RSC Workshop on the Integration of WAPA, Basin, Heartland. April 4, 2014

Transcription

1 RSC Workshop on the Integration of WAPA, Basin, Heartland April 4, 2014

2 AGENDA I. Impact of IS Joining SPP II. Cost Allocation III. Potential Clarification to RSC Bylaws IV. SPP Bylaw and Membership Agreement Changes V. Tariff Changes VI. Other Business and Closing Comments/Adjournment 2

3 Western, Basin, and Heartland OVERVIEW OF THE IS 3

4 R35ESTYP 4

5 Basin Electric Basin Electric Power Cooperative (Basin Electric) is one of the largest electric generation and transmission (G&T) cooperatives in the United States. They are the parent company of eight subsidiaries. A not-for-profit generation and transmission cooperative incorporated in 1961 to provide supplemental power to a consortium of rural electric cooperatives Diverse energy portfolio: coal, gas, oil, nuclear, distributed, and renewable energy, including wind power Consumer owned by 137 member cooperative systems Members' service territories comprise 540,000 square miles in nine states By end of year 2013 Basin Electric will operate 4,824 megawatts (MW) of wholesale electric generating capacity and have 5,289.2 MW of capacity within its generation portfolio Owns 2,165 miles and maintains 2,250 miles of high-voltage transmission, and owns and maintains equipment in 70 switchyards and 149 telecommunication sites Serves 2.8 million electric consumers 5

6 Basin Electric Power Cooperative Consumer owned by 137 Member Cooperatives 11 Districts in 9 states Service Territories Comprise 540,000 square miles Serves 2.8 million electric consumers 5,289 MW of capacity within its generation portfolio 2,000 employees 8 subsidiaries 6

7 Generation Portfolio 7

8 Transmission Systems IS CUS BEPW 8

9 MT McCone Upper Missouri Sheridan Williston Burke- North Divide Central Mountrail- Basin Williams Verendrye Lower Yellowstone McLean McKenzie Goldenwest Slope Roughrider 1300 MW Capital Central Power Northern Plains ND Dakota Valley Southeast Grand SD 9

10 Pioneer 2013 Culbertson Lonesome Creek Wheelock Blaisdell Prairie Winds

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12 Heartland Background Non-profit public power district headquartered in Madison, South Dakota Staff of 12 Public corporation and political subdivision of the State of South Dakota Formed in 1969 under South Dakota s Consumers Power District statutes Title 49, Chapters Similar in structure to Nebraska public power entities Wholesale power supplier to 29 municipal system in SD, MN and IA, five South Dakota state institutions and one cooperative mostly supplemental to WAPA Minority owner of the Integrated System Most assets jointly owned with other public entities

13 Heartland Customers and Resources 35 Customers (140 MW, 900 GWh) Primary Resources Wessington Springs Wind Energy Center Laramie River Station Unit 1 Whelan Energy Center Unit 2

14 Heartland s Governance Powers of the district are vested in the Board of Directors Ultimate decision-making authority Not state PUC or FERC jurisdictional Board of Directors 10 directors from subdivisions in eastern South Dakota Elected during general elections Six-year staggered terms Non-partisan positions

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17 Western Area Power Administration 17

18 Western Area Power Administration 18

19 Where We Get The Power Western-UGP Congressionally Authorized Project Purposes: Flood Control Navigation Irrigation M&I Water Supply Hydropower Recreation Fish & Wildlife (includes endangered species) 19

20 Western-UGP Stats: 378,000 square miles of service area 118 substations and 7,920 miles of transmission lines (Federal owned) 360+ power and transmission customers 2,675 MW installed capability (2 BOR, 6 COE facilities) Approx. 10,000 Gwh s of energy produced in median year. Operate 2 Balancing Authorities (East and West systems) 20

21 Integrated System Members 21

22 History 1963 Missouri Basin Systems Group Pooling Agreement signed, The Joint Transmission System (JTS) created 1998 JTS was modified to become the Integrated System providing service under Western s OATT Western and other IS transmission owners transmission facilities were a part of the Mid-Continent Area Power Pool (MAPP) Schedule F tariff for short-term point-to-point service 22 22

