1 / 7

Desert STAR RTO Pricing Proposal

Desert STAR RTO Pricing Proposal. Committee on Regional Electric Power Cooperation April 18, 2001 Ed Beck Tucson Electric Power Company. Background. Postage stamp pricing is not acceptable in the initial stages of DSTAR for several TOs due to cost shifts

javen
Download Presentation

Desert STAR RTO Pricing Proposal

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Desert STAR RTOPricing Proposal Committee on Regional Electric Power Cooperation April 18, 2001 Ed Beck Tucson Electric Power Company

  2. Background • Postage stamp pricing is not acceptable in the initial stages of DSTAR for several TOs due to cost shifts • Simple access area concept is not acceptable to other TOs • A compromise position, the Access Area Method (License Plate) with an adjustment to compensate Western for otherwise unrecovereable revenues was selected by Transmission Owners • Based on current transmission rates

  3. Access Area Pricing Model • Load within footprint pays access charge based on access area where the load resides • Access Area Rate times the SC’s demand at the time of Access Area’s monthly peak • The Wheeling Out/Wheeling Through(WOWT) will be charged higher of Access Area Rate of exit point or average DSTAR rate • Charge will be mwhr rate • May be superceded by Seams treatment • All loads will pay an applicable administrative charge

  4. Rate Changes / Congestion • AAR will be adjusted when a PTO changes Annual Transmission Revenue Requirement (ATRR) with appropriate regulatory approval • Congestion will be handled with Firm Transmission Rights (FTRs) • Auction • Auction proceeds to historical users

  5. DSTAR Administrative Charge • DSTAR administrative charge will consist of two elements: • Transmission Benefits Charge • Hourly metered Demand for Resident Load and the final schedule for Wheeling • All other DSTAR costs • Hourly metered Demand for Resident Load and the final schedule for Wheeling

  6. Transmission Benefit Charge (TBC) • Western’s ATRR (as approved through Western’s Public process) • EC payments received by Western • Transfer payments received by Western • AAR * Resident Load received by Western from DSTAR • Wheeling revenues distributed to Western • RTR auction revenues distributed to Western • FTR auction revenues at Scheduling Points distributed to Western • Transmission Benefit Charge

  7. End State • Transmission Owners have settled on a Highway / Zonal model concept for end state • Model details will be established in the next year • Implementation will begin 1/09 (after rate moratoriums) • Components for highway are typically facilities used for bulk transmission • Zonal facilities typically are needed only for service within a zone (definition of zones is assumed to be similar to access areas)

More Related