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WECC Strawman Business Practice for Conditional Firm Transmission Service (aka CFS)

WECC Strawman Business Practice for Conditional Firm Transmission Service (aka CFS). Market Interface Committee Meeting October 25, 2007 Lauren Nichols-Kinas (BPAT) Co-Chair WECC CF Task Force. Western Electricity Coordinating Council. Purpose.

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WECC Strawman Business Practice for Conditional Firm Transmission Service (aka CFS)

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  1. WECC Strawman Business Practice forConditional Firm Transmission Service(aka CFS) Market Interface Committee Meeting October 25, 2007 Lauren Nichols-Kinas (BPAT) Co-Chair WECC CF Task Force Western Electricity Coordinating Council

  2. Purpose • Meet FERC requirement for TSPs to coordinate on CFS • Encourage consistency across TSPs • Give TSPs a good starting point for BP • Provide potential users of Conditional Firm Transmission Service (CFS) with as much clarity as possible • Answer some outstanding questions about Conditional Firm Service

  3. What Strawman CF BP Does NOT Do • Describe the technical study process that a TSP will use • Define a methodology for determining whether a TSP has Conditional Firm ATC to offer

  4. Three Sections of Strawman BP • Definitions • Characteristics • “How To” Procedures for Requesting a CF Study

  5. Definitions • Bridge • Conditional Curtailment • Conditional Firm Service • Number of Hours Option • Reassessment • System Conditions Option

  6. CFS Characteristics • TC requests CFS study as part of System Impact Study (SIS) • TSPs not obligated to offer CFS if reliability would be negatively impacted or if CFS would interfere with statutory obligations • Each TSP determines their CFS study methods and if applicable, CFS ATC

  7. CFS Study Requirements • TSP studies both Number of Hours Option and System Conditions option unless customer requests otherwise • OATT timeframes for accepting an offer of service apply to CFS offers. If TC accepts CFS offer, must choose either the Number of Hours Option or the System Conditions Option and Bridge or Reassessment

  8. CFS Study Requirements (cont) • The SIS determines the number of conditional hours needed for Number of Hours Option. • Risk factor may be applied to number of hours needed

  9. CFS Curtailment Characteristics • Conditional Curtailment is done on same basis as secondary network curtailment priority • During non-CFS hours, CFS is curtailed on same basis as firm • TSP can use conditional curtailment rights during or in advance of the operating hour

  10. CFS Curtailment Characteristics (cont) System ConditionsOption • CFS curtailment may only occur when the contractually-specified events are occurring • TSP will provide as much advance notice as possible, but can curtail during operating hour • May be done for scheduled or unscheduled maintenance • TSP will track conditional curtailments and provide documentation upon request

  11. CFS Curtailment Characteristics (cont) Number of HoursOption • CFS curtailment may occur any time hours remain and schedule can relieve reliability problem that is occurring or anticipated to occur • A full or partial curtailment, whether it lasts a full hour or portion of an hour, constitutes one CFS hour used • Priority becomes firm if all hours used up • TSP will track number of hours used and provide documentation upon request

  12. CFS – Biennial Reassessment • Reassessment by TSP allowed every two years if TC didn’t choose bridge • Results must be provided to TC no less than 90 days prior to end of biennial period • If hours/conditions worsen, TC may choose to discontinue service; jurisdictionals re-file • If hours/conditions stay the same or improve, both parties remain contractually bound (improve=refile)

  13. CFS Miscellaneous Characteristics • Short-Term Firm ATC will be awarded to CFS TCs in queue order • CFS can be used to support designated network resources from outside the Balancing Area • CFS has rollover rights under same conditions as other Point-To-Point service rollover rights • CFS has same redirect and resale rates as other Long-Term Firm PTP • Charged at the LTF PTP rate

  14. How To Procedures – SIS • LTF PTP request must be submitted on OASIS • TSP makes finding of insufficient LTF ATC and the need for an SIS • TC indicates whether it wants CFS studied in the SIS • Same study timelines apply as before (60 days for the SIS, unless otherwise agreed)

  15. How To Procedures – SIS (cont) • If TC chooses CFS, must chose Option • Service agreement must document the chosen option • Jurisdictional Utilities must file agreement with FERC

  16. How To Procedures – SIS (cont) System Impact Study must specify: • Specific system constraint causing inability to provide LTF PTP and information on number of hours and system conditions options • Upgrades or additions needed to provide the requested service • Cost estimates for the additions or upgrades • If CFS is studied, Number of Hours Option info and System Conditions Info (unless otherwise requested)

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