23 Basin / Western / Heartland Integrated System (IS) W/E W/E And Other Facility Owners: Missouri River Energy Services NorthWestern Energy 23

24 Western, Basin, and Heartland IS PROCESS OF EVALUATING RTO MEMBERSHIP 24

25 IS PROCESS FOR EVALUATING RTO OPTIONS years of study and discussions about any advantages for wider coordination September 2011 Charles River Associates high level study showed RTO participation was beneficial. March 2013 Brattle Study looking at: Standing alone Joining MISO Joining SPP SPP was best option 25

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27 SPP SPP PROCESS OF EVALUATING IS MEMBERSHIP IN SPP 27

28 Strategic Planning Committee Members adopted process within the SPC to assist SPP Staff with process of working with interested parties to explore membership in SPP. Used with all prospective members since Nebraska entities joined SPP. SPC appoints sub-group to assist Staff with regular reports to the SPC. Used during negotiations with Entergy on prospective membership 28

29 IS Interest and SPC Role SPC chair appointed a sub-group in September, 2012 to assist SPP Staff with interest expressed by IS. This subgroup has met 10 times. SPP Staff reviewed progress with SPC in all meetings since then including three meetings (May 1, 2013, October 17, 2013 and January 16, 2014) that were in executive session including State Regulatory staff. In all these SPP Staff received comments and adjustments to the proposals in negotiations with the IS entities. SPP Staff validated with SPC the proposals provided to the IS parties in the negotiations. 29

30 Integration Study As part of the discussions at the SPC, SPP Staff provided two analyses needed for the SPP members Cost/Benefit Analysis for SPP from IS joining SPP Transmission Analysis to insure that IS transmission facilities were up to SPP standards (SPP Criteria and SPP interpretation of NERC Standards) (See below) Any facilities needed to upgrade to those standards would be the IS parties cost responsibility (some were identified that they were already planning to construct). Additional the analysis provided the need-by dates for all IS construction expansion plans. 30

31 February 24, 2014 SPP Stakeholder Workshop After the public announcements of the IS parties about pursuing joining SPP, SPP Staff scheduled a meeting for all stakeholders to review the proposed changes to SPP governing documents. The IS parties introduced themselves and SPP Staff walked through the SPP Bylaws, Membership Agreement and Tariff changes that were in the process of being edited for integrating the IS. Presentation material is attached. 31

32 IS Inclusion in the ITP Process The ITP 10-Y Assessment currently being considered includes the IS transmission facilities and generation IS transmission facilities will be included in all subsequent iterations of the ITP process 32

33 WAPA/Basin/Heartland Transmission Integration Study January 27, 2014

34 Purpose Perform an evaluation of the Western/Basin/Heartland IS transmission system in the event a decision was made to join the SPP RTO. There were two main objectives of the Integration Study: Evaluate the IS transmission system to determine whether it satisfies SPP s Planning Criteria and NERC TPL Standards Identify the SPP need-by dates of the transmission projects provided by the IS in relation to the assumed October 2015 integration date 34

35 Stakeholder Involvement Seams Steering Committee (SSC) reviewed the study scope on September 5, 2013 Transmission Working Group (TWG) reviewed the study scope on September 18, 2013 Preliminary draft study report sent to TWG on September 30, 2013 TWG reviewed final draft study report on October 23, 2013 TWG endorsed the study as having been conducted in accordance with SPP s planning criteria The IS provided input and information as needed throughout the process 35

36 SPP and the Integrated System 36

37 Study Process and Methodology SPP started with 2014, 2015 and 2019 ITPNT models for the study 2014 winter peak, 2015 summer and winter peak, 2019 light-load, summer and winter peak Data Inputs Load Generation Resources Model Topology Transmission Service Demand Response Study Model 37

38 Study Process and Methodology Cont. Non-contingency (base case), N-1, and select Category C contingency analysis was performed on the IS transmission system Facilities in the IS 69kV and above were monitored for potential violations of SPP Criteria and NERC TPL standards The IS provided mitigations and/or operating guides for the potential violations identified 38

