The Midwest ISO from a Transmission Owner

Perspective

Transmission Service Evolution

FERC 888 & 889 - Open Access Tariff (1997)FERC 888 & 889 - Open Access Tariff (1997) Equal Access Use of Transmission SystemEqual Access Use of Transmission System Regulated New Transmission Service BusinessRegulated New Transmission Service Business

FERC RTO Order (2000)FERC RTO Order (2000) All Transmission Providers Must Be in a RTOAll Transmission Providers Must Be in a RTO

Before RTOs

ERCOT ISOERCOT ISO

Grid FloridaGrid Florida

PJMPJM

PJM WestPJM West

New YorkNew YorkISOISO

RTORTONew EnglandNew England

Grid WestGrid West

WestConnectWestConnect

California ISOCalifornia ISO SPPSPP

After RTOs

What is the Transmission System?

Transmission System – Key Aspects Runs “cross country” The highest voltage– defined as 100,000 V (100 kV) and

above (Ameren uses 138 kV, 161 kV, 230 kV and 345 kV)

Often steel or concrete towers holding the conductors Interconnected and Networked: more than one path

for energy to flow from “point A to point B”

Transmission System Operation

Safe, Reliable and Economic Safe, Reliable and Economic

Operation of the Ameren SystemOperation of the Ameren System Transmission Line Flow ControlTransmission Line Flow Control

Limit Transmission Access Across SystemLimit Transmission Access Across System TLR – Transmission Line Loading Relief ProceduresTLR – Transmission Line Loading Relief Procedures Raise or Lower Generation Output (Redispatch)Raise or Lower Generation Output (Redispatch) Reconfigure Transmission SystemReconfigure Transmission System

Generation Impact on Transmission ReliabilityGeneration Impact on Transmission Reliability Balance generation and loadBalance generation and load Maintain System FrequencyMaintain System Frequency Maintain Voltages with Reactive Power Support (MVAR)Maintain Voltages with Reactive Power Support (MVAR)

Transmission Functions

Safe, Reliable and Economic Safe, Reliable and Economic Operation of the Ameren SystemOperation of the Ameren System

Transmission System Operations (Ameren)Transmission System Operations (Ameren) Operation of Transmission SystemOperation of Transmission System Transmission Line Outage Coordination (Internal)Transmission Line Outage Coordination (Internal) Compliance to NERC PoliciesCompliance to NERC Policies

Transmission Service (MISO) Transmission Service (MISO) Sale of Transmission Access Through Ameren SystemSale of Transmission Access Through Ameren System Transmission Line Outage Coordination (System-Wide)Transmission Line Outage Coordination (System-Wide) Administration of Interconnection ContractsAdministration of Interconnection Contracts Compliance to NERC Policies and FERC Transmission TariffsCompliance to NERC Policies and FERC Transmission Tariffs

Transmission Outage Coordination

Coordination of :Coordination of : Construction ProjectsConstruction Projects Failure RepairsFailure Repairs Routine MaintenanceRoutine Maintenance

Transmission System Operated on a Single Transmission System Operated on a Single Contingency BasisContingency Basis Single worst contingency would not cause any Single worst contingency would not cause any

transmission system element to exceed it’s emergency transmission system element to exceed it’s emergency ratingrating

Transmission Maintenance Outages generally only Transmission Maintenance Outages generally only granted in Spring & Fallgranted in Spring & Fall

MISO “Day 1” Responsibilities

Open Access Transmission Service ResponsibilitiesOpen Access Transmission Service Responsibilities OASIS AdministrationOASIS Administration Calculate ATC (Available Transmission Capacity)Calculate ATC (Available Transmission Capacity)

Oversight of Transmission Grid OperationsOversight of Transmission Grid Operations Review/Approve Proposed Transmission Facility Review/Approve Proposed Transmission Facility

OutagesOutages Review (only) of Proposed Generation OutagesReview (only) of Proposed Generation Outages Reliability Coordinator FunctionsReliability Coordinator Functions

TLR (Transmission Loading Relief)TLR (Transmission Loading Relief) Emergency Operations CoordinationEmergency Operations Coordination

Long Term Transmission Planning CoordinationLong Term Transmission Planning Coordination

MISO ordered by FERC to develop a wholesale energy market in the Midwest

The market allows stakeholders the opportunity to benefit directly from open and transparent market-based, day-ahead and real-time energy prices

Prices are determined by Locational Marginal Pricing (LMP)

Congestion “hedged” via Financial Transmission Rights, “FTRs” (allocated or purchased)

MISO “Day 2” Market

Day 2 Cost and Benefits

Balancing cost control/cost effectiveness and rate recovery in states In Missouri, currently undergoing Cost/Benefit

Analysis

Regional Reliability Broad regional view TLR vs. Redispatch Outage Coordination Emergency Actions

MISO “Day 3”: Ancillary Services Market

Balancing AuthorityBalancing Authority MISO becomes the Balancing Authority for many MISO becomes the Balancing Authority for many

NERC functionsNERC functions Ameren remains a Local Balancing Authority for Ameren remains a Local Balancing Authority for

remaining NERC functionsremaining NERC functions BA Agreement to be amendedBA Agreement to be amended

Ancillary Services MarketAncillary Services Market Regulation and Frequency ControlRegulation and Frequency Control Contingency Reserve – SpinningContingency Reserve – Spinning Contingency Reserve – Non-SpinningContingency Reserve – Non-Spinning Co optimized with Energy MarketCo optimized with Energy Market Currently, implementation expected early 2008Currently, implementation expected early 2008

Alphabet SoupAnd

Transmission Expansion

The ABC’s of Transmission Expansion

MTEP RECB I RECB II In The Future

PTTP: Post-Transition Transmission Pricing

MTEP 06

Midwest Transmission Expansion Plan 2006 Lists $3.6 Billion in Transmission projects by 2001 Attachment A projects will move forward Attachment B projects still under study

RECB I

Regional Expansion Criteria and Benefits (3/15/07) For Baseline Reliability Projects (BRP) Only Projects of 345kV and above funded at 20% Postage

Stamp and 80% Sub-regional Generation Interconnections Network Upgrades at 100%

Participant Funding (50% borne by generator; 50% repaid through revenue credits and funded 20% postage stamp, 80% Sub-regional)

Projects planned prior to filing are excluded from regional cost allocation

RECB II

Regionally Beneficial (Economic) Transmission Projects For Regional Beneficial Projects (RBPs), Greater than $5M Postage Stamp within the sub-regions that show (net-

positive) benefits Benefits calculated 10 years out Funded at 20% postage stamp, 80% Sub-regional

(West/Central/East) No projects ear-marked to date

Things to Think About

Projects benefits are very long term Planning is impacted by national and local policy

debates, often difficult to reach consensus Generation capacity additions are largely unknown Do “we” need the additional transmission capacity? Are the right “people” paying?

Questions?