NTTG 0rder 1000 Stakeholder NTTG 0rder 1000 Stakeholder MeetingMeeting
March 28, 2012
Radisson HotelPortland, Oregon
1
2
10:00 am – 10:15 am Welcome and Introductions
10:15 am – 10:30 am O1K Planning Compliance Workgroup Status Update
10:30 am – 11:10 am Draft Tariff Revisions
11:10 am – 11: 30 am Draft Planning Committee Charter Revisions
11:30 am – 12:00 pm Draft Planning Practices Document
12:00 pm – 12:45 pm Lunch Break
12:45 pm – 1:30 pm Continue Draft Planning Practices Review
1:30 pm – 2:00 pm Cost Allocation Workgroup Status Update
2:00 pm Next Steps and Adjourn
AgendaAgenda
Draft Tariff RevisionsDraft Tariff Revisions
Order 1000 Stakeholder UpdateMarch 28, 2012
Radisson HotelPortland, Oregon
3PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
4
Draft Tariff Revision materials are Draft Tariff Revision materials are posted to the NTTG Websiteposted to the NTTG Website
To access the Draft Tariff Revision materials
click on the following:
• Redline – Click Here
• Clean – Click Here
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Committee CharterPlanning Committee Charter
Order 1000 Stakeholder UpdateMarch 28, 2012
Radisson HotelPortland, Oregon
5PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
6
Overview of Proposed Changes - Overview of Proposed Changes - (NTTG Planning Committee Charter)(NTTG Planning Committee Charter)
General Changes: a. Deleted paragraph on “Authority of Planning committee” and “Project
facilitation” – too obvious
b. Moved the Principles and Footprint/Coordination to an Appendix
c. Deleted “Biennial Transmission Planning Cycle”, “Footprint/Coordination” and “Confidentiality of Data”– already in Attachment K document
Partitioned the document into nine major sections as follows:
I. Purpose – edited extensively
II. Duties and Responsibilities – new section
III. Committee Operating Structure
IV. Committee Chair
V. Committee Meetings
VI. Decision Making
VII. Technical Work Group - new
VIII. Budget
IX. Change ControlPROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
I. PurposeI. Purpose• The purpose of the NTTG Planning Committee is to:
1. Provide a forum where all stakeholders are encouraged to participate in the
planning, coordination, and development of a more efficient and more cost
effective Regional Transmission Plan.
2. Prepare a Regional Transmission Plan consistent with applicable NERC and
WECC system reliability standards and criteria, and public policy needs.
3. Ensure the Regional Transmission Plan satisfies FERC Order 890 and 1000
compliance requirements..
• The broad stakeholder participation envisioned in this process (including
transmission owners, customers and state regulators) is intended to result in
a Regional Transmission Plan that meet a variety of needs and has a broad
basis of support.
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
II. Duties and ResponsibilitiesII. Duties and Responsibilities of the Planning Committee of the Planning Committee
• The NTTG Planning Committee reports to the NTTG Steering Committee and is responsible for:1. Developing the study plan for each biennial cycle,
2. Obtaining NTTG Steering Committee approval of the study plan,
3. Performing and documenting the assessments as defined in the study plan,
4. Conduct stakeholder economic studies requests for the NTTG,
5. Coordinating transmission planning with adjacent regional planning groups,
6. Coordinating planning with the WECC planning committees, and
7. Publishing, on a biennial basis a Steering Committee approved regional Transmission Expansion Plan.
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
No changes applied to:No changes applied to:
III.III. Committee Operating Structure Committee Operating Structure
IV.IV. Committee Chair Committee Chair
V.V. Committee MeetingsCommittee Meetings
VI.VI. Decision MakingDecision Making
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
V. Technical Work Group – V. Technical Work Group – “New” “New”
• The NTTG Planning Committee will form and over see a Technical Work Group
(TWG) having the proper technical skills, experience, tools and resources to perform
the detailed analysis and studies required to support the biennial study cycle and the
plan development overall. The TWG will be responsible for performing the bulk of the
technical studies and analysis required by the most recent approved biennial regional
transmission study plan. The Planning Committee will select individuals from the
Planning Committee members based on transmission planning experience, access to
and ability to use power system analysis and/or production cost simulation software,
power system modeling expertise, and overall knowledge of the NTTG transmission
footprint and the western interconnection.
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
No ChangeNo Change
VIII. Budget VIII. Budget
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
IX. Change Control ProceduresIX. Change Control Procedures
• Changes to the Planning Committee structure, functions
and responsibilities including its Charter will be
conducted through open stakeholder processes currently
in use by NTTG and any changes will subsequently be
approved by the NTTG Steering Committee.
