NW Delegation Staff Briefing Grid WestTIG

About This Presentation

Title:

Description:

Number of Views:44

Avg rating:3.0/5.0

Slides: 12

Provided by: rab59

Category:

more less

Transcript and Presenter's Notes

Title: NW Delegation Staff Briefing Grid WestTIG

1
NW Delegation Staff BriefingGrid West/TIG
2
Why Does the Region Need to Act?

There is broad regional agreement that we have
significant problems to address regarding the
regional transmission grid
Concerns fall into the following main areas
Adequate infrastructure
Reliability
Efficiencies
There is significant alignment within the Grid
West and TIG communities on these problems

3
Two Potential Solutions

BPA believes work should continue on both the
Grid West and TIG proposals
But considerably more work is needed on both
before we can determine if either is a viable
solution to regionally identified problems
The Grid West proposal needs more work to
effectively deal with the FERC jurisdictional
issues and assure cost effectiveness
The TIG proposal doesnt go far enough. It needs
to address serious governance issues embedded in
its recommendations such as the lack of
effective decision making and dispute resolution
processes.

4
Where is the Region?

We are in the early stages of Grid West formation
No decisions have been made to go operational
No decision to activate a Developmental Board
The upcoming Decision Point 1 (scheduled for
December 9th) is only to approve the proposed
Developmental and Operational Bylaws.
This doesnt commit BPA to anything more than to
keep developing the proposal
The RRG will also take steps to get ready to
elect the Developmental Board, if we decide to
move forward at Decision Point 2.

5
RRG Process Diagram
Revised 24Feb04
6
What is the Grid West Proposal?

It is
A bottoms up solution developed in the region
An independent entity its board has no
financial interest in any member or market
participant but this does not mean it is
unaccountable to the regions interests
A proposal that garnered significant support for
its Day 1 initial operations (received during
the BPA open public comment period on the bylaws)
Voluntary
It is not
A full blown RTO (or the Stage 2 filing)
FERC driven
A proposal to convert or modify existing
transmission service

7
How Has the Grid West Proposal Evolved?

Significant changes have been made to the bylaws
to address regional concerns
Changed the number of votes to elect and remove
board members from 24 to 20 (out of 31)
Added binding member vote on whether to move to
operational stage
Added members right to require board
supermajority vote on any scope issue
Removed the required 2-year periodic review of
adopting financial rights
Removed all references and exhibits relating to
Financial Rights
Adds requirement that budget increases of 15
over projections in 3-year budget forecasts
subject to special voting requirements
Added budget committee comprised of up to 3
trustees and 5 members
Clarified that third party agreements for
coordination of generating resources are
protected
Added other member advisory committees Planning,
Tariff, Operations
Incorporated 27 of the 34 bylaws issues BPA
recommended be addressed, following regional
review of earlier proposed bylaws

8
How Has the Grid West Proposal Evolved?

BPA had NAPA review the bylaws and they
concluded
The operational bylaws strike a reasonable
balance between regional accountability and
independence
A number of features should be added to improve
the workability
With respect to whether creating Grid West will
effectively increase FERC control over BPA, NAPA
noted that, in their opinion, BPAs joining Grid
West is not likely to change FERCs control over
BPA

9
Areas That Need Further Work in the Grid West
Proposal

Need to finish the technical development of Grid
Wests proposed operations
Need to determine the cost effectiveness of Grid
Wests proposed operations
The TA must properly address BPAs sub-delegation
issues and other issues related to its federal
status
Resolve Issues surrounding the consolidation of
control areas
Additional assurances are needed that FERC will
not push the region beyond where region wants to
go

10
The TIG Proposal

Focused on discrete, incremental steps (short of
forming an independent entity) toward a single
OASIS, expanded NTAC function, strengthening of
the PNSC, and a new market monitoring unit
The major difference between the TIG proposal and
the Grid West proposal is governance and the
decision-making structure. BPA does not believe
that the voluntary approach can work (e.g.,
NTAC).
It lacks an effective decision-making and dispute
resolution process
More regional stakeholders need to be involved in
its development
It does not provide the reliability benefits from
consolidating control areas.

11
Grid West/TIG Collaborative

BPA participated in the TIG process early on when
it was sponsored by PNUCC, which led to the
creation of the NTAC planning effort.
BPA initiated a Grid West/TIG collaborative and
encouraged additional discussions between the
parties.
The good news is there is strong agreement
between the problems and opportunities identified
in the TIG proposal and those identified in the
RRG process.
But we think the sponsors of the TIG proposal
need to move more expeditiously to modify their
proposal to work for the region and effectively
deal with the governance issues, amongst other
things.