Regional State Committee/Southwest Power Pool , Inc. COST ... minutes... · Tamika Barker, (SPP...

Regional State Committee/Southwest Power Pool, Inc.

COST ALLOCATION WORKING GROUP MEETING

September 1, 2015

AEP Offices

Renaissance Tower – 1201 Elm Street, Dallas, TX 72501

• S U M M A R Y O F A C T I O N S T A K E N •

Action Items September 1, 2015 1. Agenda for September 1, 2015 approved as amended

2. Minutes for August 11, 2015 approved

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Regional State Committee/Southwest Power Pool, Inc.

COST ALLOCATION WORKING GROUP MEETING

September 1, 2015

AEP Offices

Renaissance Tower – 1201 Elm Street, Dallas, TX 72501

• M I N U T E S •

Agenda Item 1 – Call to Order, Introductions and Administrative Items

Chairman Jason Chaplin, Oklahoma Corporation Commission (OCC), called the meeting to order at 8:30 A.M. on September 1, 2015, and a quorum was declared. There were 67 persons in attendance by phone, and/or net conference. Chairman Chaplin (OCC) asked if there were any changes to the September 1, 2015, agenda. Sam Loudenslager (SPP Staff) requested that the agenda be modified to include a discussion of the Regional State Committee (RSC) agenda. Dallas Rippy, New Mexico Public Regulation Commission (NMPRC) made a motion to approve the agenda as amended, Adam Mckinnie, Missouri Public Service Commission (MoPSC) seconded. Chairman Chaplin asked if there were any changes to the August 11, 2015, meeting minutes. There were none. Mr. Chaplin asked for a motion to approve the August 11, 2015, minutes. John Krajewski, Nebraska Power Review Board (NPRB), made a motion to approve the minutes, Dallas Rippy, New Mexico Public Regulation Commission (NMPRC) seconded. All items were approved via voice vote.

Agenda Item 2 – Review of Past Action Items

Tamika Barker, (SPP Staff), conducted an overview of the past action items. Action Item #045 – Compliance Filing for ER14-2553-001, Long-Term Congestion Rights was added. The revised action items list is attached to this set of minutes.

Agenda Item 3 – Project Tracking Update

Cary Frizzell (SPP), provided an update on the 3rd Quarter Project Tracking Report. A summary of the items discussed are listed below:

• Balanced Portfolio completed – Iatan – Nashua 345 kV placed into service April 2015

• Base Plan Funded projects from IS Integration Study added – Estimated cost: $385 Million

• Significant drop in Priority Projects estimated cost – Nebraska City – Mullin Creek – Sibley 345 kV

• NTC re-evaluations underway for 2015 ITPNT and ITP10 projects – TO-requested (9 projects) – Cost variances (7 projects)

The full report can be found in the background material for this meeting.

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Agenda Item 4 – History of the Waiver Process

Bruce Rew, (SPP), provided CAWG members with a presentation on the History of the Waiver Process. The presentation covered a timeline ranging from 2004-2009. Mr. Rew provided insight on a variety of topics which included the following:

• Stakeholder Participation • Cost Allocation Methodologies • SPP Cost Allocation Design Proposal • Base Plan Upgrades • Economic Upgrades • Cost Allocation Order • Base Plan Criteria • Attachment J Waivers

Additionally, Larry Holloway (KPP), supported the discussion by clarifying the intent and purpose of the preliminary work that was done. CAWG members transitioned to a discussion on the Aggregate Study Waiver Criteria, after Mr. Rew concluded his presentation. The following considerations were mentioned: waiver acceptance/waiver rejection, Z2 credits requested, and costs recouped that were not included in the waiver process. Step 2 was folded into Step 1to create a combined document. Chairman Chaplin suggested that once the draft scope document is finalized, the CAWG members should consider developing a focus group or task force to assist with the work. CAWG members will review both of the proposed scope documents drafted by Adam Mckinnie (MoPSC), and submit comments and suggestions to him in preparation for the October 6th CAWG meeting. The full report can be found in the background material for this meeting.

Agenda Item 5 – Incremental Long-Term Congestion Rights Update – ER14-2553-001

John Krajewski, (NPRB), provided an overview of the Incremental Long-Term Congestion Rights Compliance Filing. Mr. Krajewski discussed the non-prescriptive changes, located in paragraph 54 explaining that SPP staff is given latitude to manage how the changes are made. He also noted that the Long-Term Congestion Rights Task Force (LTCRTF) preferred that some of the complexities of the process be handled via the Z2 crediting process. Mr. Krajewski also discussed the prescriptive changes, located in paragraphs 48 and 63, and reviewed the timeline, which included a working group review and approval schedule. Mr. Krajewski will provide a high-level presentation on this topic to the Regional State Committee (RSC) at their September 21st net conference. The full report can be found in the background materials for this meeting.

