NORTHWEST POWER POOLNORTHWEST POWER POOL

Reliability through CooperationReliability through Cooperation

Brazilian DelegationMay 6, 2009

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Presentation Outline

• Northwest Power Pool Background• Pacific Northwest Coordination Agreement• Headwater Benefits

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Regional Reliability Councils

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North American Interconnections

NWPPNWPP

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NERC/WECC Subregions

Northwest Power PoolAlberta Electric System OperatorAvista CorporationBonneville Power AdministrationBritish Columbia Transmission CorporationChelan County PUDDouglas County PUDGrant County PUDIdaho Power CompanyNaturEner (Glacier)Northwestern EnergyPacifiCorp-EastPacifiCorp-WestPortland General Electric CompanyPuget Sound EnergySacramento Municipal Utility BoardSeattle City LightSierra Pacific Power CompanyTacoma PowerTurlock Irrigation DistrictWestern Area Power Administration – UGP

CAMX

AZNM

RMPP

NWPP

Rocky Mountain Power PoolPublic Service Company of ColoradoWestern Area Power Administration – CM

Arizona-New MexicoArizona Public Service CompanyArlington ValleyHarquahalaGila RiverGriffithEl Paso Electric CompanyImperial Irrigation DistrictNevada Power CompanyPublic Service Company of New MexicoSalt River ProjectTucson Electric Power CompanyWestern Area Power Administration – DSW California-MexicoCalifornia Independent System OperatorComision Federal de ElecticidadLos Angeles Dept. of Water and Power

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NWPP HISTORIC DATES

• 1942 - Operating Committee • 1964 - Pacific Northwest Coordination Agreement

signed• 1990 - Transmission Planning Committee

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VISION

The Northwest Power Pool serves as a forum for reliability and operational adequacy issues in the area for both transmission and generation

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DEMOGRAPHICS 8 U.S. States 2 Canadian Provinces Federal, Public, Private, Provincial Ownership International Border (Treaties associated with water) Non-Jurisdictional as well as Jurisdictional Preference Act – Public Law 88-552 160 Consumer-owned electric utilities 19 Control Areas (35 in the Western Interconnection (WI)). ~ 90,000 Megawatts Total Resources (44% WI) ~ 50% Peak load of the WI ~ 50% Energy load of the WI Automated Reserve Sharing Procedures Hydro Coordination Hydro Thermal Integration

Hydro located on the West (BC, ID, OR, WA) Thermal located on the East (AB, MT, NV, UT, WY)

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NWPP Membership Agreement

Operating Committee(meets 4 times per year) Transmission Planning

Committee(meets 3 times per year)

Coordinating Group(meets as required)

NW Operational Planning Study Group

System Dispatchers Subcommittee

Interchange Scheduling Subcommittee

NW Transmission Assessment Committee

NW Transmission Adequacy Committee

Operating Procedures Subcommittee

Loads and Resources Subcommittee

Refill Task Force

Other Task Forces, Work Groups, and Subcommittees

System Schedulers Subcommittee

Relay Engineers Subcommittee

Communications Engineers Subcommittee

Substation Maintenance Engineers Subcommittee

Transmission Maintenance Engineers Subcommittee

Hydro Maintenance Engineers Subcommittee

Reserve Sharing Subcommittee

Coordinated Outages Group Subcommittee

Other Task Forces, Work Groups, and Subcommittees

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THREE MAIN COMMITTEES

• Operating CommitteeOperating Committee Foster coordination and communication.

• Coordinating Group Coordinating Group Administer the Pacific Northwest Coordination Agreement,

optimizing Columbia Basin hydro generation.

• Transmission Planning CommitteeTransmission Planning Committee Provide a forum for reliable transmission planning.

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RELIABILITY – Defined

• Two Foundational Elements• Adequacy - The ability to supply the aggregate

electrical demand and energy of consumers • Security - The ability to withstand sudden

disturbances

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PHYSICAL FACTORS(that Drive Northwest Reliability)

• Generation/Resources• Load• Transmission• Temperature

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COLUMBIA RIVER TREATY• 1948 Vanport flood• 1950’s Treaty negotiated• 1965-73 Canada builds three dams: Duncan,

Arrow and Mica• U.S. allowed to build Libby• Canada gets flood control payment• Canada gets 1/2 of the “coordinated” U.S. benefit

from the Mica, Arrow, and Duncan • 30 years of benefit calculated and sold to U.S.

utilities

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COLUMBIA RIVER TREATY

• Revelstoke filled

• Non-Treaty Storage Agreement

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PNCA COORDINATION

• Federal Government Bonneville Power Administrator Corps of Engineers Bureau of Reclamation United States Entity (Canadian Treaty)

• Municipals City of Eugene, OR City of Seattle, WA City of Tacoma, WA

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PNCA COORDINATION• Public Utility District

Grant County Chelan County Douglas County Pend Oreille County Cowlitz County

• Investor Owned Utility Portland General Electric Company PacifiCorp Avista Puget Sound Energy

• Independently Owned Entities PP&L Montana Alcoa Power Generation, Inc.

