Order No. 1000
Transcript of Order No. 1000
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Staff Informational Conference on the Compliance Process
September 12-13, 2011
Order No. 1000Order No. 1000
Transmission Planning and Cost Allocation by Transmission Planning and Cost Allocation by Transmission Owning and Operating Public Transmission Owning and Operating Public
UtilitiesUtilities
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Order No. 1000Order No. 1000
Planning Requirements
Nonincumbent Developer Requirements
Interregional Coordination
Cost Allocation Requirements 2
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Defining the Planning Region What the Region Will Plan For How the Planning Process will be Performed
• Developing the Process• Proposing a Project• Allocating Costs
Interregional Coordination & Cost Allocation Compliance Due Dates
Path to CompliancePath to Compliance
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Defining the Planning Defining the Planning RegionRegion
Need to have a well-defined region • Need to know who is in and who is out• A well-defined region is necessary to know
adjacent regions for purposes of interregional coordination
Need a process to make decisions in the region
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What the Region Will What the Region Will Plan ForPlan For
Regional planning process must produce a regional plan• How will the region identify and evaluate
what it will be planning for, whether for reliability, economic, or public policy?
• How will the process to determine which objectives to study be formulated?
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How the Planning Process How the Planning Process Will be PerformedWill be Performed
Process must satisfy principles established in Order No. 890• Coordination, Openness, Transparency,
Information Exchange, Comparability, Dispute Resolution, and Economic Planning
• No additional requirements for each principle
Use experience from Order No. 890 compliance filings
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Addressing the Planning Addressing the Planning PrinciplesPrinciples
Regions have flexibility in developing procedures by which they will identify and evaluate solutions that are more efficient or cost effective
Yardstick for Commission evaluation will include our experience with Order No. 890 and precedent regarding compliance with the Order No. 890 principles 7
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Planning for Public Planning for Public Policy RequirementsPolicy Requirements
Establish procedures to identify and evaluate transmission needs driven by Public Policy Requirements (PPRs) established by state or federal laws or regulations
Post an explanation of which PPRs will and will not be evaluated for potential solutions in the local and regional transmission planning processes
Requires opportunities for stakeholder participation in transmission planning process 8
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Public Policy Public Policy RequirementsRequirements
Allows for flexibility to design the procedures Not requiring the identification of any set of
transmission needs driven by PPRs Does not change the role of states with
respect to PPRs Allows for, but does not require, a separate
class of transmission facilities related to compliance with PPRs
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Procedures for Public Procedures for Public Policy RequirementsPolicy Requirements
How will the process be developed to identify transmission needs driven by PPRs?
How will the process be developed to evaluate potential solutions?
How will any proposed solutions be attributable to applicable PPRs?
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Nonincumbent Nonincumbent Transmission DevelopersTransmission Developers
Eliminate provisions that establish a federal right of first refusal, with certain exceptions
Develop a regional process for transmission project submission, evaluation and selection
Compliance will need to include:• Qualification Criteria• Submission Requirements• Evaluation Procedures
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Establish Qualification Establish Qualification CriteriaCriteria
How will the process be developed to establish an entity’s eligibility to propose a transmission project?
Criteria may not be unduly discriminatory or preferential
Criteria should be used to demonstrate financial resources and technical expertise
Criteria can address a range of issues12
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Submitting ProposalsSubmitting Proposals
How will the process be developed to identify the information a qualified entity must submit?
Must be fair; neither too cumbersome nor too relaxed
Must have a due date for proposals13
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Evaluating ProposalsEvaluating Proposals
How will the process be developed to create evaluation procedures that comply with transmission planning principles?
Process must culminate in a sufficiently detailed determination
Identify procedures to reevaluate if delayed Incumbents and nonincumbents must have
same eligibility to use cost allocation14
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Interregional CoordinationInterregional Coordination
Each pair of neighboring planning regions must:• Share information regarding the respective needs of
each region and potential solutions to those needs• Identify and jointly evaluate interregional facilities
that may be more efficient or cost-effective solutions to those regional needs
If regions identify interregional facilities, the relevant portions must then be selected in each region’s planning process to be eligible for cost allocation
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Interregional Coordination Interregional Coordination RequirementsRequirements
Develop procedures for sharing information Implement procedures and describe the
methods by which neighboring regions will identify and jointly evaluate transmission facilities that are proposed to be in both regions
Exchange planning data and information between neighboring transmission regions
Maintain a website or email list for the communication of information
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Regional Cost AllocationRegional Cost Allocation
How will the process develop a common method, or set of methods, for allocating costs of regional transmission facilities?
The cost allocation method must satisfy six cost allocation principles
Regions may develop regional cost allocation methods for different types of projects (reliability, economic, public policy)
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Interregional Cost Interregional Cost AllocationAllocation
How will the process develop a common method, or set of methods, for allocating costs of regional transmission facilities?
The cost allocation method must satisfy six cost allocation principles
To be eligible for interregional cost allocation, each facility must be selected in each regional plan
Different interregional facilities may have different cost allocation methodologies 18
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Cost Allocation ReviewCost Allocation Review
No one-size fits all method If a region cannot agree on a cost
allocation method, the Commission will decide based on the relevant record
Participant funding is permitted, but it cannot serve as the regional cost allocation method
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Compliance DatesCompliance Dates
Compliance with Regional Transmission Planning Requirements –October 11, 2012
Compliance with Interregional Transmission Planning Requirements –April 11, 2013
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Staff Contacts on Staff Contacts on ComplianceCompliance
Zeny Magos: [email protected] – 202-502-8244 (Central areas of Eastern Interconnection, MISO and SPP)
Chris Thomas: [email protected] – 202-502-8412 (CAISO and Western Interconnection)
Jesse Hensley: [email protected] – 202-502-6228 (Eastern areas of Eastern Interconnection, PJM, ISO-NE, and NYISO)
Partha Malvadkar: [email protected] – 202-502-6332