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Southwest Power Pool, Inc. Market Readiness Seminar April 23, 2001. Project Overview. Nick Brown Sr. Vice President. SPP Background. 1941: Formed to serve defense needs 1968: NERC Regional Council 1980: Telecommunications network 1991: Operating Reserve sharing 1994: Incorporated
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Southwest Power Pool, Inc. Market Readiness Seminar April 23, 2001
Project Overview Nick Brown Sr. Vice President
SPP Background • 1941: Formed to serve defense needs • 1968: NERC Regional Council • 1980: Telecommunications network • 1991: Operating Reserve sharing • 1994: Incorporated • 1997: Security Coordination • 1998: Tariff Administration
Security Coordination • Monitor interconnected network • Anticipate problems • Take preemptive action • Coordinate regional response
Tariff Administration • Provide one-stop shopping • Consistent rates, terms & conditions • Regional focus • Independent administration
Market Settlement • Required by FERC Order 2000 for RTO • MSWG defined function; in process of contracting for computer system and services • Settlement Systems include: - Market Participant Registration - Ancillary Service Market Operation - Commercial System for Settlement
Market Settlement Project • On schedule and budget • $20.9M project (paid $6.8M to date) • Change assistance review • Quality assurance review • Exceeding expectations to date
Initial RTO Filing • SPP Board approved filing documents July 1999; approved actual filing November 1999 • Filed December 30, 1999, EL00-39 • (was ER00-975) • FERC denied SPP’s proposal finding it required modification to meet standards • SPP did not seek rehearing, rather focused on meeting FERC requirements
SPP Response • Formed RTOWG to recommend modifications to documents • Facilitated massive collaborative process involving all interested parties • Board approved RTOWG recommended documents on August 30, 2000 for 2nd filing
Entergy MOU • July 2000, SPP Board approved the • RTOWG recommended MOU w/ • Entergy for RTO/Transco partnership • to operate under the SPP RTO • Key results: • Seamless market • Single tariff and ATC calculation • Single congestion management
Second RTO Filing • Board approved documents for 2nd filing August 20, 2000 • Filing made October 13, 2000 • Noticed on October 20, 2000 as • Docket No. RTO1-34 • 27 protests filed; many non-participants in collaborative process • SPP responded December 5, 2000
RTO Protest Issues • Commitment of Transmission Owners • Lack of Section 203 Filings • Load Under Regional Tariff • Transco Authority • Governance • ETEC Facilities • Scheduling Penalty
FERC Order • March 28, 2001 Order • SPP RTO yet to be accepted: • Lack of Section 203 filings • More detail on transco partnership • More work on scope & configuration
SPP Board Response • Immediately seek Section 203 filings from jurisdictional members & signed RTO membership agreements from all members • Contact uncommitted neighboring systems to solicit interest & continue current discussions w/ neighboring regional entities • Provide additional partnership detail
Congestion Management • Current – December 15, 2002 Current Transmission Loading Relief process is applicable • Effective December 15, 2002 Transmission rights and locational pricing are used for congestion management
Congestion Management • Board Directed Hybrid Approach - LMP in real time - Financial & physical rights in forward market - Encourage planned transmission • Working Group in place & working • Defining real-time and forward markets • Future: market rules for congestion
MarketRules Richard Dillon Manager, Market Operations
Market Rules • Development Principles: • Minimal change to implement FERC Order 2000 • Absence of penalties in initial implementation • Cost Causation to the extent practicable • SPP provides imbalance service
Market Rules • Responsibility for schedules, data, and financial settlement is the Transmission Customer’s under the SPP Tariff • Energy Imbalance Service (EIS) is provided through market-based offer/acceptance
Market Rules • Control area operations are supported • EIS is through centralized dispatch • Regulation is through control area operations
Market Participant Responsibilities • Market Participants must complete the requirements to become a Customer of Southwest Power Pool, Inc. • This process includes: • registration with NERC • obtaining a TradeWave Digital Certificate • registering with SPP
Market Rules • Rules located at: • www.spp.org
Market Overview Richard Dillon Manager, Market Operations
FERC Order 2000 and SPP • Provider of last resort of ancillary services • Transmission operator • Market monitoring
Ancillary Services • Scheduling and Tariff Administration • Reactive Supply and Voltage Control • Regulation and Frequency Support • Energy Imbalance Service • Operating Reserve – Spin • Operating Reserve - Supplemental
SPP’s Role • Facilitate a spot balancing market for energy imbalance service • Provider of last resort for ancillary services • Account for all energy transactions within SPP’s area • Financially settle for RTO procured ancillary services
Retail Customers Private bilateral energy transactions Transmission Customers Schedules of loads and resources; and information and transactions required to support reliability. Electricity buyers Electricity sellers Load Resources Serving Entities SPP Bilateral Market and Scheduling
Electricity buyers Load Retail Serving Customers Entities Transmission Customers Calculate Settlement by LSE and invoice Utilities Metering SPP Settlements
SPP Responsibilities • Security analysis • Centralized scheduling • Registration • Resource acquisition & deployment • Settlement of SPP services • NSI Calculation
Load Serving Entities Responsibilities • Schedule Energy Transactions (including native load) • Aggregate Revenue Quality Load Data
Generation Entities Responsibilities • Schedule Energy Transactions • Submit SCADA Generation Data (real-time) • Submit Revenue Quality Generation Data • Submit Resource Plan • Submit Supply Curve
Control Areas Responsibilities • Real-time and Checked-out net interchange • Load Forecast • Outage Schedules • Regulation Control
MarketProcess Kevin Perry Manager, IT
Market Participant Web Listener Web Portal Metering Agent SPP Customer Service OASIS RTO_SS COS ICCP EMS MOS EMS ICCP Tag System The Participants
Market Participant Web Listener Web Portal SPP Customer Service OASIS RTO_SS COS ICCP EMS MOS EMS ICCP Tag System Participant Registration
Market Participant Web Listener Web Portal OASIS RTO_SS COS ICCP EMS MOS EMS ICCP Tag System Bids and Plans
Market Participant Web Listener Web Portal OASIS RTO_SS COS ICCP EMS MOS EMS ICCP Tag System Reservations/Schedules
Market Participant Web Listener Web Portal OASIS RTO_SS MOS EMS ICCP COS ICCP EMS Tag System Real-Time Operations
Market Participant Web Listener Web Portal Metering Agent OASIS RTO_SS COS ICCP EMS MOS EMS ICCP Tag System Market Settlement
Market Participant Web Listener Web Portal SPP Customer Service OASIS RTO_SS COS ICCP EMS MOS EMS ICCP Tag System Dispute Resolution
Customer Readiness R.J. Robertson Manager, Customer Service
Customer Readiness • Customer Service will support Market Participants in their readiness efforts to ensure they can participate in the RTO Readiness Trials beginning September 15
Customer Readiness • Your staff must be trained, and technology and processes must be in place for an effective simulation of a market to occur during RTO Readiness Trials
Why are RTO Readiness Trials so important? • So when RTO Business Operations commence on December 15, 2001, your company is ready and • able to do business!
Customer Service • Participant Readiness process: • Determine Readiness criteria • Determine activities/testing criteria • Establish timelines • Gather data from Market Participants • Measure progress • Report progress
Customer Service • Market Participants will receive: • Roadmap available on SPP website • Scorecards available on SPP website • Primary contact person at SPP • Regular review with SPP staff • Current status • Questions/concerns • Assistance