Regional State Committee/Southwest Power Pool , Inc ... minutes and...Regional State...

Regional State Committee/Southwest Power Pool, Inc.

COST ALLOCATION WORKING GROUP MEETING

July 7, 2015

AEP Offices

Renaissance Tower – 1201 Elm Street, Dallas, TX 72501

• S U M M A R Y O F A C T I O N S T A K E N •

Action Items July 7, 2015 1. Agenda for July 7, 2015 approved

2. Minutes for June 2, 2015 approved

3. CAWG accepts Staff’s recommendation and recommends to the Regional State Committee (RSC) to not approve the waiver request for South Waverly. (passed with 1 abstention (MoPSC))

4. CAWG to adopt the New Member Cost Allocation Review Process Scope as amended; and recommend that the RSC approve at their July meeting. (approved unanimously)

5. CAWG took no action on Revision Request (RR) 91 – Annual Allocation Percent Change, and made the following recommendation to the Regional State Committee (RSC):

• No RSC action should be taken on Revision Request 91. • The RSC requests to continue to be kept informed of Revision Requests that may

affect TCR underfunding. • The RSC reserves the right to take a position on future Revision Requests related to

ARR and TCR allocation, particularly if a major policy change is being proposed. • The RSC requests that SPP staff provide to the RSC and Cost Allocation Working

Group (CAWG) any information related to TCR underfunding as provided to the Market Working Group (MWG).

• The RSC requests that SPP staff provide to the RSC and CAWG any analyses prepared for the MWG that assesses the impact of the changes made in RR 91. (CAWG unanimously agreed with the proposed motion and recommendation to the RSC).

of 13

Regional State Committee/Southwest Power Pool, Inc.

COST ALLOCATION WORKING GROUP MEETING

July 7, 2015

AEP Offices

Renaissance Tower – 1201 Elm Street, Dallas, TX 72501

• M I N U T E S •

Agenda Item 1 – Call to Order, Introductions and Administrative Items

Chairman Jason Chaplin, Oklahoma Corporation Commission (OCC), called the meeting to order at 8:30 A.M. on July 7, 2015, and a quorum was declared. There were 61 persons in attendance in person or by phone. John Krajewski requested that Adam Mckinnie serve as his proxy until he arrives. Chairman Chaplin (OCC) asked if there were any changes to the July 7, 2015, agenda. There were several changes made to the order of the agenda to accommodate schedule changes. Adam Mckinnie, Missouri Public Service Commission (MoPSC) made a motion to approve the agenda as amended, Cindy Ireland, Arkansas Public Service Commission (APSC) seconded. Chairman Chaplin asked for a motion to approve the June 2, 2015, minutes. Meena Thomas, Public Utility Commission of Texas (PUCT) made a motion to approve the June 2, 2015, minutes; Cindy Ireland, (APSC) seconded. All items were approved via voice vote.

Agenda Item 2 – Review of Past Action Items

Tamika Barker, (SPP Staff), conducted an overview of the past action items. Minor changes were made to the description for action items #037, 042, and 043. The revised list is included in this set of minutes.

Agenda Item 3 – KCPL South Waverly Transformer Waiver Request Assessment (Possible Action Item)

Michael Odom, (SPP Staff), presented the KCPL South Waverly Transformer Waiver Request Assessment to CAWG members. The background of the waiver request is for the 161/69 kV transformer which was selected in the 2015 ITPNT assessment. The need date of June 1, 2015 with an estimated E and C cost of $1,355, 978. Low side voltages are used for cost allocation. Attachment J, Section III waiver provision allows for cost allocation based on high side voltage of transformers in specific cases. KCPL submitted a waiver requesting cost allocation on the high side voltage. Staff determined that while the transformer addresses reliability needs in both KCPL and GMO, KCPL substantially benefits from the upgrade. Action Item: Staff recommends CAWG to not approve KCPL’s classification waiver request to use the 161/69 kV transformer for cost allocation. John Krajewski, Nebraska Power Review Board (NPRB), proposed the following motion, Meena Thomas (PUCT), seconded:

CAWG accepts Staff’s recommendation and recommends to the Regional State Committee (RSC) to not approve the waiver request for South Waverly. The motion passed with 1 abstention (MoPSC).

