SPP RTWG Minutes
04/02/01
Southwest Power Pool
REGIONAL TARIFF WORKING GROUP
DFW / Hyatt – Meteor Room / East Tower
April 2, 2001
Revised Minutes
Agenda Item 1 – Call to Order & Receipt of Proxies
Chair Ricky Bittle (AECC) called the Regional Tariff Working Group (RTWG) meeting to order at 9:00 a.m. with a round of introductions. Other RTWG members in attendance were:
Sterling Taylor for Dennis Bethel (AEP), Betsy Carr for Kim Casey (Dynegy),
Steve Bruns for Mark Foreman (TNSK), John Gunesch (OG&E),
Ron Kite (KCPL), Wayne Miller (ETEX),
Rick McCord (EDE), David Grover (Xcel Energy),
Dennis Reed (WERE), Rick Rucker (Coral),
Sharad Rastogi for Gary Roulet (WFEC), Jim Sherwood (SWPA),
Pat Bourne (SPP), Roy Sundman (SPP).
Others in attendance included: Wes Berger (Xcel Energy), Mark MacDonald (CLECO); Narinder Saini and Matt Wolf (Entergy); Tracey Hannon and Darrell Gilliam (SWPA); Jana Phillips (Calpine); Brett Bradford (CLWC Paragould); Walt Shumate (Shumate & Assoc.); Terri Gallup (AEP); and Bill Dowling (Midwest Energy).
Agenda Item 2 – Agenda Discussion
There were no additional agenda items.
Agenda Item 3 – Approval Minutes
Minutes of the March 22, 2001 meeting were reviewed. Wes Berger (Xcel Energy) noted the minutes indicated a motion regarding removal of the last sentence of draft Attachment L and include this sentence in Section 17.7 of the Tariff. Wes stated he believed that RTWG had agreed to consider including the removed sentence in Section 17.7. There was general agreement that the minutes should be modified to reflect inclusion of the removed sentence in Section 17.7 as an item for further discussion rather than part of the motion to remove it from Attachment L.
Dennis Reed (WERE) stated the minutes should be revised to show there were two votes cast in opposition to the motion regarding fixed rates for network service, since he held the KCPL proxy when that vote was taken.
With these modifications, Dennis Reed moved and Sterling Taylor (AEP) seconded the motion to approve the minutes, as modified. The motion passed unanimously.
Agenda Item 4 – Update on SPP Filings/Activities
SPP RTO Order (RT01-34) - Pat Bourne (SPP Staff) reported that an order on the SPP RTO Filing, Entergy Transco filing and Xcel Energy’s filing on RTO affiliation had been issued on March 28, 2001. He continued by summarizing content of the order and SPP’s plan of action in response. In it, the Commission highlighted three things: 1) the absence of 203 filings, 2) lack of clarity concerning the relationship between Entergy Transco and SPP and 3) their belief that SPP should again approach neighboring utilities and regional organizations about participation or affiliation. The Board of Directors met by teleconference and approved an action plan which included a solicitation of 203 filings from all jurisdictional Transmission Owners and request all members to execute the SPP RTO Membership Agreement, continuation of the effort to develop details of the relationship between SPP and Entergy and again approach neighboring utilities and continue discussion with neighboring regional organizations.
Axia Complaint RE: Sec. 2.2 – Pat Bourne reported there had been no further development on this issue since the last meeting.
Inter-RTO Seams Discussions – Ron Kite (KCPL) reported on the meeting. Discussion focused on the energy imbalance straw man that had been developed for comment. Further comments are welcomed. One Stop Shopping issues were discussed, with no specific action taken. The MISO / Alliance Settlement Agreement, filed March 21, 2001, was covered. The next meeting will be in St. Louis on April 9, 2001. Topics for discussion include security coordination, TLR coordination and further discussion on the imbalance market.
Agenda Item 5 – Modification of SPP Tariff
Modifications to Accommodate Retail Access – Texas Pilot – SPP Staff presented draft waiver language to be included in the Network Operating Agreement in Section 1.0. Dennis Reed moved that the language addition be approved, provided that the waiver also applies to Section 8.3 (Network Operating Agreement changes – Attachment 1). Ron Kite seconded the motion. Motion passed unanimously.
SPP Staff also presented draft language on billing adjustments to be included in Section 7.1 of the Tariff (Section 7.1 - Attachment 2). Sterling Taylor (AEP) moved that the proposed language be adopted. David Grover (Xcel Energy) seconded the motion. The motion was approved unopposed with one abstention.
Ricky Bittle asked if there were any other Tariff changes necessary to accommodate retail access. No other changes were suggested.
Fixed Rates for Network Service – Ricky Bittle indicated that he would provide a list of participants for the task force John Gunesch (OG&E) would chair.
Network Resource Designation Timing – Wes Berger asked whether the SPP OATT should reflect a specific minimum duration for network resource designation. Discussion on the subject indicated that practices vary widely. Pat Bourne offered to research FERC policy and precedent. No action was taken on the matter.
Agenda Item 6 – Issue Updates
Review of SPP Business Practices – Ricky Bittle indicated he had sent an e-mail to Trudy Harper (CPC Chair) asking that the issue of review and approval of SPP Business Practices be addressed next time the CPC working group chairs meet by teleconference.
Pro Forma SPP Generation Interconnection Agreement – Betsy Carr (Dynegy) stated that she will send out an updated matrix with all comments she received early in the week of April 2.
