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Open Access Transmission Tariff Amendment No. 9

Open Access Transmission Tariff Amendment No. 9. Greg Broeking, Chief Financial Officer March 7, 2012. Background Information. A cost-of-service study was performed to: Update revenue required to serve the District’s transmission customers

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Open Access Transmission Tariff Amendment No. 9

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  1. Open Access Transmission TariffAmendment No. 9 Greg Broeking, Chief Financial Officer March 7, 2012

  2. Background Information • A cost-of-service study was performed to: • Update revenue required to serve the District’s transmission customers • Accommodate the significant increase of third-party generation • Additional study • An additional review of the cost-of-service was conducted for a reasonability check • Other rate options were examined and recommended • The economic development rate on a MWh basis was proposed to mitigate the Pancaking Effect

  3. EconomicDevelopmentBenefits • The unemployment rate is extremely high in the District’s service area • New renewable resources would help create new job opportunities • New generation facilities would benefit the ratepayer • Improving reliability • Providing additional revenue due to the increase of the throughput on the District’s transmission system

  4. Overview of Changes Revisions to IID’s Open Access Transmission Tariff (OATT) and Generator Interconnection Agreement (GIA): • Transmission reserve capacity section • The economic development rate will be on a MWh basis • Accommodate the significant increase of third-party generation • Possible reserved capacity requirement(s) to mitigate financial risk to the District • Provide a form of support for the reserved capacity that shall be reasonable for the required service needs • A review of the customer’s annual usage may be done to adjust future transmission capacity reservations

  5. Overview of Changes (continued) • An additional fee may be imposed when the committed minimum usage is not met • When not utilized, the reserved capacity will be temporarily released to the District for potential resell to other customers • Transmission Rate Credits • Provided for a period of 25 years or the duration of the Power Purchase Agreement (PPA), whichever is shorter

  6. EconomicDevelopment • Availability – The rate will be available to eligible new long-term firm transmission service customers • Duration – The rate is proposed for a period of 15 years • Change in rate – The economic development rate is subject to change if the cost to serve the wholesale transmission customers increases

  7. OATT Rates(Current) ¹ Includes: Schedule 1 Scheduling, System Control & Dispatch Schedule 2 Reactive Supply and Voltage Control Schedule 7 Firm Point-to-Point Transmission

  8. Economic Development Rate

  9. NextSteps • Written comments – Submit by Thursday, March 16, 2012 • Review of comments – A summary of comments with IID’s responses will be provided on its OASIS at www.westtrans.net • Provide input to Board of Directors - Staff will provide comments and report stakeholder input to the Board • Final step – Will request Board approval of Amendment No. 9, to the IID’s OATT

  10. Please email comments, suggestions, and questions to Jamie Asbury, IID Inter-Connect Transmission Contracts Administrator at jlasbury@iid.com Thank you for your participation in the stakeholder process.

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