# Work Plan

# Implementation of a Western Regional Transmission Assessment Program

Prepared by the SSG-WI Planning WG

##### I. Introduction / Background 

> SSG-WI, the Subregional Planning Groups and WECC are independently
> addressing various aspects of regional and subregional transmission
> planning, coordinating their activities through an informal
> cooperative arrangement. The states, through CREPC, are also directly
> involved in these activities.
>
> The WGA initiated regional planning work under the direction of the
> Governors and issued a regional transmission assessment report in
> 2001. Most recently, the Governors directed CREPC to develop a funding
> mechanism for state participation in these activities. The proposed
> funding arrangement was approved by the Governors at their December 3,
> 2004 meeting.
>
> The Subregional Planning Groups (CCPG, NTAC, RMATS, STEP and SWAT) are
> actively assessing the transmission needs in their various subregions.
> RMATS has completed Phase 1 of an economic study of transmission needs
> in the Rocky Mountain region. CCPG is focusing on Colorado. NTAC is
> focusing on transmission within the Pacific Northwest and its
> interfaces to the East and to California. STEP is focusing on
> transmission in southern California and between California and the
> Deseret Southwest. SWAT is focusing on transmission in Arizona and New
> Mexico and on its interconnections to California. SSG-WI is focusing
> on the economics of west wide regional planning, integrating planning
> from the subregions with load and resource information from state IRPs
> and state RPF standards.

##### II. Objective of Work Plan

> This Work Plan has two related objectives. The first **(Objective 1)**
> is to initiate policy level discussion directed toward
> institutionalizing the regional planning work currently performed by
> SSG-WI, to develop a planning process that is rigorous, objective and
> transparent, and that:

-   integrates transmission and resource planning

-   covers viable alternatives throughout the Western Interconnection

-   considers energy policy goals, requirements and standards

-   builds and maintains an up-to-date, well-coordinated data base

-   provides conceptually and technically sound economic modeling

-   ensures broad stakeholder participation.

> Because of the many policy implications, moving Objective 1. forward
> will require action by the SSG-WI Steering Group.
>
> Such a process will require stable, predictable staffing and funding
> from a broad cross-section of beneficiaries. It also suggests a stable
> organizational structure with strong expertise in transmission
> planning and public process coordination, and with steering by a broad
> cross-section of stakeholders.
>
> The functions, manpower and funding requirements for Objective 1 are
> defined in this Work Plan as they are currently envisioned in 2004. It
> is likely that as the effort unfolds, various aspects of the Plan will
> change.
>
> The second objective **(Objective 2)** is to obtain SSG-WI Steering
> Group approval of funding required to implement the technical aspects
> of Objective 1 in calendar year 2005.

**III. OBJECTIVE 1. - - Institutionalize a region wide Transmission
Assessment Program in the Western Interconnection.**

> An effective region wide Transmission Assessment Program cannot
> continue to depend upon voluntary manpower contributions and uncertain
> funding sources. The Program will require performance of several
> specific functions by dedicated staff and/or consulting support. These
> functions are listed below, together with their estimated manpower
> needs and costs. For the Transmission Assessment Program to function
> efficiently, the structure and organization of the Program also needs
> to be addressed as also noted below.
>
> A. Major functions:

-   **Database administration and maintenance** -- annual update of the
    regional Production Simulation database. Entails developing the
    following key assumptions and collecting, coordinating, validating
    and approving data for test years and scenarios:

    -   Resource and transmission additions and retirements

    -   Path ratings

    -   Load forecasts

    -   Resource attributes/operating characteristics

    -   Fuel prices, hydro conditions, environmental cost allowances
        (e.g., CO2 adders) and other factors that drive variable costs

    -   Fixed costs

-   **Assessment and reporting** of future regional transmission
    adequacy needs and non-transmission alternatives. On a region wide
    basis, assessments should be performed biennially, but may be
    performed more frequently depending upon need. An assessment report
    should be issued following each regional assessment. Assessments
    should include:

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-   Forecasted congestion assessment

-   Alternatives and recommended solutions, considering both
    Transmission and Non-transmission

-   Impacts of major resource goals and targets, resource siting, state
    energy plans and IRPs

> Regional assessments should be performed through an open public
> process such that all stakeholders have an opportunity to participate
> and provide input to the studies and findings.

-   **Modeling.** Improvements in modeling tools and data should be an
    ongoing activity of the regional Transmission Assessment Program.
    This function appears to be more appropriately a role for a regional
    body rather than by several individual subregional groups. Modeling
    needs and priorities should be identified. Near term work will
    include assessing existing models and selection and procurement of
    software by WECC to enable WECC to assume responsibility to
    administer and maintain the region's production simulation database.

