Transcript Western States Energy Solutions - New Mexico

Western States Energy Solutions
Introduction
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Purpose of Presentation
History / Background
The Deal
RETA Opportunities
Portrait of Transmission
• History
– Transmission in West
• Joint Funding
• Generation to Load
• Interconnection and Loop reliability
• Post FERC 889
– Reliability Transmission
– Market Hubs and Load Center Generation Targets
• Palo Verde, Mead, Albuquerque, El Paso, CALIFORNIA
FERC 889 and FERC 888 “OATT”
• Separation of interconnection and
Transmission Service (LGIP and OASIS)
• Pro Forma
• Read the RULES
The Queue
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First In First Out
Each project treated for reality
Each Project build is for that project only
TPs not required to Cluster and cannot control
their Queue
OATT and Other Ways
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Interconnection versus Transmission Service
OATT versus LGIP
“Open Season” concept versus OATT
OATT for a line not a TOs
THE OATT
• FERC requires confidentiality by the
Transmission Providers if requested
• FERC Allows Clustering of Interconnection
Requests if Requested
• Transmission Owners (TO) are not disposed to
cluster their Queues because FERC has not
enabled this and it will cost the TO FERC
Attorney time to work this out.
• BPA and “Open Season”
The PUC / ACC and Cost Recovery
• PUC and ACC do not want transmission cost not for
local load in the rate base.
• Economic Lines to export from the state are a concern
for the Public Utility (The Grid)
• Lines now in the system are for bringing generation to
loads and approved for rate base
• Joint Ownership of large long distance lines is to spread
cost (Thus Open Season)
• PNM, EPE, and TSGT are businesses and can make
money external to Load Serving Entity retail rate basing
• PNM, EPE, and TSGT have transmission cost centers
and charge wheeling under OATT
What is the Problem
• Individual renewable projects to small to build
long T Lines and pay wheeling
• Are you real for justification of investment and
assured return
• What can the Users Afford
• Can TPs Help with transmission (Queue Rules)
Elements of “The Deal”
• Users
– Pay Wheeling for use of the transmission to pay
off the capital investment
• Capital
– Loan the Funding for the Transmission
• Builder, Owner, Operator, Maintainer
– Process “The Deal”
• RETA
– Facilitate “The Deal” triangle
The Transmission Triangle
Build/Own
Capital
Users
Users
• Number of generators in a general location
“Cluster”
• Load Target
• Size of Cluster and need for transmission
• Interconnection Queue consolidation
• Joining of the “Open Season”
Capital
• Evidence of repayment
• Statement of ROE
• FERC Permitted process
Builder, Owner, Operator, TO
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FERC TO
ROE / Effort
“Open Season” ??
OATT??
ACC/PUC Concerns
Bringing the Users of New Mexico
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Accumulation of the Users
Collector Transmission
Express
Joining of the Plans
Wind Locations
SWAT NM Subgroup PNM Study
SWAT NM Subgroup PNM Presentation
RETA Proposal
• RETA created Clusters
• RETA Establish a means to answer “Are You
Real?”
• RETA OATT Request of TOs
• RETA broker the deal with TO, Capital, Users.
Why RETA
• State Entity, “If you can’t trust the state, who
can you trust”?
• Can hold confidentiality if necessary
• Can Cluster and request transmission
• Can assure transmission external to and
cognizant of PUC / ACC concerns
• Can coordinate “The Deal(s)”
What is the Problem / Did we solve
the Problem?
• “To Small to build”. Clustering provides a
means to Critical Mass. RETA can Cluster.
• Are you real? RETA could get long term
subscription to transmission or up front
payment to assure reality.
• What wheeling rate can you pay? Planners can
tell us the cost and then we find the wheeling
rate to repay the loans.
What is the Problem / Did we solve
the Problem? (Contd.)
• Planners can determine the cost and thus the
wheel rate
– Network Transmission
– Point to Point
– Loop flow concerns
• Clustering can remove the Queue stack.
• Did we unearth the many more problems?
Questions
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Input from my partners in Planning??
Input from PUC??
Input from generators??
Input from TOs??