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MSTR Informal Customer Meeting

This document summarizes the informal customer meeting held on May 23, 2003, focusing on the review and discussion of the Multiple System Transmission Rate (MSTR). Key topics included a recap of the previous meeting, analysis of transmission losses, integration of the Colorado River Storage Project, and customer choice options. Responses to customer inquiries regarding collections and additional resources were addressed. The presentation slides will be shared on the designated website for continued customer engagement and transparency in the decision-making process.

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MSTR Informal Customer Meeting

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  1. MSTR Informal Customer Meeting May 23, 2003

  2. Meeting Purpose • To re-look at/continue to review the Multiple System Transmission Rate (“MSTR”) • To open up additional/continued discussion with our customers. • To provide additional information based on customer requests at 4/23/03 meeting.

  3. Meeting Purpose-cont’d • Today we’ll cover: 1. Re-cap of 4/23/03 meeting 2. Discussion of Transmission Losses 3. Addition of CRSP (Southern Portion) 4. Customer Choice ideas brought up at 4/23/03 meeting.

  4. Re-cap of 4/23/03 meeting • Presented 3 alternatives for implementation of “MSTR”: • Going to MSTR immediately • MSTR in the first year (of five years) • MSTR in the fifth year. • B and C above refer to the “convergence model” presented 4/23/03-converge to the MSTR from current single system rate at 20% of the difference between the two rates each year.

  5. Answers to 4/23/03 requests • Addition of CRSP piece of control area: • Involved in continued discussions with CRSP office. • Working to determine if/how this could be implemented. • Will provide additional information as soon as it’s available.

  6. Requests—cont’d • In 4/23/03 meeting you asked about over/under collections; • Show complete collections over 5 year rate window • In a given year with an under collection-assumption is a deficit is taken-repaid the next year. • There is a cost—1/2 year’s interest on the amount of the deficit. • Some of the over/under in today’s MSTR presentation result from allocation/rounding issues. • Note in today’s MSTR presentation you’ll see some minor under-collections in Intertie but study shows no deficits in 5 yr. period

  7. Requests-cont’d • You requested a web site—that’s been accomplished & today’s presentation will be posted to website • Address: www.wapa.gov/dsw • Go to “Power Marketing” then “MSTR Process”

  8. More Requests • Today’s presentation will include discussion of additional ATC available as a result of un-pancaking. • Customers asked us to investigate losses-will be discussed today. • Asked to look at customer choice—we had done earlier but didn’t present. Will go over that information today & post on website.

  9. Last but not least • This is an informal meeting— • We want to hear your comments and feedback • We are interested in your ideas

  10. Single Loss Rate • Nick Saber

  11. Methodology • Focus on two methods • Real time data using ISA • Flow based analysis

  12. Using Real time data • Establish meaningful data set • Average data over the hour • Average hour over the year

  13. Using Flow based analysis • Snap shot values • Different cases for variety of loadings • Combine cases

  14. Status • Data has been gathered • Most of the flow base cases are run • Comparisons need to be made • Checks by other Planning Staff will be made

  15. Additional Transmission Sales from MSTR John Delgado

  16. General Assumptions • In year MSTR is implemented • Load currently contracted on PDP could be moved to Intertie • No rate impact to Load which moved

  17. Specifics • Deliveries from Mead South • Path G • Approximate load = 78 MW

  18. Potential Sales • Western has requests for new transmission to satisfy part of this • Western will use part of this for sale of generation

  19. Customer Choice Bill Snowden

  20. CUSTOMER CHOICE • Allow each customer to choose between a multi-system rate or a single system rate • Two methods were compared • Calculation of MSTR 1st • Calculation of SSTR 1ST

  21. CALCULATE MSTR 1ST • 1. MSTR = Total RR/Total CROD/12 • 2. Estimate revenue from unpancaked CROD • 3. Allocate to the appropriate Projects • 4. Determine the remaining RR for each Project • 5. SSRT = Remaining Revenue/SS CROD/12

  22. Calculate SSTR 1st • 1. SSTR = SS RR/SS CROD/12 • 2. Estimate revenue from SS CROD • 3. Allocate revenue to appropriate projects • 4. Determine remaining revenue for MS • 5. MSTR = Remaining Revenue/MS CROD/12

  23. General Assumptions • The customer will make an economic decision on which rate to take • The customer may make a final choice after iterations are presented • Final may be changed only in yearly increments

  24. EFFECT OF CUSTOMER CHOICE • The MSTR 1ST method is not different than MSTR Only • The SSTR 1ST method is not different than not introducing the MSTR.

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