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2018 Interconnection Process Enhancements (IPE) Web conference January 3, 2019 1:00 p.m. 3:00 p.m. (Pacific Time) CAISO Public CAISO Public Agenda Time Item Speaker 1:00 - 1:10 Stakeholder Process and Schedule Jody Cross

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  1. 2018 Interconnection Process Enhancements (IPE) Web conference January 3, 2019 1:00 p.m. – 3:00 p.m. (Pacific Time) CAISO Public CAISO Public

  2. Agenda Time Item Speaker 1:00 - 1:10 Stakeholder Process and Schedule Jody Cross Introductions 1:10 - 1:20 Linda Wright Background and Scope Interconnection Financial Security and 1:20 – 2:30 Cost Responsibility Topics Team Interconnection Request Acceptance and 2:30 – 2:50 Validation Criteria 2:50 - 3:00 Next Steps Jody Cross CAISO Public Page 2

  3. STAKEHOLDER PROCESS CAISO Public Page 3

  4. CAISO Policy Initiative Stakeholder Process POLICY AND PLAN DEVELOPMENT Issue Straw Draft Final Board Paper Proposal Proposal Stakeholder Input We are here CAISO Public Page 4

  5. Background/Scope CAISO Public Page 5

  6. 2018 IPE goal is to modify and clarify the generator interconnection process to reflect changes in the industry and in customer needs • IPE was completed in 2014 • 2015 IPE was completed in 2016 • 2017 IPE was completed March 2018 • 2018 IPE – Issue paper included 42 potential topics – Straw proposal included 25 topics • 8 topics were finalized in the straw proposal – Revised straw proposal included revisions to 17 topics – This addendum further explores Item 7.1 and includes two new topics CAISO Public Page 6

  7. Initiative topics and associated presenter Category Topic Presenter Interconnection Financial Security Maximum Cost Responsibility for NUs and Jason Foster potential NUs and Cost Responsibility Interconnection Interconnection Request Acceptance Request Matt Chambers Acceptance and Validation Criteria Validation Criteria CAISO Public Page 7

  8. INTERCONNECTION FINANCIAL SECURITY AND COST RESPONSIBILITY TOPICS CAISO Public

  9. Cost Responsibility for Network Upgrades (7.1) Proposed Definitions: • Assigned Network Upgrade (ANU) RNUs and LDNUs for which the Interconnection Customer has a direct cost responsibility. ANUs exclude CANUs if they become ANUs. • Conditionally Assigned Network Upgrade (CANU) RNUs and LDNUs whose cost responsibility is assigned to an earlier Interconnection Customer, but which may fall to the then current Interconnection Customer. • Interconnection Service Reliability Network Upgrade (ISRNU) RNUs at the POI to accomplish the physical interconnection of the generator to the CAISO Controlled Grid. CANUs can be identified as ISRNUs. • Precursor Network Upgrade (PNU) Network Upgrades required for an Interconnection Customer that consist of (1) Network Upgrades whose cost responsibility is assigned to an earlier Interconnection Customer that has executed its GIA; and (2) Network Upgrades in the approved CAISO Transmission Plan. CAISO Public Page 9

  10. Cost Responsibility for Network Upgrades (7.1) (cont’d) Proposed Definitions (cont’d) : • Current Cost Responsibility (CCR) The sum of the Interconnection Customer’s (1) current allocated costs for ANUs, and (2) allocated ISRNUs, not to exceed the MCR. This cost is used to calculate the Interconnection Customer’s IFS requirement. • Maximum Cost Responsibility (MCR) The lower sum of an Interconnection Customer’s (1) ANU costs, plus (2) 100% of ISRNUs costs, from its Phase I or Phase II Interconnection Studies, which may be adjusted if a subsequent reassessment converts CANUs to ANUs. • Maximum Cost Exposure (MCE) The sum of (1) the Interconnection Customer’s MCR and (2) the sum of the Interconnection Customer’s CANUs from its Phase I or Phase II Interconnection Studies. • Final MCE is established in Phase II CAISO Public Page 10

  11. Cost Responsibility for Network Upgrades (7.1) (cont’d) CAISO reconsidered a few items in the addendum #2 to draft final proposal: • Treatment of CANUs – Assigned an allocated cost in the Phase I & II study – ISRNU CANUs are allocated 100% – Maintain a fixed-cost concept for CANUs identified in the phase II study for the purpose of adjusting the MCR and MCE • Treatment and definition of ISRNUs – a percentage of each ISRNU is identified as ‘allocated ISRNU’ or ‘non-allocated ISRNU’ for purpose of calculating the CCR and MCR • Treatment of MCE – Phase II study establishes a final MCE (Phase I MCE is preliminary) – Propose to allow adjustments to MCE when MCR is adjusted • Remove GIA execution from the TPD retention requirement – Maintain GIA Execution as milestone for PTO to backstop upgrade costs CAISO Public Page 11