The full presentation can be found in the background material for this meeting.

of 13

Agenda Item 4 – ERCOT Load Forecasting & other RTO/ISOs

John Mills, (SPP Staff), provided CAWG members with a presentation on Load Forecasting for other RTO/ISOs. Load forecasting information was requested from CAISO, ISO-NE, NY-ISO, MISO, and PJM. At the time the information was requested, the following questions were asked: 1). What is the source of the load forecasting data for the RTO’s transmission planning processes (i.e., supplied by LSEs, forecasted by the RTO, third-party, use of multiple forecasts, etc…)? 2). Does the RTO/ISO have any sort of validation process for load forecasting data it receives? For any RTOs/ISOs who do the load forecasting themselves, is that information verified or validated by members or a third-party? Mr. Mills shared the responses that were received from the RTOs/ISOs who complied with the request. MISO failed to respond to the initial inquiry; therefore, their answers to the above questions were not included in the presentation. Calvin Opheim, (ERCOT), provided CAWG members with a presentation on the Long-Term Load Forecasting methodology for ERCOT, discussing the following in relation to the aforementioned questions listed above:

• Utilizes Central Settlement System – 15 minute incremental data • Information is produced hourly, for every hour of the year • Generate 87/60 shape for the year • Utilizes Neuro Network for accuracy • Linear Regression • Analyzes 12-15 years of rolling average weather • Forecasts are validated by the ERCOT Board of Directors, and are reviewed twice a year at a

minimum Both presentations can be found in the background material for this meeting.

Agenda Item 5 – New Member Cost Allocation Review Process Scope (Action Item)

John Krajewski (NPRB), led the discussion on the latest version of the New Member Cost Allocation Review Process Scope. Upon review, CAWG decided that it would be appropriate to strike bullets #1 and #3 from the Schedule of Completion. Action Item: Chairman Chaplin asked for a motion to approve the revisions made to the New Member Cost Allocation Review Process Scope at the July 7th CAWG meeting. John Krajewski, (NPRB), proposed the following motion, Meena Thomas (PUCT), seconded:

CAWG to adopt the New Member Cost Allocation Review Process Scope as amended; and recommend that the RSC approve at their July meeting. The motion was approved unanimously.

Agenda Item 6 – Aggregate Study Waiver Criteria

2010 and 2015 Wind Integration Study Bruce Rew, (SPP Staff), led the discussion on the 2010 and 2015 Wind Integration Study. Mr. Rew referenced the Transmission Expansion Cost Allocation Proposal document dated November 12, 2004. He compared the 2010 and 2015 studies by discussing the differences and similarities between the two, indicating that the 2015 study initially will be more modest than the 2010 study. Data shows that to date,

of 13

SPP is operating just below 9,000 MW of wind. By next year, Staff estimates 10 Gigs installed. This does not include the Integrated Systems. By the end of 2016, Staff estimates 12 Gigs of wind for SPP. Goals for the 2015 Study:

• Higher levels of wind • Comfort with operating at a higher level • Expect to see more growth and wind • Study completion expected early 2016

Proposed Scope – 20% Wind Review Process Adam Mckinnie, (MoPSC) led the discussion for CAWG members for the 20% Wind Review Process Scope. Mr. Mckinnie walked through the document and asked questions of CAWG members to determine if additional information would be needed to help streamline the process. Minor revisions were made to the document and will be presented at the July RSC meeting.

Agenda Item 7 - Lunch

Agenda Item 8 – RR 91 – Annual Allocation Percent Change (Possible Action Item)

John Krajewski, (NPRB), led the discussion on RR 91 – Annual Allocation Percent Change relating to underfunding. The Annual ARR Allocation system capacity changed to match Annual ARR TCR Auction – June 100%, July through September 90%, and Seasons 60%. All Annual ARRs are settled and/or self-converted during the annual process. All residual capacity will still be allocated and auctioned in monthly processes. Mr. Krajewski stated that his initial thought about requests of this nature is that CAWG and the RSC should be kept informed of the changes, but to not be as involved in the highly technical aspects of the processes. John Krajewski, (NPRB), proposed the following motion, Andy Fry, Kansas Corporation Commission (KCC), seconded: Action Item: CAWG to not take action on RR 91, and to recommend that no RSC action be taken on this revision request as well.

CAWG took no action on Revision Request (RR) 91 – Annual Allocation Percent Change, and made the following recommendation to the Regional State Committee (RSC):

1) No RSC action should be taken on Revision Request 91. 2) The RSC requests to continue to be kept informed of Revision Requests that

may affect TCR underfunding. 3) The RSC reserves the right to take a position on future Revision Requests

related to ARR and TCR allocation, particularly if a major policy change is being proposed.

