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Proposed Rate Adjustments for Transmission and Ancillary Services

Proposed Rate Adjustments for Transmission and Ancillary Services . LAP Transmission and Ancillary Services rates, updated October 1, 2002, were extended through March 31, 2004.

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Proposed Rate Adjustments for Transmission and Ancillary Services

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  1. Proposed Rate Adjustments for Transmission and Ancillary Services • LAP Transmission and Ancillary Services rates, updated October 1, 2002, were extended through March 31, 2004. • These rates will be updated under FERC-approved methodologies, using updated financial and load data on October 1, 2003. 1

  2. Network Transmission Service, L-NT1 • Rate methodology not changing. • Revenue requirement decreased from $40,570,808 to $38,776,237. • Customer load share determines monthly charge. • Network load increased from 1,173,603 kW to 1,206,771 kW. 2

  3. Firm Point-to-Point Transmission Service, L-FPT1 • Rate methodology not changing. • Rate decreasing from $2.88/kW-month to $2.68/kW-month. 3

  4. Non-Firm Point-to-Point Transmission Service, L-NFPT1 • Rate methodology not changing. • Rate remains unchanged at 3.75 mills/kWh. 4

  5. Scheduling and System Dispatch Service, L-AS1 • Existing rate of $43.09 per schedule per day will be updated with FY 2002 schedule/financial data effective October 1, 2003. • Effective January 1, 2004, the charging premise will change to “per tag per day”. • Charge will be $25.22/tag/day. 5

  6. Reactive Supply and Voltage Control Service from Generation Sources, L-AS2 • Existing rate of $0.103/kW-month, using FY 2001 load/financial data. • No change in formula from 1998 approved rate. • October 1, 2003, rate updated using FY 2002 financial/load data, $0.108/kW-month. • Proposed rate effective January 1, 2004, will be the same as October 1, 2003, rate. 6

  7. Regulation and Frequency Response Service, L-AS3 • Existing rate of $0.164/kW-month, using FY 2001 load/financial data. • October 1, 2003, rate will be updated using existing methodology and FY 2002 financial/load data. • Formula rate changing January 1, 2004. 7

  8. Regulation and Frequency Response Service, L-AS3 • Change will reflect: • Revised analysis to determine regulating capacity requirements. • New resource-mix for regulation. • Blended revenue requirement from all resources. • Rate effective January 1, 2004, using new methodology, will be $0.185/kW-month. 8

  9. July 2002 WACM Generator Changes Variable Event – error filtered duration w/o RMRG Responses 10

  10. Proposed Regulation and Frequency Response Service for Intermittent Renewable Resources • Proposed Regulation rate to mitigate fluctuations in intermittent resources. • Same revenue requirement as load-based Regulation rate. • Same total capacity requirements for Regulation service. 10

  11. Proposed Regulation and Frequency Response Service for Intermittent Renewable Resources • January 2004 rate calculated to be $5.59/kW-month. • Analysis of intermittent resources shows a 27% minute-to-minute variation rate. • Rate would be applied against 27% of the wind owners’ installed capacity. 11

  12. January 2003 Typical Intermittent Renewable Generation within WACM Hours 12

  13. January 2003 Typical Intermittent Renewable Capacity within WACM Hours 13

  14. April 1, 2003, HE 1000 Intermittent Renewable Resource within WACM Output Minutes 14

  15. Proposed Regulation and Frequency Response Service for Intermittent Renewable Resources • After-the-fact analysis may be done for each customer to determine actual capacity requirement for the month. • Customer’s bill may be reduced, based upon performance. 15

  16. Proposed Regulation and Frequency Response Service for Intermittent Renewable Resources • EXAMPLE: 20 MW Wind Farm X 27% variation percent 5.4 MW of capacity @ $5.59/kW-month = $30,186 16

  17. Proposed Regulation and Frequency Response Service for Intermittent Renewable Resources • ATF analysis may show usage of only 2.4 MW capacity for fluctuations. Adjustment: $30,186 for 5.4 MW ($16,770) for 3.0 MW Adjustment $13,416 Actual Bill for 2.4 MW 17

  18. Energy Imbalance Service, L-AS4 • Effective January 1, 2004, the following modifications are proposed to be made to the rate: - 4 MW minimum deviation - Rounding of EI values hourly - Reduce penalty to 25% 18

  19. Operating Reserves – Spinning and Supplemental, L-AS5 & L-AS6 • WACM has no long-term reserves available for sale. • At customers’ request, provide reserves on a pass-through cost basis. • For any reserves purchased, customer responsible for transmission. 19

  20. Unauthorized Use of Transmission and Control Area Resources, L-US1 • Applies to all transmission transactions occurring on RMR-managed facilities within WACM. • Violations assessed 150% of charge for service at issue; i.e., hourly, daily, weekly, monthly, with a maximum of monthly. • If two types of service reserved in the same hour, the longer service penalty will apply. 20

  21. Unauthorized Use of Transmission and Control Area Resources, L-US1 • Payment does not entitle customer to service for an entire month, unless overrun was on an existing monthly reservation. • Proposed to be incorporated as tariff ancillary service. 21

  22. Transmission Losses, L-LO1 • Applicable to all schedules without sufficient loss energy scheduled separately. • Applies WACM postage stamp loss rate. • Losses assessed for all real-time and prescheduled transactions. • Settlement for real-time is 7 days later/same profile. Prescheduled transactions must have concurrent losses scheduled. 22

  23. Transmission Losses, L-LO1 • Loss Obligation is rounded daily. • Effective January 1, 2004, LAP average real-time pricing will be used (same defaults as Energy Imbalance Service). • Proposed to be incorporated as tariff ancillary service. 23

  24. Proposed Rate Adjustments for Transmission and Ancillary Services • Public Process for Proposed Rates will begin in June 2003, with publication in the Federal Register. • Public Information Forum will be held on July 14, 2003, in Denver. • Public Comment Forum will be held on August 6, 2003, in Denver. 24

  25. Proposed Rate Adjustments for Transmission and Ancillary Services • RMR plans to have new transmission and ancillary service rates in place by January 1, 2004. 25

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