Western Electricity Coordinating Council

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1 Western Electricity Coordinating Council WILLIAM MITTELSTADT, TOM CHAIR DISTURBANCE MONITORING WORK GROUP BONNEVILLE POWER ADMINISTRATION PARKWAY PLAZA (MAIL CENTER) 8100 N.E. PARKWAY VANCOUVER, WA TEL: (360) FAX: (360) February 12, 2004 JOINT GUIDANCE COMMITTEE PLANNING COORDINATION COMMITTEE OPERATING COMMITTEE TECHNICAL STUDIES SUBCOMMITTEE MODELING AND VALIDATION WORK GROUP Subject: DMWG 30-Day Posting for Comment In 2001 the WSCC approved a four-year program for installation of disturbance monitoring equipment to serve the following needs: system disturbance analysis; support of model validation; support of system testing; and compliance with NERC/WECC Planning Standard I.F. As a result of this effort, 24 of the identified sites are now available and in operation and about the same number remain to be completed in 2004 and Under this plan each site participating in the program is reimbursed over a four-year period for the cost of the disturbance monitoring equipment and maintenance within allowed limits in return for keeping the equipment operational and providing disturbance monitor data when required for the above purposes. In view of a late start of this program the WSCC Executive Director extended the period of coverage to 2006 for 2003 site energization. A sample copy of the WECC/Host Agreement is included with this letter. Installation of disturbance monitoring equipment remains as a high priority following the August 14, 2003, NE blackout as indicated by the following NERC recommendations:

2 Facilities owners shall, in accordance with regional criteria, upgrade existing dynamic recorders to include GPS time synchronization and, as necessary, install additional dynamic recorders. The reliability regions, coordinated through the NERC Planning Committee, shall within one year define regional criteria for the application of synchronized recording devices in power plants and substations. Regions are requested to facilitate the installation of an appropriate number, type and location of devices within the region as soon as practical to allow accurate recording of future system disturbances and to facilitate benchmarking of simulation studies by comparison to actual disturbances. Additional information on accomplishments of the WECC disturbance monitoring program may be found in the article Integrated Monitor Facilities for the Western Power System: The WECC WAMS in 2003 found in the Disturbance Monitoring Work Group portion of the WECC website at Your Comments are Requested Two matters in this letter are being brought to your attention in a 30-day comment period. These are: 1. The DMWG recommends Board approval of a revised disturbance monitor sites list; and 2. The DMWG recommends extending the payback period through DMWG Recommended Monitor Sites Table 1 (page 4) compares the site listing of the 2001 Approved Plan with the 2004 DMWG Recommended Plan. Comments are provided in each case where a change is indicated. The purpose of these changes is to: (a) maintain or improve coverage; (b) maintain costs within the approved budget; and (c) address member system needs. Table 2 below compares the change in number of units for (a) new installation, (b) upgrade, and (c) annual maintenance. The 2004 DMWG Recommended Plan represents no net change in capital costs but a reduction in maintenance costs. Table 2. Comparison of requirements under the 2001 Approved Plan with the 2004 DMWG Recommended Plan (this table also shown on page 4). Case New Upgrade Maintain 2001 Approved Plan DMWG Recommended Plan

3 DMWG Extended Payback Period Various issues have delayed the installation of many of the disturbance monitoring sites. Reasons for delay include delayed budgeting, site engineering, equipment procurement and delivery. Table 3 (page 5) illustrates those units scheduled by member systems for 2004 and 2005 installation. Those with WECC/Host agreements are shown as shaded entries. To achieve completion of the disturbance monitoring plan the DMWG recommends that existing and new agreements be extended to 2008 thus allowing for installation through Table 4 illustrates the budgetary requirements under the following cases: Case A 2002 WSCC approved plan Case B Implementation based only on presently enacted WECC/Host Agreements. Case C The same as Display B but extending repayment period to Payment is not made for prior calendar years and eligibility is limited to four years from 2003 or the in-service date, whichever is later. Case D Same as Display C but assumes that remaining sites without a WECC/Host Agreement participate. The level of participation is not expected to fully rise to the level of Case D but be somewhere between C and D. It is important that there be some certainty for WECC from the standpoint of planning and budgeting. To resolve this the DMWG recommends funding only those sites that have a WECC/Host Agreement in place by the time the 2005 WECC budget is submitted for approval. For the purpose of improving an estimate for the April, 2004 Board meeting it is requested that sites shown in Table 3 not yet having a WECC/Host agreement confirm in writing to Donald Davies of the WECC staff no later than March 1, 2004 their intention to participate, and if they are scheduling installation for 2004 or Also, Donald and I should be notified by that date if there is a high likelihood that any other units scheduled for 2004 will slip into the following year. All other comments on the recommendations of this letter are to be sent to me with a copy to Donald Davies at the WECC staff within 30 days of this letter. WAM:cm cc DMWG Members w/attachments Sincerely, William A. Mittelstadt William A. Mittelstadt G:\DEPT\SEC\JGC\DMWG\2004\DMWG_30-day_Comment_ doc -3-

