Holistic Integrated Tariff Team Report Joint SPC/MOPC briefing - - PowerPoint PPT Presentation

Holistic Integrated Tariff Team Report

Joint SPC/MOPC briefing July 2019

2

HITT Membership

SPP Board Jim Eckelberger (Director) Graham Edwards (Director) Regional State Committee Shari Feist Albrecht (Commissioner Kansas Corporation Commission) Dennis Grennan (Commissioner Nebraska Power Review Board) Investor Owned Utilities Richard Ross (AEP) Denise Buffington (KCPL) Greg McCauley (OG&E) Bill Grant (SPS) Cooperatives Mike Wise (Golden Spread) Mike Risan (Basin) Al Tamimi (Sunflower) Independent Power Producers Rob Janssen (Dogwood Energy) – Vice-Chair Holly Carias (NexEra) Municipals Dennis Florom (LES) State Agencies Tom Kent (Nebraska Public Power District) - Chair Independent Transmission Companies Brett Leopold (ITC Great Plains) CAWG Liaison Cindy Ireland (Arkansas PSC Staff)

HITT GOALS & DRIVERS

4

Enhancing Integrated Marketplace to reliably deliver low-cost energy to customers Aligning transmission planning and cost allocation with SPP’s market and consolidated Balancing Authority Ensuring reliability for a changing generation mix and new technologies

5

20000 400 0000 00 60000 2013 2014 2015 2016 2017 2018

Annual GI Requests Since 2013 (MW)

Oth ther Wind So Sola lar St Storage

50 50,0 ,000 00,00 ,000 100,0 0,000 00,0 ,000 00 150,0 0,000 00,0 ,000 00 20 200, 0,00 000,0 0,000 00 25 250, 0,00 000,0 0,000 00 30 300, 0,00 000,0 0,000 00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Energy Production (MWh)

Coa

• al

Ga Gas Wind nd Nuclear ar Hyd ydro Oth ther er

Ensuring reliability for a changing generation mix and new technologies

Installed Wind Capacity

5,00 5,000 10,000 0,000 15,000 5,000 20,0 20,000 00 25,0 25,000 00

2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 201 2010 201 2011 201 2012 201 2013 201 2014 201 2015 201 2016 201 2017 201 2018

Megawatts

6

Evolving Energy Mix

63% 59% 61% 60% 55% 48% 46% 42% 24%

27% 21% 19% 22% 23% 20% 23%

6% 8% 11% 12%

14%

17% 23% 23%

10 10 20 20 30 30 40 40 50 50 60 60 70 70 201 2011 201 2012 201 2013 201 2014 201 2015 201 2016 201 2017 201 2018 Percent entage e of gener neration Coal

• al

Gas as Wind 7

Why generation diversity matters:

SPP’s record wind swing (13 GW in 22 hours) 2, 2,000 000 4,000 000 6, 6,000 000 8, 8,000 000 10,000 000 12,000 000 14,000 000 16,000 000

Wind Output (MW) Time

8

Max @ 21:45 on 3/14/19 15,147 MW Min @ 19:46 on 3/15/19 1,843 MW

Generation Interconnection Queue 85,676 MW

60% 33% 6.7% 0.4%

Wind (50,973 MW) Solar (28,531 MW) Storage (5,796 MW) Gas (376 MW)

9

As of June 2019

10

11

Enhancing Integrated Marketplace to reliably deliver low-cost energy to customers

Average annual real-time market prices

12

Aligning transmission planning and cost allocation with SPP’s market and consolidated Balancing Authority

