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NTTG 0rder 1000 Stakeholder Meeting March 28, 2012 Radisson Hotel Portland, Oregon

NTTG 0rder 1000 Stakeholder Meeting March 28, 2012 Radisson Hotel Portland, Oregon. Agenda. 2. Draft Tariff Revisions Order 1000 Stakeholder Update March 28, 2012 Radisson Hotel Portland, Oregon. PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE.

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NTTG 0rder 1000 Stakeholder Meeting March 28, 2012 Radisson Hotel Portland, Oregon

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  1. NTTG 0rder 1000 Stakeholder Meeting March 28, 2012 Radisson Hotel Portland, Oregon

  2. Agenda 2

  3. Draft Tariff Revisions Order 1000 Stakeholder Update March 28, 2012 Radisson Hotel Portland, Oregon PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  4. Draft Tariff Revision materials are posted to the NTTG Website • To access the Draft Tariff Revision materials click on the following: • Redline – Click Here • Clean – Click Here PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  5. Planning Committee Charter Order 1000 Stakeholder Update March 28, 2012 Radisson Hotel Portland, Oregon PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  6. Overview of Proposed Changes - (NTTG Planning Committee Charter) • General Changes: • Deleted paragraph on “Authority of Planning committee” and “Project facilitation” – too obvious • Moved the Principles and Footprint/Coordination to an Appendix • Deleted “Biennial Transmission Planning Cycle”, “Footprint/Coordination” and “Confidentiality of Data”– already in Attachment K document • Partitioned the document into nine major sections as follows: • Purpose – edited extensively • Duties and Responsibilities – new section • Committee Operating Structure • Committee Chair • Committee Meetings • Decision Making • Technical Work Group - new • Budget • Change Control PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  7. I. Purpose • The purpose of the NTTG Planning Committee is to: • Provide a forum where all stakeholders are encouraged to participate in the planning, coordination, and development of a more efficient and more cost effective Regional Transmission Plan. • Prepare a Regional Transmission Plan consistent with applicable NERC and WECC system reliability standards and criteria, and public policy needs. • Ensure the Regional Transmission Plan satisfies FERC Order 890 and 1000 compliance requirements.. •  The broad stakeholder participation envisioned in this process (including transmission owners, customers and state regulators) is intended to result in a Regional Transmission Plan that meet a variety of needs and has a broad basis of support. PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  8. II. Duties and Responsibilitiesof the Planning Committee • The NTTG Planning Committee reports to the NTTG Steering Committee and is responsible for: • Developing the study plan for each biennial cycle, • Obtaining NTTG Steering Committee approval of the study plan, • Performing and documenting the assessments as defined in the study plan, • Conduct stakeholder economic studies requests for the NTTG, • Coordinating transmission planning with adjacent regional planning groups, • Coordinating planning with the WECC planning committees, and • Publishing, on a biennial basis a Steering Committee approved regional Transmission Expansion Plan. PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  9. No changes applied to: • Committee Operating Structure • Committee Chair • Committee Meetings • Decision Making PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  10. V. Technical Work Group – “New” The NTTG Planning Committee will form and over see a Technical Work Group (TWG) having the proper technical skills, experience, tools and resources to perform the detailed analysis and studies required to support the biennial study cycle and the plan development overall. The TWG will be responsible for performing the bulk of the technical studies and analysis required by the most recent approved biennial regional transmission study plan. The Planning Committee will select individuals from the Planning Committee members based on transmission planning experience, access to and ability to use power system analysis and/or production cost simulation software, power system modeling expertise, and overall knowledge of the NTTG transmission footprint and the western interconnection. PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  11. No Change VIII. Budget PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  12. IX. Change Control Procedures Changes to the Planning Committee structure, functions and responsibilities including its Charter will be conducted through open stakeholder processes currently in use by NTTG and any changes will subsequently be approved by the NTTG Steering Committee. PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  13. QUESTIONS ? PROCESS AID FOR DISUCSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  14. Regional Planning Practice Order 1000 Stakeholder Update March 28, 2012 Radisson Hotel Portland, Oregon PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  15. Information from NTTG’s Regional Planning Practice document Index Objective of NTTG’s Regional Transmission Planning Process Biennial Planning Cycle Information Gathering from Transmission Providers and Stakeholders Regional Transmission Plan Evaluation Process Study Plan PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  16. Objective Regional Planning Process • Develop an initial regional transmission plan from a roll up of the local transmission plans • Improve upon that plan, if possible, • Develop a Regional Transmission Plan that meets the regional transmission needs more efficiently and cost effectively than the roll up of the transmission providers local transmission plans PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 3

  17. Information from NTTG’s Regional Planning Practice document Index Objective of NTTG’s Regional Transmission Planning Process Biennial Planning Cycle Information Gathering from Transmission Providers and Stakeholders Regional Transmission Plan Evaluation Process Study Plan PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  18. Biennial Planning Process While the resulting Regional Transmission Plan is not a construction plan, it will provide valuable regional insight and information for all stakeholders to consider and potentially modify their respective plans. PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 4