Agenda Item 6 – New Member Cost Allocation Process Document/Strawman

John Krajewski, (NPRB), requested that CAWG members email suggestions for changes and comments regarding the New Member Cost Allocation Process Document directly to him following the meeting. Mr. Krajewski indicated that he would incorporate the suggested changes into the document. Comments should be submitted no later than September 18th, in advance of the October 6th CAWG meeting. Chairman Chaplin requested that CAWG members assist with the development of the process document, and to communicate with other CAWG members so that everyone is aware of who will be working on specific sections.

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The draft process document can be found in the background material for this meeting.

Agenda Item 7 - Lunch

Agenda Item 8 – Capacity Margin Task Force Update

Chairman Chaplin, (OCC), walked through the latest version of the CMTF approved Planning Reserve Assurance Policy Paper. The Deliverability Study, LORE, and Assurance Policy Paper will be reviewed by several working groups and committees including: ORWG, GWG, ESWG, CAWG and the RSC. These items will be presented to the Markets and Operations Policy Committee (MOPC) at their January 2016 meeting. An earlier version of the CMTF approved Planning Reserve Assurance Policy Whitepaper can be found in the background material for this meeting. The most recent version was distributed over the CAWG exploder after the meeting adjourned.

Agenda Item 9 – Regional Review Results

Brett Hooton, (SPP), presented CAWG members with presentations on the Regional Review Results and the Interregional Order 1000 filing. Regional Review Results

• Study scope approved by ESWG • Constraint assessment approved by TWG • Evaluating multiple combinations of the three projects and the alternative Iatan – Stranger voltage

conversion • Preliminary results presented to ESWG & TWG

Next Steps

• Thorough review of preliminary analysis results • Incorporate stakeholder feedback • Present finalized results at September ESWG and TWG along with SPP staff recommendation

The full presentation can be found in the background material for this meeting.

Agenda Item 10 – RSC Agenda Review

Erin Cullum, (SPP) walked the CAWG members through the draft RSC agenda for the September 21, 2015 meeting. Topics listed included: Revisions to the RSC Bylaws, ILTCR Compliance Update, and CMTF Update. There will also be a discussion regarding the rescheduling of the July 25, 2016, RSC meeting.

Agenda Item 11 – Working Group Updates

Chairman Chaplin (OCC) encouraged participants to review the working group reports that were included in the background material for information pertaining to those groups.

Agenda Item 12 – New Action Items

Action Item #045 – Compliance Filing for ER14-2553-001, Long-Term Congestion Rights was added.

Agenda Item 13 – Future Meetings

• October 6, 2015 - Dallas, TX (AEP Office) • November 10, 2015 – WebEx/Teleconference Meeting • December 1, 2015 - Dallas, TX (AEP Office)

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• January 5, 2016 – Dallas, TX (AEP Office) • February 2, 2016 – WebEx/Teleconference Meeting • March 1, 2016 – Dallas, TX (AEP Office)

Agenda Item 14 – Adjournment

With no further business to discuss, Chairman Chaplin adjourned the meeting at 1:41 pm. Respectfully Submitted, Tamika Barker CAWG Staff Secretary

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Southwest Power Pool

COST ALLOCATION WORKING GROUP

Pending Action Items Status Report

September 1, 2015

ID Action Item Date Originated

Status Comments

001 Z2 Crediting Project Update 11-6-13 Ongoing Staff will provide an updates at the Dec CAWG meeting

002 Project Tracking Update 11-6-13 Ongoing CAWG requested additional detail be added to the report by PCWG. Staff will provide updates quarterly to CAWG

030 CMTF representatives to provide CAWG with an update

9-3-14 Ongoing

033 CAWG members to receive updates on the new SPP.org beta testing feedback

10-1-14 Underway

037 SPP Staff to provide quarterly update on AECI and MISO Interregional Planning activities as needed

2-12-15 Ongoing

041 ITP10 Renewable Survey Discussion 4-7-15 Ongoing Prior to the next ITP cycle (expected to begin in 2017), CAWG members to discuss the purpose of the Renewable Survey, how the survey is used in Transmission Planning, and if CAWG should be responsible for the survey.

042 Preparation of the New Member Cost Allocation Review Process Scope

6-2-15 Ongoing

043 Aggregate Study Waiver Requirement Review Scope

6-2-15 Ongoing

044 SPP Staff to provide CAWG with any information related to TCR underfunding and the impact of the changes made in RR 91

7-7-15 Ongoing

045 Compliance Filing for ER14-2553-001, Long-Term Congestion Rights

9-1-15 Underway CAWG/RSC action required during October meetings to approve changes in response to FERC Order on July 16, 2015.