-   Development of **regional transmission adequacy standards**. The
    objective of this work is to provide, where needed, region wide
    consistency in transmission assessment methodologies. This work is
    to be performed jointly and in coordination with similar efforts at
    the subregional level This work should be performed following
    completion of the work currently under way at the subregional level.

-   **Coordination of subregional and regional transmission assessment**
    work. While respecting the independent organizational relationship
    among the regional and subregional assessment groups, it is
    important that a strong coordinating relationship exist. It is
    proposed that the regional body have lead responsibility for
    providing this overall coordination function. How this is to be done
    needs to be developed jointly with, and acceptable to, the
    subregional groups.

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-   **Coordination with region wide Resource Adequacy** activities. Due
    to the interdependency of transmission and resource assessment work
    and the similarity of databases and analysis tools, it is imperative
    that a working relationship exist among those performing these
    functions. This coordination role should be one of the major
    functions of the regional transmission assessment work.

-   **Analysis of Historical Actual Flows and ATC.** Historical flows on
    the major paths in the interconnection should be analyzed and
    reported on a biennial basis. This work has been performed
    biennially for the past several years and usage trends are now being
    documented. Future work should include comparative analysis of
    actual usage with posted available capacity.

**B. Resource Requirements - Manpower and Costs**

> Manpower required to perform each of the above functions are listed
> below and summarized in Table I, together with estimated annual costs.
> It is assumed from past experience that a study requires approximately
> 1-year to complete, from start of database update to completion of
> studies and reports. Cost estimates are based upon \$125,000 per FTE.
>
> **Direct Costs** -- cost of staffing and/or contracting services

-   Database Maintenance -- 1.0 FTE

> Database maintenance is assumed to be a continuing task to meet the
> study needs of SSG-WI and the Subregional Planning Group.

-   Annual Study Program - Assessment and reporting of regional
    transmission needs - 1.5 FTE

> Performed biennially -- may be performed more frequently depending
> upon need. Assumed 1.0 FTE for study work and 0.5 FTE for preparation
> of reports and presentations.

-   Modeling improvements -- 0.5 FTE

> Initial work - contract for a Modeling Assessment effort to identify
> modeling needs and priorities - the basis for developing a longer
> range modeling improvement program.

-   Regional Adequacy Standards -- 0.33 FTE

> a continuing function

-   Coordination of Subregional and Regional Planning work -- 0.33 FTE

> a continuing function

-   Coordination with Resource Adequacy work -- 0.33 FTE

> a continuing function

-   Analysis of historical actual flows and ATC -- 0.25 FTE

> performed biennially

-   Software lease - \$100K --

> Annual fee for program lease. During 2005, assessment studies will be
> run using the ABB Grid View program, since PacifiCorp and CaISO
> already have a license for this program. In 2005, only \$50K will be
> required to procure a 6-month license for BPA and WECC.
>
> **Indirect Costs** -- cost of internal utility and state/provincial
> support
>
> Successful performance of the regional Transmission Assessment Program
> will depend to a large extent on active participation of internal
> staff from participants in the planning process. The database
> maintenance function relies upon timely submittal of information
> provided by participants in the process. Participants in the process
> will need to commit priority staff time. Staff time will also be
> required from internal staff to assist with report preparation and
> review and providing input and direction to the study program.

**C. Organizational considerations**

> Several organizations are currently involved in the transmission
> assessment process. SSG-WI initiated the regional planning function
> and maintains the database and conducts an assessment program. The
> Subregional Planning Groups are conducting similar assessments and
> identifying transmission enhancements on a subregional level. WECC has
> agreed to assume the database administration and maintenance function,
> however budget concerns may not allow it to assume this responsibility
> until 2006.
>
> For the regional transmission assessment program to function
> efficiently and to gather full regional support, the organizational
> relationships of those involved need to be defined, understood and
> agreed upon. Some of the issues that should be addressed are:

-   Definition of the roles of the entities participating in the
    regional transmission assessment program (SSG-WI, WECC,
    CREPC/states-provinces, the Subregional Planning Groups and
    individual entities)

-   Is there a need for a policy level group to oversee the regional
    assessment program and the work of the participating entities?

-   Should the region consider instituting a new organizational
    structure to oversee the regional Transmission Assessment Program?
    Should a more structured organizational relationship be implemented?
    For example, some have suggested an organization consisting of a
    policy level "Board" overseeing a reliability function, a commercial
    function and a state/regulatory function.

