Proposed rate adjustments for transmission and ancillary services
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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

  • 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


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Network Transmission Service, Services 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


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Firm Point-to-Point Transmission Service, L-FPT1 Services

  • Rate methodology not changing.

  • Rate decreasing from $2.88/kW-month to $2.68/kW-month.

3


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Non-Firm Point-to-Point Transmission Service, L-NFPT1 Services

  • Rate methodology not changing.

  • Rate remains unchanged at 3.75 mills/kWh.

4


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Scheduling and System Dispatch Service, L-AS1 Services

  • 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


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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


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Regulation and Frequency Response Service, L-AS3 Sources, L-AS2

  • 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


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Regulation and Frequency Response Service, L-AS3 Sources, L-AS2

  • 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


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July 2002 WACM Generator Changes Sources, L-AS2

Variable Event – error filtered duration w/o RMRG Responses

10


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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


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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


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January 2003 Intermittent Renewable Resources

Typical Intermittent Renewable Generation within WACM

Hours

12


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January 2003 Intermittent Renewable Resources

Typical Intermittent Renewable Capacity within WACM

Hours

13


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April 1, 2003, HE 1000 Intermittent Renewable Resources

Intermittent Renewable Resource within WACM Output

Minutes

14


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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


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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


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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


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Energy Imbalance Service, Intermittent Renewable ResourcesL-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


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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


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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


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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


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Transmission Losses, L-LO1 L-US1

  • 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


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Transmission Losses, L-LO1 L-US1

  • 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


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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


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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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