39 Costs Allocated under IS System Substation in Rapid City DC tie property 230/115kV Dry Creek, with 200 MVA transformer and Rapid City- Dry Creek 115 kv line (4/1/2014) Ordway 1x20 MVAr 115 kv Capacitor (12/1/2014) Logan SW Minot reconductor (12/1/2014) Replace Spencer KY1A, KY1B, Volt Reg with one 161/69 kv 150 MVA LTC Transformer (12/1/2014) October 2015 Assumed Brightline Cost Allocated under SPP s Highway/Byway Phase I (12/1/2017) AVS Switchyard, 345 kv AVS to Charlie Creek 2, 345 kv Line Charlie Creek Sub, 345 kv Phase II (12/1/2017) Charlie Creek Sub to Indian Hills to Judson, 345 kv line Judson Sub to Williston Sub, 230 kv Judson Sub, 345/230 kv Phase III (Post 2019) Gumbo Creek Sub, 345/115 kv Gumbo Creek to Blue Butte to Indian Hill, 345 kv line Blue Butte & Indian Hill Sub s, 345/115 kv Phase IV (12/1/2017) Jusdon Sub to Tande Sub 345 kv line Tande Sub to Neset Sub 230 kv line Tande Sub 345/230 kv Neset Sub 230 kv Lower Brule 230 kv line & associated substation work (12/1/2016) 39

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42 Conclusion 24 potential reliability issues were identified 9 projects currently planned by the IS to address category A or B issues 4 are needed before the assumed integration date 4 are needed after the assumed integration date 1 was not identified as needed within the scope of the study 42

43 OVERVIEW OF THE INTERCONNECTION BETWEEN SPP AND THE IS SYSTEM 43

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46 All ties from EI to ERCOT and WI via the SPP/IS System 46

47 Integration Comparison IS to SPP MISO South to MISO Load Additions (MW) 4000^ 23000^ Number of Transmission Ties 11* 1 Transmission Tie Capacity (MW) 3,000MW 1,000MW Current + Addition + New Total Load (MW) 51, ,000 = 55,000^ 99, ,000 = 122,000^ ^Annual peaks rounded to the nearest 1,000 MW *10 existing ties with 1 new tie to go in-service in

48 SPP ON-GOING SPP STAKEHOLDER PROCESS 48

49 CGC Responsibilities The SPP Corporate Governance Committee (CGC) is responsible for overall governance structure of SPP. When necessary the CGC makes recommended changes to SPP governance structure. This responsibility is stated in the CGC Organizational Group Scope Statement dated October 29, Scope of Activities The CGC is responsible for the overall governance structure, including nominations, for the company in accordance with its scope as approved by the Board of Directors. l) Review annually the structure of the Organizational Groups, and together with the Organizational Group Chairs, the charters of each Organizational Group, and recommend changes to the Board of Directors, as appropriate;

50 Meeting Schedule Next Steps for CGC Recommendations SPP CGC Process for Integrating Western, Basin, & Heartland February 27, 2014 Little Rock, AR Next Steps MOPC - April 15-16, 2014 Oklahoma City, OK Conference call Date TBD Areas of Changes to SPP Governance under consideration March 31, 2014 Dallas, TX BOD/MC - April 29, 2014 Oklahoma City, OK SPP Membership Agreement (1) Add Federal Law to pertinent sections; (2) Add references to Federal Power Marketing Agencies (FPMA) in pertinent sections; (3) Addition of definitions to correspond with new definitions in OATT (e.g. Upper Missouri Zone); (4) Add references to FERC's relationship with FMPA in ratemaking context; (5) Add language about withdrawal and related obligations; (6) Add language about assigning Membership Agreement; and (7) Party Specific Issues SPP Bylaws (1) Add FPMA seats to the Members Committee and the CGC;* (2) Added pertinent language about FPMA withdrawing as Members (Federal Law Matters) 50