> This Work Plan makes no organizational recommendations, but suggests
> that these issues need to be addressed by the region for the program
> to be effectively implemented.

**IV. OBJECTIVE 2. - Identify and obtain funding for the SSG-WI 2005
Work Plan.**

In 2005, the regional transmission assessment effort will continue to
rely heavily on volunteer help from utility staff. It is intended,
however, that the work effort in 2005 be a joint effort using manpower
contributed from as many entities as possible. Currently, PacifiCorp,
CaISO, BPA and WECC have agreed to provide manpower. Funding of the
direct costs outlined below is proposed to come from SSG-WI.

> WECC will only be able to provide limited manpower support in 2005,
> but have indicated they plan to assume full responsibility for
> implementing and funding database administration and maintenance in
> 2006. Their role in 2005 will be largely database support in areas of
> load representation and transmission topology. CREPC will be providing
> resource modeling review and support by contributing information from
> IRP analysis performed for WIEB by Lawrence Berkeley Laboratories and
> coordinating review among the states. PacifiCorp, the CaISO and BPA
> will provide staff in direct support of the database maintenance
> function and the study program.

###### A. Functions to be performed in 2005

> 1\. Database Update --
>
> The existing production simulation database will be updated to reflect
> resource forecasts in the LSE IRPs and forecasts from public utilities
> to the extent available.
>
> 2\. Study Program --
>
> 2005 will emphasize the study of "realistic resource scenarios".
> Scenarios will focus on the following:

-   RMATS Recommendation #2

-   NWPCC resource scenario

-   Hydro and Gas Sensitivities

-   New Mexico Wind

-   Proposed Northern Lights DC project

-   WGA renewable and energy efficiency goals

-   Load forecast variations

> 3\. Modeling Improvements
>
> Initiate an assessment of modeling improvement needs and priorities.
> It is proposed that this work be done jointly with DOE. SSG-WI should
> explore having the work performed under a DOE contract, with technical
> support provided by the PWG Modeling WG.

4\. Analysis of Actual Flows Methodologies for incorporating ATC.

> This work was last reported in February 2003 and has been performed on
> a biennial basis for the past several years. Results of the analysis
> are used for validation checking of model studies and to monitor
> actual transmission path usage on the major paths in the
> interconnection.

###### B. Manpower Requirements and Costs

> 1\. Database Update
>
> In 2005, the database update will be administered by the PWG Technical
> Support Group and implemented by volunteer staff from PAC, the CaISO,
> BPA and WECC. BPA and WECC staff participation requires their
> obtaining a license to the ABB Grid View program. Neither BPA nor WECC
> have budget funds available to purchase the license.
>
> Direct Cost:
>
> Purchase of 2 licenses from ABB, one for WECC and one for BPA. -
> \$50,000 total.
>
> Indirect Cost - Volunteer help from PacifiCorp, CaISO, BPA and WECC
> estimated to be 1.0 man-year. States/provinces will help review load
> and resource assumptions.
>
> 2\. Study Program -
>
> Manpower resources to be provided by PAC, CaISO and BPA. BPA
> participation requires their obtaining a license to the ABB Grid View
> program. Funding is requested to obtain consulting services to
> coordinate work and prepare reports.
>
> Direct Cost to SSG-WI -- \$60,000. (Consulting services)
>
> Indirect Cost - Volunteer help from PacifiCorp, CaISO and BPA
> estimated to be 1.0 man-year.
>
> 3\. Modeling Improvements --
>
> Work will be directed by the PWG, through the Modeling Improvement WG.
> It is proposed that SSG-WI and DOE enter into a joint arrangement,
> with funding from DOE and technical support from SSG-WI.
>
> Direct Cost to SSG-WI -- \$ 0.
>
> Direct Cost to DOE - Estimated the Assessment Contract proposed to be
> funded by DOE will be \$200,000.
>
> Indirect Cost -- Technical support from MWG -- 0.5 man-years
>
> 4\. Path Flow Analysis -
>
> This work has previously been contracted out by SSG-WI through a
> technical services contract. Assuming the scope of the work is similar
> to the work performed in 2003-03, the funding requirement is:
>
> Direct Cost to SSG-WI - \$35,000. (Consulting services)

