Western Market Vision

1
Western Market Vision

• One Seamless West-Wide Market
• Common Commercial Practices
• No Trade Barriers
• Minimum Transaction Costs
• Three RTOs Keep the Lights On
• Retain Regional Accountability for Capital
  Expenditures, Reliability and Planning
• Retain Regional Operating Knowledge
• Share Systems
• Capture Symbiotic Benefits (e.g., act as back-up
  control center for each other)

2
Western Market Vision

• One Stop Shopping
• OASIS
• Ancillary Services
• Scheduling
• Market Monitoring
• Congestion Management
• Inter-Regional Planning
• Seams Disputes Resolved

• Shared
• Systems
• Back-Up Control Centers
• Employee Training
• Human Resources
• Purchasing
• Accounting
• Enterprise Software
• IT Systems

• Common
• Standards and
• Practices
• Transmission Products
• Interconnection Standards
• Reliability Standards
• Continuity of Service
• Liability
• ADR
• Tariff Design
• Pricing
• Software
• Hardware

• Regional
• Accountability
• Election of Boards of Directors
• Provision of Transmission
• Control Area Operation
• Security Coordinator
• Maintenance
• Outage Coordination
• Capital Expenditures
• Regional Planning

3
The Western Market
RTO West
CA ISO
DSTAR
Western Seams Agreement (SSG-WI)
Shared Systems
One Stop Shopping
Common Standards and Practices
Single Seamless West Wide Market
4
Why One Market Instead of Three?

• Efficient Markets Reduce Prices
• One Stop Shopping (Common OASIS)
• Standard Products
• Standard Commercial Practices
• More Throughput Equals Increased Efficiency
• Meet FERCs Single Market Expectations
• Meet the Needs of Commerce Across the West

5
Why Three RTOs Instead of One?

• The geographic size of the Western
  Interconnection favors three RTOs for reliable,
  manageable operations and security coordination
• Regional Accountability IS Critical
• Capital expenditures, reliability and planning
  are regional concerns
• Must deal with a host of issues specific to each
  region
• Three RTOs are Achievable in a Reasonable Time
• Strong political opposition to a single west-wide
  RTO
• Integrating the western market in steps is the
  fastest way for consumers to realize the
  benefits of deregulation
• Segregates California issues

6
Implementation Time Line
2001
2002
2003
RTOs/SSG-WI Define Common Products (One
Stop Shopping)
RTOs File Common Tariff Provisions With FERC
RTOs/SSG-WI Define Common Standards and Practices
RTO West Submits Vision to FERC in Dec 01
RTOs/SSG-WI Develop Common Tariff Provisions
RTO West Proposes Vision
DSTAR/CAISO RTO West Finalize Common Vision
RTOs Implement Compatible Software/ Hardware Syst
ems
RTOs/SSG-WI Identify Potential Synergies
RTOs/SSG-WI Set Specs for Compatible Software/ Ha
rdware
RTOs/SSG-WI Define Time for Implementation
7
What are the Roles of Existing Organizations?

• As western RTOs evolve, revisit the roles and
  responsibilities of existing organizations as
  they relate to those RTOs
• WSCC/WECC
• NRTA/WRTA/SWRTA
• WMIC
• NWPP

8
Next Steps

• DSTAR, CA ISO and RTO West finalize Western
  Market Vision
• Obtain support from Congressional Delegation,
  PUCs, Publics, and other Stakeholders
• Document the shared vision in an agreement among
  the three RTOs
• RTO West includes documentation with December
  FERC filing