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Transcript of Southwest Power Pool REGIONAL ALLOCATION REVIEW TASK · PDF file Minutes No. 1 Southwest Power...

  • Minutes No. 2

    Southwest Power Pool

    REGIONAL ALLOCATION REVIEW TASK FORCE MEETING

    August 4th and 5th, 2011 Crowne Plaza Hotel, Dallas, TX

    • M I N U T E S •

    Agenda Items 1 and 2 – Call to Order, Preliminary Matters

    SPP Chair Michael Siedschlag called the meeting to order at 12:00 pm on August 4th with the declaration of a Quorum. The following attendees were present: Task Force Members: Michael Siedschlag, Chair Richard Ross, Vice-Chair, American Electric Power Thomas Wright, KCC Butch Reeves, APSC Bary Warren, Empire District Electric Co. Phil Crissup, OG&E Harry Skilton, SPP Director Paul Suskie, SPP Staff Secretary Attendees: Pat Mosier, APSC Todd Fridley, KCPL Bruce Cude, SPS Bernie Liu, SPS Phyllis Bernard, SPP Board of Directors Doug Collins, OPPD Tom DeBaun, KCC Michael C. Moffet, SUNC Jim Krajecki, Customized Energy Solutions Adam McKinnie, MO PSC Charles Locke, KCPL Rich Kosch, LES Mike Proctor, SPP RSC Charles Cates, SPP Staff Dan Jones, SPP Staff Phone Participants: Jim Bell, KCC Tim Trexel, NRB Bill Leung, NRB Sam Loudenslager, APSC Gerald Dever, SPS Jim Palmer Dan Lenihan Elaina Larsen

  • Minutes No. 2

    RARTF’s June 24, 2011 Minutes were approved. Agenda Item 3 – Presentations

    a. Benefit/Cost Ratio Primer

    A presentation was given by SPP Staff Members Paul Suskie, Charles Cates, and Dan Jones on calculating and modeling costs and benefits. Overviews were given on the SPP transmission planning methods, regional and zonal details, and upgrades approved to date. A hypothetical RTO (H-RTO) was also presented. Using the H-RTO as a model, Staff illustrated annual costs and benefits attributed to zones from new upgrades. Benefit/Cost ratios were calculated using the H-RTO model, details of zonal differences were explored and discussed. Analogies were drawn between the H-RTO and the SPP RTO.

    b. PowerWorld Review

    A simplified PowerWorld model was reviewed with each state in the SPP RTO give a single bus and power was shown flowing between the states.

    c. Annual Transmission Revenue Requirement (ATRR)

    Phil Crissup provided and Paul Suskie gave a presentation on “ATRR: What is it? Why it matters, and How is it Calculated?” The presentation illustrated the effect of depreciation, the importance and components of Net Plant Carrying Charge, and, ultimately, how costs are assigned and recovered by zone.

    d. Staff White Paper on Analytical Methods for Unintended Consequence Review

    Paul Suskie presented the White Paper outlining OATT requirements, Staff research, and recommendations on regional allocation “reasonableness review”. The group recommended changing the term “unintended consequence review” to “reasonableness review” to better match the OATT. Additionally, a discussion about the use of legal standards from the 7th Circuit in the PJM cost allocation appeal as well as FERC Order 1000. Details of a wide range of benefit metrics were reviewed. A proposal was given on tiered and staged approaches to B/C ratio calculations with possible threshold values:

    Harry Skilton, SPP Director, requested pro forma studies to test the concepts. The team also recommended that “Seams” agreements be added to the possible remedy list.

  • Minutes No. 2

    The Staff White Paper also presented a draft RARTF schedule:

    e. Review of RARTF Charter

    Paul Suskie reviewed the RARTF Charter. No official vote was required or taken. No changes noted or suggested.

    f. Call for Stakeholder proposals were made to augment or modify the Staff White Paper. Paul Suskie noted that the White Paper can be transformed into the RARTF’s official proposal.

    5. SCHEDULING OF NEXT REGULAR MEETING, SPECIAL MEETINGS OR EVENTS

    a. Conference Call...............................................................August 18, 2011, 1:30pm C.S.T.

    b. Next Face to Face Meeting………..September 22 and 23, 2011 in Dallas, TX

    6. ADJOURNMENT Chairman Siedschlag adjourned the meeting at 12:00pm on Friday, August 5th, 2011. Respectfully Submitted, Paul Suskie Senior Vice President and General Counsel Southwest Power Pool RARTF Secretary