## Annual Cost Summary

## Implementation of a Regional Transmission Assessment Program 

+--------+-------+----------+-------------------+-------------------+
| **Func | *     | **Direct | **Why Needed**    | **Impact if not   |
| tion** | *Lead | Cost     |                   | funded**          |
|        | Ent   | (staff,  |                   |                   |
|        | ity** | co       |                   |                   |
|        |       | nsulting |                   |                   |
|        |       | services |                   |                   |
|        |       | &        |                   |                   |
|        |       | program  |                   |                   |
|        |       | lease)** |                   |                   |
+--------+-------+----------+-------------------+-------------------+
|        |       |          |                   |                   |
+--------+-------+----------+-------------------+-------------------+
| Update | WECC  | \$125K   | Annual update to  | No regional       |
| Da     | (     | (WECC)   | keep database     | database. SPGs    |
| tabase | start |          | current for use   | would need to     |
|        | in    |          | by SSG-WI and the | develop           |
|        | 2006) |          | SPGs              | individual        |
|        |       |          |                   | databases.        |
+--------+-------+----------+-------------------+-------------------+
|        |       |          |                   |                   |
+--------+-------+----------+-------------------+-------------------+
| Study  | S     | \$190K   | Annual assessment | No regional study |
| P      | SG-WI |          | of congestion and | program.          |
| rogram | PWG   | (a       | recommended       |                   |
| and    |       | lternate | transmission and  |                   |
| Rep    |       | years)   | non-transmission  |                   |
| orting |       |          | enhancements      |                   |
| -      |       |          |                   |                   |
|        |       |          |                   |                   |
| Alt    |       |          |                   |                   |
| ernate |       |          |                   |                   |
| years  |       |          |                   |                   |
+--------+-------+----------+-------------------+-------------------+
|        |       |          |                   |                   |
+--------+-------+----------+-------------------+-------------------+
| Ad     | S     | \$125K   | Need a consistent | No regional       |
| equacy | SG-WI |          | region wide       | adequacy          |
| Stan   | PWG   |          | approach to       | standards, no     |
| dards, |       |          | assessing         | coordination with |
| and    |       |          | Transmission      | WECC Adequacy     |
| other  |       |          | Adequacy          | program and no    |
| Coordi |       |          |                   | regional          |
| nation |       |          |                   | coordination      |
| work   |       |          |                   | between SSG-WI    |
|        |       |          |                   | and SPG studies.  |
+--------+-------+----------+-------------------+-------------------+
|        |       |          |                   |                   |
+--------+-------+----------+-------------------+-------------------+
| Mo     | DOE   | \$60K    | Improve models    | Continue to rely  |
| deling | and   | plus DOE | are needed for    | on vendor         |
| Improv | S     | funding  | more accurate     | available options |
| ements | SG-WI |          | transmission      | with no           |
|        |       |          | adequacy          | improvements to   |
|        |       |          | assessments       | meet our special  |
|        |       |          |                   | needs.            |
+--------+-------+----------+-------------------+-------------------+
|        |       |          |                   |                   |
+--------+-------+----------+-------------------+-------------------+
| So     | S     | \$100K   | Software required | Program cannot be |
| ftware | SG-WI |          | to update         | carried out       |
| --     | and   | (\$50K   | database and run  | without a         |
| Annual | WECC  | in 2005) | studies           | software package. |
| lease  |       |          |                   |                   |
+--------+-------+----------+-------------------+-------------------+
|        |       |          |                   |                   |
+--------+-------+----------+-------------------+-------------------+
| Path   | S     | \$35K    | Model             | Use outdated      |
| Flow   | SG-WI |          | verification and  | congestion        |
| An     | PWG   | (a       | monitor path flow | studies to verify |
| alysis |       | lternate | usage             | models and would  |
| --     |       | years)   |                   | not be meeting    |
| Alt    |       |          |                   | CREPC's request   |
| ernate |       |          |                   | for periodic      |
| years  |       |          |                   | updates of the    |
|        |       |          |                   | path congestion   |
|        |       |          |                   | work              |
+--------+-------+----------+-------------------+-------------------+
|        |       |          |                   |                   |
+--------+-------+----------+-------------------+-------------------+
| **T    |       | **       |                   |                   |
| OTAL** |       | \$410K - |                   |                   |
|        |       | \$635K** |                   |                   |
|        |       |          |                   |                   |
|        |       | **(2.5   |                   |                   |
|        |       | to 4.25  |                   |                   |
|        |       | FTE)**   |                   |                   |
+--------+-------+----------+-------------------+-------------------+

Note: The Total cost spread represents the spread in cost between a year
when minimal study work is performed and a year when the study program
and path congestion work are performed. 1 FTE = \$125,000.