51 Changes to the SPP Membership Agreement (MA) Area of Change Description Locations of Changes Definitions Commitments, Rights, Powers and Obligations of Member Construction Pricing No Waiver of Jurisdictional Immunity Federal Power Marketing Agency Federal Power Western- UGP Statutory Load Obligations Upper Missouri Zone Western Area Power Administration Upper Great Plains Region Federal Exemption Coordinate construction with the appropriate Administrator of a FMA Right to file rates at FERC under 10 CFR Part 903 and 18 CFR Part 300 FERC review of FPMA rates would be consistent with Delegation Order N A (h) 3.3 (a)

52 Changes to the SPP MA (Cont.) Area of Change Description Locations of Changes Compliance with Federal or State Law Events of Termination and Partial Termination Termination Procedures and Effective Dates Effective Date of Termination (other Than Voluntary Withdrawal) Regulatory and Other Authorities Non-jurisdictional member can not take action that is not consistent with Federal law. Adds language that compliance will be determined by the FPMA Administrator Clean up to add a reference to Section 8.2 FPMA is not required to make a withdrawal deposit and will only pay costs as provided at 4.3.2(e) Provides for withdrawal of any member in less than 24 months and exit fees required Approval of participation is subject to respective federal authorities A.f (b) (b)(v)

53 Changes to the SPP MA (Cont.) Area of Change Description Locations of Changes Effectiveness as to Certain Members Applicability of MA to a non-public utility to acquire waivers for financing facilities Governing Law Application of Federal Law for FPMA 8.1 Successors and Assigns Clean up language 8.2 Severability Clean up language Specific Amendments for WAPA Specific Amendments for WAPA Specific Amendments for Basin Specific Amendments for Heartland Federal Service Exemption A1.2 FPMA Termination of Agreement A1.11 Clean up language Clean up language A1.-2. A

54 Changes to SPP Bylaws Area of Change Description Locations of Changes Definitions Define Federal Power Marketing Agency 1.0 Bylaws Qualifications Opens membership to FPMA 2.1 Bylaws Composition of Members Committee Corporate Governance Committee Expand number from 19 to 21; increase state power agencies to 2; added 1 rep from FPMA Expand number from 9 to 10 to include a rep from a FPMA Bylaws 6.6 Bylaws Withdrawal Obligation Amendments to Bylaws, MA, or Articles of Incorporation Application of financial obligations to a FPMA Application of changes in these documents to a FPMA Bylaws 10.0 Bylaws 54

55 RTWG Responsibilities PURPOSE The Regional Tariff Working Group (RTWG) is responsible for development, recommendation, overall implementation and oversight of SPP s open access regional transmission service tariff (Tariff). The RTWG will further advise the SPP Staff on regulatory or implementation issues not specifically covered by the Tariff or issues where there may be conflict or differing interpretations of the Tariff. The RTWG provides policy input to the Market Operations Policy Committee (MOPC) and Board of Directors (BOD) and its committees, if requested. 55

56 Meeting Schedule Next Steps for Tariff Language SPP RTWG Process for Integrating Western, Basin, & Heartland March 12, 2014 Process Improvement Tariff TF Conference Call Next Steps MOPC - April 15-16, 2014 Oklahoma City, OK OATT Changes Sent to RTWG Chair March 7, 2014 Areas of Changes to SPP OATT under consideration March 26-27, 2014 Dallas, TX RSC/BOD - April 28-29, 2014 Oklahoma City, OK OATT Changes (1) Creation of New Pricing Zone, called the Upper Missouri Zone or "Zone 19," to cover the region in which the IS Owners and facilities are located; (2) Defined "Federal Service Exemption" for WAPA/Western not being subject to certain charges for deliveries of federal power over the UMZ for purposes of fulfilling Western's statutory obligations and related changes to Schedule 11; (3) Western is excluded from FERC Assessment costs in Schedule 12; and (4) "Federal law" is added to pertinent references to state law obligations. 56

