atss new aggregate facilities study process customer workshop september 18, 2015

ATSS New Aggregate Facilities Study Process Customer Workshop

September 18, 2015

Welcome!

Introductions...

2

Purpose

This presentation provides an overview of what’s new in the new Aggregate Facilities Study (AFS) process, the new timelines, the new requirements, and the transition period.

3

Overview

• A look at the reduction in request backlog queue.• Requirements for the “Completed Application”• New Aggregate Facilities Study Process• Third-party Impacts Process• Waiver Processes • Transition Period, now until the new Aggregate

Facilities Study process starts

4

Changing The Aggregate Study Process

Progress of the Backlog Clearing Process to date

5

Studies completed under BCP

Study remaining to be completed

NEW AGGREGATE STUDY

6

New Aggregate Study Status

• May 19 FERC accepted ER15-1414 to implement the new aggregate study process.

• The new tariff language and new process became effective June 1, 2015.

• The first open season of the new process extends from June 1 through November 30, 2015.

• The first study will commence on December 1, 2015 as aggregate study 2015-AG2.

• Legacy study 2015-AG1 will continue under the old rules until completion later this year.

7

BCP 2015-AG1BCP 2015-AG1

8

2015

Today

Tentative Timeline

2016 2016

New Process 2015-AG2Open Season


New Process 2015-AG2Study


2017Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan FebDecNovOct



Aug Sep







2015-AG2 First Iteration Posting

(approx.)2015-AG2 Completed

Applications Due

2015-AG2 Completion

(approx.)

New Aggregate Study Flowchart

9

Retract requests outside the parameters


Open SeasonOpen

Season

Study Iterations

#2, #3, etc.

Study Iterations

#2, #3, etc.

Tender Service

Agreements

Tender Service

Agreements

165 Days

Day 1 165

Dec 1

June 1

Remove requests outside

parameters from analysis



Completed ApplicationCompleted Application

Accept/Confirm all requests

within parameters


within parameters

Process continues without customer intervention

until all remaining requests are within the specified parameters



Prohibit “mutually-exclusive” requestsProhibit “mutually-exclusive” requests

Post study results with cost estimates

for all requests, including removed



• OASIS request• Executed AFSA • Study Deposit• NITS Application (NITS

only)• Attestation Statement

(NITS only)



(NITS only)Third-Party

ProcessThird-Party

Process

Aggregate Facilities Study #1


Increase in ParametersIncrease in Parameters

May 15

Nov 15Only requests with

specified parameters that ARE NOT met may

increase their parameters, all others

move to the next iteration, unchanged.

Only requests with specified parameters

that ARE NOT met may increase their

parameters, all others move to the next

iteration, unchanged.

Study deemed

complete

Study deemed

complete

At least one request with parameters

not met?


not met?

NO

YES

At least one request with unmet

parameters not increased?



YES

NO

APPLICATION PROCESS

10

Open Season

11

Open season will be 6 months in duration.

The TC will submit a completed application by the close of open season to have their request included in the upcoming study.

Studies will be identified by the Study ID listed in the table, where {Year} is the calendar year in which the Open Season ends.

Study ID Open Season

{Year}-AG1 December 1 – May 31

{Year}-AG2 June 1 – November 30

Completed Application Requirements

12

At the close of an open season, only Completed Applications will be included in the related study.

1.SPP OASIS request

2.Aggregate Facilities Study Agreement (AFSA)

3.Study Deposit

4.NITS Application (NITS only)

5.Attestation Statement (NITS only)

Completed Application - SPP OASIS RequestGuidelines:•Requests may be submitted and withdrawn without any obligation during an open season.

•Request for service is required to begin no earlier than 6 months after the close of the open season.

•Customers are encouraged to submit requests as much in advance as possible.

13

14

Completed Application – AFSA Contents

AFSA Guidelines:•Download the AFSA from the SPP OASIS Transmission Service Study (TSS) page.•Specify the parameters for which you will accept the requested transmission service. •Sign and submit the AFSA to SPP by the close of open season, otherwise the request will be withdrawn.

