W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C OU N C I L

Unscheduled Flow Administrative Subcommittee Report for MIC

Pete HeimanOctober 14, 2015

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W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C OU N C I L

Meetings

• Last meeting September 29-30, 2015

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W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C OU N C I L

Lifting 1995 Caps

• Paperwork in nearly complete and PacifiCorp has agreed to file on behalf of the Qualified Device Owners.

• Filing will go forward as soon as the documents are ready.

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New Cost Allocation Methodology

• UFAS last presented a cost allocation methodology that included a BA base charge, and a charge based on BA load and generation.

• Some small and large entities indicated that they felt load should not be used. Specifically, it was felt that if a BA is simply using generation to serve its load, it should not be paying USF assessments.

• There was also disagreement on the amount of the base charge.

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New Cost Allocation Methodology

• The takeaways from the last meeting and follow-on discussions with stakeholders were:

- Don’t penalize entities who are just serving their load.- Use data that is more correlated to USF to determine assessments.

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New Cost Allocation Methodology

In response to stakeholder feedback, a different methodology based on monthly FERC 714 Net Actual Interchange (NAI) data was developed by WECC staff and reviewed by the UFAS.

The new method allocates monthly COPS costs to BAs based on their monthly NAI values.

The new method uses the same year for COPS costs and NAI data, and the calculations are greatly simplified.

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New Cost Allocation Methodology

Both USFTF and UFAS evaluated the Interchange methodology and considered including a base charge, generation, and/or a load component.

Ultimately UFAS felt that a simple charge based on Net Actual Interchange (NAI) data was the best approach.

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W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C OU N C I L

Net Actual Interchange Methodology

Benefits:• Net Actual Interchange data excludes generation

used to serve native load. • Net Actual Interchange captures dynamic and

pseudo-tied resources for each BA.• Net Actual Interchange is correlated to USF.• FERC 714 data is publicly available and

international entities can easily provide the data.

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W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C OU N C I L

Net Actual Interchange Methodology

Weaknesses:• Net Actual Interchange does not always cause

USF.• FERC 714 Net Actual Interchange data is for all

paths and not just the Qualified Paths. • Gen-only BAs only have interchange.

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W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C OU N C I L

Net Actual Interchange Methodology

2014 Calculations• The top 10 BAs pay 80% of the costs.• The bottom 28 BAs pay 20% of the costs.• Monthly COPS costs and monthly Net Actual

Interchange are correlated.• Overall cost equates to about 1.7 cents per

MWh of Net Actual Interchange.

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Net Actual Interchange Methodology

Questions?

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Net Actual Interchange Methodology

The UFAS would like to take a straw vote to gauge overall support.

Straw Motion: OC approves of UFAS moving forward with the new cost allocation methodology based on BA Net Actual Interchange.

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Other UFAS Activities

• UFAS is coordinating with PEAK to migrate the webSAS program into webIntegrity after completing the current phase.

• WebSAS functionality should not be impacted by the integration and no changes in how events are handled (from present) are expected.

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W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C OU N C I L

Path and Device Updates

• New Pinto PST will be operated in parallel with other qualified devices and expected to be in service in November 2015

• Paths 22 & 23 are eligible for disqualification.

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Plan Year 21 Operating Statistics

• Activity as of October 2, 2015:634 hours of COPS188 hours of tag curtailments

• At this point in 2014:1,950 hours of COPS831 hours of tag curtailments