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
PROCESS AID FOR DISUCSSION PURPOSES ONLY AND SUBJECT TO CHANGE 13
Regional Planning PracticeRegional Planning Practice
Order 1000 Stakeholder UpdateMarch 28, 2012
Radisson HotelPortland, Oregon
14PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Information from NTTG’s Regional Information from NTTG’s Regional Planning Practice documentPlanning Practice document
15PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Index1. Objective of NTTG’s Regional Transmission Planning
Process
2. Biennial Planning Cycle
3. Information Gathering from Transmission Providers and Stakeholders
4. Regional Transmission Plan Evaluation Process
5. Study Plan
Objective Regional Planning Objective Regional Planning ProcessProcess
16PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
• Develop an initial regional transmission plan from a roll up of the local transmission plans
• Improve upon that plan, if possible, • Develop a Regional Transmission Plan that
meets the regional transmission needs more efficiently and cost effectively than the roll up of the transmission providers local transmission plans
Planning Practice Pg 3
17PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Index1. Objective of NTTG’s Regional Transmission Planning
Process
2. Biennial Planning Cycle
3. Information Gathering from Transmission Providers and Stakeholders
4. Regional Transmission Plan Evaluation Process
5. Study Plan
Information from NTTG’s Regional Information from NTTG’s Regional Planning Practice documentPlanning Practice document
18
Biennial Planning Process
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Gather Information * 01 Receive Requests * 01
Develop Study Plan, Assumptions * 02 Perform Studies 02
Perform Draft Plan Analysis * 03 Report and Review * 03
Perform Draft Plan Analysis * 04 04
Draft & Review Report and Gather Info * 05 Receive Requests * 01
Final Plan Analysis & Cost Allocation * 06 Perform Studies 02
Prepare & Review Final Report * 07 Report and Review * 03
Obtain Final Plan Approval 08 04
* Stakeholder Input
NTTG EIGHT-QUARTER BIENNIAL PLANNING PROCESS
Ye
ar O
ne
Ye
ar T
wo
Eligible Customer & Stakeholder Economic
Congestion Study
Biennial Planning Cycle
While the resulting Regional Transmission Plan is not a construction plan, it will provide valuable regional insight and information for all stakeholders to
consider and potentially modify their respective plans.
Planning Practice Pg 4
19PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Index1. Objective of NTTG’s Regional Transmission Planning
Process
2. Biennial Planning Cycle
3. Information Gathering from Transmission Providers and Stakeholders
4. Regional Transmission Plan Evaluation Process
5. Study Plan
Information from NTTG’s Regional Information from NTTG’s Regional Planning Practice documentPlanning Practice document
20
Type of Project SubmittedType of Project SubmittedTypes of projects potentially in the regional transmission
plan
a)projects with potential regional impact rolled up from one or more local transmission providers’ transmission plan(s)
b)merchant developer projects
c)new “unsponsored” regional project identified through the regional planning process
d)interregional projects
e)non-transmission alternative projects
f) transmission projects to satisfy existing or future public policy needs required by state or federal law or requirements
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGEPlanning Practice Pg 5
21
ProjectProjectSubmittalSubmittalProcessProcess
PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Transmission Provider
Non Incumbent/MerchantDeveloper
For Consideration in Regional Transmission Planning Process
Test Information against
Qualification Criteria
Prior to Start of Biennial Cycle Submit Sponsor Qualification
Data
Cure deficiency
Fail
Project Submittal to the Regional Plan
Submit Qtr 1Project
Information
Project for Regional Cost Allocation ConsiderationProject Not for
Regional Cost Allocation
Consideration
Submit Qtr 1Additional Cost Allocation Data
ANDProject Information Data
Pass
Planning Practice Pg 6
Submitted in Plan for Cost AllocationSubmitted in Plan for Cost Allocation
22PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Category Qualification Data1. Name and address2. Years in business 3. Operating environment (what is the nature of your business?)1. Management’s experience in the industry2. Scope of sponsor’s technical expertise (in house expertise and/or out sourced expertise) 3. Name and location of a project of similar scale that demonstrates the sponsor’s technical expertise1. Balance sheet or annual report (if appropriate)2. Credit worthiness
a. Rating agency reports (if applicable) b. Two most recent audited year-end financial statements plus any available quarterly financial statements for current fiscal year (if applicable)c. Material issues that could impact the credit decision including but not limited to litigation, arbitration, contingencies, or investigations (if applicable)
3. Other information supporting sponsor’s financial expertise
3 Project sponsor financial expertise to develop, construct, own the proposed facility
Sponsor Qualification Data – Submit Prior to Biennial Cycle BeginsProject Submitted for Selection in Regional Plan for Regional Cost Allocation
1 Project sponsor description
2 Project sponsor demonstration of technical expertise to develop, construct, own the proposed facility
Planning Practice Pg 7-8
ContinuedContinued
23PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
4 Project Sponsor ability to maintain and operate their proposed facility
1. Prior operation experience 2. Prior maintenance experience
5 Project summary 1. Summarize the proposed project
6 Investors 1. Description 2. Interest
7 Demonstration of ability and commitment to register and comply with all NERC standards
1. An attestation form
8 Other relevant or pertinent data or information
1. As appropriate
Planning Practice Pg 7-8
Additional Cost Allocation DataAdditional Cost Allocation Data
24PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
1 Project sponsor name and project description (should be the same as provide on sponsor qualification data, if different provide update)
2 Physical location 3 Detailed Cost Estimate4 Cost/benefit analysis 5 POR/POD 6 Pertinent engineering and/or transmission studies or other reports 7 A copy of any WECC or other regional, interregional or interconnection–wide planning entity
economic and reliability determinations relative to the project 8 Status of any siting process 9 Proposed cost allocation (The sponsor should state how they would see the cost being
allocated and after the modeling show a comparison of the two (ours/theirs)). 10 Proposed Beneficiaries: (tells Cost Allocation committee what the sponsor thinks the cost
recovery looks like).
