ATSS Backlog
Clearing Process
(BCP) Customer
Workshop
October 4, 2013
Purpose
•
Provide overview and details of the Backlog Clearing
Process (BCP), including timelines and requirements
•
Capture questions to include in posted documents
2
Overview
•
•
•
•
•
•
•
Overview of the Backlog Clearing Process (BCP)
ATSS Completion Agreement (ACA)
Study Procedure
Third-party Impact Process
Make-Whole Payment (MWP)
Open Season Extension
One-Time Cost-Causer Exemption
3
Definitions
•
Current Process
– The currently-effective aggregate study process
•
Backlog Clearing Process (BCP)
– The process to be implemented upon FERC acceptance
of SPP’s filing in ER13-2164
– Requested effective date of October 12, 2013
•
New Process
– A new aggregate study process – still in development in
SPP’s working groups – for future implementation with
a date to be determined
– No tariff changes have yet been approved or filed
4
Current Aggregate Study Process
YES
Open
Season
(4 months)
Facilities
Study
(60 days)
Letter of Intent
Response Period
(15 days)
Aggregate Study is an iterative
process that continues until no
customers withdraw.
Restudy
Needed
?
NO
Write
Service
Agreement
Overview of the Backlog Clearing Process
YES
Start
Customers with requests
that did not meet
parameters may withdraw
or must execute ACA
amendment to remain
Customer
with 3rd
party
impacts may
move to
next study
Did any
customers
withdraw?
NO
NO
Post AFS-4 and
Tender ATSS
Completion
Agreement (ACA)
Customer
Action
Customer
Executes
ACA
Customer
Does Not
Execute ACA
SPP Staff
Action
ACA Completion Requirements
1. Maximum directly-assigned upgrade
cost
2. Maximum 3rd party upgrade cost
3. Latest acceptable deferred start date
4. Accept interim redispatch
5. Maximum Letter of Credit
Facilities
Study
Request
Withdrawn
Are New
Completion
Requirements
Met?
Collect Make-Whole
Payments from
Customer, if
required
YES
Accept all requests
and Tender Service
Agreements
Customer with
3rd Party impacts
postpones action
Customer Does Not
Confirm Service
Stop
Customer Confirms
Service (and
Executes Service
Agreement)
AGGREGATE STUDY COMPLETION
AGREEMENT (ACA)
7
ATSS Completion Agreement (ACA) and Process
•
ACA tendered only for studies that are first in queue
and after AFS-4
•
ACA covers the request through the completion of the
study
•
Customer commits either to accept service offered
within the ACA parameters or to pay a make-whole
payment
•
Baseline values are the values from the pre-ACA study
iteration and customers can enter greater
“acceptable” values
8
ACA Contents
Additional components of ACA:
• Agreement with Table 1 for OASIS requests
• Appendix 1 – Study parameters
• Appendix 2 – Mutually exclusive requests
9
ACA – Table 1
•
ACA Table 1 will list all OASIS requests covered by
agreement:
•
Any related GI study number should be included in
the ‘GI Study Number’ column
10
ACA – Appendix 1
Customer selects
study option at top
of Appendix 1.
Remain: Items 1-5
must be completed.
Sign and date at
bottom.
13
ACA – Appendix 1
Customer selects
Expedited Service,
Accepts ATC or
Withdraws, then
skip items 1-5 and
sign and date at
bottom.
14
ACA – Appendix 1 – cont.
(1) Directly Assigned Upgrade Costs (DAUC)
– Customer can specify a maximum amount, but no less
than its DAUC from the iteration prior to signing the ACA
– If no maximum amount is provided in (1)(b), the value
from the most recently posted study will be utilized
15
ACA – Appendix 1 – cont.
(2) 3rd Party Upgrade Costs
– Customer can specify a maximum amount, but no less than
its costs from the iteration prior to signing the ACA
– Customer can elect to either remain in the current study or
move to the next highest priority study in queue if the 3rd
party cost is non-zero or listed as indeterminate
– If no maximum amount is provided in (2)(b), the value from
the most recently posted study will be utilized
– If no selection is made for (2)(c), the request will remain in
study
16
ACA – Appendix 1 – cont.
(3) Deferred Start Date without redispatch
– Customer can specify the latest acceptable start date
– If date in (3)(b) is left blank, the Start Date from Most
Recently Posted Study will be the default date
17
ACA – Appendix 1 – cont.
(4) Interim Redispatch, if it can provide an earlier
Start Date
– Customer can specify if Interim Redispatch is acceptable
– If no selection is made, then ‘No’ will be the default
18
ACA – Appendix 1 – cont.
(5) Letter of Credit (if required)
– Customer can specify a maximum amount
– If no maximum amount is provided in (5)(b), the value
from the most recently posted study will be utilized
19
ACA – Appendix 2
•
Mutually-exclusive requests
– Post AFS-4, customer must select only one (1) request to
remain in study.
– Customer will withdraw any remaining requests
20
BCP STUDY PROCEDURE
21
BCP Study Procedure
YES
Customers with requests
that did not meet
parameters may withdraw
or must execute ACA
amendment to remain
Did any
customers
withdraw?
