arizona power authority transmission workshop august 7, 2015 apa offices/on-line webinar
TRANSCRIPT
APA Transmission Workshop 7 Aug 2015.pptx 2
APA Transmission WorkshopAugust 7, 2015 Agenda
• Introductions• Review Existing Transmission Available to APA• Discuss Options for Transmission Post 2017
– Review Slideshow Coordinated by SRP• Review Process for Delivery of BCP Power to
Small Customers– Transmission Options– Net Metering/Billing
APA Transmission Workshop 7 Aug 2015.pptx 3
APA Transmission WorkshopAugust 7, 2015 Agenda
• Input from Balancing Authorities– AEPCO– APS– SRP– TEP– Western
• Summary and Recommendations• Next Steps/Adjourn
APA Transmission Workshop 7 Aug 2015.pptx 4
APA Transmission Workshop
• Introductions• Review Existing Transmission Available to APA• Discuss Options for Transmission Post 2017
– Review Slideshow Coordinated by SRP• Review Process for Delivery of BCP Power to
Small Customers– Transmission Options– Net Metering/Billing
APA Transmission Workshop 7 Aug 2015.pptx
5
Hoover GenFor APA
Parker
Mead 230kV
Liberty 230kV
Mead 345kV
Liberty 345kV
Parker-Davis 189 MW
Intertie 188 MW
377 MW (Post-2017 = 410MW + 13MW tribes)APA A = 190,869 kWAPA B = 189,860 kW
D1 = 30,823 kW D2 = 11,510 kW Tribes = 13,000 kW
APS = 94 MWSRP = 62 MW
WAPA = 24 MWTEPCO = 8 MW
AEPCO = 47 MWCAWCD = 163 MW
D2 = 12 MWTotal = 410 MW
APA Transmission Workshop 7 Aug 2015.pptx 6
APA Transmission Workshop
• Introductions• Review Existing Transmission Available to APA• Discuss Options for Transmission Post 2017
– Review Slideshow Coordinated by SRP• Review Process for Delivery of BCP Power to
Small Customers– Transmission Options– Net Metering/Billing
APA Transmission Workshop 7 Aug 2015.pptx 8
APA’s Mission
Acquire and market Arizona’s share of
HooverSource: www.powerauthority.org/about-us
APA Transmission Workshop 7 Aug 2015.pptx 9
Suggested APA Decision Sequence
Hoover Allocation Decisions
Dynamic Signal and Scheduling Entity
Decisions
APA Transmission Policy Decisions
Unnecessary to resolve transmission, dynamic signal or scheduling entity issues prior to making Hoover allocation decisions.
Unnecessary to resolve dynamic signal or scheduling entity issues prior to making APA transmission policy decisions.
Can be satisfactorily accomplished after the Hoover allocation and transmission policy decisions have been made.
1
2
3
APA Transmission Workshop 7 Aug 2015.pptx 10
The Framework for Transmission Decision Making Has
Changed1980s Today
1 Grid Access Law
• Transmission owners could deny service
• Non discriminatory access
• FERC 888 well established
2 Transmission Business Systems
• No transparency • OASIS• FERC 889 well
established
3 Transmission Capability
• Parker Davis System• Mead – Liberty 345
• Parker Davis System• Mead – Liberty 345• Mead – Westwing 500
APA Transmission Workshop 7 Aug 2015.pptx 11
APA Transmission Policy Options
Option APA’s Role
1 Maximum Involvement
APA plays a role in securing transmission services for all Hoover allocation recipients (Business As Usual)
2 Moderate Involvement
APA plays a role in securing transmission services for those Hoover allocation recipients that want APA to play such a role
3 Minimal Involvement
APA plays a minimal role, or no role, in securing transmission services for Hoover allocation recipients
APA Transmission Workshop 7 Aug 2015.pptx 12
Hoover Delivery in Arizona
• The fulfillment of APA’s mission can be accomplished without APA playing a role as an intermediary transmission service provider
Hoover Generation
Hoover Allocation Recipients
Transmission Service
Providers
APA Transmission Workshop 7 Aug 2015.pptx 13
Option 1: Maximum APA Involvement
Hoover Generation
Hoover Allocation Recipients
Transmission Service
Providers
APA
Advantage Disadvantages
• Business as usual is familiar.