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Southwest Power Pool

COST ALLOCATION WORKING GROUP

Completed Action Items Status Report

September 1, 2015

ID Action Item Date Originated

Status Comments

003 Presentation on RRR File 11-6-13 Complete

Staff will provide Presentation from 2011 made to the Settlement Users Group to the CAWG.

006 Distribute Seams Project White Paper 11-6-13 Complete

Background for action item 005

004 CAWG to prepare position for BPWG 11-6-13 Complete CAWG will address the ATSS process improvement at the Dec CAWG meeting

007 Discuss Sensitivities for HPILS Economic Modeling

12-4-13 Complete Will discuss at January CAWG meeting – wind penetration, gas prices, etc.

008 SPC - Foundational Strategies/Strategic Initiatives

12-4-13 Complete CAWG group inputs to Tamika Barker – by Jan 27 February 3, 2014

009 SPC – Foundational Strategies/Strategic Initiatives

12-4-13 Underway Complete

M. Desselle present SPC Strategic Plan review to RSC (Before MOPC in January)

011 Handle agenda item regarding CAWG’s coverage of WGs via email

1-8-14 Underway Completed

Meena Thomas to initiate

012 Study Estimate Design Guide Review 1-8-14 Underway Complete

John Krajewski to email S. Loudenslager

014 Revision of Working Group Coverage List


Meena Thomas to send to Tamika for distribution through exploders

016 Determine if Non-Disclosure Agreements (NDAs) are needed on a case-by-case basis


Erin Cullum

019 Schedule teleconference to cover proposed changes to SPP Wind Accreditation, Criteria 12


M. Thomas to verify CAWG availability

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013 Develop a summary document of comments on SPP Strategic Plan for circulation through CAWG prior to March meeting

2-12-14 Complete

Comments to be submitted to John Krajewski no later than Feb 24, 2014

017 Send findings on action item #10 to the CAWG exploder

3-5-14 Complete

020 Determine if CAWG can obtain other WG comments on the SPP Strategic Plan

3-5-14 Complete

A link to Working Group comments was sent to the CAWG exploder on April 15, 2014.

021 Vote on MPRR 171 – LTCR Clarifications in April meeting

3-21-14 Complete

010 Process of disclosing name and amounts associated with the crediting process

1-8-14 Complete

Staff reported that SPP will not publicly disclosure the amounts associated with specific utilities. Individual CAWG members may still acquire the information associated with their regulated utilities.

015 PCWG comments on Study Estimate Design Guide

2-12-14 Complete

Awaiting PCWG action

018 Revision of Working Group Coverage List – redistribute to exploder

3-5-14 Complete

Adam Mckinnie to provide periodic reports to CAWG on Seams Project Task Force (SPTF) actions

024 Staff Secretary to distribute additional slides covered on Benefits Metrics during the June 4th CAWG meeting to the exploder

6-4-14 Complete A link to the additional materials was sent to the CAWG exploder on June 5, 2014

022 Discuss Proposed Changes to SPP Wind Accreditation, Criteria 12 in April Meeting


CAWG will hold a teleconference after the June 2014 ORWG meeting to discuss the impact of the criteria change on IRPs and any updates on GWG actions CAWG will address this item at the July 2nd meeting.

023 SPP Staff to provide an update on ORWG action on Wind Accreditation Criteria revisions at the June 20th WebEx/Teleconference


Jason Smith will be available to participate in the call.

025 CAWG members to provide feedback on the Value of Transmission presentation at the June 20th WebEx/Teleconference

6-4-14 Complete

Formatted: Superscript

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026 SPP Staff to circulate the most recent version of the Seams Project Policy White Paper via CAWG exploder

7-2-14 Complete

028 CAWG members to prepare to vote on the Seams Policy Project Paper at the September 3, 2014 meeting


031 CAWG members to provide the CAWG Chair with comments on the factors that led to the decisions to vote in favor or against verbiage in the Seams Project Policy Paper


032 CAWG members to consider reducing the number of face-to-face meetings for 2015.


Tamika will send out the revised CAWG schedule through the exploder.

034 CAWG members to provide EPA 111(d) related Compliance Cost feedback to Sam Loudenslager.


RSC did not see the need for compliance cost study until after the final rule is issued next year.

005 SPP will review draft TRR being considered by SSC

11-6-13 Complete

Seams Project Task Force meetings underway, expected to conclude by October 2014.

029 SPP Staff to provide an update to CAWG on any changes to BPR-051

9-3-14 Complete

036 Order 1000 related issues raised at the 2014 November meeting, will be placed on the 2014 December or January 2015 meeting agenda for the purpose of discussion and possible feedback from CAWG members.