4 Table 1. Original and DMWG recommended disturbance monitor site plans Approved Plan Change 2004 DMWG Recommended Plan Agmnt Reason for Change Alamitos Alamitos Ault 345 Ault Y BA 345 BA 345 Y Bell 230 Bell Y Big Eddy 500 Big Eddy Y Broadview or Garrison 500 Cancelled Sufficient coverage in area Camp Williams or Sigard 500 Camp Williams Celilo 500/230 Cancelled Covered by Big Eddy 500 and 230 Chief Joseph Chief Joseph Y Colstrip Colstrip Y Coulee 1-18 Cancelled Sufficient coverage in area Coulee Coulee Y Craig Craig Y Cranbrook or Langdon 500 Langdon Y Crystal, Eldorado, McCullough or Marketplace 500 Harry Allen Alternate site in same area Custer or Ingledow 500 Custer Y Diablo Canyon Diablo Canyon Y Four Corners Four Corners Y G.M. Shrum G.M. Shrum Haynes Cancelled Sufficient coverage in area Hoover Hoover Intermountain Cancelled Existing member recording equipment Jim Bridger Jim Bridger John Day John Day Y Keeler 500 Keeler Y Malin or Captain Jack 500 Captain Jack Y Maple Valley 230 Maple Valley Y Mica Mica Midpoint 345 Midpoint Midway, Gates or Los Banos 500 Midway Y Mohave Mohave Moss Landing Moss Landing Y Navajo Navajo Y Palo Verde Palo Verde Y Pittsburg Pittsburg Y Rainbow or Valley 500 Valley Revelstoke Revelstoke San Juan San Juan Y San Onofre San Onofre Sundance Sundance Y The Dalles The Dalles (Big Eddy 230) Y Tracy 345 NV Tracy (Nevada) Tracy or Tesla 500 Tesla Y Treasureton, Borah or Midpoint 345 Borah Vincent 500 Vincent Westwing or Kyrene 500 Kyrene Y Williston 500 Williston New Empress Y Extend coverage to Alberta (load area) New Gates Y Extended Intertie coverage in California New Hassayampa Y Coverage of major developing generation hub New Los Banos Y Extended Intertie coverage in California New Ruth Lake Y Extend coverage to Alberta (generation area) New Westwing Coverage for major Phoenix hub Table 2. Comparison of requirements under the 2001 Approved Plan with the 2004 DMWG Recommended Plan. Case New Upgrade Maintain 2001 Approved Plan DMWG Recommended Plan

5 Table 3. Projected disturbance monitor site in service dates. In Service 2004 Scheduled 2005 Scheduled Alamitos Camp Williams Bell Ault Colstrip Chief Joseph BA 345 Empress Custer Big Eddy G.M. Shrum Gates Borah Hassayampa Harry Allen Captain Jack Jim Bridger Hoover Coulee Kyrene Los Banos Craig Langdon Pittsburg Diablo Canyon Mica Westwing Four Corners Palo Verde John Day Revelstoke Keeler Ruth Lake Maple Valley Sundance Midpoint Tracy (Nevada) Midway Valley Mohave Moss Landing Navajo San Juan San Onofre Tesla The Dalles (Big Eddy 230) Vincent Williston Table 4. Budgetary planning information. Case A WECC BOT Approved (2001) 2002/ All Years Equipment/Maintenance Total 436, , , ,625 1,746,500 Less Maintenance 301, , , ,875 1,207,500 Interest Balloon Payments (5%) 154, ,617 WECC Total 436, , , ,242 1,901,117 Case B WECC Obligated (Agreements in place) 2002/ ,004 2,005 2,006 2,007 All Years Equipment/Maintenance Total 147, , , , ,479 Interest Balloon Payments (5%) 44,817 44,817 WECC Total 147, , , , ,296 Case C Obligated (Extended to 2008) 2002/ ,004 2,005 2,006 2,007 All Years Equipment/Maintenance Total 147, , , , ,625 69,000 1,118,104 Interest Balloon Payments (5%) 44,817 24,649 26,890 96,356 WECC Total 147, , , , ,274 95,890 1,214,460 Case D DMWG Projected (fully subscribed) 2002/ ,004 2,005 2,006 2,007 All Years Equipment/Maintenance Total 147, , , , , ,500 1,740,854 Interest Balloon Payments (5%) 59,969 51,539 40, ,843 WECC Total 147, , , , , ,835 1,892,697 Invoiced and Paid Out by WECC