  19. Information from NTTG’s Regional Planning Practice document Index Objective of NTTG’s Regional Transmission Planning Process Biennial Planning Cycle Information Gathering from Transmission Providers and Stakeholders Regional Transmission Plan Evaluation Process Study Plan PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  20. Type of Project Submitted Types of projects potentially in the regional transmission plan projects with potential regional impact rolled up from one or more local transmission providers’ transmission plan(s) merchant developer projects new “unsponsored” regional project identified through the regional planning process interregional projects non-transmission alternative projects transmission projects to satisfy existing or future public policy needs required by state or federal law or requirements PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 5

  21. ProjectSubmittalProcess PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 6

  22. Submitted in Plan for Cost Allocation PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 7-8

  23. Continued PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 7-8

  24. Additional Cost Allocation Data PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 9

  25. Continued PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 9

  26. Timeline for Submissionof Qualification Data PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 10

  27. Selecting the Public Policy Needs for the Regional Transmission Plan Public policy needs will be evaluated with other regional projects rather than considering public policy needs separately from other transmission needs. PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 11

  28. Information from NTTG’s Regional Planning Practice document Index Objective of NTTG’s Regional Transmission Planning Process Biennial Planning Cycle Information Gathering from Transmission Providers and Stakeholders Regional Transmission Plan Evaluation Process Study Plan PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  29. Biennial Plan Evaluation Process Year 1 Year 2 PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 13

  30. Information from NTTG’s Regional Planning Practice document Index Objective of NTTG’s Regional Transmission Planning Process Biennial Planning Cycle Information Gathering from Transmission Providers and Stakeholders Regional Transmission Plan Evaluation Process Study Plan PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  31. The Study Plan • Developed during the second quarter • Will be developed in consultation with stakeholders • Will delineate the method of study of evaluation • of transmission and non-transmission alternatives that have been received • Will be followed as closely as possible • any change will coordinate stakeholders • scheduled Transmission Planning committee meetings PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 13

  32. The Study Plan The minimum information to be in the study plan will include the following: PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 14

  33. Goal of the Study • Determined to be an efficiently and cost effective • May be different than the local transmission plans. Planning Study Will… • Examine a limited number of scenarios • Identify regional transmission and non transmission improvements and/or new solutions • Include additional scenarios other public policy needs PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 14

  34. Deliverables from the Plan • develop a Regional Transmission Plan • plan meets the regional transmission needs • more efficiently and • cost effectively than the initial regional transmission plan • deliverables may be further defined • during the development of the study plan • with consultation from stakeholder PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 14

  35. At a minimum a more efficient Regional Transmission Plan … • when compared to the initial transmission plan • meets the needs roughly commensurate • equal to or better reliability performance • congestion will not be greater • can be developed in the proper timeframe • does not accelerate any future problems unless • total cost with mitigation no greater than initial transmission plan • there is sufficient time to mitigate the problem PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 14

  36. At a minimum a more cost effective Regional Transmission Plan … • when compared to the initial transmission plan • total incremental capital cost is less than or equal to • total production cost of the is less than or equal to • or, the sum less than or equal to The study plan may modify the efficient and cost effective selection criteria after consultation with stakeholders. PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 15

  37. Reevaluation of Project Selected in Regional Plan for Cost Allocation • A transmission provider solution maybe displaced during NTTG’s regional biennial planning • and a delay in development of a project selected in the regional plan for cost allocation occurs • Transmission Provider may choose to … • have effects evaluated in the biennial process • revise their local plan back to original solution that was displaced PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 15

  38. Methodology • The Plan will … • biennially prepare a long-term (up to 10 year) • describe the study techniques • identify the system conditions • use a recently TEPPC study base case • discussion the contingencies to be run • meet applicable NERC and WECC system reliability standards and criteria PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE Planning Practice Pg 16-17

  39. QUESTIONS ? PROCESS AID FOR DISUCSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  40. Cost Allocation Workgroup Status Update Order 1000 Stakeholder Update March 28, 2012 Radisson Hotel Portland, Oregon PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  41. NTTG Benefits Brainstorm Sessions:Part I (Portland 2/17) • RTOs • MISO • CAISO • SPP • NYISO • NTTG Members • MISO LODF • PJM DFAX • Bottom Up “Economic Projects” PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  42. Benefits and Cost AllocationBrainstorm Part II (Boise 2/29) • Outcome from Boise 2/29 discussion of top down vs. Bottom Approach to Cost Allocation • Book reports looking at how RTOs arrived at methodologies for determination of benefits and cost allocation • SPP (Highway/Byway • MISO • PJM (DFAX) • Revised work plan developed • NYISO • Bottoms Up Approach PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  43. Cost Allocation Methodology Assessment Plan • NTTG must adopt a cost allocation methodology to meet the compliance requirements of Order No. 1000 • Work plan: • Analyze and prepare “book reports” on methodologies previously approved by FERC • Determine which metrics used to support these methodologies may be appropriate for NTTG’s use • Where possible, run modeling scenarios using the identified metrics to simulate cost allocation results for NTTG • Based on these analyses and stakeholder input, recommend a cost allocation methodology for approval by the NTTG Steering Committee PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

  44. Current Status • Book Report Results Update • Direction Forward PROCESS AID FOR DISCUSSION PURPOSES ONLY AND SUBJECT TO CHANGE

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