Improving the Effectiveness of Western Institutions

West Wide Commercial Electric Power Issues

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| **West Wide | **What is    | **Which     | **Problem that needs to |
| Commercial  | the benefit  | o           | be solved - -**         |
| Functi      | of West Wide | rganization |                         |
| on/Issues** | coordination | is          | > **List any            |
|             | of this      | currently   | > outstanding issues    |
|             | function?**  | performing  | > related to the        |
|             |              | the         | > function that need    |
|             |              | function?   | > resolution to improve |
|             |              | (List Org.  | > its effectiveness**   |
|             |              | name, or    |                         |
|             |              | NONE)**     |                         |
+-------------+--------------+-------------+-------------------------+
| # Planning  |              |             |                         |
| & Expansion |              |             |                         |
+-------------+--------------+-------------+-------------------------+
| > 1\.       | Single,      | SSG-WI in   | Approval of database    |
| > Regional  | common       | 2005        | work in WECC 2006       |
| >           | database     |             | Budget by WECC Board    |
|  Commercial |              | WECC        |                         |
| > Database  |              | starting in |                         |
|             |              | 2006        |                         |
+-------------+--------------+-------------+-------------------------+
| > 2\.       | Identify     | SSG-WI      | Need to agree on future |
| > Inte      | west wide    |             | role of SSG-WI or other |
| rconnection | economic     |             | west wide commercial    |
| > wide      | costs and    |             | organization (where     |
| >           | benefits of  |             | will the west wide      |
|  commercial | planned      |             | commercial planning     |
| > planning  | transmission |             | function will be        |
| > studies   | facilities,  |             | "housed").              |
|             | to           |             |                         |
|             | facilitate   |             | Need to provide stable  |
|             | efficient    |             | funding and resource    |
|             | development  |             | support.                |
|             | of the grid  |             |                         |
|             | and          |             |                         |
|             | efficient    |             |                         |
|             | operation of |             |                         |
|             | the western  |             |                         |
|             | wholesale    |             |                         |
|             | market.      |             |                         |
|             |              |             |                         |
|             | Facilitate   |             |                         |
|             | efficiencies |             |                         |
|             | in the       |             |                         |
|             | siting       |             |                         |
|             | process for  |             |                         |
|             | m            |             |                         |
|             | ultiregional |             |                         |
|             | facilities   |             |                         |
|             | -- future    |             |                         |
|             | corridor     |             |                         |
|             | needs        |             |                         |
+-------------+--------------+-------------+-------------------------+
| > 3\. Cost  | Common       | Individual  | Needs a home if there   |
| >           | methodology  | regulatory  | is consensus to perform |
|  Allocation | for          | bodies.     | the function - - -      |
| > & cost    | interstate   | CREPC has   | Issue not currently     |
| > recovery  | facilities   | initiated a | being addressed on a    |
| > of        |              | WG study    | west wide basis.        |
| > t         | Encourage    | effort as   |                         |
| ransmission | investment   | follow-up   |                         |
| >           | in           | to RMATS    |                         |
|  investment | interstate   | work.       |                         |
|             | facilities   |             |                         |
+-------------+--------------+-------------+-------------------------+
| > 4\.       | A more       | SSG-WI,     | A more formal           |
| > Integrate | integrated   | WECC and    | coordinating            |
| >           | overall      | SPGs        | relationship may be     |
| Subregional | planning     | currently   | desirable to assure     |
| > planning  | process,     | doing some  | both regional and west  |
| > and west  | allowing for | c           | wide impacts are        |
| > wide      | local focus  | oordination | considered.             |
| > planning  | on           | on          |                         |
|             | subregional  | voluntary   | Need to agree on future |
|             | issues       | basis,      | role of SSG-WI or other |
|             | together     | facilitated | west wide commercial    |
|             | with an      | by SSG-WI.  | organization (where the |
|             | assessment   |             | interconnection         |
|             | of           |             | commercial planning     |
|             | int          |             | function will be        |
|             | erconnection |             | "housed").              |
|             | wide         |             |                         |
|             | impacts.     |             |                         |
+-------------+--------------+-------------+-------------------------+
|             |              |             |                         |
+-------------+--------------+-------------+-------------------------+
| # Market    |              |             |                         |
|  Monitoring |              |             |                         |
+-------------+--------------+-------------+-------------------------+
| > 1\. West  | Better       | SSG-WI is   | Need to agree on future |
| > wide      | u            | currently   | role of SSG-WI or other |
| > market    | nderstanding | c           | west wide commercial    |
| > monitor   | of west wide | oordinating | organization (where     |
|             | markets      | this        | will the market         |
|             |              | function.   | monitoring development  |
|             | Unique,      |             | function will be        |