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PNCA COORDINATION

• Parties shall coordinate with all of the other Parties the planning and operation of its System.

System means for any Party such Party’s Firm Resources and transmission facilities that are adequately interconnected and that interconnected with the Systems of other Parties to accomplish the objected of the agreement

• The Parties shall coordinate their System to make available to each Party its optimum Firm Load Carrying Capability (“FLCC”), to provide optimum FLCC for the Coordinated System, and, to produce the optimum amount of useable secondary energy for each Party

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PNCA COORDINATION

• Coordination for the production of power must take into consideration non-power uses for water resources – recreation, irrigation, transportation, biological opinion (fish), and others.

• Coordinated System means the aggregated Systems of each of the Parties, including generating plants, reservoirs, transmission system and associated facilities owned or controlled by such Party and coordinated by such Party under this Agreement. The Coordinated System shall include Treaty Storage to the extent such inclusion is not inconsistent with the Treaty.

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COORDINATED RESERVOIR OPERATIONS

• Annual Firm Load Carrying Capability• Preliminary Regulation (not later than March 15)

maximum Critical Period Energy Capability Establish Critical Period

• Modified Regulation (May 1) Firm Energy Load Carrying Capability Firm Peak Load Carrying Capability

• Final Regulation (July 1)

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COORDINATED RESERVOIR OPERATIONS - Factors

• Retirements of Resources

• Project Data – Load and Firm Resources

• New Resources

• Purchases

• New Non-Power Requirement

• Exchanges

• Maintenance

• Reserve

• Operations

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COORDINATED RESERVOIR PRODUCTS - Flexibility

• Holding Energy

• Storage

• Interchange Energy

• Interchange Capacity

• Credits for in Lieu of Energy Spilled

• Transfers to Avoid Spill

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COORDINATED RESERVOIR TRANSMISSION

Capacity available in transmission lines and associated facilities owned, leased, or otherwise controlled as part of the Systems of other Parties may be used without charge for the delivery of the products of coordination

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COORDINATED RESERVOIR HEADWATER BENEFITS

Under section 10(f) of the Federal Power Act, an owner of a hydropower project is required to reimburse upstream headwater project owners for an equitable part of the benefits it receives. These benefits, referred to as Headwater Benefits, are the additional energy production possible at a downstream hydropower project resulting from the regulation of river flows by an upstream storage reservoir.

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COORDINATED RESERVOIR HEADWATER BENEFITS

•Headwater Improvement Annual Charges Interest Maintenance Operations Depreciation Property Taxes (if applicable)

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COORDINATED RESERVOIR HEADWATER BENEFITS

All parties with a right to coordinated storage releases from upstream reservoirs in the United States have the obligation to make payments to the owners/operators of the upstream reservoirs.

The payments are to cover a portion of the maintenance costs related to storage paid by the upstream party that provide a benefit to the downstream party.

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COORDINATED RESERVOIR HEADWATER BENEFITS

Owners/operators provide the annual costs for each reservoir, and the portion of these costs that is apportioned to the storage function is calculated:

1. A weighted average of useable energy from at-site storage and downstream at-site storage (A-sub-s + P-sub-s) is calculated.

2. A weighted average of useable energy from unregulated flow plus storage releases from upstream reservoirs (A-sub-h + P-sub-h) is calculated.

3. The portion of energy from storage compared to total useable energy [(A-sub-s + P-sub-s) / (A-sub-s + P-sub-s + A-sub-h + P-sub-h)] is calculated.

“P” values are derived from the Final Regulation, which determines the Firm Energy Load Carrying Capability of each project for the year.

“A” values are the average derived form a 70-year, non-continuous study that uses the beginning levels of storage as determined by the Actual Energy Regulation as the initial values for each year of the study.

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COORDINATED RESERVOIR HEADWATER BENEFITS

4. Total annual cost is multiplied by the percentage from (3.) to determine cost apportioned to storage. This cost cannot exceed the value of the benefit received from the storage project itself.

5. Allocation of the amount owned by each downstream reservoir is determined by applying the percentage of total energy gain it gets from the upstream reservoir’s storage releases to the annual storage costs for that upstream reservoir.

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QUESTIONS?

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