HITT RECOMMENDATIONS

Stakeholder presentations

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Date Group Presenters and Lead (L) Location Status 5/9-5/10 SPC retreat Tom Kent (L), Rob Janssen Branson, MO Completed 5/29 SAWG Rob Janssen (L), Gary Cate AEP Dallas Completed 5/30 RSC/CAWG Tom Kent (L), Paul Suskie, Cindy Ireland John Krajewski DFW-Hyatt Completed 6/13 ESWG Paul Suskie (L), Antoine Lucas, Al Tamimi AEP Dallas Completed 6/14 TWG Paul Suskie (L), Antoine Lucas, Gary Cate WebEx Completed 6/19 MWG Paul Suskie (L), Richard Ross, Gary Cate AEP Dallas Completed 6/24 RSC/CAWG Paul Suskie, Cindy Ireland, John Krajewski DFW-Hyatt Cancelled 6/27 ORWG Paul Suskie (L), Gary Cate, CJ Brown WebEx Completed 6/27 RTWG Rob Janssen (L), Gary Cate AEP Dallas Completed 7/16 SPC/MOPC Tom Kent (L), Rob Janssen Des Moines, IA July 17, 2019

HITT Report Overview

5 Reliability

15

12 recommendations are actions 9 recommendations are evaluations/studies 21 recommendations in four categories

4 Marketplace 9 Transmission Planning & Cost Allocation 3 Strategic

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Apr-21 Jan-21 Jan-21 Jan-21 Oct-20 Jul-20 Jul-20 Jul-20 Jul-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Jan-20 Jan-20 Jan-20 Jan-20 Oct.-19 Jul-19

Timeline by date (Proposed)

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MWG RTWG Staff TWG MWG MWG/ORWG MWG MWG RSC/CAWG RSC/CAWG RSC/CAWG TWG MWG TWG/MOPC/SAWG MWG MWG Staff ESWG MWG

Parallel timeline recommended

Staff

• R2. ERS/ORS compensation
• T4. Three-phase GI process effectiveness
• M3. Mitigation unduly low offers
• M2. Offer requirements variable resources
• R4. Markets: uncertainty
• C4. Cost allocation transmission storage
• C2. Byway cost allocation review
• C1. Decouple Sch. 9 & 11
• R1. Study ERS & ORS
• T3. Load addition modifications
• T1. Modify NRIS (SAWG/TWG) & ERIS (MOPC)
• M4. Economic evaluations of reliability
• M1. Congestion hedging improvements
• R3. Markets: multi-day
• T5. B/C ratio for economic projects
• T2. Uniform Sch.9 planning criteria
• S3. Storage white paper
• R3. Markets: fast-start
• C3. Z2 replacement
• R3. Markets: ramping

Jan-20 Jul-20 Oct-19 Jul-20 Jul-20 Jan-20 Jan-21 Apr-20 Jan-20 Apr-20 Apr-20 Jan-21 Jan-21 Apr-20 Oct-20 Apr-20 Jan-20 Jul-19 Apr.-21 Jul-20

• S2. Storage white paper
• C4. Cost allocation transmission storage
• C3. Z2 replacement
• C2. Byway cost allocation review
• C1. Decouple Sch. 9 & 11
• T5. B/C ratio for economic projects
• T4. Three-phase GI process effectiveness
• T3. Load addition modifications
• T2. Uniform Sch.9 planning criteria
• T1. Modify NRIS (SAWG/TWG) & ERIS (MOPC)
• M4. Economic evaluations of reliability
• M3. Mitigation unduly low offers
• M2. Offer requirements variable resources
• M1. Congestion hedging improvements
• R4. Markets: uncertainty
• R3. Markets: multi-day
• R3. Markets: fast-start
• R3. Markets: ramping
• R2. ERS/ORS compensation
• R1. Study ERS & ORS

RTWG CAWG/RSC CAWG/RSC

Timeline by recommendation (Proposed)

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Staff MWG MWG TWG/SAWG/MOPC MWG MWG MWG ESWG MWG MWG/ORWG TWG MWG MWG TWG CAWG/RSC Staff Staff

Slides for each recommendation include

• High-level stakeholder process steps & schedule
• Goal dates for stakeholder process completion

‒ Implementation dates are to be decided

• Lead and secondary groups
• HITT team vote
• Icon indicating if recommendation is to be

implemented or studied/evaluated

19

20

#1 Study Essential Reliability Service (ERS) and Other Reliability Service (ORS)

