spp-miso coordinated system plan (csp) process miso spp ipsac item 03 csp detailed process... ·...

SPP-MISO Coordinated System Plan (CSP) ProcessSPP-MISO IPSAC

1/31/2019

1

New CSP Study Process• Continued focus on SPP-MISO

Coordination

• Futures Development

• Model Development

• Needs Identification

• Solution Development

• Solution Evaluation

2

MISO Regional Process Overview – MISO Transmission Expansion Plan (MTEP)• Market Congestion Planning Study (MCPS) – Economic planning

component of MTEP• Single study with four regional focus areas in MTEP19: North/Central, South,

MISO-PJM, MISO-SPP

• Regional stakeholder forums• Sub-regional Planning Meetings (SPMs)

• Planning Advisory Committee (PAC)

• Planning Subcommittee (PSC)

3

SPP Regional Process Overview – Integrated Transmission Planning (ITP) Study• 2019 SPP ITP Study

• Annual SPP Regional Planning Study • Economics

• Reliability

• Public Policy

• Operations

• Regional Stakeholder Forums • Transmission Working Group (TWG)

• Economic Studies Working Group (ESWG)

4

SPP ITP

MISO MTEP

SPP-MISO CSP

Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Model Completion Needs Posted Initial Portfolio Selected

MOPC & Board Approval

Needs Posted Initial Portfolio Selected Board Approval

Post “CSP” Needs for

IPSAC

IPSAC Solutions

Interregional Project Evaluation

IPSAC, SPP-MISO JPC, SPP Board, and MISO Board Approvals

SPP-MISO Futures Coordination for 2020 Study

SPP-MISO Regional Needs Coordination

Determine SPP-MISO

Cost Allocation

SPP-MISO Regional Modeling Coordination


2018 2019

Model Completion

MISO - SPP – Model Building and Coordination• MISO Economic Model Building

• 4 MTEP Futures, evenly weighted• MTEP19 Futures development Q1-Q3 2018• MTEP19 Economic Models completed Q4 2018

• Utilizes MTEP18 topology and approved projects

• SPP Economic Model Building• 2 ITP Futures, no specific weighting

• Reference Case (Business as Usual) • Emerging Technologies

• Scope and futures development takes place July – December the year prior to the study

• MISO and SPP exchange models and data in Q4 and will provide more emphasis on this step with each iteration of the new CSP

• All stakeholder input and updates on models should be provided through the respective regional model building process

6

SPP ITP

MISO MTEP

SPP-MISO CSP




Initial Portfolio Selected Board Approval

Post “CSP”

Needs for IPSAC

IPSAC Solutions

Interregional Project Eval




Determine SPP-MISO

Cost Allocation



2018 2019

Needs Posted

Model Completion

MISO – Economic Needs identification

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• MISO uses future weighted total shadow price used as the metric for top flowgate identification:

• Threshold for flowgate identification is 30k$/MW

• Future Weighted total shadow price = σ𝐹𝑢𝑡𝑢𝑟𝑒𝑠𝐹𝑢𝑡𝑢𝑟𝑒 𝑊𝑒𝑖𝑔ℎ𝑡 ∗ 𝑇𝑜𝑡𝑎𝑙 𝐴𝑛𝑛𝑢𝑎𝑙 𝑆ℎ𝑎𝑑𝑜𝑤 𝑃𝑟𝑖𝑐𝑒

• Regional and preliminary interregional needs presented at 1st Subregional Planning Meetings (SPM) in December 2018

• Top flowgates for interregional issues coordinated with SPP in January 2019

• MISO Regional and Interregional Solution Window: Closes March 1st 2019

Top Congested Flowgate Identification

Review Historical Congestion

Congestion Analysis

Coordination with Inter-regional studies

Identify top congested flowgates

SPP – Economic Needs Identification

• Binding constraints are ranked from highest to lowest congestion score • Congestion score is the product of a given constraint’s average shadow price and the number

of hours that constraint is binding

• List of binding constraints is reduced to the congested flowgates that have greater than $50,000/MW in annual flowgate congestion score

• However, additional constraints may be included if SPP determines the inclusion would better define an economic need overall.

