Southwest Power Pool REGIONAL STATE COMMITTEE Southwest ... the Office of Electric Reliability since
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Southwest Power Pool REGIONAL STATE COMMITTEE
Southwest Power Pool Campus, Little Rock, AR October 29, 2012
• M I N U T E S •
Administrative Items: The following members were in attendance:
Kevin Gunn, Missouri Public Service Commission (MOPSC) Patrick Lyons, New Mexico Public Regulation Commission (NMPRC) Dana Murphy, Oklahoma Corporation Commission (OCC) Donna Nelson, Public Utility Commission of Texas (PUCT) Olan Reeves, Arkansas Public Service Commission (APSC) Mike Siedschlag, Nebraska Power Review Board (NPRB) Thomas Wright, Kansas Corporation Commission (KCC)
President Olan Reeves called the Regional State Committee (RSC) meeting to order at 1:00 p.m. with roll call and a quorum was declared. He then requested a round of introductions. There were 105 in attendance either in person or via phone (Attendance & Proxies – Attachment 1). President Reeves asked for approval of the July 30, 2012 meeting minutes (RSC Minutes 7/30/12 - Attachment 2). Tom Wright moved to approve the minutes as presented; Patrick Lyons seconded the motion. The minutes were approved. UPDATES
RSC Financial Report Paul Suskie provided the RSC Financial Report (Financial Report – Attachment 3). Mr. Suskie reported that the Seams Cost Allocation line item is for cost budgeted in 2011 but expended in 2012. He also reported that travel costs were over budget but not significantly. SPP Report Nick Brown welcomed everyone to the new SPP Corporate Campus. SPP moved into the new facility in mid-July with a very smooth migration over one weekend. Mr. Brown said that he was proud to announce that the facility was completed on schedule and at 5% under budget. Mr. Brown presented a high level update on the Integrated Marketplace. He stated that SPP had benefited from lessons learned in talks with the Electric Reliability Council of Texas (ERCOT) and thanked Trip Dogget for his assessment report. The SPP program is being monitored utilizing an outside consultant and SPP’s Internal Audit staff, all reporting directly to Mr. Brown. The current status of the seven areas of the program is: four green, two yellow and one orange. Regarding the orange status, SPP is working with the vendor at issue (Alstom) to address delays. A more detailed report will be provided at the October 30 SPP Board meeting. Mr. Brown stated that the Arkansas Public Service Commission had issued an order on October 26 approving Entergy’s request to join the Midwest ISO. Mr. Brown reported that SPP will continue to argue
Regional State Committee October 29, 2012
that SPP is the better choice; will be aggressive in protecting its Members interest; and will work to help make the integration fair to all. RSC will need to continue to help with regional cost allocation, which will take on a whole new meaning. SPP is reviewing the order and will have recommendations for the RSC in the near future. FERC Mr. Patrick Clarey provided an update on recent FERC activities:
August FERC held five regional technical conferences on better coordination between natural gas and electricity markets. The conferences explored gas-electric interdependence as well as ways to improve coordination and communication between the two industries. The regions included the Northeast, Mid-Atlantic, Southeast, Central and West regions. FERC appreciates SPP’s participation in this effort. September FERC granted SPP’s Petition for Declaratory Order and conditionally accepted the proposed Western-SPP JOA, subject to a compliance filing.
Commission Chairman Jon Wellinghoff announced the creation of a new FERC office that will help the Commission focus on potential cyber and physical security risks to energy facilities under its jurisdiction. The new Office of Energy Infrastructure Security (OEIS) will provide leadership, expertise and assistance to the Commission to identify, communicate and seek comprehensive solutions to potential risks to FERC-jurisdictional facilities from cyber attacks and such physical threats as electromagnetic pulses. OEIS will be led by Joseph McClelland, who has been Director of the Office of Electric Reliability since its formation in 2006.
October Mr. Clarey congratulated SPP and its Members and noted that at the October Open Meeting, FERC conditionally accepted SPP’s Integrated Marketplace tariff filing including day-ahead and real-time energy and operating reserve markets. The Chairman announced that current FERC General Counsel Michael Bardee will be the new head of the Office of Electric Reliability. David Morneoff will step-in as acting General Counsel.