57 Changes to SPP OATT Area of Change Definitions Description of Changes Modify Base Plan Upgrades to mark the bright line and specify certain Basin facilities as Base Plan Upgrades (facilities listed in Attachment J Appendix 1) Definitions Definitions Definitions Definitions Definitions Definitions Definitions Define Eastern Interconnection Define distinction between Federal Power- Southwestern and Federal Power-Western-UGP Define Federal Power Marketing Agency Define Federal Service Exemption Definition of GFA expanded to include contracts executed prior to transferring control of facilities to SPP Define Statutory Load Obligations Define Upper Missouri Zone Define Western UGP 57

58 Changes to SPP OATT (Cont.) Area of Change III. Network Integration Transmission Service (Preamble) IV. Special Rules on Use of the Tariff; 39.1 IV (a)-(c) IV (d) IV (e) IV (f) (g) IV (h) Description of Changes Language added to state that NITS will be coordinated with the Federal Service Exemption to allow Western- UGP to provide service in accordance with its Statutory Load Obligations. Clarify Non-Public Utility includes a FPMA and delete references to public power Replace Western with Western-UGP Insert language describing Western-UGP Co-supply Arrangement Insert language describing Western-UGP Federal Service Exemption Insert language describing Federal Projects and Designated Resources Insert language describing various natural resource laws Western-UGP must comply with 58

59 Changes to SPP OATT (Cont.) Area of Change IV. Special Rules on Use of the Tariff (cont.); 39.3 (i), (j), (k), and (l) Schedule 7 LT and ST Firm Point to Point Service Schedule 8 Non-Firm Point to Point Service Schedule 9 NITS Schedule 11 Base Plan Charge and Region-wide Charge; I. Introduction Description of Changes Insert language describing Advance Funding, No Expansion of Jurisdiction, Waiver of Defenses, Liability for Penalties, or Inconsistent Obligations, Liability, and Western-UGP Rate Review that are required to address WAPA-UGP specific issues as a FPMA. Insert Zone 19: Upper Missouri Zone under 1. Zonal Rates Insert Zone 19: Upper Missouri Zone under 1. Zonal Rates Insert Zone 19: Upper Missouri Zone under 1. Zonal Rates Insert language to describe the Federal Service Exemption for the Western-UGP for service within Zone 19 59

60 Changes to SPP OATT (Cont.) Area of Change Schedule 12 FERC Assessment Charge; 2. Applicability Description of Changes Insert language to describe the Federal Service Exemption for the Western-UGP for the FERC Assessment Charge with regard to Pt-Pt and NITS Attachment G Network Operating Agreement; Section 15 - Assignment Attachment H ATRR for NITS; Section I 1. and 2. Attachment J Recovery of Costs Associated with New Facilities; Section III A. 2. Attachment J Recovery of Costs Associated with New Facilities; Section V A. Insert clarification regarding FPMA Insert language regarding cost recovery under the Bright Line date. Insert language regarding Basin and cost recovery Insert language to describe that Sponsored Upgrades built by a FPMA is only funded through a lump sum payment. 60

61 Changes to SPP OATT (Cont.) Area of Change Attachment L Treatment of Revenues; Section II B. 2. (f) Attachment M Loss Compensation Procedure; Section II Attachment T Rate Sheets for Point to Point Transmission Service Description of Changes Insert clarification regarding SPP distribution of revenues for service outside a Network Customer s system. Insert language that Western-UGP losses will be settled in accordance with the Federal Service Exemption. Also included Zone 19 to Appendix 1 Insert language for rates for point-to-point service (firm and non-firm) for members of the Upper Missouri Zone 61

62 FEDERAL SERVICE EXEMPTION 62

63 Western-UGP Federal Service Exemption Federal Statutes govern the functions and limitations of Western-UGP Federal Reclamation Law, largely contained in the Department of Energy Organization Act of 1977, the Reclamation Project Act of 1939, the Flood Control Act of 1944, and the Fort Peck Project Act of 1938 Other Federal law as applicable, and specifically Western-UGP s ability to join an RTO consistent with section 1232 of the Energy Policy Act of 2005 Western has advised that consistent with its statutory obligations it cannot agree to: (1) involuntary cost allocation for third-party transmission facilities, which includes SPP s cost allocation share under its tariff and (2) Western s rates are subject to a different standard of review pursuant to the delegation of authority from the Department of Energy to FERC. Joining SPP is based on the fixed nature of the generation resources committed to the preference customers of Western-UGP as well as the sufficiency of existing transmission Western-UGP built to meet its requirements. Any Western-UGP power marketing activity beyond federal resources to federal load will be subject to full SPP transmission service charges 63