• NERC defines ERS as:

‒ Frequency support ‒ Ramping and balancing ‒ Voltage support

• ORS takes into account that as grid changes, SPP is not confident

all reliability needs are captured in NERC’s ERS definition

• ORS includes new technologies that change underlying nature of

grid operations that are not traditional operator tools

• “Uncertainty product” is an example of ORS

21

#1 Study ERS and ORS

• SPP should perform comprehensive study to evaluate

reliability challenges with changing generation resource mix

• Study should identify all ERS and ORS needed in future to

keep the lights on

22

#1 Study ERS and ORS

Stakeholder completion goal July 2020 Lead group Staff Secondary group MWG, ORWG, SAWG HITT vote Consensus 201 2019 2020 2020 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July

Coordi dina nate, devel elop p and nd complete e study dy requ equirem emen ents s with h MWG, G, SAWG G and ORWG G input ut

Staff ff report to t to MO MOPC PC

23

#2 Implement ERS/ORS compensation model

• Use study results from reliability recommendation #1 to

establish compensation model for each ERS and/or ORS

• Review regulation service compensation to determine if

service is appropriately valued

• Consider cost causation and whether technology that

reduces need for regulation service should receive some of the compensation

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#2 Implement ERS/ORS compensation model

2020 2021

Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.

MWG t to

• asse

ssess ss r resu sults s of ERS/ORS st study MWG dev develop r repo eport an and d coor coordinate wi with ORWG MWG r repo eport to MO MOPC PC

Stakeholder completion goal April 2021 Lead group MWG Secondary group ORWG HITT vote Consensus

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#3 Implement marketplace enhancements

Continue Integrated Marketplace enhancements including: ‒ Ramping capability ‒ Fast-start resource logic ‒ Multi-day, longer-term market product

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#3 Implement marketplace enhancements

* HITT report lists July 2019 completion date for ramp product. RTWG did not approve RR in June; completion is now projected in Oct. 2019. ** HITT report lists Jan. 2020 date for fast-start product. A recent FERC order directs SPP to make a compliance filing in Dec. 2019. Completion is projected in Oct. 2019.

2019 2020

July Aug. Sept. Oct.

• Nov. Dec.

Jan. Feb. Mar. Apr. May June

Ramp product * MWG develop RR MWG endorse RR MOPC endorse FERC filing Fast-start Resources** MWG develop RR MWG endorse RR MOPC endorse FERC filing Multi-day market MWG develop straw proposal MWG develop policy MWG develop RR MWG endorse RR MOPC endorse FERC filing

Stakeholder completion goal July 2019* (ramp), Jan. 20** (fast-start), Apr. 20 (multi-day Lead group MWG Secondary group N/A HITT vote Consensus

27

#4 Implement uncertainty market product

Continue to develop uncertainty product that addresses potential reliability issues associated with increased reliance on forecastable generation 2020 020

Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

MWG dev develop s straw pr propo posal MWG dev develop p policy cy MWG develo lop RR RR MWG endor

• rse

RR RR MO MOPC PC en endo dorse FE FERC f fili iling ng

Stakeholder completion goal

• Oct. 2020

Lead group MWG Secondary group ORWG HITT vote Consensus

28

#5 Study additional operational tools

Determine what additional operational tools are needed to ensure BES remains reliable in the future 201 019 2020 020

Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.

Staff t to contin inue ue e evalua uatin ing needed o

• peration
• nal t

tools

Stakeholder completion goal Ongoing Lead group Staff Secondary group ORWG, MWG HITT vote Consensus

29

#1 Implement congestion hedging improvements

• Continue with market mechanism to hedge load against

congestion charges

• Existing design should include modifications to

implement counter-flow optimization limited to excess auction revenues

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#1 Implement congestion hedging improvements

2019 2019 2020 2020

• Aug. Sept. Oct.

Nov. Dec. Jan. Feb. Mar. Apr. May June July

• Aug. Sept.