NO
NO
Facilities
Study
Customer
Action
Are New
Completion
Requirements
Met?
YES
Accept all requests
and Tender Service
Agreements
3rd Party Process
• BCP Facilities Study begins once
initial ACAs are returned
• Parameters evaluated from ACA
Appendix 1 and 2
• Requests that don’t meet one of
the parameters may be
• Withdrawn
• ACA Amended
• Requests that meet all
parameters will remain in study
• Restudy, if needed
SPP Staff
Action
ACA Completion Requirements
1. Maximum directly-assigned upgrade cost
2. Maximum 3rd party upgrade cost
3. Latest acceptable deferred start date
4. Accept interim redispatch
5. Maximum Letter of Credit
• If no requests are withdrawn,
begin finalizing study
• “Next Steps” emails
• Accept all requests
• Tender Service Agreements
• 3rd Party Process
3RD PARTY IMPACTS
23
3rd party impacts
•
The customer with 3rd party
impacts has three options prior
to executing the ACA and
entering into BCP
–
Option 1: Withdraw the
request
–
Option 2: Move to next study
–
Option 3: Continue in study
subject to make-whole
payment
24
3rd Party Impacts – cont.
YES
Start
Post AFS-4 and
Tender ATSS
Completion
Agreement (ACA)
Customer
Action
Customer
with 3rd
party
impacts may
move to next
study
Customer
Executes
ACA
Customer
Does Not
Execute ACA
SPP Staff
Action
Customers with requests
that did not meet
parameters may withdraw
or must execute ACA
amendment to remain
Did any
customers
withdraw?
Customers with unresolved
NO
rd
3 party impacts may
Are New
choose to moveCompletion
to the next
Facilities
Requirements
Study
aggregate study
prior to
Met?
execution of the ACA
Request
Withdrawn
Collect Make-Whole
Payments from
Customer, if
required
YES
NO
Accept all requests
and Tender Service
Agreements
Customer with
3rd Party impacts
postpones action
Customer Does Not
Confirm Service
ACA Completion Requirements
1. Maximum directly-assigned upgrade
cost
2. Maximum 3rd party upgrade cost
3. Latest acceptable deferred start date
4. Accept interim redispatch
5. Maximum Letter of Credit
Project
Tracking
Stop
Issue
NTCs, if
required
Customer Confirms
Service (and
Executes Service
Agreement)
3rd Party Impacts – cont.
YES
Start
Post AFS-4 and
Tender ATSS
Completion
Agreement (ACA)
Customer
Action
Customer
with 3rd
party
impacts may
move to next
study
Customer
Executes
ACA
Customers with requests
that did not meet
parameters may withdraw
or must execute ACA
amendment to remain
Did any
customers
withdraw?
Customers with unresolved 3rd party NO
impacts after study
Are New
Facilities
Completion
completion may
Requirements
Study
postpone the decision
to
Met?
confirm service
Customer
Does Not
Execute ACA
SPP Staff
Action
Request
Withdrawn
YES
Collect Make-Whole
Payments from
Customer, if
required
NO
Accept all requests
and Tender Service
Agreements
Customer with
3rd Party impacts
postpones action
Customer Does Not
Confirm Service
ACA Completion Requirements
1. Maximum directly-assigned upgrade
cost
2. Maximum 3rd party upgrade cost
3. Latest acceptable deferred start date
4. Accept interim redispatch
5. Maximum Letter of Credit
Project
Tracking
Stop
Issue
NTCs, if
required
Customer Confirms
Service (and
Executes Service
Agreement)
3rd Party Impacts – Postponing Service
3rd
Customer with
Party impacts
postpones action
Timer Starts
(1 year or
Service Start
Date)
Customer
Action
SPP Staff
Action
Applicable
3rd Party
Evaluation
Process
3rd Party
Action
Agreement is not
reached with
3rd party or time
expires
3rd Party clears
Request
Request is Declined
and Sponsored
Upgrade Agreement is
Tendered
Request is Accepted
and Service
Agreement is
Tendered
Make Whole Payment
(MWP) is collected
from Customer
Customer Confirms
Service (and
Executes Service
Agreement)
27
3rd Party Impacts – cont.
YES
Start
Customers with requests
that did not meet
parameters may withdraw
or must execute ACA
amendment to remain
Customer
with 3rd
party
impacts may
move to next
study
Customers with 3rd party
impacts that move forward
Post AFS-4 and
Customer
be
Tender ATSS by signing the ACA mayFacilities
Executes
Completion subject to a make-whole
Study
ACA
Agreement (ACA)
payment if service is not
confirmed.
Customer
Action
Customer
Does Not
Execute ACA
SPP Staff
Action
Request
Withdrawn
Did any
customers
withdraw?
NO
NO
Are New
Completion
Requirements
Met?
