Southwest Power Pool REGIONAL TARIFF WORKING ... august 22 2019... Renaissance Tower (41st Floor)...

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    Southwest Power Pool REGIONAL TARIFF WORKING GROUP MEETING

    August 22, 2019 Renaissance Tower (41st Floor) – Dallas, Texas

    • Summary of Motions and Action Items •

    Agenda Item 3 – Consent Agenda – Motion by Tom Hestermann (Sunflower) seconded by Brandon McCracken (WFEC) to approve the consent agenda as presented. The motion passed unanimously.

    Agenda Item 9 – RR 363 – Definition of Material Modification for Existing Transmission – Motion by Jim Bixby (ITC) seconded by Robert Pick (NPPD) to approve RR 363 as presented. The motion passed with one abstaining (WFEC).

    Agenda Item 12a – RR 361 – Ramp Capability Products – Motion by Jessica Meyer (LES) seconded by Mo Awad (Evergy) to approve RR 361 as presented. The motion passed with one opposing (Xcel) and one abstaining (NextEra).

  • Minutes No. [2019 08 22]

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    Southwest Power Pool REGIONAL TARIFF WORKING GROUP MEETING

    August 22, 2019 Renaissance Tower (41st Floor) – Dallas, Texas

    • M I N U T E S •

    Agenda Item 1 – Administrative Items SPP Chair David Kays (OGE) called the meeting to order at 8:30 a.m. The following members were in attendance or represented by proxy:

    David Kays Oklahoma Gas & Electric Company Robert Pick Nebraska Public Power District Mo Awad KCP&L and Westar, Evergy Companies Michael Billinger Midwest Energy Inc. James Bixby ITC Great Plains, LLC Alfred Busbee GDS Associates/East Texas Electric Cooperatives Jack Clark NextEra Energy Resources Alex Dobson Oklahoma Municipal Power Authority Terri Gallup American Electric Power Greg Garst Omaha Public Power District Tim Hall Southern Power Tom Hestermann Sunflower Electric Power Corporation Rob Janssen Dogwood Energy, LLC Bernie Liu Xcel Energy J.P. Maddock Basin Electric Power Cooperative Ash Mayfield Grand River Dam Authority Brandon McCracken Western Farmers Electric Cooperative Jessica Meyer Lincoln Electric System Neil Rowland Kansas Municipal Energy Agency Steve Sanders Western Area Power Administration – UGPR Robert Shields Arkansas Electric Cooperative Corporation Heather Starnes Healy Law Offices/Missouri Joint Municipal Electric Utility Commission John Stephens City Utilities of Springfield Robert Stillwell City of Independence Todd Tarter Empire District Electric Company John Varnell Tenaska Power Services Company

    The following proxies were recorded: Jack Clark (NextEra) for Tim Hall (Southern Power) Heather Starnes (MJMEUC) for Robert Stillwell (Independence) Heather Starnes (MJMEUC) for Rob Janssen (Dogwood) (Attachment 1a – 2019 08 22 RTWG In Person Attendance) (Attachment 1b – 2019 08 22 RTWG WebEx Attendance)

    Agenda Item 2 – Review of Past Action Items There were no new action items. Action Item 90 is actively being worked.

  • Minutes No. [2019 08 22]

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    Agenda Item 3 – Consent Agenda David Kays (OGE) presented the consent agenda, which consisted of the July 25, 2019 minutes. Motion by Tom Hestermann (Sunflower) seconded by Brandon McCracken (WFEC) to approve the consent agenda as presented. The motion passed unanimously.

    Agenda Item 4 – RTWG Task Force Updates There were no updates for either task force.

    Agenda Item 5 – RRR Update Denise Martin (SPP) provided the RRR update. There are no annual updates for September 2019. September will be updated for Z2.

    Agenda Item 6 – Settlements Update The Settlements System Replacement Project is still in green status. The Settlements User Group approved a change to Transmission Settlement Timing where monthly invoices would include coincident peak data reported by the 25th of each month for NITS and transactions from the 24th of the previous month through the 23rd of the current month for PTP service. The revision request will be brought to the RTWG for review and approval.

    Agenda Item 7 – Legal Update Joe Ghormley (SPP) provided the legal update using the July 2019 Regulatory Status Report and Regulatory Outlook as the baseline (http://www.spp.org/spp-documents-filings/?id=18504).

