Southwest Power Pool Beth Looney PNGC SPP at a Glance Service - PowerPoint PPT Presentation

Southwest Power Pool Beth Looney PNGC

SPP at a Glance • Service territory: 546,000 square miles (approx.) • Substations: 4,929 • Generation plants: 735 • Miles of transmission: 66,497 • Coincident peak load: 50,622 MW (July 21, 2016) • Generating capacity: 87,086 MW (based on nameplate capacity as of Jan. 1, 2018)

My Experience With the SPP • Energy Imbalance Services Market (EIS) launched in February 2007. Followed and participated in the market as a transmission seam / non-market participant at Associated Electric. • Similar to Western EIM – Real Time Energy Imbalance Market • Integrated Market (IM) launched in March 2014. Participated as a market participant at Sunflower Electric. • A Day-Ahead Market with Transmission Congestion Rights • A Reliability Unit Commitment process • A Real-Time Balancing Market (to replace the EIS market) • Incorporation of price-based Operating Reserve procurements

SPP Services • Regional Transmission Organization (RTO) — SPP operates the region’s grid minute -by-minute to ensure power gets to customers and to eliminate power shortages. • Reliability Coordination — SPP monitors power flow throughout its footprint and coordinates regional response in emergency situations or blackouts. • Tariff Administration — SPP provides “one - stop shopping” for use of the region’s transmission lines. • Regional Scheduling — SPP ensures the amount of power sent matches with power received. • Transmission Expansion Planning — SPP identifies system limitations, develops transmission upgrade plans and tracks projects to ensure timely completion of system reinforcements. • Market Operations — SPP manages a Day-Ahead Market with Transmission Congestion Rights, a Reliability Unit Commitment process, a Real-Time Balancing Market and the incorporation of price-based Operating Reserve procurement • Compliance — SPP Regional Entity enforces compliance with federal and regional reliability standards for users, owners and operators of the region’s bulk power grid. • Training — SPP offers continuing education for operations personnel throughout the region. In 2014, it delivered more than 24,000 training hours to 75 organizations. • Contract Services — SPP provides reliability, tariff administration and scheduling for nonmembers on a contract basis.

My RTO Take-Aways • Ensure policies, market design and implementation are member driven (Governance) • Members and impacted parties must have a seat at the table with more rights than just opinion setting. • FERC order 1000 transmission project in western Kansas • Ensure appropriate policies are in place for cost allocation • Highway byway cost allocation • Generator interconnection – free rider • Ensure an independent market monitor • Planning capacity abuser

Even More Take-Aways • Hire analysts, quants, and a local representative in the city of the RTO HQ • Must attend all member stakeholder meetings • A-Game is not helpful its REQUIRED • Think outside of traditional utility planning • Generation location decisions • Capacity type decisions • You must know what your neighbors are doing • Re-evaluate each resource you have • Tough decisions on retirements and staffing • Tough decisions on transmission congestion rights (TCR) • Transmission is KING and will cost a lot more over time • Understand RTO impacts to existing contracts • Wind curtailments

Wrap up - Location is Key! • Where do I site new generators? • How much protection should I have for congestion on that path? • How much longer must I endure these prices? • Where is there opportunity? • Where is there risk?