4) The RSC requests that SPP staff provide to the RSC and Cost Allocation Working Group (CAWG) any information related to TCR underfunding as provided to the Market Working Group (MWG).

5) The RSC requests that SPP staff provide to the RSC and CAWG any analyses prepared for the MWG that assesses the impact of the changes made in RR 91.

CAWG unanimously agreed with the proposed motion and recommendation to the RSC. The full presentation can be found in the background material for this meeting.

Agenda Item 9 – SPP-MISO Coordinated Study Plan

Brett Hooton, (SPP Staff), presented CAWG members with an update on the SPP-MISO Coordinated Study Plan. Mr. Hooton discussed the Economic Projects; Elm Creek – NSUB 345 kV, South Shreveport

of 13

– Wallace Lake 138 kV Rebuild, and Series Reactor on Alto – Swartz 115 kV. He explained the objectives for the study, and covered a variety of topics including the study process, data inputs, analysis and timeline. This topic is expected to go to the Markets and Operations Policy Committee (MOPC) and the SPP Board of Directors (BOD) during the October 2015 cycle of meetings. The full presentation can be found in the background material for this meeting.

Agenda Item 10 – Capacity Margin Task Force Update (CMTF)

Walt Cecil, (MoPSC) provided CAWG members with an update on the work being done on the Capacity Margin Task Force. He stated that the CMTF Charter is being extended to 2016. The group will request approval for both the Charter and the Load Responsible Entity White Paper at the July Markets and Operations Policy Committee (MOPC) meeting. Additionally, the Enforcement Policy will be discussed at the MOPC for informational purposes.

Agenda Item 11 – Working Group Updates

Chairman Chaplin encouraged participants to review other working group reports that were included in the background material for information pertaining to those groups.

Agenda Item 12 – New Action Items

Action item #044 was added – SPP Staff to provide CAWG with any information related to TCR underfunding and the impact of the changes made in RR 91.

Agenda Item 13 – Future Meetings

• August 11, 2015 – WebEx/Teleconference Meeting • September 1, 2015 – Dallas, TX (AEP Office) • October 6, 2015 - Dallas, TX (AEP Office) • November 10, 2015 – WebEx/Teleconference Meeting • December 1, 2015 - Dallas, TX (AEP Office)

Agenda Item 14 – Adjournment

With no further business to discuss, Chairman Chaplin adjourned the meeting at 2:13 pm. Respectfully Submitted, Tamika Barker CAWG Staff Secretary

of 13

Southwest Power Pool

COST ALLOCATION WORKING GROUP

Pending Action Items Status Report

July 7, 2015

ID Action Item Date Originated

Status Comments

001 Z2 Crediting Project Update 11-6-13 Ongoing Staff will provide an updates at the Dec CAWG meeting

002 Project Tracking Update 11-6-13 Ongoing CAWG requested additional detail be added to the report by PCWG. Staff will provide updates quarterly to CAWG

030 CMTF representatives to provide CAWG with an update

9-3-14 Ongoing

033 CAWG members to receive updates on the new SPP.org beta testing feedback

10-1-14 Underway

037 SPP Staff to provide quarterly update on AECI and MISO Interregional Planning activities as needed

2-12-15 Ongoing

041 ITP10 Renewable Survey Discussion 4-7-15 Ongoing 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.

042 Preparation of the New Member Cost Allocation Review Process Scope

6-2-15 Ongoing

043 Aggregate Study Waiver Requirement Review Scope

6-2-15 Ongoing

044 SPP Staff to provide CAWG with any information related to TCR underfunding and the impact of the changes made in RR 91

7-7-15 Ongoing

of 13

Southwest Power Pool

COST ALLOCATION WORKING GROUP

Completed Action Items Status Report

July 7, 2015

ID Action Item Date Originated

Status Comments

003 Presentation on RRR File 11-6-13 Complete

Staff will provide Presentation from 2011 made to the Settlement Users Group to the CAWG.

006 Distribute Seams Project White Paper 11-6-13 Complete

Background for action item 005

004 CAWG to prepare position for BPWG 11-6-13 Complete CAWG will address the ATSS process improvement at the Dec CAWG meeting

007 Discuss Sensitivities for HPILS Economic Modeling

12-4-13 Complete Will discuss at January CAWG meeting – wind penetration, gas prices, etc.

