Revision of Large Generator Interconnection Procedures

1
Revision ofLarge Generator Interconnection
Procedures

• Tri-State Generation and Transmission
  Association, Inc.
• November 20, 2008

2
Challenges
Goal

• A process that allows competitive generators to
  deliver their energy to load on a reliable
  transmission system.

• Volume of Interconnection Requests far exceeds
  the capability of the system.
• Requests exceed total 07/2008 forecasted
  generation in WECC Rocky Mountain Power Area (CO
  and most of WY).
• This volume of requests makes it difficult to
  provide timely studies, and
• This creates uncertainty for generators.

3
Direction

• Implement a process that facilitates study of
  projects that are likely to get built.
• Revised Facilities Study Milestones.
• Adopt a 2-step implementation plan.
• Step 1 Effective January 1, 2009.
• Revised LGIP to move requests through the queue.
• Transition Plan.
• Step 2 Longer term process improvement to
  develop system upgrades that more accurately
  reflect regional needs.

4
Agenda

• Background
• Step 1
• Revised LGIPNew Customers
• Transition PlanExisting Customers
• Questions
• Step 2Long-term Reform Concept
• Questions
• Next steps

5
Background

• Tri-State is a not-for-profit cooperative owned
  by 44 Member cooperatives in Nebraska, Colorado,
  Wyoming, New Mexico.
• Tri-State voluntarily complies with FERCs
  requirements for transmission reciprocity.
• Tri-States current posted interconnection
  procedures are consistent with Order 2003.
• Tri-State peak load in 2007 was approximately
  2,500 MW.
• As of November 6th, Interconnection Queue 14,875
  MW.

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Queue Reform Initiatives

• FERC has acknowledged problems with its Order
  2003 procedures.
• FERC has approved major reforms by PJM,
  California ISO, Midwest ISO, and BPA.
• Tri-State is adopting similar concepts, and is
  developing a plan that addresses its unique
  situation.

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Step 1LGIP RevisionsEffective January 2009

• New Requirements
• Deposits
• Site Control
• Milestones for Facilities Study
• Revised Study Methodology
• Preliminary Assessment/Screening Study performed
  by Customer
• New System Impact Study Philosophy
• Limited Deferral of LGIA Construction Schedule
• Transition Plan

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Deposits

• Application deposit will be increased to 250,000
• 25,000 non-refundable
• Deposit will be used for Interconnection Studies
  and management of the request.
• Eliminate deposit in lieu of site control and
  deposits for System Impact and Facilities Studies.

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Site Control

• Site Control is required at the time of
  application.
• No deposit in lieu of site control
• More specific definition of site control
  includes
• Plat map
• Sufficient land to support project
• Execution of necessary land rights documents
• Reasonable term of leaseat least through the
  commercial operation date

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Queue Priority

• Tri-State will retain the concept of first
  come-first served for new Interconnection
  Requests through the System Impact Study stage.
• If a Customer shows that it can meet the
  milestones for a Facilities Study, a System
  Impact Study may be provided on a priority basis.

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Facilities Study Milestones

• Prior to moving to the Facilities Study stage,
  the Customer must provide the following
• Confirmation that the Customer retains site
  control.
• For Network Resource Interconnection Service
• Certification from a Tri-State Network Customer
  that the resource has been designated as a
  Network Resource or
• Power Purchase Agreement.
• For Energy Resource Interconnection Service, at
  Customers request, Tri-State will limit study
  scope to Interconnection Facilities.
• Customer has 60 days from receipt of Facilities
  Study Agreement to meet milestones.

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Streamlined Study Process

• Feasibility Studies no longer provided.
• Except for those in the queue with executed
  agreements.
• Customers may perform Preliminary Assessments
  (i.e. Feasibility Studies).
• Base case data provided under a confidentiality
  agreement.
• Optional Studies no longer provided.

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System Impact Study

• Tri-State will study each request at three
  generation levels
• The initial request.
• Alternative level specified by the Customer.
• up to 60 lower than the initial request.
• Maximum input with no system overloads.
• Upon review of study report, the Customer will
  select which level it wants to pursue in the
  Facilities Study and LGIA.

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Stand-Alone Study Methodology

• New approach Stand-Alone Studies
• Limited consideration of higher queued projects.
• Goal produce more realistic results
• If two or more requests might be better served
  with a single upgrade, Tri-State will consider
  combining studies.
• e.g. a single 230-kV line might be more logical
  than 2 115-kV lines to serve two requests

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Limited Deferral of Construction

• LGIASection 5.16
• Currently, Customer may defer construction of
  Transmission Provider Interconnection Facilities
  and Network Upgrades for up to 3 years for any
  reason.
• Tri-State will limit deferral of construction to
  Force Majuere events only.

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Transition

• Applies to Customers in the queue before 11/5/08.
• Effective Feb 1, Customers achieving Facility
  Study Milestones, will move forward for
  commencement of System Impact Study or Facilities
  Study.