6 WECC/Host Disturbance Monitor Agreement This Disturbance Monitor Agreement ("Agreement") is made and entered into this day of, 2003 by and between ("Host"), an entity operating in the Western Electricity Coordinating Council (WECC) region, or its successor, and WECC. The Host and WECC may be hereinafter individually referred to as "Party" and collectively as "Parties". Recitals WHEREAS the WECC Board at its August 2001 meeting approved the Disturbance/Performance Monitoring Plan Siting Requirements document and funding for the 2002 budget to implement; upgrade and maintain monitor facilities; WHEREAS the Parties desire this Agreement to detail the responsibilities of WECC and the Host; NOW THEREFORE, in consideration of the promises contained herein, the Parties agree as follows: 1. Disturbance Monitor Site This disturbance monitor facility will be located at the following substation: Substation name: Voltage class: Lines to be monitored are provided by the Host as set out in Attachment A. WECC approved sites are set forth on Attachment B. An alternate site location may be used providing comparable system observability. Alternate sites must be approved by the Disturbance Monitoring Work Group (a WECC working group committee). While the siting document deals primarily with local monitors, a network connected monitor is also acceptable. Check the following applicable boxes: New Monitor: Monitor Upgrade: Maintain Monitor Check one of the following: Local Monitor Network Monitor 1

7 2. Term of Agreement This Agreement begins upon execution and extends for four years after the actual installation date of the facility/upgrade for new or upgraded facilities (scheduled in-service date: ) or four years after the execution of the agreement for maintenance of existing facilities, but not later than December 31, It may be terminated prior to that date by mutual agreement of both Parties. However, the Parties will make a good faith effort to work through any problems prior to termination. 3. WECC Obligations 3.1 WECC shall reimburse the Host of a new site for platform hardware and software costs up to $35,000 per site spread over four equal annual payments, plus a lump sum payment for interest at 5% included in the final annual payment WECC shall reimburse the Host of an upgraded site for platform hardware and software costs up to $17,500 per site spread over four equal annual payments, plus a lump sum payment for interest at 5% included in the final payment So long as the Host is in compliance with this Agreement, WECC shall reimburse the Host for monitor maintenance costs of $2,750 per year over a four-year period for New, Updated or Existing monitoring sites WECC shall make payments by check on a calendar year basis within 30 days of receipt of an invoice by the Host to WECC at the following address with a statement that it is in compliance with the Host obligations set out in this document. Western Electricity Coordinating Council Attention: Chief Executive Officer 615 Arapeen Drive, Suite 210 Salt Lake City, Utah Phone: Fax: Projects installed or upgraded during the course of one year shall receive credit for the entire year. 2 Maintenance reimbursement is prorata based on the number of whole calendar months the facility is in service. 2

8 3.5 All payments made by WECC to Host shall be directed as follows: 3.6 The Host may enter into an agreement or other arrangement with a third party (a "Third Party") pursuant to which such Third Party agrees to discharge certain Host Obligations ("Host Obligations") set out in this Agreement. In the event that a Third Party discharges certain Host Obligations, WECC shall nevertheless reimburse or pay the Host as if such Host Obligations were discharged by the Host and WECC shall have no obligation to any Third Party for services the Third Party may provide. Host agrees to hold WECC harmless from any claims by the Third Party. 4. Host Obligations 4.1 Host shall purchase and install or cause to be purchased and installed a monitor system consistent with specifications provided in the following documents (which can be found at ): a. WECC Plan for Dynamic Performance and Disturbance Monitoring, October 4, 2000 ( WECC Plan ); b. Disturbance/Performance Monitoring Plan Siting Requirements, June 29, 2001; c. WECC Disturbance/Performance Monitor Equipment Requirements. 4.2 Host shall make best efforts to keep or cause to be kept the monitor facility operational at all times and keep or cause to be kept a log of unit down time and steps taken to restore service. 4.3 Host shall comply with or cause to be complied with data retention provisions in Section 4.2 of WECC Plan. 3

