GWTIG Integration Proposal Near Term Functions

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GW/TIG Integration ProposalNear Term Functions

• Technical Work Group (TWG)
• October 14, 2005

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Outline

• TWG Charter Team
• Major Assumptions
• TWG Selection Principles
• Recommended Near Term Functions
• Work outline and cost estimate

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TWG Charter Schedule

• GW/TIG Integration Technical Work Group (TWG)
  charter is to develop a report that recommends
  the functions to be provided in the near term
  (the first two years 2006/2007) under the
  integration proposal including a rough outline of
  the work to be done and an estimate of the cost
• A first draft of the near term functions must be
  completed and presented to the Integration
  Steering Committee by October 20, 2005
• The final report must be presented October 31,
  2005

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GW/TIG Integration TWG Team and Participation
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Major Assumptions

• Work outline and cost figures are preliminary in
  nature
• Cost estimates do not include
• Overhead costs (administration and oversight)
• We assume that they are covered as part of cost
  of the GW development effort
• It does include staff overhead
• Cost of TO participation
• We did not address expense allocation among
  funding members
• Open issue on funding near term services
• TA service fees, or
• Inclusion in funding agreement
• The earliest that the Integration Board will be
  in place will be Q1, 2006
• No expenditures until Board is seated and the
  Bylaws are adopted
• Decision Point 4 will take place at least 2 years
  after the Board is seated and the bylaws are
  adopted,
• Once the Near term implementation transmission
  agreement (TA1) is implemented, there will be at
  least 12 months where these services are
  operational

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Major Assumptions Cont.

• We developed our own cost estimates ground up and
  verified their overall consistency with GW/TIG
  cost estimates whenever possible
• The Integration Board will oversee
  design/development of TSLG basic features and the
  implementation of near term functions
  Integration Board will also play the role of the
  following bodies for the near term (2006-2007)
• Transmission Expansion Review Council (TERC)
• Market Monitoring Committee (MMC)

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Major Assumptions Cont.

• In the near term, for functions TIG addressed
  that are being directly funded and developed by
  another regional entity such as WECC, PNSC, or
  NWPP, the Integration Board will
• Actively monitor and support their development to
  ensure their successful and timely completion and
  operation
• Participate in the development of requirements,
  standards, business practices and desired
  outcomes 
• Participate in the design, development and
  implementation of all the necessary
  infrastructure
• If the development of such functions is delayed
  or abandoned, step in, subject to feasibility and
  continued value, to complete appropriate elements
  as part of this near term effort
• Review such functions at the time for value and
  feasibility
• Designate the necessary resources for their
  timely completion and deployment
• Cost of such potential undertakings is not
  included here

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TWG Selection Principles for Near Term Functions

• Function is recommended by the TIG report and
  provides immediate value for the region
• Function can be reasonably implemented and be
  operational in the near term - next two (2) years
• Function is not inconsistent or incompatible with
  the solution proposed in the TSLG Basic Features
• We have also assumed that design/development of
  the TSLG Basic Features will move forward in
  parallel and close coordination with the
  development of the near term functions proposed
  here

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Near Term Transmission Planning Functions

• Integration Board to hire staff for a planning
  organization whose near term responsibilities
  will be to
• Develop open planning processes and procedures
• Develop transmission adequacy standards in
  coordination with region
• Use existing standards for the first biennial
  plan
• Participate in WECCs transmission adequacy
  development process
• Coordinate planning with all regional entities,
  run studies and produce Biennial Plans
• Collect system info and build basecases
• Perform some system studies and coordinate with
  other entities for others
• Document "Problem Need Statements"
• Use WECC/NERC minimum criteria supplemented with
  TOs criteria as needed
• Coordinate congestion analysis responsibility
  with NTAC
• Propose projects to relieve major congestion
  problems as identified by the Integration Board
  in coordination with the region

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Near Term Transmission Planning Functions Cont.

• Planning organizations near term
  responsibilities (cont.)
• Submit Biennial Plans to Integration Board
• Integration Board will play the role of TERC
• Modify the plan per Integration Board
  instructions
• Facilitate the development of cost and capacity
  allocation methodology and backstop model for
  reliability and firm obligation projects
• Apply to the first biennial plan
• Planning organization will rely heavily on TOs
  and other regional entities to conduct many of
  the necessary planning studies
• The scope of this reliance to be determined as
  part of the open planning process design

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Work Outline Cost Estimate for the Near Term
Transmission Planning Functions
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Near Term IMM Functions

• Integration Board to contract with a qualified
  independent contractor as the Independent Market
  Monitor (IMM)
• Integration Board would also play the role of MMC
  for the near term
• IMMs near term responsibilities will be to
• Produce state of market (SOM) reports annually
• Report to Integration Board
• Establish direct relationships with states,
  federal, and provincial regulatory/enforcement
  and oversight entities and submit un-redacted
  reports, governed by non-disclosure agreements,
  to such entities
• Establish data exchange protocols and solution
  with market participants

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Near Term IMM Functions Cont.