YES
Collect Make-Whole
Payments from
Customer, if
required
Accept all requests
and Tender Service
Agreements
Customer with
3rd Party impacts
postpones action
Customer Does Not
Confirm Service
ACA Completion Requirements
1. Maximum directly-assigned upgrade
cost
2. Maximum 3rd party upgrade cost
3. Latest acceptable deferred start date
4. Accept interim redispatch
5. Maximum Letter of Credit
Project
Tracking
Stop
Issue
NTCs, if
required
Customer Confirms
Service (and
Executes Service
Agreement)
MAKE-WHOLE PAYMENT (MWP)
29
Make-Whole Payment (MWP)
•
Customers that sign an ACA without executing a
Transmission Service Agreement (TSA) are obligated to
pay for any shared upgrade costs in the form of a
MWP
•
Customers that pay a MWP will execute a Sponsored
Upgrade agreement under Attachment J
– Sponsored Upgrades are eligible to receive revenue
credits under Attachment Z2
30
Make-Whole Payment (MWP) Process
Re-Run Cost
Allocation &
Prepare Sponsored
Upgrade
Agreements
Notify Customer
of MWP and
Tender Sponsored
Upgrade
Agreements
Settlement of
Make Whole
Payment
Incorporate into
Creditable
Upgrades
Database
31
Maximum Potential MWP Example
• Excerpt from Table 3 of study report showing Service
Upgrades allocated to a request
Upgrade # Upgrade Name
DUN
EOC
1
GRAND ISLAND - SWEETWATER 345KV CKT 2
12/1/2013
6/1/2019
2
HYDRALIC JCT NORTH - MACARTHUR 69KV CKT 1
6/1/2018
6/1/2018
3
HYDRALIC JCT NORTH - OAKLAWN 69KV CKT 1
6/1/2018
6/1/2018
4
SMAN_W_3 115.00 - SOUTH MANHATTAN 115KV CKT 1
6/1/2015
6/1/2016
5
ST JOHN - ST_JOHN 115KV CKT 1 MIDW
12/1/2013
6/1/2016
6
ST JOHN - ST_JOHN 115KV CKT 1 MKEC
12/1/2013
6/1/2016
Earliest Redispatch
Start Date Available
Allocated E & C
Total Revenue
Maximum
Cost
Total E & C Cost Requirements
No
$
207,454 $
96,288,750 $
634,269
Potential
MWP:
$
1,745,900 $
1,745,900 $
5,150,283
$1,098,494
$
1,098,100 $
1,098,100 $
3,239,318
$
78,476 $
790,000 $
285,837
No
$
19,438 $
450,000 $
55,670
No
$
24,298 $
562,500 $
117,718
Total: $
3,173,666 $
100,935,250 $
9,483,093
• The highlighted cells depict the potential MWP for each
upgrade, based on the revenue requirements.
• The non-highlighted upgrades are non-shared upgrades and
are not included in the MWP calculation.
32
Non-Shared Upgrades
•
Non-shared upgrades will not be included in the
Make-Whole Payment for requests that are not
confirmed
•
Exception:
–
Non-shared upgrades that are allocated to a request
with a third-party impact that exercised the option to
postpone action will be included in subsequent studies
–
If service is granted to subsequent requests that rely on
the non-shared upgrade, the original request will be
assigned a MWP if the request is not confirmed
33
OPEN SEASON EXTENSION
34
Open Season Extension
•
Open season will remain open until either the
immediately prior study becomes the highest priority
study or SPP Staff determines the Open Season needs
to close
– SPP will give at least 10 days’ notice before the open
season closes
– The Open Season will be open for no less than 4
months
• 2014-AG1 will be the first open season to be
extended
35
ONE-TIME COST-CAUSER
EXEMPTION
36
One-Time Cost-Causer Exemption
•
Customers will have an opportunity to
withdraw any pending aggregate study request
without incurring an obligation to pay for
subsequent restudies
– Customers have 45 days after FERC
acceptance of the tariff language to exercise
the option
•
This is a one-time exemption
37
WRAP-UP
38
Implementation Timeline
•
Filed Tariff Aug. 15, 2013
•
FERC order expected by Oct. 14, 2013
•
Letters of Intent due for 2011-AG3-AFS-10 on Oct. 12
•
If FERC issues an order by COB October 14, 2013 and
accepts the October 12, 2013 effective date, then:
–
2011-AG3 will be subject to BCP if it did not complete
with AFS-10 (ACA will be tendered)
–
If October 12th is not the effective date, 2011-AG3 will
continue under the Current Process if it did not
complete with AFS-10
39
Posting of Documents on spp.org
40
ATSS Contact Information
Steve Purdy, Manager
[email protected]
(501) 614-3371
Chris Jamieson, Lead Engineer
Eric Samson, Sr. Engineer
James Bailey, Engineer
David Duhart, Engineer
Terry Fang, Engineer
Charlton Hill, Engineer
Aaron Stewart, Engineer
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
(501) 614-3231
(501) 614-3375
(501) 688-8243
(501) 688-1705
(501) 688-1709
(501) 688-1716
(501) 482-2168
John O’Dell, Analyst
Sherri Maxey, Analyst
[email protected]
[email protected]
(501) 688-8285
(501) 688-1648
General email: [email protected]
41