Election of Officers for 2013 President Reeves requested nominations for the annual election of officers. Kevin Gunn nominated the following RSC officers for 2013: Tom Wright for President, Dana Murphy for Vice President and Donna Nelson for Secretary/Treasurer. Michael Siedschlag seconded the motion, which passed unanimously. Approval of 2013 RSC Budget Paul Suskie presented the 2013 RSC Budget for approval (20113 Budget – Attachment 4). Dana Murphy moved to approve the 2013 RSC budget and that the RSC establish a subcommittee of RSC members to look at consultant contacts on a go forward basis to deal with various upcoming issues facing the RSC. Tom Wright seconded the motion; the motion passed unanimously. President Reeves assigned a subcommittee to consist of: Dana Murphy, Tom Wright and Michael Siedschlag. REPORTS/PRESENTATIONS Cost Allocation Working Group Report Pat Mosier provided the Cost Allocation Working Group report (CAWG Report – Attachment 5). Ms. Mosier presented an overview of the group’s activities. She then presented the following recommendations:
Regional State Committee October 29, 2012
• In order to provide the best support for each rotating President of the RSC, the CAWG considered and recommends that:
The CAWG Chairman position be appointed each year by the RSC, such that, the Chairman
of the CAWG is from the same state as that of the President of the RSC. Tom Wright moved to approve; Kevin Gunn seconded the motion. The motion passed unanimously.
• An observation was made at the July RSC meeting that Attachment J is very unclear as to when
the required 15 days notice for a waiver of the Safe Harbor Limits is to occur. The CAWG therefore recommends approval of BPR 25 as amended by the Markets and Operations Policy Committee (MOPC):
A customer may submit a waiver request for waiver of the Safe Harbor Limit, pursuant to
Attachment J Section III.C.1, at any time after the posting of the first iteration of the aggregate study, but not later than 15 days after being notified that the aggregate study is final. Kevin Gunn moved to approve BPR 25 as amended; Dana Murphy seconded the motion. The motion passed unanimously.
• MOPC directed the Business Practices Working Group (BPWG) to identify a non-discriminatory
method that the Transmission Provider will use to calculate the amount of costs that are eligible for consideration for waivers to the Safe Harbor provisions of Attachment J. Addressing the five-year commitment period, the CAWG recommends the BPR 32 recommendation for calculation: ...by multiplying the number of years which the Duration of the Transmission Customer’s commitment to the new or changed Designated Resource exceeds the five year minimum commitment period, by 2.5%, multiplied by $180,000 per MW. Tom Wright moved to approve BPR 32; Kevin Gunn seconded the motion. The motion passed unanimously.
Ms. Mosier provided an update of the RSC position of support regarding the SPP Order 1000 filing. RSC issued a letter specifically supporting SPP’s regional filing as well as providing individual state support.
Order 1000 Regional Update
Paul Suskie provided an update of Order 1000 analysis of both regional and interregional requirements (Order 1000 Update – Attachment 6). Mr. Suskie also provided information regarding the elimination of the Right of First Refusal (ROFR) and as a result, 4 limitations that would be added to Commission approved tariffs and agreements.
Order 1000 Regional Compliance Filing
Mr. Suskie reviewed TRR 077 revisions for the SPP Regional Compliance Filing for Order 1000, which will be presented to the SPP Board of Directors for approval on October 30, 2012. The filing will be submitted in two weeks.
Order 1000 Interregional Update Seams Steering Committee (SSC) Update Paul Malone presented a SSC update including an overview of responsibilities, SPP’s proposed interregional coordinated planning process, and a compliance timeline (SSC Report – Attachment 7).
Interregional Cost Allocation Task Force Update Sam Loudenslager reported on interregional cost allocation efforts of the Interregional Cost Allocation Task Force (ICATF Efforts – Attachment 8). The group approved principles and guidelines to use in discussions with seams neighbors, developed projects and will try to reach agreement with neighbors.
Regional State Committee October 29, 2012
CAWG’s Recommendation of Cost Allocation of Interregional Project Costs Pat Mosier provided CAWG background regarding interregional cost allocation and offered cost assignment options presented to the CAWG as: 1) Assign all seams costs to the Regional Rate (i.e. Highway) and 2) Allocate seams costs pursuant to currently approved allocation methods (i.e. Highway/Byway d