Western Area Power Administration
description
Transcript of Western Area Power Administration
Western Area Power Administration
Transmission Customer Meeting
August 20, 2007
Agenda
CVP Transmission System – Mariam Mirzadeh
Compliance with NERC Standards – Arun Sethi
Western’s OATT – Darren Buck Western’s Transmission Rate –
Melinda Grow
CVP Transmission Network
Long Transmission Lines – High Reactive Losses
Integrating CVP Base Resource, Third Party Generation or Import to Load Hubs or Designated Loads at Elverta and Tracy and Other Delivery Points
Simultaneous Import Limitations – Nomogram
Internal (local) Generation vs. Import
COI Impact vs. the Parallel 230 kV
CVP Customer Loads
50% Direct Connect 50% Off-System Project Use Loads 50% Direct Connect 50% Off-System
Network Reliability Projects Sacramento Valley
31 Miles of DCKT 230kV O’Banion to Elverta Folsom Loop
Loop SMUD’s Orangevale/Lake into Folsom Substation
Two New 230kV Bays at Folsom
Long Import Lines to Load Center & Delivery Points
Questions/Discussion
Western’s Compliance with NERC Reliability
Standards
Reliability Standards Eighty-three mandatory standards,
and 700 requirements became effective on June 18, 2007.
All bulk power system owners, operators, and users must comply with these standards.
All entities are required to register with NERC through the appropriate regional entities.
NERC Registration Western-SNR Operations has registered
with NERC as: Transmission Owner (TO) Transmission Operator (TOP) Transmission Service Provider (TSP) Transmission Planner (TP) Planning Authority (PA)
Western Standards Review
& Compliance Western has self-reported 14
Compliance Violations and Mitigation Plans to WECC.
Six Mitigation Plans have been completed.
All but one of the remaining Mitigation Plans will be completed in 2007.
Western Compliance Audits As a TO and TOP, Western is
required to perform a Self-Certification by December 2007.
Western is scheduled to have a WECC On-Site Compliance Audit in December 2008.
Questions/Discussion
Western’s OATT
Transmission Reservation Process Transmission Upgrades
Western OATT Requests/Planning
Service or Interconnection Request Submitted
Feasibility Analysis Performed System Impact Study (SIS)
Study of TX and impacts Must be coordinated with neighboring TX
owners and potentially WECC
Western OATT Requests/Planning (cont.) Facility Impact Study (FIS)
Substation Impacts Lands, Environmental Design Cost Estimates Determined Mitigation On Neighboring Transmission
Anticipated Rate Impacts Determined from FIS Estimates Includes existing TX service and additional service as
a result of the new line (if SIS indicates new TX results)
Transmission Service Constraints Transmission Reliability Impacts All Customers Firm Off-System Sales are Considered Direct
Connect Load and are subject to Schedule Cut like On-System
Cuts due to Transmission Outages are shared Pro-rata for all customers
All Network Upgrades benefit All Customers
Network VS. Direct Assignment Upgrades Network Upgrades: Modifications or additions to
transmission-related facilities that are integrated with and support the TP’s overall Transmission System for the general benefit of all users of such Transmission System.
Direct Assignment Facilities: Facilities or portions of facilities that are constructed by the Transmission Provider for the sole use/benefit of a particular Transmission Customer requesting service under the Tariff. Direct Assignment Facilities shall be specified in the Service Agreement that governs service to the Transmission Customer
FERC Bright Line Test For Facility Designation
(1) whether the new facility additions would improve service to existing system load (other than the load that requested it);
(2) whether the additional facilities, that have been demonstrated to be the most cost-efficient alternative, are needed to maintain the reliability of the existing transmission system;
(3) whether the new facilities are mandatory requirements for a load interconnection to satisfy a utility’s planning criteria, or whether they far exceed what those criteria require;
(4) whether customers other than the customer that requested the facilities would experience a degradation in service if installation of the new facilities at issue were not undertaken; and
(5) whether the facilities are integrated with the rest of the transmission system, and provide integrated benefits to the overall transmission grid.
Questions/Discussion
Transmission Revenue Requirement (TRR)
Recovered by: Firm and Non-Firm Point to Point (PTP)
Service Network Integrated Service (NITS)
Must be fully recovered Current recovery is estimated at:
26 % - PTP 74 % - NITS
Estimated Impact on TRR
Assumptions: 50 year capitalization beginning in 2012 Revenue impact represented as an annual
average increase % change reflected based on April 2007 TRR Interest on loan (from third party) is expensed
based on the amortization of loan payment Capitalization of project for repayment will
probably be different than represented but the approach used provides a standardized basis
Estimated Impact on TRR “Partial Funding” ($22M) Option Scenario
Project Capitalization of $92 million Loan Interest Paid off in 3 years
Year(s) % Inc to TRR2012-2014 26.5%2015-2061 15.0%
Total Repayment
$ 206 million
Estimated Impact on TRR
“Full Funding” Third Party Option Scenario Project Capitalization of $97 million Loan Interest Paid off in 18 yearsYear(s) % Inc to TRR
2012 42.6 %2013-2029 32.1%2030-2061 13.1%
Total Repayment
$ 264 million
Questions/Discussion