# Presentation: 694563

## Proposed Rate Adjustments for Transmission and Ancillary Services 

- <date/time>

- LAP Transmission and Ancillary Services rates, updated October 1, 2002, were extended through March 31, 2004.
- These rates will be updated under FERC-approved methodologies, using updated financial and load data on October 1, 2003.

## Network Transmission Service, L-NT1

- <date/time>

- Rate methodology not changing.
- Revenue requirement decreased from $40,570,808 to $38,776,237.
- Customer load share determines monthly charge.
- Network load increased from
- 	1,173,603 kW to 1,206,771 kW.

## Firm Point-to-Point Transmission Service, L-FPT1

- <date/time>

- Rate methodology not changing.
- Rate decreasing from $2.88/kW-month to $2.68/kW-month.

## Non-Firm Point-to-Point Transmission Service, L-NFPT1

- <date/time>

- Rate methodology not changing.
- Rate remains unchanged at 3.75 mills/kWh.

## Scheduling and System Dispatch Service, L-AS1

- <date/time>

- Existing rate of $43.09 per schedule per day will be updated with FY 2002 schedule/financial data effective
- 	October 1, 2003.
- Effective January 1, 2004, the charging premise will change to “per tag per day”.
- Charge will be $25.22/tag/day.

## Reactive Supply and Voltage Control Service from Generation Sources, L-AS2

- <date/time>

- Existing rate of $0.103/kW-month, using FY 2001 load/financial data.
- No change in formula from 1998 approved rate.
- October 1, 2003, rate updated using FY 2002 financial/load data, $0.108/kW-month.
- Proposed rate effective January 1, 2004, will
- 	be the same as October 1, 2003, rate.

## Regulation and Frequency Response Service, L-AS3

- <date/time>

- Existing rate of $0.164/kW-month, using FY 2001 load/financial data.
- October 1, 2003, rate will be updated using existing methodology and FY 2002 financial/load data.
- Formula rate changing January 1, 2004.

## Regulation and Frequency Response Service, L-AS3

- <date/time>

- Change will reflect:
- Revised analysis to determine regulating capacity requirements.
- New resource-mix for regulation.
- Blended revenue requirement from all resources.
- Rate effective January 1, 2004, using new methodology, will be $0.185/kW-month.

## July 2002 WACM Generator Changes

| statistics |  | %age |  |  | %age |
| --- | --- | --- | --- | --- | --- |
|   |  |   |  |  |   |
| # events > 200 MW  | 1 | 0.00% | # events > 25 min | 2 | 0.01% |
| # events > 175 MW | 1 | 0.00% | # events > 20 min | 17 | 0.08% |
| # events > 150 MW | 1 | 0.00% | # events > 15 min | 29 | 0.13% |
| # events > 125 MW | 6 | 0.03% | # events = 15 min | 3 | 0.01% |
| # events > 100 MW | 16 | 0.07% | # events = 14 min | 6 | 0.03% |
| # events > 75 MW | 73 | 0.33% | # events = 13 min | 7 | 0.03% |
| # events > 50 MW | 281 | 1.28% | # events = 12 min | 9 | 0.04% |
| # events > 45 MW | 384 | 1.75% | # events = 11 min | 10 | 0.05% |
| # events > 40 MW | 494 | 2.25% | # events = 10 min | 30 | 0.14% |
| # events > 35 MW | 665 | 3.03% | # events = 9 min | 37 | 0.17% |
| # events > 30 MW | 930 | 4.24% | # events = 8 min | 59 | 0.27% |
| # events > 25 MW | 1311 | 5.98% | # events = 7 min | 118 | 0.54% |
| # events > 20 MW | 1963 | 8.95% | # events = 6 min | 201 | 0.92% |
| # events > 15 MW | 3215 | 14.66% | # events = 5 min | 442 | 2.02% |
| # events > 10 MW | 5778 | 26.35% | # events = 4 min | 1066 | 4.86% |
| # events > 5 MW | 11476 | 52.33% | # events = 3 min | 2631 | 12.00% |
| # events > 1 MW | 19561 | 89.19% | # events = 2 min | 6218 | 28.35% |
| # events > 0 MW | 21786 | 99.34% | # events = 1 min | 11065 | 50.45% |
| # events = 0 MW | 145 | 0.66% | # events = 0 min | 0 | 0.00% |
| total events | 21931 |   | total events | 21931 |   |
| max size event "-" | -136 |   | max event length | 28 |   |
| max size event "+" | 251.3 |   | StdDev, length | 1.491 |   |
| average event MW "-" | -8.178 |   | average length | 1.918 |   |
| average event MW "+" | 9.100 |   | minute count | 42059 |   |
|   |   |   | hours | 700.98 |   |
|  |  |  | 744 x 60  =   | 44640 |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |

**July 2002 WACM Generator Changes**
**Variable Event – error filtered duration w/o RMRG Responses**

- 10

## Proposed Regulation and Frequency Response Service for Intermittent Renewable Resources

- <date/time>

- Proposed Regulation rate to mitigate fluctuations in intermittent resources.
- Same revenue requirement as load-based Regulation rate.
- Same total capacity requirements for Regulation service.

## Proposed Regulation and Frequency Response Service for Intermittent Renewable Resources

- <date/time>

- January 2004 rate calculated to be $5.59/kW-month.
- Analysis of intermittent resources shows a 27% minute-to-minute variation rate.
- Rate would be applied against 27% of the wind owners’ installed capacity.

## January 2003

- <date/time>

**January 2003**
**Typical Intermittent Renewable Generation within WACM**

**Hours**

## January 2003

- <date/time>

**January 2003**
**Typical Intermittent Renewable Capacity within WACM**

**Hours**

## April 1, 2003, HE 1000 

- <date/time>

**April 1, 2003, HE 1000 **
**Intermittent Renewable Resource within WACM Output**

**Minutes**

## Proposed Regulation and Frequency Response Service for Intermittent Renewable Resources

- <date/time>

- After-the-fact analysis may be done for each customer to determine actual capacity requirement for the month.
- Customer’s bill may be reduced, based upon performance.

## Proposed Regulation and Frequency Response Service for Intermittent Renewable Resources

- <date/time>

- EXAMPLE:
-   20 MW Wind Farm
- X _27_% variation percent
-   5.4 MW of capacity @ $5.59/kW-month =
-                  $30,186

## Proposed Regulation and Frequency Response Service for Intermittent Renewable Resources

- <date/time>

- ATF analysis may show usage of only
- 	2.4 MW capacity for fluctuations.
-  Adjustment:
- 		$30,186 for 5.4 MW
-         _($16,770)_ for 3.0 MW Adjustment
-          $13,416  Actual Bill for 2.4 MW

## Energy Imbalance Service, L-AS4

- <date/time>

- Effective January 1, 2004, the following modifications are proposed to be made to the rate:
- 	     - 4 MW minimum deviation
-         - Rounding of EI values hourly
-         - Reduce penalty to 25%

## Operating Reserves – Spinning and Supplemental, L-AS5 & L-AS6

- <date/time>

- WACM has no long-term reserves available for sale.
- At customers’ request, provide reserves on a pass-through cost basis.
- For any reserves purchased, customer responsible for transmission.

## Unauthorized Use of Transmission and Control Area Resources, L-US1

- <date/time>

- Applies to all transmission transactions occurring on RMR-managed facilities within WACM.
- Violations assessed 150% of charge for service at issue; i.e., hourly, daily, weekly, monthly, with a maximum of monthly.
- If two types of service reserved in the same hour, the longer service penalty will apply.

## Unauthorized Use of Transmission and Control Area Resources, L-US1

- <date/time>

- Payment does not entitle customer to service for an entire month, unless overrun was on an existing monthly reservation.
- Proposed to be incorporated as tariff ancillary service.

## Transmission Losses, L-LO1

- <date/time>

- Applicable to all schedules without sufficient loss energy scheduled separately.
- Applies WACM postage stamp loss rate.
- Losses assessed for all real-time and prescheduled transactions.
- Settlement for real-time is 7 days later/same profile.  Prescheduled transactions must have concurrent losses scheduled.

## Transmission Losses, L-LO1

- <date/time>

- Loss Obligation is rounded daily.
- Effective January 1, 2004, LAP average real-time pricing will be used (same defaults as Energy Imbalance Service).
- Proposed to be incorporated as tariff ancillary service.

## Proposed Rate Adjustments for Transmission and Ancillary Services 

- <date/time>

- Public Process for Proposed Rates will begin in June 2003, with publication in the Federal Register.
- Public Information Forum will be held on July 14, 2003, in Denver.
- Public Comment Forum will be held on August 6, 2003, in Denver.

## Proposed Rate Adjustments for Transmission and Ancillary Services 

- <date/time>

- RMR plans to have new transmission and ancillary service rates in place by January 1, 2004.