• 2019 SPP ITP Needs were posted on January 7, 2019• ITP Solutions window closes February 6, 2019

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SPP and MISO – Needs Coordination & CSP

• MISO and SPP coordinate needs from the ITP and MTEP to determine the subset of regional needs along the seam that will be emphasized in the CSP

• CSP needs are identified for the purpose of providing the IPSAC transparency and a “picture” of the SPP and MISO regional needs along the seam

*Interregional Projects could be approved to address regional needs not included in the CSP needs highlighted at the IPSAC

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SPP ITP

MISO MTEP

SPP-MISO CSP




Initial Portfolio Selected Board Approval


IPSAC

IPSAC Solutions

Interregional Project

Evaluation




Determine SPP-MISO

Cost Allocation



2018 2019

Needs Posted

Model Completion

SPP-MISO Solution Coordination

• Solutions may be provided to either RTO’s Regional Process or directly to CSP:

• SPP and MISO will consider solution ideas independent of where it is submitted • Solutions submitted to the regional process do not need to be resubmitted to the

CSP

• Regional and Interregional solutions will be exchanged between RTOs throughout the CSP process

• Stakeholders may submit issues or feedback to the CSP in any format they choose and staff will reach out to discuss any questions

• Use the RTO Regional Processes if seeking to qualify for:• MISO planning participation credit• SPP incentive points

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MISO Solution Window

• MISO Regional and Interregional Solution Window: Ends March 1• Use the Solution Idea forms located at the following weblink:

www.misoenergy.org > Planning > Transmission Planning Studies and Reports > Economic Planning

• Must submit a solution in response to a regional or interregional transmission issue to MISO no later than March 1, 2019 to be eligible for planning participation

• A solution received after March 1, 2019 is ineligible for planning participation however, may be considered in the study process if practical

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https://www.misoenergy.org/planning/transmission-studies-and-reports/#nt=%2Freport-study-analysistype%3AEconomic%20Studies&t=10&p=0&s=FileName&sd=desc

SPP Solution Window

• SPP Regional Solution Window: Ends February 6, 2019

• SPP will accept Interregional Solution Ideas through the CSP process until March 1

• Solutions submitted to the SPP-MISO CSP process are NOT eligible for the Incentive Points available through the SPP regional process

• Incentive Points are only eligible for solutions submitted to the ITP process through a Detailed Project Proposal (DPP) via Section III.2.f.iv of Attachment Y of the SPP OATT

• Projects not approved through the ITP process are not eligible for Incentive Points

• SPP-MISO Interregional Projects (Cost Sharing) are not eligible for approval through the ITP process

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MISO – Project Evaluation

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• Project candidate selection criteria:

• Projects addressing regional constraints - Weighted B/C ratio greater than 1.0

• Project addressing inter-regional constraints – Best projects identified by weighted B/C ratio, to be coordinated with IPSAC

• Solution ideas that help avoid reliability need(s) in MTEP19 in addition to addressing economic need(s) will be considered

Project Candidate Identification

Transmission Development

Screening Analysis

Present Value (PV) Analysis

Establish Project Candidate(s)

MISO – Project Evaluation Cont.

• Robustness/Sensitivity Analysis – Review to ensure no single

futures assumption is the driver for project benefit

• MISO Scoping Level Cost Estimate - Cost estimates for all cost-

shared transmission projects to be reviewed by the MISO

Competitive Transmission Administration (CTA) process

• Best fit solutions to be recommended for BOD approval

• Best-fit projects once selected through MCPS are categorized for cost

allocation

• Updated MEP threshold(s) to be utilized pending FERC approval of

Attachment-FF

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Robustness Testing

Robustness/Sensitivity Analysis

Reliability “no-harm” Analysis

Scoping Level Cost Estimation

Best Fit Solution(s)