11-12-14 Underway Closed

039 Provide CAWG members with a link to the Fuel Assurance report filed with FERC

2-12-15 Complete

040 Forward pages 39-41 from January 2015 RSC materials to CAWG members (Questions 1-3 under review by RSC and new member process)

2-12-15 Complete

027 SPP Staff to research statutes for various State’s utility status and Certificate of Convenience and Necessity (CCN)

8-12-14 Underway Closed

SPP staff will send research results to state regulatory staff for feedback.

Formatted: Not Strikethrough



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038 Carl Monroe to address history on Bright Line


CAWG members to be prepared to discuss cost allocation for new members at the April RSC Education Session.

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Cost Allocation Working Group Attendance September 1, 2015

Company Last Name First Name Attending

Kansas Corporation Commission Bell John Net Conference Missouri Public Service Commission Ghomsi Noumvi Net Conference Customized Energy Solutions, LTD Jenkins Ginger Net Conference Oklahoma Gas & Electric Kays David In Person Consultant Gaw Steve Net Conference Tri County Electric Giles Chris Net Conference AESL Consulting White Marya Net Conference

North Dakota Public Service Commission Schock Victor Net Conference Consultant Shumate Walt Net Conference Morris Laing Law Wright Thomas Net Conference Energy Transformation Consulting Smith Renee Net Conference Holland & Knight Taylor Alvin Net Conference Southwest Power Pool White Audrey Net Conference Southwest Power Pool Cates Charles Net Conference Southwest Power Pool Rew Bruce In Person Southwest Power Pool Haley Chris Net Conference Southwest Power Pool Choate Marisa Net Conference Southwest Power Pool Barker Tamika Net Conference Southwest Power Pool Guney Esat Net Conference Southwest Power Pool Frizzell Cary Net Conference Southwest Power Pool Freier Gayle Net Conference Southwest Power Pool Loudenslager Sam In Person Southwest Power Pool Scott Shaun In Person, Net Conference American Electric Power Jacoby Jim In Person, Net Conference American Electric Power Ross Richard Net Conference American Electric Power Celestine Kizi Net Conference Arkansas Electric Cooperative Corporation Shields Robert Net Conference Arkansas Public Service Commission Ireland Cindy In Person City Utilities of Springfield Baughman Beverly Net Conference City Utilities of Springfield Boshears John Net Conference City Utilities of Springfield Knottek Jeff Net Conference Federal Energy Regulatory Commission Clarey Patrick Net Conference

Golden Spread Electric Cooperative, Inc. Matos Chris In Person ITC Great Plains, LLC Winland Chris In Person ITC Great Plains, LLC Wagner Marguerite Net Conference Kansas City Power & Light Company Frerking Don In Person

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Cost Allocation Working Group Attendance September 1, 2015

Kansas City Power & Light Company Buffington Denise Net Conference Kansas Corporation Commission Fry Andy In Person Kansas Corporation Commission Aarnes Christine Net Conference Missouri Public Service Commission McKinnie Adam In Person Oklahoma Corporation Commission Vandewater Bob Net Conference Oklahoma Corporation Commission Chaplin Jason In Person Oklahoma Corporation Commission Rush Geoffrey Net Conference Public Utility Commission of Texas Thomas Meena In Person Dogwood Energy, LLC Janssen Robert Net Conference Southwestern Public Service Company Cude Bruce In Person Southwestern Public Service Company Buffington Brian Net Conference Sunflower Electric Power Corporation Bergmeier Raymond Net Conference Sunflower Electric Power Corporation Moffet Michael In Person Sunflower Electric Power Corporation Hestermann Thomas In Person Westar Energy, Inc. Reed Dennis In Person Western Farmers Electric Cooperative Williams Mitchell In Person Xcel Energy Liu Bernard In Person Ameren Services Company Hayes Patrick In Person Kansas Power Pool (KPP) Holloway Larry Net Conference Omaha Public Power District Iverson Jon Net Conference Omaha Public Power District Lang Joe Net Conference Kansas City Board of Public Utilities Quach Dong Net Conference Missouri Joint Municipal EUC Starnes Heather Net Conference Nebraska Public Power District Pick Robert J. Net Conference Nebraska Public Power District Owens Tim Net Conference Customized Energy Solutions, LTD Safuto Robert Net Conference Nebraska Power Review Board Krajewski John In Person

Basin Electric Power Cooperative Frisk-

Thompson Lori Net Conference Basin Electric Power Cooperative Erhardt Blaine Net Conference South Central MCN, LLC Carlson Trent In Person South Central MCN, LLC Warren Bary In Person

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Regional State Committee/Southwest Power Pool , Inc. COST ... minutes... · Tamika Barker, (SPP...

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