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  • Southwest Power Pool

    BOARD OF DIRECTORS/MEMBERS COMMITTEE MEETING

    Hilton Palacio Del Rio, San Antonio, TX

    January 30, 2007

    - Summary of Action Items - 1. Approved minutes of the October 24, December 1 and December 12, 2006 Board of Directors/Members

    Committee meetings. 2. Approved the Finance Committee’s recommendation to engage Price Waterhouse Coopers to perform a Type

    II SAS70 audit of SPP’s controls surrounding transmission and imbalance energy services. 3. Approved the Strategic Planning Committee’s recommendation to modify the Delegation Agreement between

    NERC and SPP to change the allocation of ERO and RE costs from Balancing Areas in the SPP footprint to all the load serving entities in the SPP footprint.

    4. Approved the Markets and Operations Policy Committee’s recommendation for proposed changes to Tariff

    Section 34, Tariff changes for PRRs and endorsement of the RTWG’s two-point recommendation regarding cost allocation method changes and approval of proposed changes to Tariff Attachments J and S. With respect to PRR134, the Finance Committee will reconsider 6 months after implementation with the objective of reinstating or reducing the 5-day period.

    5. Approved the Markets and Operations Policy Committee’s recommendation of revisions to Criteria 7.1 to

    reflect changes to satisfy new NERC standards PRC-002-01 and PRC-018-01. 6. Approved the Markets and Operations Policy Committee’s recommendation to endorse the 2006 – 2016

    Transmission Expansion Plan and the list of reliability projects in Appendix ‘B’. 7. Approved the Markets and Operations Policy Committee’s recommendation to endorse the list of Base Plan

    Upgrades consistent with the intent of the Tariff, “Option C”, and “Transition Plan of Option C.” 8. Approved the Markets and Operations Policy Committee’s recommendation of the Westar waiver to such

    extent that this project is fully Base Plan funded for the Rose Hill – Sooner 345 kV project. 9. Approved, contingent on approval from RSC, the Markets and Operations Policy Committee’s

    recommendation that the OG&E Reservation 1032973 designated as Centennial Wind Farm with a waiver amount recommended by the SPP staff of $747,000.

  • MINUTES NO 110

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    Southwest Power Pool

    BOARD OF DIRECTORS/MEMBERS COMMITTEE MEETING

    Hilton Palacio Del Rio, San Antonio, TX

    January 30, 2007 Agenda Item 1 - Administrative Items SPP Chair Mr. Jim Eckelberger called the meeting to order at 8:05 a.m. The following Board of Directors/Members Committee members were in attendance, via teleconference, or represented by proxy:

    Mr. Larry Altenbaumer, director Ms. Phyllis Bernard, director Mr. Nick Brown, director Mr. Harry Dawson, Oklahoma Municipal Power Authority Mr. Kevin Easley, Grand River Dam Authority Mr. Jim Eckelberger, director Mr. Tom Grennan, Kansas Electric Power Cooperative Ms. Trudy Harper, Tenaska Power Services Company Mr. Quentin Jackson, director Mr. Rob Janssen, Redbud Mr. Jeff Knottek, City Utilities of Springfield Mr. Joshua Martin, director Mr. Mel Perkins, OG+E Electric Services Mr. Gary Roulet, Western Farmers Electric Cooperative Mr. Harry Skilton, director Mr. Stuart Solomon, American Electric Power Mr. Richard Spring, Kansas City Power & Light Mr. Tom Stuchlik, Westar Mr. Rick Tyler, Northeast Texas Electric Cooperative Mr. Gary Voigt, Arkansas Electric Cooperative Corporation

    Mr. Eckelberger asked for a round of introductions. There were 67 persons in attendance either in person or via phone representing 30 members (Attendance List - Attachment 1). Mr. Brown reported that there were no proxies and a quorum was declared. Mr. Eckelberger referred to draft minutes of the October 24, December 1 and December 12, 2006 meetings. He asked that the following corrections be made to the December 12 minutes: the word “October” be struck in his statement concerning alternative health benefits on page 3; and in regards to the SAS70 controls on page four, the word “members” when referring to active and non-active members be replaced by “committee.” Mr. Eckelberger then asked for additional corrections or a motion for approval (10/24/06, 12/1/06 & 12/12/06 Meeting Minutes - Attachment 2). The minutes were approved by acclamation as revised. Mr. Eckelberger introduced and welcomed Ms. Jennifer Amerkhail an Energy Industry Analyst for FERC. Agenda Item 2 – Corporate Governance Committee Report Mr. Nick Brown reported that the Corporate Governance Committee (CGC) met via teleconference on January 12 to fill two vacancies on the SPP Members Committee. Mr. Stuart Solomon (AEP) was elected to fill Mr. Nick Akins’ position in the TO/IOU sector and Mr. Rob Janssen (Redbud) was elected to fill Mr. Jim Stanton’s position in the TU/IPP Marketer sector. Mr. Brown stated that the CGC would meet soon to start the nominating process for October to fill expiring terms.