• IMMs near term responsibilities (continued)
• Monitor and analyze regional transmission and
  wholesale power markets
• For the initial SOM, the IMM would prepare a
  general retrospective report based to the
  greatest extent possible on publicly available
  information
• Report to the Integration Board as well as other
  appropriate oversight/regulatory bodies about
  market irregularities without intervening itself
  to remedy behavior or market structure
• Monitor activities in adjacent wholesale power
  and transmission markets as well as related
  commodities (e.g., gas market) for their impact
  on the wholesale power and transmission markets
  in the region
• Recommend and assist in market investigations in
  response to complaints as well as on own
  initiative

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Work Outline Cost Estimate for Near Term IMM
Functions
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Near Term Common OASIS Functions

• Integration Board to hire a Common OASIS
  Coordinator
• Common OASIS Coordinators near term
  responsibilities will be to
• Develop and implement an OASIS Agreement for
  signature by TOs
• Select and put into place contract between an
  OASIS vendor and TOs to implement a Common
  Northwest OASIS on an outsource basis
• The TOs will sign appropriate agreements and pay
  associated costs
• Consider WesTTrans as an available option
• Coordinate Common OASIS operation including all
  path offerings from multiple owners.
• Develop common business practices among TOs

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Work Outline Cost Estimate for Near Term
Common OASIS Functions
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Near Term Reliability and Security Functions

• Integration Board to assign resources to monitor
  and support Reliability and Security initiatives
  by regional entities
• Development of PNSCs tools for flow and voltage
  and transient stability analyses for real-time
  and hour-ahead use
• Development of PNSCs day ahead operational
  analysis
• Development of PNSCs infrastructure to comply
  with updated security coordination requirements
• Development of NWPPs ACE Diversity Interchange
  through reserve sharing system
• Development of WECCs regional database for
  reliability data that can be shared among
  participants
• Development of TSLGs Consolidated Control Area
  (CCA)
• Cost of CCA development is addressed separately

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Near Term Reliability and Security Functions
Cont.

• Step in to complete above functions, subject to
  feasibility and continued value, if their
  development is delayed or abandoned
• Cost of such undertakings is not included here
• If at Decision Point 4, the region decides not to
  implement Grid West, the Integration Board will
  pursue development of additional necessary
  reliability measures including the voluntary
  consolidation of control areas

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Work Outline Cost Estimate for Near Term
Reliability Security Functions
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Near Term Flow Based ATC Calculation Function

• Support development and implementation of TSLGs
  Flow Based ATC calculator
• The cost of development and implementation of
  Flow Based ATC calculator is addressed separately
• Use the developed Flow Based ATC calculator in
  parallel with actual operation for testing and
  evaluation purposes as judged effective

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Work Outline Cost Estimate for Near Term Flow
Based ATC Calculation Function
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Near Term Admin and Legal

• Secretarial and administration support needed for
  the Near Term Implementation staff.
• Hire contract legal assistance to assist with
  writing the Near Term Implementation Transmission
  Agreement (TA1) and providing Near Term
  Implementation Staff legal advice on operational
  and development issues.

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Work Outline Cost Estimate for Near Term Admin
and Legal
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Cost Estimate for All Near Term Functions
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TWG Next Steps

• Factor in input from today into TWG proposal
• Modify selected near term functions as well as
  work outlines and cost estimates as necessary
• Prepare a report based on the final list of near
  term functions as well as their work outlines and
  cost estimates
• Present the report to the Regional Forum on
  10/28/2005

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Comparison to TIG cost estimate

• The TIG estimated cost was 50.5 million per
  year, of this
• 22.4 million was associated with the RABA
  function, which will not be implemented in the
  near term
• 28.1 million was associated with non-RABA
  functions
• Of the 28.1 million of non-RABA cost
• Significant cost was associated with moving to
  flow based ATC calculation. This is not expected
  to be implemented in the near term,
• Given the uncertainty of the development of
  Reliability and Security initiatives, it was
  assumed that TIG would fund and develop these.
• The region will still carry these costs, but
  under the WECC, NWPP, and PNSC
• There are also some non-RABA reliability
  functions not being implemented in the near term