Staff st ff stra raw w pr propo posal MWG dev devel elop po p policy w white e paper per MOPC/ PC/ RSC C en endo dorse Draf aft t tar ariff lan anguag age MOPC/ PC/ RSC C en endo dorse FERC f filing

Stakeholder completion goal April 2020 Lead group MWG Secondary group RSC, CAWG HITT vote 14 to 0 with 1 abstention

31

#2 Study offer requirements for variable resources

• Evaluate whether variable energy resources should have

requirement to offer at specific level in day-ahead market

• Review incentives
• Consider market rule changes to improve day-ahead

participation for wind resources

32

#2 Study offer requirements for variable resources

201 019 2020 020 2021 021

Nov. Dec. Jan. Feb. Mar. Apr. May June July

• Aug. Sept.

Oct. Nov. Dec. Jan.

MMU MMU edu educate MWG MWG dev develop po policy r rec ecommendation r repo eport MWG repo eport to to MO MOPC PC

Stakeholder completion goal

• Jan. 2021

Lead group MWG Secondary group N/A HITT vote Consensus

33

#3 Study automatic mitigation of unduly low offers

Evaluate whether generation (including renewables) offer requirements provide adequate safeguards against uneconomic production

2019 2020 2021

Nov. Dec. Jan. Feb. Mar Apr. May June July

• Aug. Sept.

Oct. Nov. Dec. Jan.

MMU edu U educate M MWG MWG dev develop po policy r rec ecommendation r repo eport MWG repo eport to to MO MOPC PC

Stakeholder completion goal

• Jan. 2021

Lead group MWG Secondary group N/A HITT vote Consensus

34

#4 Study economic evaluations of reliability

• Evaluate cost and benefits of more advanced economic

evaluations of reliability

• Evaluation should educate and encourage use of dynamic line

ratings, topology optimization and economic outage coordination when practical, economic and reliable

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#4 Study economic evaluations of reliability

2019 2020

Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.

Ma Mark rkets MWG edu education MWG/OR ORWG G develo lop p polic licy w whit hite paper aper MWG/ ORW RWG report to t to MO MOPC PC Relia liabil ility ORW RWG edu education ORW RWG/ G/MWG G develo lop p polic licy w whit hite paper aper

Stakeholder completion goal April 2020 Lead group MWG, ORWG Secondary group TWG, RCWG HITT vote Consensus

36

Transmission Planning #1 NRIS/ERIS modifications

Develop policy that creates appropriate balance between costs assessed and value attained from:

‒ ERIS (energy resources interconnection service) and NRIS (network resources interconnection service) generator interconnection products ‒ Generating resources with long-term firm transmission service

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#1 NRIS/ERIS policy should:

• Add more value to NRIS by making it eligible for benefits comparable

to those awarded to designated resources without required transmission service study

• Tighten thresholds for mitigation of ERIS system impacts
• Include deliverability on larger sub-regional basis
• Address capacity accreditation
• Maintain cost/value balance throughout all transmission services,

transmission planning and Integrated Marketplace processes

• Ensure effectiveness and equity for all impacted stakeholders

38

#1 NRIS/ERIS modifications

201 2019 2020 2020

• Aug. Sept. Oct. Nov. Dec. Jan. Feb.

Mar. Apr. May June July

• Aug. Sept.

ERI ERIS - Modificat ations Staff d develop straw p prop

• posal

MO MOPC develop policy whi hite p paper MW MWG review MO MOPC endorse MW MWG endorse MO MOPC endorse Develop tariff lan anguag age MO MOPC endorse FERC filing NR NRIS IS - Accreditat ation Staff d develop straw p prop

• posal

SAW AWG develop pol

• licy

whi hite p paper CAW AWG/ MW MWG review SAW AWG endorse CAW AWG/ MW MWG endorse MO MOPC/ RSC endorse Develop tariff lan anguag age MO MOPC/ RSC endorse FERC filing NR NRIS IS - Deliverab ability Staff d develop straw p prop