  • SPP Board of Directors/Members Committee Minutes January 30, 2007

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    He asked that the committee meet with Ms. Stacy Duckett and himself during the first break in today’s meeting to choose a face-to-face meeting date to start this process and review organizational surveys. Agenda Item 3 – President’s Report Mr. Nick Brown provided the SPP President’s report (2006 4Qtr Report – Attachment 3). Mr. Brown stated that it was 39 hours and 44 minutes until the SPP EIS Market goes live on February 1. The Go/No Go team will meet today at 2:00 p.m. and tomorrow, January 31, at 2:00 p.m. to make its final recommendation. Should the team decide a no go, Mr. Brown will call the Board of Directors/Members Committee for a teleconference to aid in the final decision. He invited anyone interested to attend the event at midnight Wednesday night. Please let SPP know if you plan to attend in order to arrange entry. Mr. Eckelberger and Mr. John Rogers (FERC) will be present. Mr. Carl Monroe offered that there is a go/no go status report on the SPP website daily. All Market metrics from October through December have been completed. There have been some concerns expressed regarding late arrival of model changes, settlement data feeds, LIP volatility, etc. but some things will only be learned after going live. Mr. Brown stated that SPP currently has two initiatives underway:

    1. NERC’s transition to an Electric Reliability Organization (ERO) The 60 day period for FERC’s response to NERC’s ERO implementation status and SPP’s RE status ends on March 10. It is hoped that SPP’s order will be issued prior to March 10; however, SPP is already assuming duties of an RE. Billings have gone out to REs under the new organization using a different mechanism with costs much higher than in the past. The mandatory compliance deadline is June 1 after which penalties will be enforced. SPP’s first initiative after achieving RE status will be to modify the Bylaws to elect three trustees to oversee the Standard setting process and the compliance process; also, additional SPP Staff will be required. Recommendations from Members to fill the trustee positions would be welcome and helpful. SPP must transition quickly following the receipt of the order.

    2. SPP’s Transmission Expansion Plan (STEP) This initiative will be covered in the Regional State Committee (RSC) report presented later in the meeting by RSC President, Ms. Julie Parsley.

    Mr. Brown then presented a review of the Executive Quarterly Report, 4Q 2006. He pointed out that 100 employees had been hired in 2006 making a total of 245 with 300 employees budgeted for 2007. With a need for additional engineers, SPP is actively working with universities to aid in training programs. Currently SPP has a program with the University of Arkansas at Little Rock and now is exploring membership in a newly formed group called the National Center for Reliable Electric Transmission at the University of Arkansas. In further discussion regarding the quarterly report, Ms. Trudy Harper requested that charts regarding Tariff administration on pages 33 and 34 report volume of firm and non-firm requests. Agenda Item 4 – Regional State Committee Report President Julie Parsley presented the Regional State Committee (RSC) report. The RSC agenda included reports, updates and discussion on the following items:

    • The RSC held a Technical Conference January 28 – 29 on regional integrated resource planning and demand response. Materials from this conference will be posted on the SPP website.

    • An update was given on the NERC ERO/RE transition. RSC expressed concern that there is a process in place with FERC to monitor the ERO/RE budget.

    • RSC is under budget due in part to the fact that no studies have been conducted. • An RSC audit was conducted. In regards to travel expenses, mileage and reimbursement for mileage

    needs to be more accurate. • CAWG reported on economic upgrades offering four alternatives. RSC felt SPP should move forward with

    a portfolio and recovery methodology in parallel with RSC, which will develop methodology for economic upgrades. Soon the group will be meeting on a monthly basis and have set a goal to present a plan to the RSC by years end.

    • Adopted point 1and 2 of an RTWG recommendation as approved by MOPC regarding unintended

  • SPP Board of Directors/Members Committee Minutes January 30, 2007

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    consequences. Point 1 is to change the inter-zonal cost allocation