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FTR Auction Revenue Distribution: Qualified Upgrade Awards. March 27, 2003 Douglas James, ISO New England. Qualifying Upgrade Awards. Agenda QUA Basics: What, Who, How Mechanics of Allocation Projects and Qualifying Upgrades QUA Demonstration FTR Auction QUA Inputs QUA Results.

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ftr auction revenue distribution qualified upgrade awards

FTR Auction Revenue Distribution:Qualified Upgrade Awards

March 27, 2003

Douglas James, ISO New England

qualifying upgrade awards
Qualifying Upgrade Awards
  • Agenda
    • QUA Basics: What, Who, How
    • Mechanics of Allocation
    • Projects and Qualifying Upgrades
    • QUA Demonstration
      • FTR Auction
      • QUA Inputs
      • QUA Results
qualifying upgrade awards what
Qualifying Upgrade Awards - What
  • Characteristics
    • Direct share of FTR Auction revenue, determined auction by auction
    • Calculated for each on-peak and off-peak auction; Awarded with Auction settlement
    • Process be replaced by end of 2004
  • References
    • MR1 Appendix C, Section 8
    • Manual 6, Section 8
qualifying upgrade awards who
Qualifying Upgrade Awards - Who
  • Eligibility for Awards
    • Pay for transmission upgrades, initially in service after March 1, 1997, making it possible to award additional FTRs in Auction (upgrades paid by RNS rate do not qualify)
    • Share costs, share Qualifying Upgrade Awards proportionately
    • Continue for upgrade life with payment of costs/support
qualifying upgrade awards how
Qualifying Upgrade Awards - How
  • Process
    • Uses FTR Auction software
    • Allocates Auction revenue specific to each upgrade set in reverse sequence
    • Requires sequential modeling of all qualifying upgrade sets and all major RNS upgrades since first qualifying upgrade.
qualifying upgrade awards1
Qualifying Upgrade Awards
  • Sequence
    • MR1: “…order…interconnection studies were completed.
  • Scope
    • Award QUAs when upgrade set is complete (independent of unit i/s date)
    • Issue: need NX-9s to model upgrade in FTR & QUA (also ARR, DA and RT)
qualifying upgrade awards2
Qualifying Upgrade Awards
  • Cost Support and Award Shares
    • Project upgrades currently qualifying for QUAs are supported 50% by Project and 50% by RNS
    • 50% of QUA award to each
    • Project share awarded directly
    • RNS share distributed via 4-Stage ARR Process