Minutes No. [29]
Southwest Power Pool
Economic studies working group MEETING
April 15th, 2010
Conference Call
• Summary of Action Items •
- SPP Staff to determine what Ventyx’s escalation factor was for the coal transportation costs and how that escalation factor was calculated.
- SPP Staff should obtain documentation from Ventyx saying that the ESWG’s fuel price curves seem reasonable and acceptable.
- SPP Staff to upload the coal transportation costs to TrueShare.
- SPP Staff to provide the environmental costs in the ITP Base Case PowerBase model to the ESWG for review.
Southwest Power Pool
Economic studies working group MEETING
April 15th, 2010
Conference Call
• MINUTES •
Agenda Item 1 – Administrative Items
Kip Fox called the meeting to order at 2:05 a.m. The following members were in attendance:
Alan Myers ITC Great Plains
David Hudson Xcel Energy
Kip Fox American Electric Power
Leon Howell Oklahoma Gas and Electric Co.
Bruce Walkup Arkansas Electric Cooperative Co
Doug Kallesen Nebraska Public Power District
Paul Dietz Westar Energy, Inc.
Greg Sweet Empire District Electric Co.
Al Tamimi Sunflower Electric Power Corp.
Jim Sanderson Kansas Corporation Commission
Agenda Item 2 – Robustness White Paper
Brett Hooton gave an update on the Robustness White Paper. He said that it originated from the discussion of robustness in the Report of the Synergistic Planning Project, the Metrics for Integrated Transmission Planning, and other sources. He said to email all comments on robustness to the ESWG exploder or SPP Staff. Kip Fox said that the definition of robustness that the Metrics Task Force (MTF) described was presented at MOPC and seemed to be well-received.
Agenda Item 3 – Economic Planning Manual
Brett Hooton also gave an update on the Economic Planning Manual. He said that the rough draft of this manual would be posted on April 21st as part of the background materials for the April 28th ESWG meeting. Kip Fox said that the RTWG would like at least a table of contents as soon as possible and that the table of contents put together by the ESWG or EMMTF about a year ago could be used as a starting point. Kip added that completing a draft of this table of contents by next week would be okay.
Agenda Item 4 – Cost modifiers on fuel for various futures
Paul Dietz reviewed the spreadsheets showing the updated fuel price data that was provided to Black & Veatch Corporation and added to the ITP Base Case PowerBase model. Leon Howell asked if there were also plant-specific transportation costs in the ITP Base Case Powerbase model. Paul answered that there was. Kip Fox then asked SPP Staff to ask what Ventyx’s escalation factor was for the coal transportation costs and how that escalation factor was calculated.
Motion: Paul Dietz made a motion to accept the updated fuel prices for the ITP Base Case as presented in the spreadsheets and Leon Howell seconded the motion. After some discussion, Kip Fox called for a vote and the motion passed with 8 yeas and 1 abstention. Greg Sweet gave the abstention vote after saying that he felt that the ESWG’s opinion on fuel prices was ignored during the Priority Projects analysis, specifically the KEMA fuel elasticity benefit, and this resulted in the benefits being overstated.
After the vote, Kip Fox said that SPP Staff should obtain documentation from Ventyx saying that the ESWG’s fuel price curves seem reasonable and acceptable. Also, Paul Dietz asked SPP Staff to upload the coal transportation costs to TrueShare. He also asked for SPP Staff to provide the environmental costs in the ITP Base Case PowerBase model to the ESWG for review.
In regard to the cost modifiers on fuel for various futures, Alan Myers would like for a strawman to be developed showing how the fuel prices would be changed for the other three ITP20 futures. The concensus was that the fuel price inputs would change for each future.
Agenda Item 5 – Closing Items
The consensus of the ESWG was that there should be another call to receive the results of the action items above, to decide upon the cost modifiers on fuel for various futures, and to review the capital costs for new generation as well. They would like to have Black & Veatch on the call to talk about how the model should be updated based on the ESWG’s decisions.
Ø Conference Call – April 22th from 10-11am
The meeting was adjourned at 3:20 pm.
Respectfully Submitted,
Charles Cates
Secretary
Minutes No. [29]
Phone Attendees
Alan Myers ITC Great Plains
David Hudson Xcel Energy
Kip Fox American Electric Power
Leon Howell Oklahoma Gas and Electric Co.
Bruce Walkup Arkansas Electric Cooperative Co
Doug Kallesen Nebraska Public Power District
Paul Dietz Westar Energy, Inc.
Greg Sweet Empire District Electric Co.
Al Tamimi Sunflower Electric Power Corp.
Jim Sanderson Kansas Corporation Commission
Debashis Bose Black & Veatch Corporation
Tim Brookish Clipper Windpower
Steve Gaw Wind Coalition
Tom Hestermann Sunflower Electric Power Corp.
Kurt Stradley Lincoln Electric System
Chris Underwood Burns and McDonnell
Gary J. Wilmes Black & Veatch Corporation
Brett Hooton Southwest Power Pool, Inc.
David Kelley Southwest Power Pool, Inc.
Tim McGinnis Southwest Power Pool, Inc.
Ben Roubique Southwest Power Pool, Inc.