9 4.4 Host shall comply with or cause to be complied with data posting provisions in Section 4.3 of WECC Plan. 4.5 In order to be in full compliance with the provisions of this Agreement, the Host must be in full compliance with NERC Standard I.F, measures M2, M3 and M5 of the NERC Planning Standards (September 16, 1997 Board of Trustees approved). Applicable provisions of this Agreement may be amended by mutual agreement of WECC and the Host if there are substantive changes or additions to the NERC disturbance monitoring standard I.F. WECC has the right to withhold annual payments to the Host if it is determined that the Host is not making best efforts to comply with these requirements. In such cases the Host may receive payment by submitting to WECC its intention to fulfill these requirements together with a brief explanation of reasons for non-compliance. It is not the intention to penalize the Host but rather to ensure that steps are taken to achieve compliance. 5. Dispute Resolution If the Parties are unable to resolve any dispute within sixty (60) days of the occurrence of the event or circumstances giving rise to the dispute, the dispute may be submitted to mediation upon the mutual agreement of the Parties. 6. Notices Except as expressly provided otherwise herein, any formal notice, demand, or request provided for in the Agreement shall be in writing and shall be deemed properly made if personally delivered, delivered by courier, or sent by first-class mail, postage prepaid, or by facsimile to the facsimile number to the person specified above and shall be deemed received, if personally delivered, or delivered by courier, upon delivery, and if mailed, on the third day following deposit in the U.S. mail, and if sent by facsimile, upon transmission (electronic transmission to the address specified above may be substituted for delivery of a hard copy). 7. No Waiver No term, covenant or condition of this Agreement or any breach thereof shall be deemed waived, unless such waiver shall be in writing and executed by the party claimed to have waived the same. The waiver of any breach by a Party, whether express or implied, shall not constitute a waiver of any subsequent breach. 4

10 8. Severability If a court or regulatory agency having jurisdiction over a Party determines that a condition of this Agreement, or any part thereof, is void, illegal or unenforceable, said condition or part shall be deemed to have been severed from this Agreement, and the remaining conditions, or parts, shall be unaffected and shall be enforced to the fullest extent allowed by law. 9. Binding Effect This Agreement and all provisions hereof shall inure to the benefit of and be binding upon the Parties, their successors, and permitted assigns. 10. Entire Agreement This Agreement represents the entire agreement and understanding between the Parties with respect to the subject matter hereof and supercedes any prior understandings, representations or agreements, whether verbal or written, prior to execution of this Agreement. 11. Modification of Agreement This Agreement may be modified only by written agreement signed by both Parties. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on their behalves by their duly authorized representatives as of the date set forth below. HOST WECC By: Name: Title: Date: By: Name: Title: Date: 5

11 WECC/Host Agreement February 12, 2004 Contact Information For Host: Name: Phone: Fax: For WECC: Name: Phone: Fax: CheckList 1) Complete and sign the WECC/Host Agreement form and the Data Analysis Tools Information Form 2) Mail to Donald Davies at WECC to obtain WECC signature Donald Davies Western Electricity Coordinating Council University of Utah Research Park 615 Arapeen Drive, Suite 210 Salt Lake City, UT ) WECC will return a signed copy to you and a copy to the Disturbance Monitoring Work Group chairman. 6

12 Attachment A. Monitor Information Please complete this form with the following information once it is available: Monitor Type: Signal List: Quantity Monitored (P,V,Q,I, f ) 7

13 Attachment B. Disturbance Monitor List B1 Name Plant MW New Update Maintain Navajo Mohave Williston Mica Revelstoke G.M. Shrum Cranbrook or (Langdon 500) 1 1 Bell Coulee Chief Joseph Jim Bridger Intermountain Colstrip Garrison Camp Williams Tracy or Tesla Midway, Gates or Los Banos Diablo Canyon Moss Landing Pittsburg BA San Juan Rainbow or Valley San Onofre Haynes Alamitos Hoover Tracy 345 NV 1 1 Kyrene Crystal Craig Palo Verde Four Corners Custer (or Ingledow 500) 1 1 Sundance Midpoint Maple Valley Keeler Malin or Captain Jack John Day Big Eddy The Dalles John Day Coulee Celilo 500/230 1 Borah Vincent San Onofre Ault B1 An alternate site location may be used providing comparable system observability. Alternate sites must be approved by the Disturbance Monitoring Work Group (a WECC work group) 8

PROFESSIONAL SERVICES AGREEMENT. For On-Call Services WITNESSETH:

PROFESSIONAL SERVICES AGREEMENT For On-Call Services THIS AGREEMENT is made and entered into this ENTER DAY of ENTER MONTH, ENTER YEAR, in the City of Pleasanton, County of Alameda, State of California,