## Annual Cost Summary

## SSG-WI 2005 Transmission Assessment Work Plan 

+--------+--------+------------+-----------------+------------------+
| **Func | **Lead | **Direct   | **Why Needed**  | **Impact if not  |
| tion** | En     | Cost**     |                 | funded**         |
|        | tity** |            |                 |                  |
+--------+--------+------------+-----------------+------------------+
|        |        |            |                 |                  |
+--------+--------+------------+-----------------+------------------+
| Update | SSG-WI | No Cost    | Keep database   | No regional      |
| Da     | PWG    |            | current and     | database update  |
| tabase | with   | Bulk of    | prepare for     | and no 2005      |
|        | tec    | work by    | SSG-WI studies  | study program    |
|        | hnical | Volunteer  |                 |                  |
|        | s      | support    |                 |                  |
|        | upport |            |                 |                  |
|        | from   |            |                 |                  |
|        | PAC,   |            |                 |                  |
|        | CaISO, |            |                 |                  |
|        | BPA &  |            |                 |                  |
|        | WECC   |            |                 |                  |
+--------+--------+------------+-----------------+------------------+
|        |        |            |                 |                  |
+--------+--------+------------+-----------------+------------------+
| Study  | SSG-WI | \$40,000   | Perform         | Program          |
| P      | PWG    | for study  | Realistic       | Coordinator      |
| rogram | with   | program    | Scenario        | function would   |
| and    | tec    | c          | Studies.        | need to be       |
| R      | hnical | oordinator |                 | provided on      |
| eports | s      |            | Funding to      | volunteer        |
|        | upport | \$20,000   | provide         | support from     |
|        | from   | for report | consulting      | internal staff.  |
|        | PAC,   | writing    | support for     |                  |
|        | CaISO, | support    | Study Program   | Report would     |
|        | BPA    |            | coordination    | need to be       |
|        |        | Bulk of    | and report      | written and      |
|        |        | work by    | preparation.    | coordinated by   |
|        |        | Volunteer  |                 | internal staff.  |
|        |        | support    |                 |                  |
+--------+--------+------------+-----------------+------------------+
|        |        |            |                 |                  |
+--------+--------+------------+-----------------+------------------+
| Ad     | Fu     |            |                 |                  |
| equacy | nction |            |                 |                  |
| Stds,  | will   |            |                 |                  |
| etc.   | not be |            |                 |                  |
|        | per    |            |                 |                  |
|        | formed |            |                 |                  |
|        | in     |            |                 |                  |
|        | 2005   |            |                 |                  |
+--------+--------+------------+-----------------+------------------+
|        |        |            |                 |                  |
+--------+--------+------------+-----------------+------------------+
| Mo     | SSG-WI | Seek DOE   | Identify and    | No progress in   |
| deling | MWG    | funding    | prioritize      | improving system |
| Asse   |        |            | program model   | models           |
| ssment |        |            | improvements    |                  |
+--------+--------+------------+-----------------+------------------+
|        |        |            |                 |                  |
+--------+--------+------------+-----------------+------------------+
| So     | BPA &  | \$50,000   | Purchase        | Delay completion |
| ftware | WECC   |            | Program license | of Study Program |
| Lease  |        |            | from ABB for    |                  |
|        |        |            | WECC and BPA    |                  |
+--------+--------+------------+-----------------+------------------+
|        |        |            |                 |                  |
+--------+--------+------------+-----------------+------------------+
| Path   | SSG-WI | \$35,000   | Model           | Would need to    |
| Flow   | PWG    |            | verification    | rely on older    |
| An     |        |            | and monitoring  | data for model   |
| alysis |        |            | actual path     | verification.    |
|        |        |            | usage           | Would not meet   |
|        |        |            |                 | request of       |
|        |        |            |                 | states to update |
|        |        |            |                 | path flow        |
|        |        |            |                 | analysis.        |
+--------+--------+------------+-----------------+------------------+
|        |        |            |                 |                  |
+--------+--------+------------+-----------------+------------------+
| *      |        | \$145,000  |                 |                  |
| *TOTAL |        |            |                 |                  |
| -      |        |            |                 |                  |
| Direct |        |            |                 |                  |
| Cost** |        |            |                 |                  |
+--------+--------+------------+-----------------+------------------+

Note: Direct Volunteer support in 2005 estimated to be approximately 2.5
man-years or \$300,000 from PAC, CaISO, BPA and WECC. 1.0 FTE =
\$125,000.