Completed Application – AFSA

15

Acceptable addresses:•Physical mailing address•PO Box•Email address•Fax phone number

Customer must enter date and name on page 1 of AFSA.

Similar to ACA

Completed Application – AFSA

16

List any related GI number(s).

List all OASIS requests covered

by agreement.

Completed Application – Executing the AFSA

17

Ensure that the bottom of Section 17.0 is signed and

dated.

By executing the AFSA, the customer is agreeing to take the transmission service if all specified parameters are met in the study. (AFSA, Section 2.0, “Obligations of Applicant”)

Completed Application – AFSA Appendix 1

18

If cost parameters are specified in Section (3), then it will SUPERSEDE cost parameters that

are specified in Sections (1) and (2).

If no parameters are specified in Section (3),

then parameters in Sections (1) and (2) will be applied individually.

Revised from the ACA

Completed Application – AFSA Appendix 1

19

If Section (4) is left blank, then Start Date in

the OASIS request will be the study parameter.

If Section (5) is left blank, then no Interim

Redispatch service will be used to start service

as soon as possible.

If Section (6) is left blank, then Section (1) or (3) will be used as the LOC

amount specified.

Completed Application - Study Deposit

Guidelines:•A deposit will be required for each request when the AFSA is submitted.

•The deposit amount will be equal to $100 per MW times the maximum requested transmission capacity or $5000, whichever is greater.

•Submit the deposit by the close of open season.

20

Completed Application - NITS Application (NITS)• Complete the NITS Application and submit via

email to [email protected].

• All fields must be completed for study purposes, unless listed as an exception.

• If all requests submitted represent proposed service under the same NITS Agreement, then a single application will suffice.

• Submit the NITS Application by the close of the open season.

21

mailto:[email protected]

Completed Application – Attestation Statement (NITS)

• Submit a signed Attestation Statement regarding the DR ownership/purchase in the NITS Application.

• A template is available on SPP OASIS link.

• Email signed statement by the close of open season to [email protected].

22

http://sppoasis.spp.org/documents/swpp/transmission/studies/Statement%20of%20Attestation.doc

Commencement of the New Aggregate Study

• The study will begin at the close of an open season.

• SPP will post the results from the first iteration of the Aggregate Study once it is completed.

• Once the results have been posted, the parameters modification window will open for customers to increase their request parameters if one or more of their conditions were not met.

23

PARAMETER MODIFICATION WINDOW

24

Parameter Modification Window• If the parameters for a request were not met, the customer

will have one opportunity to increase them.– Increasing parameters in the AFSA to accommodate the results

of the study: To be completed within 5 Business Days of the posting of the results of

the first iteration.

If customer does not adjust the conditions that were violated during the open modification window, then the request will be withdrawn from the study.

• If all conditions are met for all requests in the first iteration of the study, then SPP will deem the study complete.

25

* A Business Day is defined in the Tariff as “a day on which the Federal Reserve System is open for business.”

Study Process Continues...

After the posting of the first iteration...

•As iteration of the study proceeds, if one or more customer’s conditions are not met, then SPP will remove the request from the study.

– For a request(s) removed from the study as a result of not meeting the customer’s conditions, SPP will refuse the customer’s request in SPP’s OASIS.

•For the requests remaining in the study, SPP will conduct an additional iteration, if necessary.

•The study will be deemed complete once all remaining customers’ conditions have been met.

26

Study CompletionUpon completion, SPP will:

•Finalize the solutions for the study and the cost estimates for upgrades necessary to provide the request.

•Determine allocation of the estimated cost to provide the request.

•Post results for all requests, including refused.

•Advise the Customer of any required changes to the OASIS requests to align with the final study results.

•Accept all requests that have met the completion conditions on SPP OASIS .

•Refuse all requests whose parameters were not met on SPP OASIS.

27

Costs for New Aggregate Study• All customers entering a study shall be responsible for the

cost of the study.

• The study costs will be prorated among the customers based on the maximum requested transmission capacity.