  • Minutes No. 2

    Southwest Power Pool

    REGIONAL ALLOCATION REVIEW TASK FORCE MEETING

    August 4th and 5th, 2011

    Crowne Plaza Hotel, Dallas, TX

    • Summary of New Action Items •

    1. Provide the RARTF a list of Highway/Byway projects (NTC and without NTCs)

    2. Provide the RARTF a list of historical B/C ratios for SPP projects

    3. Provide the RARTF a list of SPP zonal load ratio shares

    4. Provide the RARTF net plant carrying charges for SPP members

    5. Begin to define “roughly commensurate”

    6. Transition from “unintended consequences review” to the “reasonableness review”

    7. Begin the transition from “RARTF Staff White Paper” to “RARTF Recommendation”

    8. Notify SPP Stakeholders of the Call for proposals and/or changes to the Staff Whitepaper.

    • Summary of Action Items from June 24th, 2011 Meeting •

    1. At the face to face meeting in Dallas in August, conduct a cost and benefit tutorial including descriptions of models, parameters, assumptions, data review, applications as applied to asset recovery.

    2. Also at the first face to face meeting, Staff should present a draft of the RARTF Whitepaper discussing analytical methods of determining deficiency thresholds and potential remedies.

    3. Expand/provide a “methods” definition to include the process of determining costs and benefits. 4. Begin to define the threshold of a “deficiency” in zonal benefits versus allocated costs.

    5. Begin to develop remedies to deficiencies that exceed threshold limits.

    6. Target the first face to face meeting date of August 5th, 2011, noon through August 6th, 2011

    noon. Provide all necessary meeting arrangements. Also target August 18th and 19th, 2011 for an additional teleconference in August.

    7. Establish monthly meetings in September, October, and November, 2011. Develop a matrix of possible dates for Task Force Member input.

    8. Include ratification of the RARTF Charter at the first face to face meeting in Dallas on August 4 and 5th, 2011.

  • RARTF Agenda

    August 4 (12:00 p.m. – 5:00 p.m.)

    & August 5 (8:00 a.m. – 12:00 p.m.)

    Crowne Plaza Downtown, Dallas, Texas.

    1. CALL TO ORDER

    2. PRELIMINARY MATTERS a. Declaration of a Quorum b. Announcement of Participants c. Approval of June 24, 2011 minutes

    3. PRESENTATIONS a. Modeling Cost Benefits 101 ...................................................................................... SPP Staff b. Review of RARTF Charter ................................................................................... Bill Dowling c. SPP Staff White Paper/Straw Proposal for RARTF ........................................... Paul Suskie d. RARTF & Stakeholder Feedback to Staff White Paper/Straw Proposal .......................... All e. Call for Stakeholder Proposals for RARTF ............................................ Michael Siedschlag

    4. SCHEDULING OF NEXT REGULAR MEETING, SPECIAL MEETINGS OR EVENTS

    a. Potential Dates for 2nd Meeting ......................................................................... August 2011 5. ANNOUNCEMENTS & ADJOURNMENT

  • Minutes No. 1

    Southwest Power Pool

    RARTF MEETING

    Friday, June 24, 2011 (10:00 AM - 12:00 PM) Teleconference: 877-932-5833

    Passcode: 157403

    • Summary of Action Items •

    1. At the face to face meeting, Staff will conduct a cost and benefit tutorial (101) on how cost are

    allocated and a description of how benefits are calculated.

    2. Staff should present a draft of a RARTF Whitepaper proposing analytical methods to be used to determine impacts on zones of both cost and benefits. This should also include: * Provide “methods” to include the process of determining costs and benefits. * How to determine deficiency thresholds.

    * Develop remedies for deficiencies that exceed threshold limits.

    3. Include review of the RARTF Charter at the first face to face meeting.

    4. Hold the first face-to-face meeting August 4th, 2011 (Noon-5:00 pm) and August 5th, 2011 (8:00- Noon). SPP Staff to provide all necessary meeting arrangements. Also target August 18th and 19th, 2011 for an additional teleconference in August.

    5. Establish monthly meetings in September, October, and November, 2011. Develop a matrix of possible dates for Task Force Member input.

  • Minutes No. 1

    Southwest Power Pool

    RARTF MEETING

    Friday, June 24, 2011 (10:00 AM - 12:00 PM) Teleconference: 877-932-5833

    Pass code: 157403

    • M I N U T E S •

    Agenda Items 1 and 2 – Call to Order, Preliminary Matters

    SPP Chair Michael Siedschlag called the meeting to order at 10:00 am with the declaration of a Quorum. Role was called and the following attendees were confirmed: Task Force Members: Michael Siedschlag, Chair Richard Ross, Vice-Chair, American Electric Power Thomas Wright, KCC Butch Reeves, APSC Bary Warren, Empire District Electric Co. Phil Crissup, OG&E Harry Skelton, SPP Directo