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May 16, 2019 | Westborough, MA

May 16, 2019 | Westborough, MA. Brent Oberlin. (413) 540-4512 | boberlin@iso-ne.com. Order 1000 Competitive Transmission Solicitation and Other Enhancements. Proposed Revisions to the Transmission Planning Process.

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May 16, 2019 | Westborough, MA

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  1. May 16, 2019 | Westborough, MA Brent Oberlin (413) 540-4512 | boberlin@iso-ne.com Order 1000 Competitive Transmission Solicitation and Other Enhancements Proposed Revisions to the Transmission Planning Process

  2. Based on the results of the 2028 Boston Needs Assessment (which were presented to the Planning Advisory Committee (PAC) in April) the ISO plans to issue its first Request for Proposal (RFP) for a competitively developed transmission solution in December 2019 • In preparation for the upcoming RFP, it is helpful to refine and also clarify some provisions in Attachment K • Additional updates and corresponding changes are proposed in Section I of the ISO Tariff • This is the first meeting at the Transmission Committee to discuss these changes, which are anticipated to be filed with FERC in October • Note that related changes will be discussed at the Reliability Committee (see schedule slide)

  3. Overview of Current Process • To simplify the discussion, the presentation focuses on Reliability Transmission Upgrades and Market Efficiency Transmission Upgrades • Many processes are similar, but they are not identical • Useful references to better understand the process • Attachment K to the ISO New England Open Access Transmission Tariff • Transmission Planning Process Guide • Appendix to this presentation • Needs Assessment (Attachment K, Section 4.1) • Initiation • Resource assumptions • PAC input • Determination of Solutions Study or Competitive Solution Process for solution development • Publication • Solutions Studies (Attachment K, Section 4.2) • Initiation • ISO, working with the incumbent Transmission Owners, develops transmission solutions • PAC input • Publication

  4. Overview of Current Process, continued • Competitive Solution Process (Attachment K, Section 4.3) • ISO issues RFP • Qualified Transmission Project Sponsors (QTPS) may submit Phase One Proposals and TO(s) must submit a Backstop Transmission Solution • ISO reviews Phase One Proposals and Backstop Transmission Solution • Among other things, the ISO reviews the projects to ensure they: • Solve the all of identified needs • Are cost competitive • Are feasible • With PAC input, the ISO determines the Phase One Proposals that can be considered in the Phase Two process • Eligible QTPSs may submit Phase Two Solutions and the TO(s) must submit the Backstop Transmission Solution • These submittals require additional detail on the solutions but may not change the solution • With PAC input, the ISO identifies the preferred solution • ISO notifies Selected Qualified Transmission Project Sponsor (SQTPS) • This is an area of process improvement being proposed by the ISO • SQTPS provides milestone schedule • SQTPS accepts responsibility for the project after receiving all necessary siting and other approvals • This is an area of process improvement being proposed by the ISO

  5. Problem Statement Several areas of the Attachment K can be improved and updated. For example: • Competitive Solicitation Process: Sections regarding the information to be submitted in the bids, the selection process, the cancellation process, and other components can be expanded upon to further enhance the overall solicitation process • Ex: clarifications that cost caps/containment will be accepted and taken into consideration • Overlapping Provisions: As updates have been made over time, multiple sections are addressing the same issue • Ex: Treatment of retirement bids in Needs Assessments is stated in two different provisions • Restrictive Language: Some language makes it difficult to achieve process objectives and can be expanded or eliminated • Ex: SQTPS does not take responsibility for the project until after receiving all necessary siting and other approvals • Incorrect References and Clarifications: Some provisions have incorrect cross references, risking confusion when readers search for the additional information, and some provisions could be revised to be more accurate • Ex: The description of PAC membership describes a more rigorous membership process than is necessary

  6. Proposal Overview The ISO proposal contains three main categories of changes; the ISO discussion will focus primarily on the key areas of the first two categories: • Summary of additional provisions: • Allowing for the cancellation of an RFP or a Solutions Study • Addition of the Selected Qualified Transmission Project Sponsor Agreement (SQTPSA) • Addition of definitions to support the SQTPSA • Addition of evaluation criteria when evaluating solutions • Addition of language to specify that work on Phase Two Solutions and the Backstop Transmission Solution should stop unless it was selected by the ISO • Addition of language regarding the use and control of right-of-way to the Public Policy section of the Tariff as it was inconsistent with the competitive process described in Section 4.3

  7. Proposal Overview continued • Summary of improved/enhanced provisions: • Changes made to PAC membership to clarify that anyone can attend, subject to CEII restrictions • Wording change to clarify that solutions must address the identified need • Elimination of the “Concept” category from the RSP Project List • Revision to the triggers for initiating a Needs Assessment • Elimination of redundant provisions regarding the handling of rejected Permanent and Retirement De-List Bids • Allowing for someone other than the project proponent to supply contractual obligations for resources to be relied upon to address reliability concerns • Elimination of ambiguous language regarding appropriate forums for the discussion of Needs Assessments • Changing the comment period on time-sensitive needs • Inclusion of language to specifically allow for the provision of cost cap or cost containment measures • Clarification of the materials to be provided as part of the Phase/Stage One and Phase/Stage Two responses • Inclusion of language to clarify that multiple Backstop Transmission Solutions cannot be submitted • Removal of duplicate language that describes removal of projects from the RSP Project List • Modification to Section I.3.9 to ensure that sufficient engineering can be completed to support project development • Clarifying Changes: Some provisions have incorrect cross references and other provisions have been revised to be more accurate

  8. Summary of Proposed Tariff Changes: Additional Provisions

  9. Summary of Proposed Tariff Changes: Additional Provisions

  10. Summary of Proposed Tariff Changes: Additional Provisions

  11. Summary of Proposed Tariff Changes: Additional Provisions

  12. Summary of Proposed Tariff Changes: Additional Provisions

  13. Summary of Proposed Tariff Changes: Additional Provisions

  14. Summary of Proposed Tariff Changes: Additional Provisions

  15. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  16. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  17. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  18. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  19. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  20. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  21. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  22. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  23. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  24. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  25. Summary of Proposed Tariff Changes: Improved/ Enhanced Provisions

  26. Summary of Proposed Tariff Changes: Clarifying Changes

  27. Conclusion • Numerous improvements to Attachment K and Section I are proposed • Introduction of SQTPSA and change of timing for SQTPS acceptance of responsibility • Improvements and clarifying language added throughout • Corrections to references throughout • Corresponding changes made to definitions in Section I • Plan is to file Tariff changes with FERC in October 2019 with a requested effective date in December 2019 • The following stakeholder schedule supports this outcome

  28. Stakeholder Schedule for Attachment KProposed Effective Date – Mid-December 2019 • If the associated FERC filing is made by mid-October, the proposed effective date of the revisions would be by mid-December • Reliability Committee will be reviewing Section III.12.6 in parallel

  29. Brent Oberlin (413) 540-4512 | boberlin@iso-ne.com

  30. Appendix Flowcharts outlining the Order 1000 process

  31. Determination of Solution Development Process

  32. Phase One Proposal Process

  33. Phase Two Solution Process

  34. Phase Two Solution Milestones

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