64 Application of Rate Schedules and FSE Type of Customer Schedules 1(a) IOU Yes Yes Yes Yes Yes IPP Yes Yes Yes Yes Yes COOP Yes Yes Yes Yes Yes Marketers Yes Yes Yes Yes Yes Municipals Yes Yes Yes Yes Yes ITCs Yes Yes Yes Yes Yes State Agencies Yes Yes Yes Yes Yes IS Owners Basin Yes Yes Yes Yes Yes Heartland Yes Yes Yes Yes Yes WAPA* Yes Yes Yes No No *WAPA exemption from schedule 11 (regional portion) and schedule 12 only for FSE to serve Federal load with Federal resources 64

65 Attachment J Provision Attachment J (at III.A.2. b)) is modified to include: If the Base Plan Upgrade. b) is deemed to be an initial Base Plan Upgrade of Basin Electric Power Cooperative and included in Appendix 1 to Attachment J; This reflects that the costs of the Basin facilities listed in Appendix 1, which have a need by date after October 2015, will be recovered under the Highway/Byway. 65

66 Why are only Basin Projects Considered? Western UGP No new resources No new load obligations Transmission in place is only transmission charges allowed for preference customers Heartland No new transmission needed in near future Basin All transmission expansion needed for and constructed by Basin 66

67 SPP-RSC REGIONAL STATE COMMITTEE (RSC) TOPICS 67

68 IMPACTS ON HIGHWAY/BYWAY COST ALLOCATION & OTHER COST 68

69 IS and SPP Investment with Regional Recovery 69

70 IS and SPP Investment with Regional Recovery 70

71 Transmission Project Cost Sharing Only SPP and IS Projects with a need-by date after the Oct 15, 2015 Join Date are considered All projects have a 2.5% construction inflation applied to costs (from a 2013 base estimate year) All project costs are forecasted over a 40 year life (2.5% annual depreciation) 71

72 $400,000,000 Transmission Cost Impact Transmission Cost $20,000,000 $350,000,000 $300,000,000 $250,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $200,000,000 $10,000,000 $150,000,000 $100,000,000 $50,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- $- AEP WR SPS OGE NPPD KCPL OPPD GMO WFEC EDE MKEC GRDA LES CUS SEPC MIDW IS W/O Integration With Integration Cost Change *Present Values 72

73 SPP ADMINISTRATIVE FEE ANALYSIS 73

74 SPP s Administration Rate SPP Provided a Forecast of SPP s Net Revenue Requirements by Year recovered through the Admin. Fee (Sch. 1-A) The Annual Fee was Allocated in the Study based on Fixed Ratios between the IS and SPP WAPA loads were included in the portion of Admin. Fees allocated to the IS 74

75 Admin Fee Impact Schedule 1A Present Value $220,000,000 $(27,500,000) $200,000,000 $(25,000,000) $180,000,000 $(22,500,000) $160,000,000 $(20,000,000) $140,000,000 $(17,500,000) $120,000,000 $(15,000,000) $100,000,000 $(12,500,000) $80,000,000 $(10,000,000) $60,000,000 $(7,500,000) $40,000,000 $(5,000,000) $20,000,000 $(2,500,000) $- *Does not account for grandfathered agreements AEP OKGE SPS WR KCPL NPPD OPPD GMO WFEC EDE LES GRDA CUS MKEC SEPC MIDW IS W/O Integration With Integration Change *Present Values $- 75

76 2016 Admin Fee Rate Impact W/O Integration 43.2 Cents With Integration 37.9 Cents *Does not account for grandfathered agreements 76

