october 6, 2006 public stakeholder review portland, oregon conditional firm
TRANSCRIPT
October 6, 2006Public Stakeholder Review
Portland, Oregon
Conditional Firm
Meeting Objective and Agenda Objective:
Initiate a collaborative process to identify opportunities, issues and solutions to PacifiCorp’s offering of a conditional firm product
Agenda: Discuss goals for implementation of a conditional firm
product Discuss proposed process for stakeholder input and
product formulation Review historical compilation of PacifiCorp system
schedules Discuss concerns with product implementation and
possible remedies
Commitment
MEHC and PacifiCorp will support the Bonneville Power Administration in its development of short-term products such as conditional firm.
No less than three months following the close of the transaction, PacifiCorp will initiate a process to collaboratively design similar short-term transmission products and will include stakeholders in this process. On June 16, 2006, PacifiCorp provided notice describing steps it
will take to comply with the merger commitment Conduct a review of operational and technical requirements
necessary to offer service Conduct a historic firm contract schedule and flow audit of specific
commercial paths Schedule stakeholder meetings
PacifiCorp will make every reasonable effort to complete a product by the end of 2008.
Process Overview/Timeline
Stakeholder/Customer meetings Portland – October 6 Salt Lake City – October 23
Comment submittal - via PacifiCorp internet (Q4 2006) PacifiCorp review of comments and proposed product
description (Q4 2006) Publish schedule for additional public meetings
(January 2007) Review of FERC 888 NOPR Reform Order (Q1 2007) Final comment session (via electronic public forum)
(Q2 2007) Product analysis, finalization, and FERC filing process
(Q4 2007)
Conditional Firm Goals and Guiding Principles Goals
Optimize the use of existing transmission system Increase product flexibility for customers
Guiding Principles for Product Development Maintain reliability of transmission system Avoid diminishing firm rights to existing network and
PTP customer contracts Avoid cost shifts between customers or customer
classes Limit economic risk to other transmission customers
Current PacifiCorp Products/Services
PacifiCorp OATT Network Integration Service Point to Point
Firm Long term (greater than one year)
Partial Firm (seasonal, or as allowed by capacity)
Short term Non-firm
PacifiCorp System Specifics
PacifiCorp system specifics Many paths are scheduled near capacity a high
percentage of time High usage long term schedules are not always
“grouped” in specific seasons or months Limited ability to re-dispatch thermal generation Network load increasing at fast rate
Limited ability to accurately forecast load growth over long term
Elements of Current Proposed BPA Conditional Firm Product Only available to customers requesting long term firm Point to
Point service where ATC is determined not to be available for at least one month in a twelve month period Maintains original long term firm queue position
Firm for specified months (when ATC is available) Curtailment
Pro Rata with all other firm Conditional firm in months where ATC is not available
Conditional firm hour limits fixed at contract initiation (either annual or monthly limits)
Curtailment priority Before all firm After all Point to Point non-firm Tagged as “Network – Non-Firm” - NERC curtailment priority 6
BPA Proposed Curtailment Position
Product NERC Curtailment Priority
PTP Secondary 1
Hourly NF 2
Daily NF 3
Weekly NF 4
Monthly NF 5
Network NF 6
Firm 7Conditional Firm
Concerns with BPA Conditional Firm Proposed Product Design Network upgrade cost allocation Queuing position