SPP – Economic Project Evaluation

• Potential solutions are evaluated based on their one-year benefit-to-cost ration (B/C)

• Solutions with a 0.5 or greater one-year B/C or a 1.0 or greater 40-year B/C are included for further consideration during portfolio development

• Potential seams projects will be identified and flagged• SPP applies a minimum of 20% of the estimated project cost to the applicable

neighbor

SPP Project Evaluation and Portfolio Development takes place from February 2019 to July 2019

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SPP- Portfolio Development

• Portfolios are developed for each need type and are evaluated for synergies

• Economic Portfolio solutions are ranked by their cost effectiveness, net APC, and qualitative benefits for each need

• Reliability, Policy, & Operational Portfolio solutions are ranked by each portfolio’s given metrics and then qualitative benefits

• After each portfolio has been selected checks for redundancy is performed, with the most economic set of projects within those portfolios being selected

• SPP works with stakeholders to determine and recommend the final consolidated portfolio

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SPP ITP

MISO MTEP

SPP-MISO CSP




Board Approval


IPSAC

IPSAC Solutions





Determine SPP-MISO

Cost Allocation



2018 2019

Model Completion

Needs Posted Initial Portfolio Selected

SPP-MISO Cost Allocation

• SPP and MISO each calculate project benefits using their respective regional models

• 20 year benefit • APC

• Avoided Cost

• SPP and MISO’s share of project costs are based on the % of the total project benefit

• MISO Cost = (MISO Benefit)/(MISO Benefit + SPP Benefit)• MISO Benefit = NPV of MISO’s benefits as calculated in MISO’s MTEP process

• SPP Cost = (SPP Benefit)/(MISO Benefit + SPP Benefit)• SPP Benefit = NPV of SPP’s benefits as calculated in SPP’s ITP process.

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SPP-MISO Cost Allocation -> Regional Processes• SPP and MISO will use the Interregional Cost Allocation to evaluate

potential projects against other potential regional and interregional solutions through the regional processes

• The solution will utilize the new cost responsibility for each RTO as determined by the CSP

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SPP ITP

MISO MTEP

SPP-MISO CSP




Board Approval


IPSAC

IPSAC Solutions


IPSAC, SPP-MISO JPC, SPP Board, and MISO Board

Approvals



Determine SPP-MISO

Cost Allocation



2018 2019

Model Completion

Needs Posted Initial Portfolio Selected

Coordinated System Plan and Regional Project Approvals• Results of CSP analysis and recommended projects presented to the

IPSAC

• Official Joint Planning Committee (JPC) Vote and Recommendation

• MISO Regional Approvals• CSP study details provided with MTEP Report and presented to MISO PAC• Board of Directors approves project(s) for MTEP “Appendix A”

• SPP Regional Approvals• Markets and Operations Policy Committee provide recommendation to the

Board on all ITP and CSP projects• All projects with cost sharing between SPP and MISO must be approved through the CSP

• Board of Directors approve all ITP and CSP projects

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Coordinated System Plan – Construction and Ownership • Interregional Projects solely interconnected to either SPP or MISO,

will utilize that Party’s OATT to designate the entity to construct, implement, own, operate, maintain, repair, restore, and finance the applicable Interregional Project.

• Tie-line Interregional Projects interconnected to both SPP and MISO will utilize each Party’s OATT to designate the entity to construct, implement, own, operate, maintain, repair, restore, and finance the applicable Interregional Project based on the benefits determined in the CSP study

• Additional information in Section 9.7.1 of the SPP-MISO JOA

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Future CSP Coordination Improvements

• Continue to improve understanding of each others respective regional planning processes

• Increase focus in future studies on reliability, operational, and policy needs in addition to economic needs

• Coordinate models earlier in the planning process

• Further coordination of regional futures as a part of regional planning processes

• Single Q1 IPSAC (timing misalignment during this transition year required scheduling 2 Q1 IPSACs for JOA compliance)

• Continue to check and adjust the new process as we learn potential short falls

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Questions?

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