  12. Cost Responsibility for Network Upgrades (7.1) (cont’d) CAISO reconsidered a few items in the addendum #2 to draft final proposal: • Headroom Issues – Ensure no headroom issues with CANUs and ANUs by adjusting the MCR and MCE based on upgrade type/status • Funding CANUs or PNUs to achieve earlier COD – Projects must fund CANUs needed to achieve earlier COD – PNUs have executed GIAs and responsibility of earlier projects/PTO • Projects pay acceleration costs to achieve earlier COD • RNU Reimbursement cap impacts from CANU-to-ANU conversions – Total RNU costs will include upgrades that convert from CANUs to ANUs • Additional RNU reimbursement when later-queued projects utilized previously developed RNUs that exceed RNU reimbursement cap. – Not in scope of this 2018 IPE process CAISO Public Page 12

  13. Cost Responsibility for Network Upgrades (7.1) (cont’d) CAISO Public Page 13

  14. Cost Responsibility for Network Upgrades (7.1) (cont’d) Example 1) CCR The $4M over the MCE is due In Phase I, by sum of (1) ANUs, plus (2) allocated ISRNUs. to increase in ANU2 of $4M In Phase II, by sum of (1) lower sum of ANUs in the PhI and PhII studies, plus (2) sum allocated ISRNUs in PhII. MCR The ANU/ISRNU amount above In Phase I, by sum of (1) ANUs, plus (2) 100% cost of MCR becomes PTO assigned ISRNUs. responsibility In Phase II, by sum of (1) the lower sum of the ANUs in the PhI and PhII studies, plus (2) 100% cost of assigned ISRNUs in PhII. MCE In Phase I, preliminary MCE identified by sum of (1) the PhI MCR, plus (2) sum of allocated CANU costs. In Phase II, Final MCE is established by sum of (1) the PII MCR, plus (2) the sum of allocated cost of each CANU in PhII. ANU1 ANU2 ISNU1 NA-ISNU1 CANU1 CANU2 CCR MCR MCE Phase I 3 4 2 4 3 4 9 13 20 Phase II 3 8 3 3 6 4 10 13 23 Page 14 CAISO Public

  15. Cost Responsibility for Network Upgrades (7.1) (cont’d) Example 2a) CANU1 becomes ANU3 (@$6M). IC’s MCR has increased by the fixed-cost of the CANU ($6M) as identified in the Phase II study. The established MCE remains unchanged. ANU1 ANU2 ANU3 ISNU1 NA-ISNU1 CANU1 CANU2 CCR MCR MCE Page 15 Phase I 3 4 --- 2 4 3 4 9 13 20 Phase II 3 8 --- 3 3 6 4 10 13 23 CAISO Public Reassessment 3 8 6 3 3 --- 4 16 19 23

  16. Cost Responsibility for Network Upgrades (7.1) (cont’d) Example 2b) CANU1 is removed from project’s cost responsibility (@$6M). IC’s MCE has decreased by the fixed-cost of the CANU ($6M) as identified in the II study. The MCR remains unchanged. ANU1 ANU2 ISNU1 NA-ISNU1 CANU1 CANU2 CCR MCR MCE Phase I 3 4 2 4 3 4 9 13 20 Phase II 3 8 3 3 6 4 10 13 23 Page 16 CAISO Public Reassessment 3 8 3 3 0 4 10 13 17

  17. Cost Responsibility for Network Upgrades (7.1) (cont’d) ANU1 ANU2 ANU3 ANU4 ANU5 ISNU1 NA-ISNU1 CANU1 CANU2 CCR MCR MCE Phase I 3 4 --- --- --- 2 4 3 4 9 13 20 Phase II 3 8 --- --- --- 3 3 6 4 10 13 23 Page 17 CAISO Public Reassess 1 3 8 6 --- --- 3 3 --- 4 16 19 23 Reassess 2 0 8 0 --- --- 3 3 --- 4 11 14 18 Reassess 3 0 8 0 4 6 6 --- --- --- 23 23 23

  18. INTERCONNECTION REQUEST ACCEPTANCE AND VALIDATION CRITERIA TOPICS CAISO Public

  19. Interconnection Request Acceptance (11.1) CAISO proposed minimum requirements for an Interconnection Request (IR) application:  Study Deposit  Evidence of Site Exclusivity or Deposit In Lieu of Site Exclusivity  Completed Appendix 1 (Interconnection Request)  Completed Attachment A to Appendix 1 (Generator Technical Data - Excel)  Technical Validation Tab: Must contain no errors and all warnings must be explained  IR Validation and Comments Tab: Column A must be filled in with “Yes” or “N/A” on all items  Site Drawing  Single Line Diagram  Reactive Power Curve  Load Flow Model (*.epc)  Dynamic Model (*.dyd)  Plot showing flat run and bump test (fault at bus and clear after 4-6 cycles) from the PSLF  (screenshot okay)  Plot showing requested MW at POI from the PSLF  (screenshot okay) CAISO Public Page 19

  20. Interconnection Request Validation Criteria (11.2) •CAISO proposed adjusted Interconnection Request (IR) validation timeline IR Validation Period: 2019 Example Phase I Study IR Window Last Day for ISO Announcement to Inform IC of IR Validation IR Package Period Ends ISO has 5 BD Completeness to notify the IC of IR Package Completeness April 15 May 31 April 1 June 30 April 22 March 1 Scoping Meetings Cluster Close of Application Likely Held Cluster Window Opens in June Application Window CAISO Public Page 20

  21. NEXT STEPS CAISO Public

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