Additional Cost Allocation Data - Submit During Quarter 1Project Submitted for Possible Selection in Regional Transmission Plan for Cost Allocation
Planning Practice Pg 9
ContinuedContinued
25PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 9
11 Proposed cost recovery, if any other than NTTG regional cost allocation.12 A risk and benefit analysis focusing on the distribution of costs, benefits and risks among the
parties proposed to share in the cost allocation of the project.13 Proposal on dealing with cost overruns 14 Discuss degree of consensus among stakeholders on all of the above 15 How each NTTG cost allocation and Order 1000 principles are applied in the analysis 16 A description of any regulatory rulings needed prior to examination of the project 17 Any NTTG Planning Committee analysis pertinent to the project and a description of how it fits
into the NTTG Annual or Biennial Plan 18 Description of any proprietary or commercially sensitive information applicants believe should
remain confidential during the review process19 Other relevant or pertinent data and information.
Timeline for SubmissionTimeline for Submissionof Qualification Dataof Qualification Data
26PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Oct Nov Dec Jan Feb Mar
Submit Qualification Data
Review Data and Issue Deficiency Notice if Necessary
Time to Remedy
Submit Additional Cost Allocaiton Data
Submit Project Information
Qu
alification
Biennial Cycle
Quarter 1
Projects Consideration for Regional Cost Allocation Timeline
Planning Practice Pg 10
Selecting the Public Policy Needs for Selecting the Public Policy Needs for the Regional Transmission Planthe Regional Transmission Plan
27PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Planning Practice Pg 11
Transmission Provider
Q1 Public Policy Data Submitted
With Stakeholder and State Regulator InputPC Public Policy Recommendation
Q2 (June)Steering Committee Approve Study Plan
Q2 Develop Study Plan Including Public Policy Needs Defined
Stakeholder
For Inclusion in Scenario Analysis
Plans
For Inclusion inRegional Transmission
Plan
Public policy needs will be evaluated with other regional projects rather than considering public policy needs separately from other transmission needs.
Information from NTTG’s Regional Information from NTTG’s Regional Planning Practice documentPlanning Practice document
28PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Index1. Objective of NTTG’s Regional Transmission Planning
Process
2. Biennial Planning Cycle
3. Information Gathering from Transmission Providers and Stakeholders
4. Regional Transmission Plan Evaluation Process
5. Study Plan
Biennial Plan Evaluation Biennial Plan Evaluation ProcessProcess
29PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
NTTG TP NTTG TPTopology and L&R Topology and L&R
w/Pubic Policy w/Pubic Policy
initial regional transmission plan
Qtr 3-4 Initial Regional Trans Plan AnalysisHigher Level Analysis of Initial Plan
and Scenario Analysis UsingProduction Cost and Power Flow Models
draft regional transmission plan
. . .