• posal

TWG WG develop policy whi hite p paper MW MWG review TWG G endorse MW MWG endorse MO MOPC endorse Develop tariff lan anguag age MO MOPC endorse FERC filing

Stakeholder completion goal April 2020 Lead group TWG, SAWG, MOPC Secondary group MWG, RSC, CAWG HITT vote 15 to 0

39

#2 Establish uniform Schedule 9 local planning criteria

• Establish uniform local planning criteria within each Schedule 9

pricing zone

• Criteria can vary between zones
• Transmission Owners (TOs) within each zone should be subject

to same local criteria in determining need for zonal reliability upgrades within zone

• Host TO should invite zone’s TOs & transmission customers to

participate when developing zonal criteria before submitting to SPP

40

#2 Establish uniform Schedule 9 local planning criteria

201 019 2020 020

Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.

Staf aff dr draf aft RR an and d prop

• pos
• sed sch

schedule TWG revie iew RR RR RTWG revie iew RR RR TWG endor

• rse

RR RR RTWG endor

• rse

RR RR MO MOPC PC appr approve RR RR FE FERC f fili iling ng

Stakeholder completion goal

• Jan. 2020

Lead group TWG Secondary group RTWG HITT vote 15 to 0

41

#3 Implement new load addition modifications

• Modify Attachment AQ process

‒ Delivery-point additions, modifications, or abandonments

• Attachment AQ process should

‒ Be more transparent ‒ Allow for quicker results to facilitate potential load growth ‒ Be modified to limit application to new load, modification to loads, and load retirements that need to be addressed

• utside ITP due to timing or other significant reason

42

#3 Implement new load addition modifications

201 019 2020 020

Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July

• Aug. Sept.

Staff s ff straw pr propo posal Coor Coordinate pol

• licy wh

white paper aper w with T TWG, R RTWG an and RC RCWG MO MOPC PC en endo dorse Draf aft t tar ariff langu guag age MO MOPC PC en endo dorse FE FERC f fili iling ng

Stakeholder completion goal April 2020 Lead group TWG Secondary group RTWG, RCWG HITT vote Consensus

43

#4 Study three-phase GI process effectiveness

Evaluate effectiveness of three-phase generator interconnection study process following implementation

201 2019 2020 2020 2021 2021 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.

Staff evalua uate and collect data

Staff ff repo eport to to MO MOPC PC

Stakeholder completion goal 18 months after GI process implementation Lead group Staff Secondary group MOPC HITT vote Consensus

44

#5 Evaluate benefit-to-cost ratio for economic projects

• Evaluate increasing B/C ratio margin threshold for economic

upgrades

• Increase from 1.0 B/C to 1.05 to 1.25

201 019 2020 020

Aug. Sept. Oct. Nov. Dec. Jan.

ESW SWG ev evaluate an and d dev develop r p repo eport ESW SWG r repo eport t to MO MOPC PC

Stakeholder completion goal

• Jan. 2020

Lead group ESWG Secondary group N/A HITT vote 9 to 6 with 1 abstention

45

Cost Allocation

#1 Decouple Schedule 9 & Schedule 11 pricing zones

• Decouple Schedule 9 and 11 transmission pricing zones
• Create larger Schedule 11 pricing zones and/or Schedule 9

sub-zones prospectively

• When creating new pricing zones, consider new deliverability

sub-regions, distribution factor calculations, and market and power flows

• If RSC adopts policy to reallocate existing costs within new

Schedule 11 zones — to mitigate cost shifts, zones should be consolidated over a 5 to 10-year transition period

46

#1 Decouple Schedule 9 & Schedule 11 pricing zones

2019 2020

• Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May

June July

• Aug. Sept.

