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RTO Update & SMD Overview JPA Meeting September 13, 2002 Western Area Power Administration Ron Moulton

RTO Update & SMD Overview JPA Meeting September 13, 2002 Western Area Power Administration Ron Moulton. RTO Update. RTO West Filed March 28, 2002 WestConnect Filed October 16, 2001 TRANSLink ITC Approved April 25, 2002 Developing MOU with WestConnect FERC RTO Rulings

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RTO Update & SMD Overview JPA Meeting September 13, 2002 Western Area Power Administration Ron Moulton

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  1. RTO Update & SMD Overview JPA Meeting September 13, 2002 Western Area Power Administration Ron Moulton

  2. RTO Update • RTO West • Filed March 28, 2002 • WestConnect • Filed October 16, 2001 • TRANSLink ITC • Approved April 25, 2002 • Developing MOU with WestConnect • FERC RTO Rulings • Sep 18, 2002 ??

  3. Standard Market Design Overview • Notice of Proposed Rulemaking (NOPR) issued July 31, 2002 • Long name: “Remedying Undue Discrimination through Open Access Transmission Service and Standard Electricity Market Design” • FERC Docket No. RM01-12-000 • http://www.ferc.gov/Electric/RTO/Mrkt-Strct-comments/smd.htm

  4. Standard Market Design OverviewWhy FERC Believes SMD is Needed • Consistent Market Rules • Lowers Costs to Customers • Eliminates Residual Discrimination • Avoids Market Manipulation • Incents Investment in Infrastructure • Transmission • Generation • Demand-Side Resources • Provides a Framework for effective State & Federal regulation

  5. Standard Market Design OverviewMajor Elements • Single Transmission Tariff • Network Access Service (similar to NITS, tradability) • Access Charge (to recover embedded costs) • Standard Market Rules • Security Constrained Bid-Based Economic Dispatch • Locational Marginal Pricing • Both Day-Ahead & Real-Time • Transparent Spot Markets • Energy (Day-Ahead & Real-Time) • Transmission • Ancillary Services (Day-Ahead & Real-Time) • Mandatory Tradable Financial Transmission Rights • Congestion Revenue Rights

  6. Standard Market Design OverviewMajor Elements • Transmission Independence • Independent Transmission Provider • Regional Transmission Organization • Market Monitoring & Mitigation • Resource Adequacy • Transmission • Generation • Demand-Side Resources • State/Federal Cooperation • Regional State Advisory Committee • Security & Reliability • NERC • NAESB

  7. Post-Final Rule Schedule • Comments on NOPR due Nov 15, 2002 • More FERC Technical Conferences • Additional FERC Outreach Sessions • Final Rule • Late 2002, Early 2003 • Implementation • 30 Days After Final Rule • Utilities have discussions with Stakeholders regarding Implementation of SMD

  8. Post-Final Rule Schedule • Implementation • by Jul 31, 2003 • Filed Revised Pro-Forma (Interim) Tariff • Appointed an ITP • Filed Implementation Plan with FERC • Establish RSAC • Sep 30, 2003 • Revised Pro-Forma (Interim) Tariff Effective • by Dec 1, 2003 • File SMD Tariff with FERC • by Sep 30, 2004 • SMD Implementation Complete

  9. Western Review of SMD NOPR • Organized Western-wide Review Teams • Developing Responses/Positions to SMD NOPR Questions Important to Western • Draft Available to Customers Sep 16, 2002 • A number of Open SMD Questions of Strategic Importance to Western • Coordinating with BPA and DOE • Welcome Customer Comments & Input

  10. Issues of Importance to Western • Benefits Roughly Equal to Costs • Transmission Rights • Honor Existing Contracts • ITP Independence vs PMA Oversight • Seams Resolution • Incremental Approach to SMD Implementation • Utilize Existing Infrastructure • Transmission Pricing (Cost Shifts) • Reciprocity Requirements • Alternatives for Western & its Customers?

  11. For More Information • Jane Meyer • meyer@wapa.gov • (303) 404-0143 or (970) 461-7245 • Ron Moulton • moulton@wapa.gov • (602) 352-2668 • http://www.wapa.gov/dsw/dsw.htm • Regulatory & Restructuring

  12. WestConnect LMP Workshop

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