Queue blocked by un-resolved long term firm requests
Limited ability to forecast native load growth to determine hourly curtailment limits Transmission provider and other firm
customers take all risk of congestion occurring over forecasted limits
Historical Examples of Firm Schedules on PacifiCorp Paths
PACE - FC3 (TOT-2B-1)
PACE - FC3 (TOT-2B-1)PACE - FC3 (TOT-2B-1) (TTC vs Schedules)
0
100
200
300
400
500
600
700
800
900
Time
Sc
he
du
les
(M
W)
0
100
200
300
400
500
600
700
800
900
TT
C/T
RM
(M
W)
Sum NetworkFirm Sum PTP Firm (1 year or greater) Sum PTP Firm (<1 year)
TTC minus TRM (MW) TTC (MW)
PACE - FC3 (TOT-2B-1)PAC E - FC3 (TOT-2B -1)
Available Usage H ours per S iz e of C onditional Firm C ontract (MW)(TTC - TR M - N etw ork Firm & Point to Point Firm (> 1 year))
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10 40 70100
130160
190220
250280
310340
370400
430460
490520
550580
610640
670700
730760
790
Size of Conditional Firm Contract (M W)
Ho
urs
Av
ail
ab
le f
or
Co
nd
itin
oa
l F
irm
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Un
av
ail
ab
le H
ou
rs f
or
Co
nd
itio
na
l F
irm
Hours Available for Conditional Firm Unavailable Hours for Conditional Firm
PACE – GLC2 (TOT-2B-2)
PACE – GLC2 (TOT-2B-2)PACE - GLC2 (TOT-2B-2) (TTC vs Schedules)
0
50
100
150
200
250
300
350
400
Time
Sch
ed
ule
s (
MW
)
0
50
100
150
200
250
300
350
400
TT
C/T
RM
(M
W)
Sum NetworkFirm Sum PTP Firm (1 year or greater) Sum PTP Firm (<1 year)
TTC minus TRM (MW) TTC (MW)
PACE – GLC2 (TOT-2B-2)PAC E - GLC2 (TOT-2B-2)
Available Usage H ours per S iz e of C onditional Firm C ontract (MW)(TTC - TR M - N etw ork Firm & Point to Point Firm (> 1 year))
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10 40 70100
130160
190220
250280
310340
370400
430460
490520
550580
610640
670700
730760
790
Size of Conditional Firm Contract (M W)
Ho
urs
Av
ail
ab
le f
or
Co
nd
itin
oa
l F
irm
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Un
av
ail
ab
le H
ou
rs f
or
Co
nd
itio
na
l F
irm
Hours Available for Conditional Firm Unavailable Hours for Conditional Firm
WYOE – TOT 4A
WYOE – TOT 4AWYOE - TOT4A (TTC vs Schedules)
0
100
200
300
400
500
600
700
800
900
1000
1/1
/20
05
1/1
5/2
00
5
1/2
9/2
00
5
2/1
2/2
00
5
2/2
6/2
00
5
3/1
2/2
00
5
3/2
6/2
00
5
4/9
/20
05
4/2
3/2
00
5
5/7
/20
05
5/2
1/2
00
5
6/4
/20
05
6/1
8/2
00
5
7/2
/20
05
7/1
6/2
00
5
7/3
0/2
00
5
8/1
3/2
00
5
8/2
7/2
00
5
9/1
0/2
00
5
9/2
4/2
00
5
10
/8/2
00
5
10
/22
/20
05
11
/5/2
00
5
11
/19
/20
05
12
/3/2
00
5
12
/17
/20
05
12
/31
/20
05
Time
Sc
he
du
les
(M
W)
0
100
200
300
400
500
600
700
800
900
1000
TT
C/T
RM
(M
W)
Sum NetworkFirm Sum PTP Firm (1 year or greater) Sum PTP Firm (<1 year)
TTC minus TRM (MW) TTC (MW)
WYOE – TOT 4AW YOE - TOT4A
Available Usage H ours per S iz e of C onditional Firm C ontract (MW)(TTC - TR M - N etw ork Firm & Point to Point Firm (> 1 year))
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10 40 70100
130160
190220
250280
310340
370400
430460
490520
550580
610640
670700
730760
790
Size of Conditional Firm Contract (M W)
Ho
urs
Av
ail
ab
le f
or
Co
nd
itin
oa
l F
irm
0
500
1000
1500
2000
2500
3000
Un
av
ail
ab
le H
ou
rs f
or
Co
nd
itio
na
l F
irm
Hours Available for Conditional Firm Unavailable Hours for Conditional Firm
WYOE – TOT 4B
WYOE – TOT 4BWYOE - TOT 4B (TTC vs Schedules)
0
100
200
300
400
500
600
700
Time
Sch
ed
ule
s (
MW
)
0
100
200
300
400
500
600
700
TT
C/T
RM
(M
W)
Sum NetworkFirm Sum PTP Firm (1 year or greater) Sum PTP Firm (<1 year)
TTC minus TRM/WAPA (MW) TTC (MW)
WYOE – TOT 4BWYOE - TOT 4B
Available Usage Hours per S iz e of Conditional Firm Contract (MW)(TTC - TRM - Netw ork Firm & Point to Point Firm (> 1 year))