Qtr 3 Initial Regional Transmission PlanDefined as the Roll Up of TP Plans for Year 10
Qtr 7 Stakeholder CommentRevise report if appropriate
draft Final Regional Transmission Plan report
Qtr 8 Steering Committee ApprovalFinal Regional Transmission Plan report
Qtr 5 Draft Regional Transmission PlanCollect input to & comment on draft regional transmission
plan
Qtr 5-6 "Final" Regional Plan DevelopmentDetailed analysis of draft regional trans plan with
stakeholder input and Q5 data updates draft Regional Transmission Plan report
Year 1 Year 2
Planning Practice Pg 13
Information from NTTG’s Regional Information from NTTG’s Regional Planning Practice documentPlanning Practice document
30PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Index1. Objective of NTTG’s Regional Transmission Planning
Process
2. Biennial Planning Cycle
3. Information Gathering from Transmission Providers and Stakeholders
4. Regional Transmission Plan Evaluation Process
5. Study Plan
The Study PlanThe Study Plan
31PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
• Developed during the second quarter• Will be developed in consultation with stakeholders• Will delineate the method of study of evaluation
o of transmission and non-transmission alternatives that have been received
• Will be followed as closely as possibleo any change will coordinate stakeholders o scheduled Transmission Planning committee
meetings
Planning Practice Pg 13
The Study PlanThe Study Plan
32PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
The minimum information to be in the study plan will include the following:
Planning Practice Pg 14
Goal of the StudyGoal of the Study
33PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
• Determined to be an efficiently and cost effective
• May be different than the local transmission plans.
Planning Study Will…Planning Study Will…
• Examine a limited number of scenarios
• Identify regional transmission and non transmission improvements and/or new solutions
• Include additional scenarios other public policy needs
Planning Practice Pg 14
Deliverables from the PlanDeliverables from the Plan
34PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
• develop a Regional Transmission Plan
• plan meets the regional transmission needs
• more efficiently and
• cost effectively than the initial regional transmission plan
• deliverables may be further defined• during the development of the study plan• with consultation from stakeholder
Planning Practice Pg 14
At a minimum a At a minimum a more efficient more efficient Regional Transmission Plan …Regional Transmission Plan …
35PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
• when compared to the initial transmission plan• meets the needs roughly commensurate• equal to or better reliability performance• congestion will not be greater
• can be developed in the proper timeframe• does not accelerate any future problems unless
• total cost with mitigation no greater than initial transmission plan
• there is sufficient time to mitigate the problem
Planning Practice Pg 14
At a minimum a At a minimum a more cost effective more cost effective Regional Transmission Plan …Regional Transmission Plan …
36PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
• when compared to the initial transmission plan
• total incremental capital cost is less than or equal to
• total production cost of the is less than or equal to
• or, the sum less than or equal to
Planning Practice Pg 15
The study plan may modify the efficient and cost effective selection criteria after consultation with stakeholders.
Reevaluation of Project Selected in Reevaluation of Project Selected in Regional Plan for Cost AllocationRegional Plan for Cost Allocation
37PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
A transmission provider solution maybe displaced during NTTG’s regional biennial planning
and a delay in development of a project selected in the regional plan for cost allocation occurs
Transmission Provider may choose to …•have effects evaluated in the biennial process•revise their local plan back to original solution that was displaced
Planning Practice Pg 15
MethodologyMethodology
38PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
The Plan will …
• biennially prepare a long-term (up to 10 year)
• describe the study techniques
• identify the system conditions
• use a recently TEPPC study base case
• discussion the contingencies to be run
• meet applicable NERC and WECC system reliability standards and criteria
Planning Practice Pg 16-17
PROCESS AID FOR DISUCSSION PURPOSES ONLY AND SUBJECT TO CHANGE 39
Cost Allocation Workgroup Cost Allocation Workgroup Status UpdateStatus Update
Order 1000 Stakeholder UpdateMarch 28, 2012
Radisson HotelPortland, Oregon
40PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
NTTG Benefits Brainstorm Sessions:NTTG Benefits Brainstorm Sessions:Part I (Portland 2/17)Part I (Portland 2/17)
41PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
RTOs• MISO
• CAISO
• SPP
• NYISO
NTTG Members• MISO LODF
• PJM DFAX
• Bottom Up “Economic Projects”
Benefits and Cost AllocationBenefits and Cost AllocationBrainstorm Part II (Boise 2/29)Brainstorm Part II (Boise 2/29)
42PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
Outcome from Boise 2/29 discussion of top down vs. Bottom Approach to Cost Allocation
• Book reports looking at how RTOs arrived at methodologies for determination of benefits and cost allocation
• SPP (Highway/Byway
• MISO
• PJM (DFAX)
• Revised work plan developed
• NYISO
• Bottoms Up Approach
Cost Allocation Methodology Cost Allocation Methodology Assessment PlanAssessment Plan
43PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
• NTTG must adopt a cost allocation methodology to meet the compliance requirements of Order No. 1000
• Work plan:– Analyze and prepare “book reports” on methodologies
previously approved by FERC– Determine which metrics used to support these
methodologies may be appropriate for NTTG’s use– Where possible, run modeling scenarios using the
identified metrics to simulate cost allocation results for NTTG
– Based on these analyses and stakeholder input, recommend a cost allocation methodology for approval by the NTTG Steering Committee
Current StatusCurrent Status
44PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE
• Book Report Results Update
• Direction Forward