action

SPP Staff Action

SPP Staff Action

Customers with 3rd party impacts that move forward by signing the ACA may be subject to a make-whole payment if service is not

confirmed.

MAKE-WHOLE PAYMENT (MWP)

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Make-Whole Payment (MWP)• Customers that sign an ACA without executing a

Transmission Service Agreement (TSA) are obligated to pay for any shared upgrade costs in the form of a MWP

• Customers that pay a MWP will execute a Sponsored Upgrade agreement under Attachment J– Sponsored Upgrades are eligible to receive revenue

credits under Attachment Z2

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Re-Run Cost Allocation &

Prepare Sponsored Upgrade

Agreements

Re-Run Cost Allocation &

Prepare Sponsored Upgrade

Agreements

Notify Customer of MWP and

Tender Sponsored Upgrade

Agreements

Notify Customer of MWP and

Tender Sponsored Upgrade

Agreements

Settlement of Make Whole

Payment

Settlement of Make Whole

Payment

Incorporate into Creditable Upgrades Database

Incorporate into Creditable Upgrades Database

Make-Whole Payment (MWP) Process

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Maximum Potential MWP Example• Excerpt from Table 3 of study report showing Service

Upgrades allocated to a request

• The highlighted cells depict the potential MWP for each upgrade, based on the revenue requirements.

• The non-highlighted upgrades are non-shared upgrades and are not included in the MWP calculation.

Upgrade # Upgrade Name DUN EOCEarliest

Start DateRedispatch Available

Allocated E & C Cost Total E & C Cost

Total Revenue Requirements

1 GRAND ISLAND - SWEETWATER 345KV CKT 2 12/1/2013 6/1/2019 No $ 207,454 $ 96,288,750 $ 634,269

2 HYDRALIC JCT NORTH - MACARTHUR 69KV CKT 1 6/1/2018 6/1/2018 $ 1,745,900 $ 1,745,900 $ 5,150,283

3 HYDRALIC JCT NORTH - OAKLAWN 69KV CKT 1 6/1/2018 6/1/2018 $ 1,098,100 $ 1,098,100 $ 3,239,318

4 SMAN_W_3 115.00 - SOUTH MANHATTAN 115KV CKT 1 6/1/2015 6/1/2016 $ 78,476 $ 790,000 $ 285,837

5 ST JOHN - ST_JOHN 115KV CKT 1 MIDW 12/1/2013 6/1/2016 No $ 19,438 $ 450,000 $ 55,670

6 ST JOHN - ST_JOHN 115KV CKT 1 MKEC 12/1/2013 6/1/2016 No $ 24,298 $ 562,500 $ 117,718

Total: $ 3,173,666 $ 100,935,250 $ 9,483,093

Maximum Potential MWP:

$1,098,494

Maximum Potential MWP:

$1,098,494

Non-Shared Upgrades

• Non-shared upgrades will not be included in the Make-Whole Payment for requests that are not confirmed

• Exception: – Non-shared upgrades that are allocated to a request

with a third-party impact that exercised the option to postpone action will be included in subsequent studies

– If service is granted to subsequent requests that rely on the non-shared upgrade, the original request will be assigned a MWP if the request is not confirmed

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OPEN SEASON EXTENSION

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Open Season Extension• Open season will remain open until either the

immediately prior study becomes the highest priority study or SPP Staff determines the Open Season needs to close– SPP will give at least 10 days’ notice before the open

season closes

– The Open Season will be open for no less than 4 months

• 2014-AG1 will be the first open season to be extended

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ONE-TIME COST-CAUSER EXEMPTION

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One-Time Cost-Causer Exemption

• Customers will have an opportunity to withdraw any pending aggregate study request without incurring an obligation to pay for subsequent restudies– Customers have 45 days after FERC acceptance

of the tariff language to exercise the option

• This is a one-time exemption

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WRAP-UP

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Implementation Timeline

• Filed Tariff Aug. 15, 2013

• FERC order expected by Oct. 14, 2013

• Letters of Intent due for 2011-AG3-AFS-10 on Oct. 12

• If FERC issues an order by COB October 14, 2013 and accepts the October 12, 2013 effective date, then:– 2011-AG3 will be subject to BCP if it did not complete

with AFS-10 (ACA will be tendered)

– If October 12th is not the effective date, 2011-AG3 will continue under the Current Process if it did not complete with AFS-10

Posting of Documents on spp.org

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ATSS Contact InformationSteve Purdy, Manager [email protected] (501) 614-3371

Chris Jamieson, Lead Engineer [email protected] (501) 614-3231Eric Samson, Sr. Engineer [email protected] (501) 614-3375James Bailey, Engineer [email protected] (501) 688-8243David Duhart, Engineer [email protected] (501) 688-1705Terry Fang, Engineer [email protected] (501) 688-1709Charlton Hill, Engineer [email protected] (501) 688-1716Aaron Stewart, Engineer [email protected] (501) 482-2168

John O’Dell, Analyst [email protected] (501) 688-8285Sherri Maxey, Analyst [email protected] (501) 688-1648

General email: [email protected]

mailto:[email protected]











ATSS Backlog Clearing Process (BCP) Customer Workshop October 4, 2013.

Documents

Transcript of ATSS Backlog Clearing Process (BCP) Customer Workshop October 4, 2013.