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Size of Conditional Firm Contract (M W)
Ho
urs
Av
ail
ab
le f
or
Co
nd
itin
oa
l F
irm
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Un
av
ail
ab
le H
ou
rs f
or
Co
nd
itio
na
l F
irm
Hours Available for Conditional Firm Unavailable Hours for Condit ional Firm
PACEW – PACE (Monument – Naughton)
PACEW – PACE (Monument – Naughton)
PACEW - PACE (MONUMENT - NAUGHTON) (TTC vs Schedules)
0
100
200
300
400
500
600
700
1/1
/20
05
1/1
5/2
005
1/2
9/2
005
2/1
2/2
005
2/2
6/2
005
3/1
2/2
005
3/2
6/2
005
4/9
/20
05
4/2
3/2
005
5/7
/20
05
5/2
1/2
005
6/4
/20
05
6/1
8/2
005
7/2
/20
05
7/1
6/2
005
7/3
0/2
005
8/1
3/2
005
8/2
7/2
005
9/1
0/2
005
9/2
4/2
005
10/8
/20
05
10/2
2/2
00
5
11/5
/20
05
11/1
9/2
00
5
12/3
/20
05
Time
Sc
he
du
les
(M
W)
0
100
200
300
400
500
600
700
TT
C/T
RM
(M
W)
Sum NetworkFirm Sum PTP Firm (1 year or greater) Sum PTP Firm (<1 year)
TTC minus TRM (MW) TTC (MW)
PACEW – PACE (Monument – Naughton)
PACEW - PACE (MONUMENT - NAUGHTON) Available Usage Hours per Size of Conditional Firm Contract (MW)
(TTC - TRM - Network Firm & Point to Point Firm (> 1 year))
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Size of Conditional Firm Contract (MW)
Ho
urs
Av
ail
ab
le f
or
Co
nd
itin
oa
l F
irm
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Un
av
ail
ab
le H
ou
rs f
or
Co
nd
itio
na
l F
irm
Hours Available for Conditional Firm Unavailable Hours for Conditional Firm
PacifiCorp Conditional Firm Product Alternative 1 Conditional firm with transmission customer arranging re-dispatch for
congested periods Schedules would be firm - customer responsible to arrange their own
re-dispatch to alleviate congestion If re-dispatch is not completed upon congestion per agreement, then
schedule will transform to a non-firm tag subject to curtailment Benefits
Allows greater utilization of transmission system Limit economic risk to other transmission customers Protects existing rights of other network and firm customers (check)
Concerns Transmission customer curtailment hours not limited Transmission customer takes risk of marginal prices of redispatch May not be a long-term solution
PacifiCorp Conditional Firm Product Alternative 2 Bridge product
Initial schedules would be firm with committed-to hourly curtailment limits by PacifiCorp
Network upgrades to allow firm service per current PacifiCorp OATT
Product duration would be subject to Network Upgrades being completed on timely basis
No rollover – Service would transfer to firm after Network Upgrades are completed per current OATT provisions
Benefits Allows for transmission usage while network upgrades are
under construction Limits economic risk to other transmission customers Protects existing rights of other network and firm customers
Concerns Cost of network upgrades may preclude implementation
PacifiCorp Conditional Firm Product Alternative 3 Two (existing) product approach
Utilize existing partial firm product for un-congested months Utilize existing non-firm product for higher usage months Arrange LT firm via Network Upgrades, and transfer service
to LT firm after Network Upgrades are complete Benefits
Limits economic risk to other transmission customers Protects existing rights of other network and firm customers Allows for transmission usage while network upgrades are
completed Concerns
Transmission customer curtailment hours not limited
Next Steps
Submit comments to PacifiCorp by December 10, 2006 [email protected]
All comments and replies will be posted on PacifiCorp’s web portal http://www.pacificorp.com
News and Info Conditional Firm Development
Publish schedule for additional public comment sessions by January 10, 2007