WECC SIS Tariff Task Team

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					WECC SIS Tariff Task Team

     Discussion Materials
           1/12/10
       Conference Call
                  Agenda
• Initial tariff cost recovery assumptions
  – Discuss
• High level draft WECC EIS tariff materials
  – Brief
• Next steps: Review draft tariff materials
  and prepare comments and input for full
  SIS team discussion at meeting on 2/8-2/9
       Initial tariff cost recovery
               assumptions
• Tariff must do the following:
  – Recover WECC EIS administrative costs
  – Provide true-up to participating transmission
    providers for lost hourly non-firm revenues
     • Transmission Revenue Recovery Fee
  – Replace OATT Schedule 4 for participating
    transmission providers
Initial Tariff Cost Recovery Assumptions


        Rough Estimate of EIS Cost
   • SPP EIS market clears 10% of the demand in
     the region
   • The SPP EIS all-in cost recovery is $0.20/MWH
   • Estimate of WECC EIS cost is under
     development
   • Similar costs and volumes for US-WECC
     footprint excluding CAISO would yield very
     roughly estimated $0.50/MWH of EIS
     settlement volume (i.e. applied to both purchase
     MWH and sales MWH)
Initial Tariff Cost Recovery Assumptions


            Rough Estimate of TRRF
   • With the EIS replacing most transmission
     provider sales of hourly non-firm service, the
     tariff proposal would recoup the lost revenue
     through an EIS Transmission Revenue
     Recovery Fee that would be distributed to
     participating transmission providers
   • Estimate of fee in development, but the flat
     “hurdle rate” could be build into the SCED more
     simply than a path-based transmission cost
     recovery method
       High Level Tariff Draft
• Two documents provided
  – First (small) covers some proposed specific
    differences from the SPP EIS design
     • EIS Admin Fee
     • Transmission Revenue Recovery Fee
  – Second (huge) is based on initial draft
    revisions to the SPP EIS tariff in an attempt to
    conform it to the WECC circumstances
   Briefing on WECC EIS Tariff
• Using the initial SPP EIS Transmission Tariff as
  a starting point, we have drafted an “indicative”
  WECC EIS tariff.
• The WECC tariff differs in several regards
  – Not an RTO, no consolidated tariff
  – Cost recovery mechanisms
  – Multiple reserve sharing groups involved
• The WECC tariff is similar to other regional
  markets in that it replaces Schedule 4 of the
  OATTs of all Participating Transmission
  Providers
     Tariff Team Assignments
• Prior to the upcoming SIS meeting, review
  tariff materials and provide any
  comments/suggestions
• Any information as to the estimated hourly
  non-firm point to point cost would be
  appreciated, so far not having much luck
  in collecting the numbers
END

				
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