77 Combined Admin Fee & Transmission Cost Combined Impact Sch 1A & $30,000,000 $7,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- Net benefit for each SPP TO $6,000,000 $5,000,000 $4,000,000 $3,000,000 $(5,000,000) $2,000,000 $(10,000,000) $(15,000,000) $1,000,000 $(20,000,000) Change in Sch 11 Change in Sch 1A Savings $- 77

78 QUANTIFIED BENEFITS AND COST TO SPP MEMBERS 78

79 Effect of IS Joining SPP (Thousands of $) Metric 10 Year Total 8% Schedule 1-A $179,908 $115,902 Schedule 1, 7 & 8 ($50,830) ($34,107) Schedule 11 ($125,002) ($85,435) Reserve Sharing Benefits $34,380 $23,069 Integrated Marketplace Benefits $272,375 $187,408 Net over 10 Years $310,831 $206,837 79

80 CLOSER LOOK AT ADMIN FEE AND TRANSMISSION COSTS 80

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83 RSC MEMBERSHIP 83

84 RSC Bylaws When the Nebraska entities joined SPP, at the April 2009 meeting, the RSC bylaws were changed to state (reflected in red and underlined): Membership shall be open to all official governmental entities that: (a) Regulate the retail electricity or distribution rates or approve retail service areas of transmission-owning members or transmission-dependent utility members of the SPP; or (b) Are the primary regulatory agency responsible for siting electric transmission facilities in states where there are transmission-owning members of the SPP or independent transmission companies that own or operate transmission facilities associated with the SPP. 84

85 States Analyzed Iowa Minnesota Montana North Dakota South Dakota Wyoming 85

86 Ratemaking and Approval of Retail Service Territory No state commission has authority over Western, Basin, or Heartland over ratemaking or service area determination State commission authority over transmission siting varies. 86

87 State Ratemaking or Approval of Retail Service Areas IS Owner Ratemaking Retail Service Area Basin Electric Coop No No Heartland Consumers Power District Western Area Power Administration No No No No 87

88 Analysis of State Siting Authority No state has siting authority over WAPA The SD PUC has siting authority over Heartland Consumers Power District 88

89 State Siting Authority Over Basin State Siting Authority Basin Owned Facilities Under the SPP OATT Iowa UB Minnesota PUC Montana PSC North Dakota PSC South Dakota PUC Wyoming PSC Authority over any person authorized to transact business in the state and covers transmission lines 69 kv and greater Authority for all transmission facilities that are: i) over 230 kv or ii) over 100 kv and 10 miles in length or iii) crosses a state line No siting authority over IS owners. Montana EPA has siting authority. Authority over facilities that exceed 115kV Authority over a person engaged in transmission of energy for facilities that are over 115 kv No siting authority over IS owners. Separate Industrial Siting Council has authority over industrial facilities costing at least $96,900,000. A single 69kV line;.57 mi.; 50% ownership None A single 115 kv line, no siting obtained by Basin; does not serve retail in MT Numerous Facilities Numerous Facilities Two 345 kv lines, 42.2% ownership, no retail customers in WY, LES also has ownership share 89

90 Bylaw Change for Consideration Current language: Membership shall be open to all official governmental entities that: (a) Regulate the retail electricity or distribution rates or approve retail service areas of transmission-owning members or transmission-dependent utility members of the SPP; or (b) Are the primary regulatory agency responsible for siting electric transmission facilities in states where there are transmission-owning members of the SPP or independent transmission companies that own or operate transmission facilities associated with the SPP. 90

91 Bylaw Change for Consideration (Cont.) Proposed language: Membership shall be open to all official governmental entities that:.. (b) Are the Primary Regulatory Agency responsible for siting electric transmission facilities in states where there are transmission-owning members of the SPP or independent transmission companies that own or operate transmission facilities under the SPP tariff associated with the SPP. Primary Regulatory Agency is the agency that has exercised authority over facilities placed under the SPP OATT that are greater than 100 kv and where the majority of the facilities are owned by an SPP Member. 91

92 QUESTIONS??? 92