Agenda Item 7 – Security Working Group – Attachment U
Ricky Bittle summarized the issue raised by the Security Working Group. Essentially, it is the conclusion of SWG that the provisions of Tariff Attachment U and related provisions of the Membership Agreement cannot be implemented without creating an opportunity for abuse. Subsequent to discussion on the issue, Ricky Bittle indicated that he would contact the SWG in order to better understand their concerns.
Agenda Item 8 – Future Meetings
A meeting has been scheduled for April 25. It will be held at the DFW Hyatt. An additional meeting was set for May 16.
Agenda Item 9 – The Longer Term Future
Ricky Bittle directed the attention of the RTWG toward consideration of some longer-term issues that will shape SPP’s future. He stated that it is essential we decide where we want to go generally, before we decide issues like the incentives necessary for new transmission facilities construction. The issues discussed include the following:
1. What is the purpose of the transmission system?
2. What facilities will be included in the rate and what facilities will be directly assigned?
3. In what way does the imminent implementation of LMP inform these questions?
4. Will states defer retail access until key transmission issues are resolved?
No Action was taken.
Agenda Item 10 - Adjournment
Ricky Bittle adjourned the meeting at 1:20 p.m.
Respectfully Submitted,
Pat Bourne
RTWG Secretary
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RTWG Minutes 04/02/01 Meeting – Attachment 1
Attachment G – Network Operating Agreement
RTWG Language – Adopted at 04-02-01 Meeting Compared to Current
ATTACHMENT G
Network Operating Agreement
This Network Operating Agreement ("Operating Agreement") is entered into this ____ day of ______, ____, by and between ______("Network Customer "), Southwest Power Pool, Inc. ("Transmission Provider") and ______("Host Transmission Owner"). The Network Customer, Transmission Provider and Host Transmission Owner shall be referred to as "Parties."
WHEREAS, the Transmission Provider has determined that the Network Customer has made a valid request for Network Integration Transmission Service in accordance with the Transmission Provider’s Open Access Transmission Tariff ("Tariff") filed with the Federal Energy Regulatory Commission ("Commission");
WHEREAS, the Transmission Provider administers Network Integration Transmission Service for Transmission Owners within the Southwest Power Pool and acts as an agent for these Transmission Owners in providing service under the Tariff;
WHEREAS, the Host Transmission Owner owns the transmission facilities to which the Network Customer's Network Load is physically connected or is the Control Area to which the Network Load is dynamically scheduled;
WHEREAS, the Network Customer has represented that it is an Eligible Customer under the Tariff;
WHEREAS, the Parties have entered into a Network Integration Transmission Service Agreement under the Tariff; and
WHEREAS, the Parties intend that capitalized terms used herein shall have the same meaning as in the Tariff unless otherwise specified herein;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein, the Parties agree as follows:
1.0 Network Service
This Network Operating Agreement sets out the terms and conditions under which the Transmission Provider, Host Transmission Owner, and Network Customer will cooperate and the Host Transmission Owner and Network Customer will operate their respective systems and specifies the equipment that will be installed and operated. The Parties shall operate and maintain their respective systems in a manner that will allow the Host Transmission Owner and the Network Customer to operate their systems and Control Area and the Transmission Provider to perform its obligations consistent with Good Utility Practice.
[The Transmission Provider may, on a non-discriminatory basis, waive the requirements of Section 4.1 and Section 8.3 to the extent that such information is unknown at the time of application or where such requirement is not applicable.]
2.0 Designated Representatives of the Parties
2.1 Each Party shall designate a representative and alternate ("Designated Representative(s)") from their respective company to coordinate and implement, on an ongoing basis, the terms and conditions of the Network Operating Agreement, including planning, operating, scheduling, redispatching, curtailments, control requirements, technical and operating provisions, integration of equipment, hardware and software, and other operating considerations.
2.2 The Designated Representatives shall represent the Transmission Provider, Host Transmission Owner, and Network Customer in all matters arising under this Network Operating Agreement and which
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RTWG Minutes 04/02/01 Meeting – Attachment 2
Tariff Section 7.1
RTWG Language – Adopted at 03-15-01 and 04-02-01 Meetings Compared to Current
7 Billing and Payment
7.1 Billing Procedure: Within a reasonable time after the first day of each month, the Transmission Provider shall submit an invoice to the Transmission Customer for the charges for all services furnished under the Tariff during the preceding month. The invoice shall be paid by the Transmission Customer within twenty (20) days of receipt. All payments shall be made in immediately available funds payable to the Transmission Provider, or by wire transfer to a bank named by the Transmission Provider. [Invoices may be issued using estimated data, to the extent actual data is not available by the fifth (5th) working day of the month following service. Adjustments reflecting the difference in billing between the estimated and actual data will be included on the next regular invoice, with such adjustment being due when that invoice is due. Any other corrections found to be necessary will be made on the next regular monthly invoice.
Billing adjustments for reasons other than the replacement of estimated data with actual data for service provided shall be limited to those corrections and adjustments found to be appropriate for such service within one year after rendition of the bill reflecting the actual data for such service; except for provable meter errors. Adjustments shall be made for any billing with a monetary impact in excess of 2% of the billing for the relevant period for an individual Transmission Customer or any aggregation thereof. At its sole discretion, the Transmission Provider may make billing adjustments for lesser amounts.]
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