Staff coor coordina nate with h CAWG to dev devel elop s p scope a pe and d requi equirem emen ents ts CAWG dev devel elop po p policy rec ecommen enda dation r repo eport CAW AWG rev eview ew repo eport RT RTWG rev eview ew repo eport CAW AWG appr pprove repo eport MOPC/ PC/ RSC C en endo dorse FERC f filing Staff e evaluate impact cts t to

• zona
• nal p

place cement nt proce

• cess

Sta taff r repo eport t t to SP SPC

Stakeholder completion goal July 2020 Lead group RSC, CAWG Secondary group RTWG HITT vote 11 to 1 with 3 abstentions

47

48

#2 Establish byway facility cost allocation review process

• Evaluate creating narrow process through which costs for

specific projects between 100-300 kV can be fully allocated on region-wide basis

• Consider regional benefits resulting from the facilities

‒ Including energy exports from transmission pricing zone where project is located

49

#2 Establish byway facility cost allocation review process

2019 2020

Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July

Staf aff to pr provide de dat data fo for C CAWG t to dev develop p po policy recommen mmendat dation r report CAWG ESW SWG RTWG review repo eport CAWG ESW SWG appr approve repo eport CAWG report to t to RS RSC

Stakeholder completion goal July 2020 Lead group RSC, CAWG Secondary group ESWG, RTWG HITT vote 11 to 4

50

#3 Eliminate Attachment Z2 revenue crediting for new upgrades

• Keep incremental long-term congestion rights (ILTCRs)

prospectively for new upgrades

• Recommended for new upgrades wholly or partially funded

through directly-assigned upgrade costs (DAUC)

• Entity that incurs such costs would no longer be eligible for

compensation through revenue credits under Attachment Z2

• DAUC sponsor eligible to receive compensation through ILTCRs
• ILTCRs would continue to function as currently described in

Attachment Z2, except total compensation limited to upgrade’s DAUC plus interest

51

#3 Eliminate Attachment Z2 revenue crediting for new upgrades

2019

Aug. Sep Oct. Nov. Dec.

Staff ff dev develop R p RR RTWG revie iew RR RR CAWG revie iew RR RR CAWG endor

• rse R

RR MOPC/ C/RSC C en endo dorse FE FERC f fili iling ng

Stakeholder completion goal

• Oct. 2019

Lead group RTWG Secondary group RSC, CAWG, TWG HITT vote 15 to 0

52

#4 Study cost allocation for transmission storage

Evaluate whether SPP should establish cost allocation and rates under tariff for energy storage resources to treat them as transmission assets if used as transmission assets

53

#4 Study cost allocation for transmission storage

2019 2020

Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July

CAWG dev develop po policy white p paper aper MWG RTWG TWG rev eview po policy

CAW AWG appr pprove pol

• licy

cy paper per RSC C en endo dorse pol

• licy

cy paper per

Stakeholder completion goal July 2020 Lead group RSC, CAWG Secondary group MWG, RTWG, TWG HITT vote 14 to 0

54

#1 Add technological advances to SPP strategic plan

• Technology is changing more rapidly than we’ve seen in

SPP’s nearly eight decades

• To be better prepared for these changes, HITT

recommends the Strategic Planning Committee add understanding and evaluation of technological advances to SPP’s strategic plan

55

#1 Add technological advances to SPP strategic plan

2019 2020

Aug. Sept. Oct. Nov. Dec. Jan.

SP SPC to a add t dd tec echnological a adv dvances to SP SPP stra rategic egic p plan

Stakeholder completion goal Next plan update Lead group SPC Secondary group N/A HITT vote Consensus

56

#2 Continue to include seams in SPP strategic plan

• Seams with neighboring regions continue to be an area

that’s challenging and for which there are potential improvements

• HITT recommends SPP continue to make seams a high

priority and continue to include seams as a part of SPP’s strategic plan

• Seams Steering Committee should continue to provide

direction to SPP staff on seams issues

57

#2 Continue to include seams in SPP strategic plan

201 2019 2020 2020

Aug. Sept. Oct. Nov. Dec. Jan.

