# Presentation: 261083

## RTO Updatefor

**CAE/Legislators Briefing**
**11/13/2003**

## Revived RRG Process

**Revived RRG Process**

- Restarted Regional Representatives Group Process (RRG) in June 2003.
- States, Public Power, IPPs, Interest Groups and RTOW Filing Utilities (FUs)
- RTO FUs Goals:
-   Ensure a solution that is focused on regional needs
-   Develop broad regional consensus.

## RRG Process Accomplishments To Date

**RRG Process Accomplishments To Date**

-   Bottoms up approach
-   Striving for a Consensus Based approach to decision making.
-   Dozen all day meetings
-   Reached consensus on regional problems and opportunities **(**_[www.rtowest.com](http://www.rtowest.com/)_)
-   Planning & Expansion
-   More efficient use of the existing transmission system
-   Market monitoring and oversight
-   Pricing/rate pancaking
-   Reliability/Control Area consolidation/Ancillary Services

##   Reached consensus that a status quo (do nothing) approach is not a 

-      realistic solution and that significant change is needed.
-   Worked on 3 solution options:
-   Coordination-based
-   Independent Administrator
-   RTOW Stage 2 reloaded

## Option 1:  Coordination -Based

**Option 1:  Coordination -Based**

-   Independent Transmission Management Committee
-    Regional Transmission Plan via NTAC
-    One-Stop-Shop via NW OASIS (separate tariffs)
-    Flow-based ATC methodology.
-    New conditional firm service products offered.
-    Voluntary inc/dec market to clear congestion
-    Voluntary control area consolidation.
-    Independent PNSC able to order changes in generation and load to
-       maintain reliability.
-    Rate Pancaking remains
-    State/Federal agreement to establish an independent market monitor.
-    Existing rights preserved

## Option 2:  Independent Administrator

**Option 2:  Independent Administrator**

-   Independent entity and Governing Board
-    IA develops regional transmission plan and has backstop
-       authority for reliability projects.
-    IA provides One-Stop-Shop via single OASIS
-    IA administers flow-based ATC methodology.
-    New conditional firm service products offered.
-    IA runs voluntary inc/dec market to clear congestion.
-    Voluntary Control Area consolidation
-    IA is the independent market monitor
-    Existing rights preserved.

## Option 3:  Stage 2 Reloaded

**Option 3:  Stage 2 Reloaded**

-   Independent entity and governing board
-    RTO develops regional plan and has backstop authority for reliability
-       and commercial needs.
-    RTOW accepts all schedules, limited by feasible dispatch (later)
-    RTOW acquires inc/dec to clear congestion and charges incremental
-       users
-    RTOW administers a single tariff
-    Rate pancaking is eliminated
-    Existing rights preserved

##   Flow-based ATC calculation

-   Flow-based ATC calculation
-   Independent market monitoring function
-    Partial control areas consolidation and RTOW is system 	operator
-    RTOW acquires and provides ancillary services; provider of
-       last resort.
-    Phased implementation approach

## Common Elements

**Common Elements**

-   Independent decision-making
-   Single Regional Transmission Plan with dispute resolution
-   Being sure transmission plans get built is critical (backstop)
-   Independent flow-based ATC calculation
-   One-stop-shopping
-   Preservation of existing rights
-   Independent market monitor
-   Voluntary inc/dec to clear congestion
-   Enhanced short-term reliability
-   Phased/staged implementation.

## Differences/Remaining Issues

-   Governance/How independence is achieved
-   Control area consolidation (cost issue)
-   Rate pancaking
-   Accept all schedules vs. new quasi-firm products/Congestion 	Management
-   Single tariff vs. Individual TO tariffs
-   Ancillary Service provider of last resort.

## Next Steps

**Next Steps**

-   Try to find convergence in remaining areas of difference
-   3 Workgroups formed at 10/9/2003 RRG
-   Convergence
-   Governance
-   Congestion Management
-   New workgroup formed at 10/29-30 RRG to develop straw hybrid 			proposal
-   Next RRGs 11/19-20 and 12/10-11
-   Goal is to reach a preferred approach by end of the year
-   It will take 6-12 months to fully develop a preferred approach and
-      initiate the approval process (BPA, states, FERC)
-   Implementation will be phased in over several years.