Application of the Unauthorized Increase Charge September 24, 2019 - PowerPoint PPT Presentation

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Application of the Unauthorized Increase Charge September 24, 2019

B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N • Why the business practice (BP) edit? – A Customer objected to a UIC that was caused by an e-tag that was deficient in LTF-Yearly PTP. Before a UIC is assessed, BPA considers unused transmission in the customer’s inventory and applies that, if eligible, to minimize or avoid UIC. In this case, BPA did not find unused LTF-Yearly PTP transmission that was eligible and assessed the UIC. The Customer requested to have their UIC waived as they were not aware that BPA’s eligibility required the “same transmission service type”, and the Customer claimed that they took action to avoid oversubscription of LTF-Yearly PTP by purchasing NF-Hourly Secondary transmission capacity. (Example B in the BP) – The BP edit makes clear that the calculation is based on service type. – Transmission service type is identified in the TSR (AREF) purchased. 2

B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N • What is today’s purpose? – BPA learned through customer comments that there is confusion about how an Unauthorized Increase Charge is determined in BPA’s systems. – The addition of “transmission service type” to the Business Practice language does not change how a UIC is calculated, but is simply clarifying the calculation. 3

B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N • Functions general to both Blanket and AREF scheduling – Customers can use the CDE Portfolio manager to validate and verify remaining capacity on individual reservations. – Reservation Redirects and Resales of transmission capacity that have already been tagged against is the typical situation where UIC occurs. Since no internal BPAT processes are changing, we expect UIC’s to remain a rare occurrence. – If an individual AREF is over utilized and there is not another AREF of the same Transmission Service Type with available capacity to cover the overage, a UIC will be charged. 4

B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N • Scheduling using Blanket functionality: – Requires that contract # is used on the e-Tag. – Scheduled capacity will be allocated to individual AREFs in order of oldest reservation to newest reservation based on NERC priority, once capacity is fully utilized on one reservation, the system will use the next available reservation. – If no corresponding reservation with available capacity matches the Blanket contract number and NERC priority, the tag will be denied for insufficient transmission capacity. 5

B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N • Scheduling using individual AREFs – All AREFS that are used to support a schedule are identified explicitly on the tag. – Allows multiple reservations of various service types to be stacked in the tag. – If there is not sufficient capacity on any of the AREFs identified on the tag, the tag will be denied for insufficient transmission capacity. 6

B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N • Next Steps – Customers should not change their scheduling practices as a result of this BP edit. The edit simply adds more detail to how the system for determining a UIC functions already. – BPA will post its response to customer comments by 10/2/19. 7