008 SPC - Foundational Strategies/Strategic Initiatives

12-4-13 Complete CAWG group inputs to Tamika Barker – by Jan 27 February 3, 2014

009 SPC – Foundational Strategies/Strategic Initiatives

12-4-13 Underway Complete

M. Desselle present SPC Strategic Plan review to RSC (Before MOPC in January)

011 Handle agenda item regarding CAWG’s coverage of WGs via email

1-8-14 Underway Completed

Meena Thomas to initiate

012 Study Estimate Design Guide Review 1-8-14 Underway Complete

John Krajewski to email S. Loudenslager

014 Revision of Working Group Coverage List


Meena Thomas to send to Tamika for distribution through exploders

016 Determine if Non-Disclosure Agreements (NDAs) are needed on a case-by-case basis


Erin Cullum

019 Schedule teleconference to cover proposed changes to SPP Wind Accreditation, Criteria 12


M. Thomas to verify CAWG availability

of 13

013 Develop a summary document of comments on SPP Strategic Plan for circulation through CAWG prior to March meeting

2-12-14 Complete

Comments to be submitted to John Krajewski no later than Feb 24, 2014

017 Send findings on action item #10 to the CAWG exploder

3-5-14 Complete

020 Determine if CAWG can obtain other WG comments on the SPP Strategic Plan

3-5-14 Complete

A link to Working Group comments was sent to the CAWG exploder on April 15, 2014.

021 Vote on MPRR 171 – LTCR Clarifications in April meeting

3-21-14 Complete

010 Process of disclosing name and amounts associated with the crediting process

1-8-14 Complete

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.

015 PCWG comments on Study Estimate Design Guide

2-12-14 Complete

Awaiting PCWG action

018 Revision of Working Group Coverage List – redistribute to exploder

3-5-14 Complete

Adam Mckinnie to provide periodic reports to CAWG on Seams Project Task Force (SPTF) actions

024 Staff Secretary to distribute additional slides covered on Benefits Metrics during the June 4th CAWG meeting to the exploder

6-4-14 Complete A link to the additional materials was sent to the CAWG exploder on June 5, 2014

022 Discuss Proposed Changes to SPP Wind Accreditation, Criteria 12 in April Meeting


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 2nd meeting.

023 SPP Staff to provide an update on ORWG action on Wind Accreditation Criteria revisions at the June 20th WebEx/Teleconference


Jason Smith will be available to participate in the call.

025 CAWG members to provide feedback on the Value of Transmission presentation at the June 20th WebEx/Teleconference

6-4-14 Complete

Formatted: Superscript

of 13

026 SPP Staff to circulate the most recent version of the Seams Project Policy White Paper via CAWG exploder

7-2-14 Complete

028 CAWG members to prepare to vote on the Seams Policy Project Paper at the September 3, 2014 meeting


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


032 CAWG members to consider reducing the number of face-to-face meetings for 2015.


Tamika will send out the revised CAWG schedule through the exploder.

034 CAWG members to provide EPA 111(d) related Compliance Cost feedback to Sam Loudenslager.


RSC did not see the need for compliance cost study until after the final rule is issued next year.

005 SPP will review draft TRR being considered by SSC

11-6-13 Complete

Seams Project Task Force meetings underway, expected to conclude by October 2014.

029 SPP Staff to provide an update to CAWG on any changes to BPR-051

9-3-14 Complete

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.

11-12-14 Underway Closed

039 Provide CAWG members with a link to the Fuel Assurance report filed with FERC

2-12-15 Complete

040 Forward pages 39-41 from January 2015 RSC materials to CAWG members (Questions 1-3 under review by RSC and new member process)

2-12-15 Complete

027 SPP Staff to research statutes for various State’s utility status and Certificate of Convenience and Necessity (CCN)

8-12-14 Underway Closed

SPP staff will send research results to state regulatory staff for feedback.

Formatted: Not Strikethrough



of 13

038 Carl Monroe to address history on Bright Line


CAWG members to be prepared to discuss cost allocation for new members at the April RSC Education Session.

of 13

Regional State Committee/Southwest Power Pool , Inc ... minutes and...Regional State...

Documents

Transcript of Regional State Committee/Southwest Power Pool , Inc ... minutes and...Regional State...