• If, or to the extent that, transmission rights acquisitions are not customized to account for the specific circumstances of each Hoover allocation recipient:o Some Hoover allocation recipients will experience
unnecessary costs due to pancaked transmission tariff and transmission loss rates.
o Some Hoover allocation recipients will not be able to make full use of the transmission rights that they are paying for.
o Contract arrangements will be unnecessarily complicated.• Customizing transmission rights for Hoover allocation recipients
will result in cost redundancies and needless inefficiencies.
APA Transmission Workshop 7 Aug 2015.pptx 14
Option 2: Moderate APA Involvement
Hoover Generation
Hoover Allocation Recipients
Transmission Service
Providers
APA
Advantages Disadvantages
• Some Hoover allocation recipients will save money by avoiding pancaked transmission tariff and transmission loss rates.
• Some Hoover allocation recipients will be able to make better use of purchased transmission rights by dealing directly with the transmission service provider.
• Some Hoover allocation recipients will save money through less complicated contracting processes directly with transmission service providers.
• Same disadvantages as Option 1 for those Hoover allocation recipients who ask APA to act as a transmission service intermediary.
APA Transmission Workshop 7 Aug 2015.pptx 15
Option 3: Minimal APA Involvement All Hoover Allocations Are Delivered at Mead 230
Hoover Generation
Hoover Allocation Recipients
Transmission Service
Providers
Advantages Disadvantages
• Transmission delivery costs for Hoover allocation recipients are minimized. Hoover allocation recipients do not experience unnecessary costs due to the pancaked rates and inability to fully use transmission rights that would otherwise occur.
• Contract arrangements will be less complicated than today.
APA Transmission Workshop 7 Aug 2015.pptx 16
Alignment of Generation and Transmission
Today
Hoover Generation
377 MW
Reserved Transmission
434 MW
Alignment of reserved transmission rights with maximum available generation is a cost-effective, standard utility practice.
Post 2017
Hoover Generation
423 MW
Reserved Transmission
423 MW
APA Transmission Workshop 7 Aug 2015.pptx 17
Arizona’s Share of Hoover Generation Is Unlikely to Become Stranded
Hoover Generation 423 MW
Total Transmission Capability 2,207 MW
Available Transmission Capability 1,520 MW
Arizona has plenty of transmission to convey Hoover generation to Arizona’s Hoover allocation recipients.
APA Transmission Workshop 7 Aug 2015.pptx 18
Summary
• To ensure that all matters pertaining to Hoover are resolved by Oct 1, 2017, a sequential APA decision process is suggested.
• The framework for transmission business decision making has changed since the 1980s.
• The benefits of Hoover to Arizona may be increased by a shift from today’s APA transmission policy to a new approach.
• Arizona’s share of Hoover generation is unlikely to become stranded in the future.
APA Transmission Workshop 7 Aug 2015.pptx 19
APA Transmission Workshop
• Introductions• Review Existing Transmission Available to APA• Discuss Options for Transmission Post 2017
– Review Slideshow Coordinated by SRP• Review Process for Delivery of BCP Power to
Small Customers– Transmission Options– Net Metering/Billing
APA Transmission Workshop 7 Aug 2015.pptx
20
APS WAPAAEPCO TEP
SRP
Balancing AuthoritiesAPA Hoover Energy Delivery
Town of GilbertCAWCD
No WheelingBill Credit Program
Electrical DistrictTagged and Delivered
APA Transmission Workshop 7 Aug 2015.pptx 21
APA Transmission Workshop
• Input from Balancing Authorities– AEPCO– APS– SRP– TEP– Western
• Summary and Recommendations• Next Steps/Adjourn