• The customer’s study deposit will be used as payment for the study and if a customer’s cost for the study is:

– less than the deposit, SPP will refund any remaining deposit with accrued interest, if any.

– greater than the deposit, the customer will be responsible for any cost in excess of its deposit.

• The amount billed for the Study shall not exceed the actual cost of the study.

28

3RD PARTY IMPACTS

29

3rd Party Process

Agreement is not reached with

3rd party or time expires

Agreement is not reached with

3rd party or time expires

Request is Accepted and

Service Agreement is Tendered

Request is Accepted and

Service Agreement is Tendered

Applicable 3rd Party Evaluation ProcessApplicable 3rd Party Evaluation Process

Third-Party Clears Request

Third-Party Clears Request

Customer Confirms Service (and

Executes Service Agreement)

Customer Confirms Service (and

Executes Service Agreement)

Request is terminated and

withdrawn

Request is terminated and

withdrawn

Re-Run Cost Allocation

Re-Run Cost Allocation

Notify Customer of MWP and Tender

Sponsored Upgrade Agreements

Notify Customer of MWP and Tender

Sponsored Upgrade Agreements

Settlement of Make Whole

Payment

Settlement of Make Whole

Payment

Incorporate into Creditable

Upgrades Database or document ILTCR

Incorporate into Creditable

Upgrades Database or document ILTCR

30

3rd Party ImpactsCustomers with unresolved 3rd party impacts after study completion may postpone confirmation of service until the earlier of:

– the service start date, or

– one year after study completion

Extension of time of up to 90 days may be requested

If the 3rd party impact is not resolved, the request will be terminated and withdrawn, and the customer may be subject to a make-whole payment.

31

3rd Party Process: Make-Whole Payment

• If the request is terminated due to unresolved 3rd party impacts, the customer will pay for any shared upgrade costs in the form of a Make-Whole Payment (MWP).

• Customers that pay a MWP will execute a Sponsored Upgrade agreement.

• Sponsored Upgrades are eligible to receive revenue credits or Incremental LTCR (ILTCR).

32

WAIVER PROCESS

33

Waiver Types

• Eligibility Waiver– Service request does not meet the requirements

for Base Plan funding in Section III.B.1, Attachment J of the SPP OATT.

– NITS Application, Table 8 was added to assist in determining eligibility.

• Cost exceeds Safe Harbor Waiver– Service request meets the requirements for Base

Plan funding, but the allocated costs exceed the SHCL.

34

35

Waiver Timeline

Eligibility Waiver

Timelines:

•Submit by:– AG1 -> February 1– AG2 -> August 1

•BOD Action by:– AG1 -> May 1– AG2 -> November 1

36

Cost exceeds Safe Harbor Waiver

Timelines:

•Submit within 15 days following of AFS-1– Include duplicate TSR

•BOD Action– AG1 -> November 1– AG2 -> May 1

Applies to current study or to next study with duplicate TSR

37

New Aggregate Study Flowchart

38



Open SeasonOpen

Season

Study Iterations

#2, #3, etc.

Study Iterations

#2, #3, etc.

Tender Service

Agreements

Tender Service

Agreements

165 Days

Day 1 165

Dec 1

June 1







within parameters


within parameters












(NITS only)




ProcessThird-Party

Process




May 15









Study deemed

complete

Study deemed

complete


not met?


not met?

NO

YES





YES

NO

Eligibility Waiver Process Flowchart

39



Open SeasonOpen

Season

Study Iterations

#2, #3, etc.

Study Iterations

#2, #3, etc.

Tender Service

Agreements

Tender Service

Agreements

165 Days

Day 1 165

Dec 1

June 1







within parameters


within parameters












(NITS only)




ProcessThird-Party

Process




May 15









Study deemed

complete

Study deemed

complete


not met?


not met?

NO

YES





YES

NOSubmit Waiver Request

Submit Waiver Request

CAWG / MOPC /

BOD Evaluates

CAWG / MOPC /

BOD Evaluates

Waiver request

granted or not granted

Waiver request


Result Applied to

Study

Result Applied to

Study

Eligibility Waiver

Eligibility Waiver

Cost exceeds Safe Harbor Waiver Process Flowchart

40



Open SeasonOpen

Season

Study Iterations

#2, #3, etc.