    Agenda Item 8 – RR 366 – Treatment of Schedule 1 PTP Revenue Amber Smeal (NPPD) reintroduced a revision request to eliminate the overpayment by Transmission Customers as a result of Transmission Owners not reducing Schedule 1 ATRR by any Schedule 1 PTP revenue. Based on the discussion at last month’s meeting, a small group worked on comments and suggested moving the proposed language to Schedule 1 and Attachment L Section IV of the Tariff instead of creating a new section.

    Agenda Item 9 – RR 363 – Definition of Material Modification for Existing Transmission The group reviewed comments moving the proposed definition for “material modification” from a new business practice to the SPP Planning Criteria. The group asked questions around the development of the criteria for the proposed thresholds. Motion by Jim Bixby (ITC) seconded by Robert Pick (NPPD) to approve RR 363 as presented. The motion passed with one abstaining (WFEC). (Attachment 2 – RR 363 Recommendation Report)

    Agenda Item 10 – GIITF Revision Requests (MOPC Action Items 291-293) Steve Purdy (SPP) introduced three revision requests to satisfy MOPC Action Items 291 -293. These action items are the result of recommendations presented by the GIITF.

    a. RR 370 – Dispatch Assumptions for Generator Interconnection (MOPC Action Item 292) This revision request incorporates the approved ERIS-HVER dispatch method in a new business practice. For the off-peak HVER cases, the variable resources external to the cluster group will

    http://www.spp.org/spp-documents-filings/?id=18504

  • Minutes No. [2019 08 22]

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    be left at the setting in the ITP Base Reliability model used for the ITP process. The variable resources internal to the cluster group will still be set at 100% of maximum capacity. Online variable energy resources external to the cluster group will be available to offset the additional generation within the cluster group.

    b. RR 371 – Change Assignment Threshold for ERIS in the GI Study Process SPP Business Practice 7250 (MOPC Action Item 291) This revision request incorporates the current 20% contingent (OTDF) ERIS threshold criteria and adds new ERIS criteria which identifies upgrades and allocates cost to each request in which the sum of the individual impacts having contingent (OTDF) threshold greater than or equal to 5% is at least 20% of the applicable facility rating to Business Practice 7250.

    c. RR 372 – Evaluation of Energy Storage Resources for Interconnection Service (MOPC Action Item 293) This revision request incorporates the approved GIITF Storage whitepaper concepts into a new business practice and Attachment V of the Tariff. These rules provide clarification regarding treatment of ESRs under the current and future GI Procedures.

    Agenda Item 11 – Generator Repower and Replacement In July 2019, MOPC directed staff to develop a revision request to address the issue of repower and replacement provisions. Steve Purdy (SPP) presented key elements of MISO’s recently adopted proposal and discussed the benefits of SPP adopting a similar process. The goal is to have a revision request for MOPC review and approval in January 2020.

    Agenda Item 12 – Market Revision Requests Market Design (SPP) reviewed one revision request for action and previewed two upcoming revision requests.

    a. RR 361 – Ramp Capability Products The group reviewed the latest version of language to implement a ramp capability product. Motion by Jessica Meyer (LES) seconded by Mo Awad (Evergy) to approve RR 361 as presented. The motion passed with one opposing (Xcel) and one abstaining (NextEra). (Attachment 3 – RR 361 Recommendation Report)

    b. Fast-Start Design On June 12, 2019, FERC issued an order directing SPP to revise its Tariff to implement the changes identified in the December 28, 2017 Order (FERC Docket No. EL8-35). SPP must make the following six changes to its Tariff:

    1. Modify its real-time energy market clearing process to execute the cost-minimizing dispatch solution followed by a pricing run, remove its screening run, and remove the option for enhanced energy offers that incorporate amortized commitment costs in the incremental cost curves of quick-start resources used during the dispatch run;

    2. Modify its pricing logic to allow the commitment costs of quick-start resources (including all such resources even if they have not registered as quick-start resources) to be reflected in prices, in both the day-ahead and real-time markets;

    3. Include in the definition of quick-start resources a requirement that those resources have a minimum run time of one hour or less;

    4. Allow for relaxation of all quick-start resources’ economic minimum operating limits by up to 100 percent, such that the resources are considered dispatchable from zero to their economic maximum operating limit for the purpose of setting prices;

    5. Apply quick-start pricing treatment to both registered and unregistered quick-start resources; and

    6. Include its quick-start pricing practices in its Tariff. SPP must submit a compliance filing by December 31, 2019.

  • Minutes No. [2019 08 22]

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    c. Attachment AE Sections 8.5.9 & 8.6.5 While preparing to file RR 306, Attachment AE Sections 8.5.9 and 8.6.5 were found to be disorganized and confusing. An upcoming revision request will reorganize both sections, provide clarity where confusing langua