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TransitionCustomers ready to execute Facilities
Study Agreement

• For a Customer who is at or beyond tender of
  Facilities Study Agreement the following applies
• Deferral of construction limited to Force Majeure
  events.
• Advance funding for facility construction in
  accordance with LGIA Article 11.5.
• Advance required 30 days prior to initiation of
  procurement.
• Cash advance only, no other forms of credit will
  be accepted.

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TransitionCustomers with executed System Impact
Study Agreement

• If an Interconnection Customer has executed a
  System Impact Study Agreement
• Verification of site control required before
  Tri-State will tender Facilities Study Agreement.
• Customer will be required to deposit the
  estimated Facilities Study cost along with the
  executed Facilities Study Agreement.

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TransitionCustomers who have not Executed System
Impact Study Agreement

• An Interconnection Customer without an executed
  System Impact Study Agreement must advance
  150,000 to cover the cost of Interconnection
  Studies.
• Must be submitted along with executed SIS
  agreement
• No Feasibility Study or Optional studies, unless
  already under contract
• Limited size (MW) options in SIS
• Stand-Alone Study Methodology.
• All Facilities Study Milestones must be met prior
  to commencement of Facilities Study.
• Milestones must be met six months after receipt
  of System Impact Study Report.

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• Questions

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OBJECTIVES

• Realistic build-out of the transmission system.
• Efficient study methods for generator projects.

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WAPA
PSCo
Wray
Denver
TSGT
Burlington
Lamar
Midway
Walsenburg
Gladstone
PNM
25
WAPA
PSCo
Wray
Denver
TSGT
Burlington
Lamar
Midway
Walsenburg
Gladstone
PNM
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LGIP Queue Reform Process 11-20-08 (Conceptual)
Customer
Review Published Load Resource Trans-mission
Study
Attend Information Session at Beginning of IR
Application Window
Discuss Feasibility Studies and Access to Base
Case Data
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LGIP Queue Reform Process 11-20-08 (Conceptual)
250,000 Study Deposit (Including 25,000
non-refundable)
Customer
Review Published Load Resource Trans-mission
Study
Attend Information Session at Beginning of IR
Application Window
Submit IR
IR Applications reviewed on semi-annual basis.
Two month windows to submit application
Discuss Feasibility Studies and Access to Base
Case Data
28
LGIP Queue Reform Process 11-20-08 (Conceptual)
250,000 Study Deposit (Including 25,000
non-refundable)
Customer
Review Published Load Resource Trans-mission
Study
Attend Information Session at Beginning of IR
Application Window
SIS Scoping Meeting
SIS
Submit IR
IC Facilities Only
IR Applications reviewed on semi-annual basis.
Two month windows to submit application
Discuss Feasibility Studies and Access to Base
Case Data
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LGIP Queue Reform Process 11-20-08 (Conceptual)
250,000 Study Deposit (Including 25,000
non-refundable)
LGIA
EXIT
Customer
Review Published Load Resource Trans-mission
Study
Attend Information Session at Beginning of IR
Application Window
SIS Review (with cost estimates)/ FS Scoping
Meeting
SIS Scoping Meeting
Customer Shows Designation as Network Resource0
SIS
Facilities Study
Submit IR
IC Facilities Only
Customer deposits IC Facilities money and submits
TSR or proceeds at own risk
IR Applications reviewed on semi-annual basis.
Two month windows to submit application
Network Upgrade Studies
Discuss Feasibility Studies and Access to Base
Case Data
30
LGIP Queue Reform Process 11-20-08 (Conceptual)
250,000 Study Deposit (Including 25,000
non-refundable)
Customer
LGIA
EXIT
Review Published Load Resource Trans-mission
Study
Attend Information Session at Beginning of IR
Application Window
SIS Review (with cost estimates)/ FS Scoping
Meeting
SIS Scoping Meeting
Customer Shows Designation as Network Resource0
SIS
Facilities Study
Submit IR
IC Facilities Only
Customer deposits IC Facilities money and submits
TSR or proceeds at own risk
IR Applications reviewed on semi-annual basis.
Two month windows to submit application
Network Upgrade Studies
Discuss Feasibility Studies and Access to Base
Case Data
31

• Questions

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Tri-States Next Steps

• Comments due on Step 1 by December 4, 2008.
• Post LGIP changes mid December.
• Revised LGIP effective January 12, 2009.
• Process current requests according to transition
  plan.
• Continue refining Long-term Reform Proposal.
• Present Long-term Reform Proposal to stakeholders
  in early 2009.
• Post and implement Long Term Reform Proposal.

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Contact Information

• LGIP Development
• Ron Steinbach
• Transmission Policy Administrator
• 303-254-3355 rsteinbach_at_tristategt.org
• Existing Requests
• Gerald Brooks
• Transmission Interconnection Study Administrator
• 303-254-3282 gbrooks_at_tristategt.org
• New requests
• Larry Stark
• OASIS/OATT Administration
• 303-254-3772 lstark_at_tristategt.org