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NORTHWEST POWER POOL Reliability through Cooperation

NORTHWEST POWER POOL Reliability through Cooperation. Brazilian Delegation May 6, 2009. Presentation Outline. Northwest Power Pool Background Pacific Northwest Coordination Agreement Headwater Benefits. Regional Reliability Councils. NWPP. North American Interconnections. NWPP. RMPP.

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NORTHWEST POWER POOL Reliability through Cooperation

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  1. NORTHWEST POWER POOLReliability through Cooperation Brazilian Delegation May 6, 2009

  2. Presentation Outline • Northwest Power Pool Background • Pacific Northwest Coordination Agreement • Headwater Benefits

  3. Regional Reliability Councils

  4. NWPP North American Interconnections

  5. NWPP RMPP CAMX AZNM NERC/WECC Subregions Rocky Mountain Power Pool Public Service Company of Colorado Western Area Power Administration – CM Arizona-New Mexico Arizona Public Service Company Arlington Valley Harquahala Gila River Griffith El Paso Electric Company Imperial Irrigation District Nevada Power Company Public Service Company of New Mexico Salt River Project Tucson Electric Power Company Western Area Power Administration – DSW California-Mexico California Independent System Operator Comision Federal de Electicidad Los Angeles Dept. of Water and Power Northwest Power Pool Alberta Electric System Operator Avista Corporation Bonneville Power Administration British Columbia Transmission Corporation Chelan County PUD Douglas County PUD Grant County PUD Idaho Power Company NaturEner (Glacier) Northwestern Energy PacifiCorp-East PacifiCorp-West Portland General Electric Company Puget Sound Energy Sacramento Municipal Utility Board Seattle City Light Sierra Pacific Power Company Tacoma Power Turlock Irrigation District Western Area Power Administration – UGP

  6. NWPP HISTORIC DATES • 1942 - Operating Committee • 1964 - Pacific Northwest Coordination Agreement signed • 1990 - Transmission Planning Committee

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

  8. 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)

  9. THREE MAIN COMMITTEES • Operating Committee • Foster coordination and communication. • Coordinating Group • Administer the Pacific Northwest Coordination Agreement, optimizing Columbia Basin hydro generation. • Transmission Planning Committee • Provide a forum for reliable transmission planning.

  10. 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

  11. PHYSICAL FACTORS(that Drive Northwest Reliability) • Generation/Resources • Load • Transmission • Temperature

  12. 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

  13. COLUMBIA RIVER TREATY • Revelstoke filled • Non-Treaty Storage Agreement

  14. 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

  15. 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.

  16. 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

  17. 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.

  18. 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)

  19. COORDINATED RESERVOIR OPERATIONS - Factors • Retirements of Resources • Project Data – Load and Firm Resources • New Resources • Purchases • New Non-Power Requirement • Exchanges • Maintenance • Reserve • Operations

  20. COORDINATED RESERVOIR PRODUCTS - Flexibility • Holding Energy • Storage • Interchange Energy • Interchange Capacity • Credits for in Lieu of Energy Spilled • Transfers to Avoid Spill

  21. 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

  22. 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.

  23. COORDINATED RESERVOIR HEADWATER BENEFITS • Headwater Improvement Annual Charges • Interest • Maintenance • Operations • Depreciation • Property Taxes (if applicable)

  24. 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.

  25. 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: • A weighted average of useable energy from at-site storage and downstream at-site storage (A-sub-s + P-sub-s) is calculated. • A weighted average of useable energy from unregulated flow plus storage releases from upstream reservoirs (A-sub-h + P-sub-h) is calculated. • 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.

  26. COORDINATED RESERVOIR HEADWATER BENEFITS • 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. • 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.

  27. QUESTIONS?

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