Study Iterations

#2, #3, etc.

Tender Service

Agreements

Tender Service

Agreements

165 Days

Day 1 165

Dec 1

June 1







within parameters


within parameters












(NITS only)




ProcessThird-Party

Process




May 15









Study deemed

complete

Study deemed

complete


not met?


not met?

NO

YES





YES

NO



CAWG/MOPC/BOD Evaluation


Waiver request


Waiver request


Parameters not IncreasedParameters

not Increased

Submit Waiver Request and TSR

in Next Study

Submit Waiver Request and TSR

in Next Study



Waiver request


Waiver request


Result Applied to

Service Agreement

Result Applied to

Service Agreement

Result Applied in Next Study

Result Applied in Next Study

Cost exceeds Safe Harbor

Waiver

Cost exceeds Safe Harbor

Waiver

TRANSITION PERIOD

41

42

Now Until November 30, 2015Transitioning Requests•Requests that were queued for study between March 1 and May 31, 2015 (“Transitioning Requests”) will be included in the 2015-AG2 study along with all new requests received during the open season for 2015-AG2.

•Transitioning Requests must satisfy all requirements of a completed application under the new process, including study agreement, start date, and deposit.

•2015-AG1 Study will continue under the old process until it is complete.

Posting of Documents on spp.org

43

* Updated Documents will be posted to the folder as they become available.* Please note that spp.org will be updated by the time the new process begins so folder locations may change.

Posting of Process Guidelines on spp.org

44

* Updated Documents will be posted to the folder as they become available.* Please note that spp.org will be updated by the time the new process begins so folder locations may change.

45

ATSS Contact Information

Steve Purdy, Manager [email protected] (501) 614-3371

Eric Samson, Sr. Engineer [email protected] (501) 614-3375James Bailey, Engineer [email protected] (501) 688-8243David Duhart, Engineer [email protected] (501) 688-1705Charlton Hill, Engineer [email protected] (501) 688-1716Caitlin Shank, Engineer [email protected] (501) 482-2232

John O’Dell, Analyst [email protected] (501) 688-8285

General email: [email protected]









Event Event Timing

Open season Dec 1st - May 31th and June 1st- Nov 30th

Completed Application Eligibility Waiver Deadline of Feb 1st and Aug 1st Posting of first iteration results When first iteration of the study is completeParameters modification window Posting of first iteration results (5 business days) Adjust conditions in AFSAWaiver submittal window Posting of first iteration results (15 calendar days) Cost exceeds Safe Harbor WaiverRemaining study iterations Close of waiver submittal windowStudy completion 165 calendar days after open season starts unless notified Post study results with cost estimates Accept customer requests within parameters Retract requests outside parameterCustomer confirm accepted request 15 calendar days after SPP OASIS request is acceptedSPP to tender Service Agreements After customer confirms accepted SPP OASIS requestCustomer Executes Service Agreement 30 calendar days after receipt of the Service AgreementService start date Prior to service start date Service Agreement for NITS Network Operating Agreement Completion of Technical ArrangementsThird-Party Agreements Start date of request or 1 year after study completion90-day Extension for Third-Party Agreement Completion

Customer request (end of Third-Party Agreement window)

New Aggregate Study Timeline

46

Definitions• New Aggregate Study

– First study under new methodology commences 12/1/2015.

• Backlog Clearing Process (BCP)– The process implemented upon FERC acceptance of

SPP’s filing in ER13-2164

47

Definitions• OASIS: Open Access Same-Time Information System• PTP: Point-to-Point Transmission Service• NITS: Network Integrated Transmission Service• DR: Designated Resource• SPP OATT: SPP Open Access Transmission Tariff• SHCL: Safe Harbor Cost Limit • DAUC: Directly Assigned Upgrade Costs • MWP: Make-Whole Payment• TC: Transmission Customer

48