FERC Order 1000 Transmission Planning and Cost Allocation FRCC - - PowerPoint PPT Presentation
FERC Order 1000 Transmission Planning and Cost Allocation FRCC Region Stakeholder Meeting March 29, 2012 Agenda Order 1000 Compliance Process Order 1000 Compliance Filings Timeline Order 1000 Draft Concepts Planning Process for
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(OATTs) – Attachment K – Transmission Planning & Cost Allocation
who have conforming OATTs
stakeholders of determining the changes needed to revise their OATTs to satisfy regional planning and cost allocation requirements in Order 1000
Transmission Planning process
for the FERC Order 890 compliance filings with review and approvals by the FRCC Planning Committee and FRCC Board of Directors
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Regional Transmission Solution (CEERTS) to be considered for regional cost allocation
– Encompass more than one TSP territory unless it has sufficient cost benefits from a regional perspective – Be at a voltage level of 230 kV or above – Cost at least $50 Million – Cover at least 15 miles and more than one county in Florida – Materially different than projects currently in the regional plan
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– Description of transmission project, general path, interconnect points to transmission system, etc. – A load flow analysis of CEERTS with the FRCC cases demonstrating performance – Identification of transmission projects >100 kV that the CEERTS is intended to replace or affect and any other additional projects that may be required due to the proposed CEERTS project. – A cost estimate and in-service date – Identification of CEERTS transmission project benefits and how they were
costs. – Identification of developer, ownership, operating/maintaining entity, if known.
Planning Committee (PC) with its rationale for why the proposed project is a more cost effective and efficient regional solution than the current regional plan projects.
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– Reliability performance – Eliminate/reduce constraints – Losses impact – Cost estimate of CEERTS project vs. costs of projects in regional plan that the CEERTS project is designed to replace
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facilitate a meeting with the sponsors and interested parties to fully discuss the technical analysis, project costs, and project
vetted by all affected parties. A CEERTS transmission developer must be identified at this point in time in order for the project to continue to be considered.
– Benefit/cost determination will be based on:
cost ratio and no affected individual transmission owner incurring increased unmitigated costs (negative benefit) as a result of the CEERTS project.
transmission projects within the FRCC transmission plan that are being replaced as a result of the CEERTS project – FRCC Board will be advised of outcome of vetting process
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– A non-incumbent transmission developer must meet certain qualification criteria to be eligible for CEERTS projects
transmission developer to demonstrate that it has the necessary financial capability and technical expertise to develop, construct, own, operate and maintain transmission facilities.
transmission developer to demonstrate its ability to satisfy all applicable regulatory requirements necessary to acquire rights of way and to construct, operate, and maintain the CEERTS facilities in the applicable jurisdiction.
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– Identify who will be responsible for compliance – Identify the entity that will own, operate and maintain the facilities – Contractual arrangements would address:
control of facilities arrangements
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which is also included in the current OATT Attachment K Sections 9.1 – 9.3 as a special cost allocation unique to the FRCC region and not incorporated within the Order 1000 cost allocation methodology.
project cost allocation) with this new Order 1000 compliant Regional Cost Allocation methodology.
following categories of regional projects: – Reliability – Economic – Public Policy – Multiple Categories
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project in proportion to the benefits received – CEERTS benefits will be based on displacing transmission costs that are currently identified in the FRCC Transmission Plan – Project beneficiaries are the transmission providers within the FRCC region (in their role as transmission provider) who are benefiting from the lower cost transmission solution – CEERTS cost would be allocated in proportion to the transmission providers displaced transmission costs
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Regional Reliability Project
Example Assumptions:
– Company B transmission system upgrade cost = $70 M – Company A transmission system upgrade cost = $10 M
Regional Cost Allocation:
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Company A Company B
Regional Public Policy Project
have equal project benefits Example Assumptions:
Regional Cost Allocation:
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Company A Company B
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