|             | independent  |             | "housed").              |
|             | west wide    |             |                         |
|             | perspective  |             | Need to provide stable  |
|             |              |             | funding and resource    |
|             | a)  Assists  |             | support.                |
|             |     in       |             |                         |
|             |              |             | Need to develop the     |
|             |  identifying |             | relationship between a  |
|             |     an       |             | west wide MME and the   |
|             |              |             | subregional MM          |
|             |  determining |             | entities. Also, need to |
|             |     causes   |             | agree on information    |
|             |     of west  |             | that will be collected  |
|             |     wide     |             | by the MME. The SSG-WI  |
|             |     market   |             | MMWG is currently       |
|             |     issues   |             | considering a pilot     |
|             |              |             | project.                |
|             | b)           |             |                         |
|             |   Beneficial |             |                         |
|             |     to those |             |                         |
|             |     entities |             |                         |
|             |     with     |             |                         |
|             |     re       |             |                         |
|             | sponsibility |             |                         |
|             |     for      |             |                         |
|             |     markets  |             |                         |
|             |     in the   |             |                         |
|             |     WI,      |             |                         |
|             |              |             |                         |
|             |    including |             |                         |
|             |     entities |             |                         |
|             |              |             |                         |
|             |   addressing |             |                         |
|             |     west     |             |                         |
|             |     wised    |             |                         |
|             |     market   |             |                         |
|             |     issues   |             |                         |
|             |              |             |                         |
|             | Coordinated  |             |                         |
|             | access to    |             |                         |
|             | data         |             |                         |
|             | (depending   |             |                         |
|             | upon         |             |                         |
|             | functions of |             |                         |
|             | commercial   |             |                         |
|             | entity,      |             |                         |
|             | possibly     |             |                         |
|             | enhanced or  |             |                         |
|             | easier       |             |                         |
|             | access to    |             |                         |
|             | data)        |             |                         |
|             |              |             |                         |
|             | West wide    |             |                         |
|             | market       |             |                         |
|             | monitor      |             |                         |
|             | outside or   |             |                         |
|             | RTOs may     |             |                         |
|             | result in    |             |                         |
|             | greater      |             |                         |
|             | p            |             |                         |
|             | articipation |             |                         |
|             | of nun-FERC  |             |                         |
|             | ju           |             |                         |
|             | risdictional |             |                         |
|             | entities     |             |                         |
|             |              |             |                         |
|             | With proper  |             |                         |
|             | delineation  |             |                         |
|             | of           |             |                         |
|             | respective   |             |                         |
|             | roles/resp   |             |                         |
|             | onsibilities |             |                         |
|             | of West wide |             |                         |
|             | market       |             |                         |
|             | monitor and  |             |                         |
|             | sub-regional |             |                         |
|             | market       |             |                         |
|             | monitors,    |             |                         |
|             | provides     |             |                         |
|             | added value  |             |                         |
|             | and support  |             |                         |
|             | for          |             |                         |
|             | subregional  |             |                         |
|             | market       |             |                         |
|             | monitors     |             |                         |
|             | without      |             |                         |
|             | local market |             |                         |
|             | monitors     |             |                         |
|             | being        |             |                         |
|             | duplicated   |             |                         |
|             | or           |             |                         |
|             | undermined.  |             |                         |
+-------------+--------------+-------------+-------------------------+
|             |              |             |                         |
+-------------+--------------+-------------+-------------------------+
| # NAESB C   |              |             |                         |
| oordination |              |             |                         |
+-------------+--------------+-------------+-------------------------+
| > 1\.       | Common       | WECC -- MIC | Should coordination of  |
| > Develop   | business     | focus is on | commercial issues with  |
