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MISO / SPP Analysis and Participation Recommendation

Date post: 24-Feb-2016
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MISO / SPP Analysis and Participation Recommendation. Patrick Pope Vice President & Chief Operating Officer Nebraska Public Power District. NPPD & MAPP. Mid-Continent Area Power Pool (MAPP) Formally created in 1972 from predecessor organizations NPPD a charter member of MAPP - PowerPoint PPT Presentation
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1 MISO / SPP Analysis and Participation Recommendation Patrick Pope Vice President & Chief Operating Officer Nebraska Public Power District
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Page 1: MISO / SPP Analysis and Participation Recommendation

1

MISO / SPP Analysisand

Participation Recommendation

Patrick PopeVice President & Chief Operating OfficerNebraska Public Power District

Page 2: MISO / SPP Analysis and Participation Recommendation

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NPPD & MAPP Mid-Continent Area Power Pool (MAPP)

Formally created in 1972 from predecessor organizations

NPPD a charter member of MAPP At its peak, MAPP had members over 8 states with

35,000 MW of load In 2002 assets sold to MISO and ½ of members joined

MISO Seams Operating Agreement entered into between

MISO and remaining MAPP members

Page 3: MISO / SPP Analysis and Participation Recommendation

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Post MISO Sale MAPP Footprint

Page 4: MISO / SPP Analysis and Participation Recommendation

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Background - Timeline July 2007

MISO gave notice to terminate the existing Seams Operating Agreement with MAPP effective 1/31/08

MISO offered MAPP Members three options for services and seams management Part 1 - Reliability Coordination Service Part 2 - Seams management protocols with generation

redispatch Part 3 - Participation in MISO Markets but NPPD would

retain its T-2 Transmission Tariff Only about 15,000 MW of load remained in MAPP of

the original 35,000 MW

Page 5: MISO / SPP Analysis and Participation Recommendation

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Background – Timeline (Cont’d)

September – October 2007 Enlisted Customized Energy Solutions (CES) to provide

Locational Marginal Pricing (LMP) Analysis in MISO (Most MAPP Members)

Enlisted New Energy Associates (NEA) along with TEA to provide Production Model analysis of 3 MISO options and 2 SPP options Full Membership

Contract Services

Page 6: MISO / SPP Analysis and Participation Recommendation

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Background – Timeline (Cont’d)

November 2007 Performed Multiple Scenario Analyses and Quality

Assurance processes to ensure data accuracy

Studied 2008, 2009, 2010 and 2017

Encouraged OPPD and LES to study SPP options

Achieved alignment from Nebraska Utilities on the

future direction of RTO membership

Page 7: MISO / SPP Analysis and Participation Recommendation

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SPP / MISO Analysis Modeling Results

All years studied showed SPP to be better economically than MISO or stand alone options

Transmission expansion to Kansas results in additional economic and reliability benefits Axtell to Spearville 345kV Line

Page 8: MISO / SPP Analysis and Participation Recommendation

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SPP / MISO Analysis (Cont’d) Drivers of Benefits to SPP

Higher off-peak market pricing Lower administrative costs

Other Economic Benefits to SPP SPP transmission revenue sharing Reduced Planning and Operating Reserves Reduction of risk associated with

transmission congestion and losses

Page 9: MISO / SPP Analysis and Participation Recommendation

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SPP / MISO Analysis (Cont’d)

Qualitative Issues

FERC Jurisdiction Corporate Governance

Board Policy Seams Agreement

Customer Impact Legal Requirements

NPPD Transmission Tariff Generator Dispatch

Page 10: MISO / SPP Analysis and Participation Recommendation

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Participation Options - SPP

Full Membership Agreement

Contract Services approach

Page 11: MISO / SPP Analysis and Participation Recommendation

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Recommendation

Join SPP under a Full Membership Agreement

Page 12: MISO / SPP Analysis and Participation Recommendation

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How’s It Going?

Cut-over to SPP went relatively well on April 1st

Steep learning curve for Nebraska companies as

we deal with new people, policies and processes

in SPP

Recent SPP initiatives such as Priority Projects,

Highway/byway rate design have created

immense debate within SPP and concern by the

Nebraska companies

Page 13: MISO / SPP Analysis and Participation Recommendation

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Questions?


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