The Midwest ISO from a Transmission Owner

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• The Midwest ISO from a Transmission Owner
• Perspective

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Transmission Service Evolution

• FERC 888 889 - Open Access Tariff (1997)
• Equal Access Use of Transmission System
• Regulated New Transmission Service Business
• FERC RTO Order (2000)
• All Transmission Providers Must Be in a RTO

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Before RTOs
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After RTOs
RTO New England
New York ISO
Grid West
PJM
PJM West
California ISO
SPP
WestConnect
Grid Florida
ERCOT ISO
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What is the Transmission System?

• Transmission System Key Aspects
• Runs cross country
• The highest voltage defined as 100,000 V (100
  kV) and above (Ameren uses 138 kV, 161 kV, 230 kV
  and 345 kV)
• Often steel or concrete towers holding the
  conductors
• Interconnected and Networked more than one path
  for energy to flow from point A to point B

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Transmission System Operation

• Safe, Reliable and Economic
• Operation of the Ameren System
• Transmission Line Flow Control
• Limit Transmission Access Across System
• TLR Transmission Line Loading Relief Procedures
• Raise or Lower Generation Output (Redispatch)
• Reconfigure Transmission System
• Generation Impact on Transmission Reliability
• Balance generation and load
• Maintain System Frequency
• Maintain Voltages with Reactive Power Support
  (MVAR)

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Transmission Functions

• Safe, Reliable and Economic
• Operation of the Ameren System
• Transmission System Operations (Ameren)
• Operation of Transmission System
• Transmission Line Outage Coordination (Internal)
• Compliance to NERC Policies
• Transmission Service (MISO)
• Sale of Transmission Access Through Ameren System
• Transmission Line Outage Coordination
  (System-Wide)
• Administration of Interconnection Contracts
• Compliance to NERC Policies and FERC Transmission
  Tariffs

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Transmission Outage Coordination

• Coordination of
• Construction Projects
• Failure Repairs
• Routine Maintenance
• Transmission System Operated on a Single
  Contingency Basis
• Single worst contingency would not cause any
  transmission system element to exceed its
  emergency rating
• Transmission Maintenance Outages generally only
  granted in Spring Fall

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MISO Day 1 Responsibilities

• Open Access Transmission Service Responsibilities
• OASIS Administration
• Calculate ATC (Available Transmission Capacity)
• Oversight of Transmission Grid Operations
• Review/Approve Proposed Transmission Facility
  Outages
• Review (only) of Proposed Generation Outages
• Reliability Coordinator Functions
• TLR (Transmission Loading Relief)
• Emergency Operations Coordination
• Long Term Transmission Planning Coordination

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MISO Day 2 Market

• MISO ordered by FERC to develop a wholesale
  energy market in the Midwest
• The market allows stakeholders the opportunity
  to benefit directly from open and transparent
  market-based, day-ahead and real-time energy
  prices
• Prices are determined by Locational Marginal
  Pricing (LMP)
• Congestion hedged via Financial Transmission
  Rights, FTRs (allocated or purchased)

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Day 2 Cost and Benefits

• Balancing cost control/cost effectiveness and
  rate recovery in states
• In Missouri, currently undergoing Cost/Benefit
  Analysis
• Regional Reliability
• Broad regional view
• TLR vs. Redispatch
• Outage Coordination
• Emergency Actions

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MISO Day 3 Ancillary Services Market

• Balancing Authority
• MISO becomes the Balancing Authority for many
  NERC functions
• Ameren remains a Local Balancing Authority for
  remaining NERC functions
• BA Agreement to be amended
• Ancillary Services Market
• Regulation and Frequency Control
• Contingency Reserve Spinning
• Contingency Reserve Non-Spinning
• Co optimized with Energy Market
• Currently, implementation expected early 2008

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• Alphabet Soup
• And
• Transmission Expansion

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The ABCs of Transmission Expansion

• MTEP
• RECB I
• RECB II
• In The Future
• PTTP Post-Transition Transmission Pricing

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MTEP 06

• Midwest Transmission Expansion Plan 2006
• Lists 3.6 Billion in Transmission projects by
  2001
• Attachment A projects will move forward
• Attachment B projects still under study

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RECB I

• Regional Expansion Criteria and Benefits
  (3/15/07)
• For Baseline Reliability Projects (BRP) Only
• Projects of 345kV and above funded at 20 Postage
  Stamp and 80 Sub-regional
• Generation Interconnections Network Upgrades at
  100 Participant Funding (50 borne by generator
  50 repaid through revenue credits and funded 20
  postage stamp, 80 Sub-regional)
• Projects planned prior to filing are excluded
  from regional cost allocation

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RECB II

• Regionally Beneficial (Economic) Transmission
  Projects
• For Regional Beneficial Projects (RBPs), Greater
  than 5M
• Postage Stamp within the sub-regions that show
  (net-positive) benefits
• Benefits calculated 10 years out
• Funded at 20 postage stamp, 80 Sub-regional
  (West/Central/East)
• No projects ear-marked to date

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Things to Think About

• Projects benefits are very long term
• Planning is impacted by national and local policy
  debates, often difficult to reach consensus
• Generation capacity additions are largely unknown
• Do we need the additional transmission
  capacity?
• Are the right people paying?

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Questions?