| > market    | practices    | impacts of  | NAESB, be performed by  |
| > interface | that meet    | reliability | WECC or by a west wide  |
| > practices | the needs of | stds. on    | commercial              |
| > and       | the western  | the market  | organization?           |
| >           | system.      | and impact  |                         |
|  commercial |              | of market   |                         |
| > business  | NERC/NAESB   | practices   |                         |
| > practices | deference.   | on system   |                         |
| >           |              | r           |                         |
|  applicable |              | eliability. |                         |
| > to the    |              | (GNC April  |                         |
| > WI.       |              | 2004        |                         |
|             |              | report)     |                         |
+-------------+--------------+-------------+-------------------------+
| > 2\.       | Western      | WECC MIC    | Should coordination of  |
| > Develop   | influence on | considering | commercial issues with  |
| > western   | NAESB        | this role.  | NAESB, be performed by  |
| > positions | business     |             | WECC or by a west wide  |
| > on NAESB  | practices    |             | commercial              |
| > business  | would be     |             | organization?           |
| >           | more         |             |                         |
|  practices. | effective if |             |                         |
|             | positions    |             |                         |
|             | were         |             |                         |
|             | coordinated  |             |                         |
|             | by a western |             |                         |
|             | o            |             |                         |
|             | rganization. |             |                         |
+-------------+--------------+-------------+-------------------------+
|             |              |             |                         |
+-------------+--------------+-------------+-------------------------+
| # Resour    |              |             |                         |
| ce Adequacy |              |             |                         |
+-------------+--------------+-------------+-------------------------+
| > 1\.       | Resource     | WECC and    | No energy assessment    |
| >           | adequacy     | CREPC       | (e.g., generation       |
|  Assessment | assessment   | currently   | capabilities in         |
| > of future | must be      | taking the  | drought), No extreme    |
| > west wide | performed on | lead        | temperature assessment, |
| > resource  | an           |             | no documentation of     |
| > adequacy  | int          |             | WECC load forecasts - - |
|             | erconnection |             | *- from CREPC Dec 3,    |
|             | wide basis   |             | 2004 report to the      |
|             | since many   |             | Governors.*             |
|             | load areas   |             |                         |
|             | rely on      |             | There is a need for     |
|             | resources    |             | improvements in quality |
|             | outside      |             | of data and             |
|             | their        |             | improvements in         |
|             | region.      |             | documentation of        |
|             |              |             | assessment results.     |
+-------------+--------------+-------------+-------------------------+
| > 2\.       | West wide    | SSG-WI      | Need for better         |
| > Adequacy  | coordination | addressing  | coordination of         |
| > of west   | is necessary | adequacy of | resource assessments    |
| > wide      | to plan and  | inte        | and related             |
| > t         | develop      | rconnection | interconnection wide    |
| ransmission | adequate     | wide        | transmission            |
| > system    | bulk         | electric    | integration             |
| > for       | electric     | t           | assessments.            |
| >           | transmission | ransmission |                         |
| integration | and gas      | system.     | Future role of SSG-WI   |
| > of        | transmission |             | or other west wide      |
| > planned   | systems to   | SPG's       | commercial              |
| > in        | meet         | addressing  | organization. Need to   |
| terregional | resource     | subregional | resolve who is the      |
| > resources | marketing    | t           | responsible entity for  |
| > (gas and  | and gas      | ransmission | providing resources and |
| > electric  | supply       | needs.      | funding?                |
| > tr        | in           |             |                         |
| ansmission) | frastructure | Who is      | Gas supply assessment?  |
|             | needs        | addressing  |                         |
|             |              | gas supply? |                         |
|             | Resource     |             |                         |
|             | integration  |             |                         |
|             | and market   |             |                         |
|             | needs can be |             |                         |
|             | integrated   |             |                         |
|             | through a    |             |                         |
|             | west wide    |             |                         |
|             | transmission |             |                         |
|             | planning     |             |                         |
|             | process.     |             |                         |
+-------------+--------------+-------------+-------------------------+
| > 3\. West  | Common west  | WECC Rel.   | Need to agree on        |
| > wide      | wide         | S           | targets, metrics and    |
| > resource  | terminology  | ubcommittee | implementation          |
| > adequacy  | and          | and CREPC's | processes.              |
| > criteria  | definitions, | WRATS. WECC |                         |
| > / targets | metrics and  | goal is to  |                         |
|             | targets,     | have an     |                         |
|             | allowing for | adequacy    |                         |
|             | regional     | criteria    |                         |
|             | differences  | developed   |                         |
|             | in their     | in 2005.    |                         |
|             | application. |             |                         |
+-------------+--------------+-------------+-------------------------+
|             |              |             |                         |
+-------------+--------------+-------------+-------------------------+