SPC to

• keep s

seams ms i issue ues a a priority i in SPP strategic p plan

Stakeholder completion goal Ongoing Lead group SPC Secondary group N/A HITT vote Consensus

58

#3 Energy storage white paper

• Energy storage – particularly batteries – is an immediate

challenge and opportunity

• Future storage impacts are evident by increasing amount of

batteries in SPP’s GI queue and FERC’s Order 845

• HITT recommends SPP staff create white paper on storage issues
• Goal is to develop better understanding of storage and how SPP

should address it

• Paper will be delivered to MOPC, RSC and board in January 2020
• Paper should include tactical and strategic recommendations
• In the interim, MOPC working groups will continue their efforts

59

#3 Storage white paper

201 2019 2020 2020

Aug. Sept. Oct. Nov. Dec. Jan.

Staff ff develop

• p white

e paper er and develop

• p work
• rking

grou

• up intera

ract ction

• ns

Staff ff repor

• rt to

MOPC PC an and RSC RSC

Stakeholder completion goal

• Jan. 2020

Lead group Staff Secondary group RSC, MOPC HITT vote Consensus

ACTION PLAN

Action Plan (Proposed)

61

Stakeholder process completion

62

Action Plan (Proposed)

63

Action Plan (Proposed)

T1: NRIS/ERIS M1: Congestion hedging

64

Recommend parallel timeline

C1: Decouple

• Sch. 9 & 11

C2: Byway cost allocation review

65

Recommend parallel timeline

Apr-21 Jan-21 Jan-21 Jan-21 Oct-20 Jul-20 Jul-20 Jul-20 Jul-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Jan-20 Jan-20 Jan-20 Jan-20 Oct.-19 Jul-19

Timeline by date (Proposed)

66

MWG RTWG Staff TWG MWG MWG/ORWG MWG MWG RSC/CAWG RSC/CAWG RSC/CAWG TWG MWG TWG/MOPC/SAWG MWG MWG Staff ESWG MWG

Parallel timeline recommended

Staff

• R2. ERS/ORS compensation
• T4. Three-phase GI process effectiveness
• M3. Mitigation unduly low offers
• M2. Offer requirements variable resources
• R4. Markets: uncertainty
• C4. Cost allocation transmission storage
• C2. Byway cost allocation review
• C1. Decouple Sch. 9 & 11
• R1. Study ERS & ORS
• T3. Load addition modifications
• T1. Modify NRIS (SAWG/TWG) & ERIS (MOPC)
• M4. Economic evaluations of reliability
• M1. Congestion hedging improvements
• R3. Markets: multi-day
• T5. B/C ratio for economic projects
• T2. Uniform Sch.9 planning criteria
• S3. Storage white paper
• R3. Markets: fast-start
• C3. Z2 replacement
• R3. Markets: ramping

Jan-20 Jul-20 Oct-19 Jul-20 Jul-20 Jan-20 Jan-21 Apr-20 Jan-20 Apr-20 Apr-20 Jan-21 Jan-21 Apr-20 Oct-20 Apr-20 Jan-20 Jul-19 Apr.-21 Jul-20

• S2. Storage white paper
• C4. Cost allocation transmission storage
• C3. Z2 replacement
• C2. Byway cost allocation review
• C1. Decouple Sch. 9 & 11
• T5. B/C ratio for economic projects
• T4. Three-phase GI process effectiveness
• T3. Load addition modifications
• T2. Uniform Sch.9 planning criteria
• T1. Modify NRIS (SAWG/TWG) & ERIS (MOPC)
• M4. Economic evaluations of reliability
• M3. Mitigation unduly low offers
• M2. Offer requirements variable resources
• M1. Congestion hedging improvements
• R4. Markets: uncertainty
• R3. Markets: multi-day
• R3. Markets: fast-start
• R3. Markets: ramping
• R2. ERS/ORS compensation
• R1. Study ERS & ORS

RTWG CAWG/RSC CAWG/RSC

Timeline by recommendation (Proposed)

67

Staff MWG MWG TWG/SAWG/MOPC MWG MWG MWG ESWG MWG MWG/ORWG TWG MWG MWG TWG CAWG/RSC Staff Staff

QUESTIONS