BPA Perspective

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BPA Perspective
West Coast Electric Transmission Issues A
Policy Perspective Forum Sponsored by NWPPA
March 7-8 Portland, OR
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RTO RAGE Have you ever noticed that anybody
driving slower than you is an idiot, and anyone
going faster than you is a maniac?
George Carlin
-OR-
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Regional Cooperation beneath the diverse
perspectives and interests, the Panels research
has uncovered an impressive ability of different
stakeholders to work with one another for the
common good of the region. There has been a
tradition of collaborative efforts in the
Northwest on power issues that often transcends
disagreements among particular interests.
National Academy of Public Administration
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Good News! We have considerable regional
agreement on problems and opportunities.
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BPA Transmission Line Construction
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Regional Transmission IS Not Keeping Up With
Needs (From NW Power Pool 10-Yr Forecast)
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BPA Constrained PathsInitial OASIS Posting 1997
- Pink
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BPA Constrained PathsAdditional OASIS Posting
2003 2004 - Yellow
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Potential Solutions are Converging
TIG-Plus
Grid West
Full speed ahead to competition markets
TIG-lite
RTO West
Change is too Risky
Common Characteristics

• Focused on transmission grid infrastructure,
  efficiency, and reliability, not competitive
  power markets
• Bottoms-up regional solutions
• Focused on regional control and accountability
• Utilize existing control centers
• Voluntary participation
• Phased approach

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Major Goals

• Effective one utility planning with an adequate
  backstop so transmission INFRACTRUCTURE is built.
• Improved RELIABILITY and EFFICIENCY of providing
  ancillary services through voluntary
  consolidation of control areas.
• More EFFICIENT use of the grid through
• - Effective congestion management
• - Common flow-based ATC methodology
• - One stop shopping/common OASIS
• Effective MARKET MONITORING to detect abuses.

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GRID WEST CHALLENGES

• The costs of GW must be significantly less than
  the costs of full-blown RTOs. Benefits must
  outweigh the GW costs.
• The ability of FERC to require changes that are
  not supported in the region remains a concern.
• Key characteristics of existing contracts must be
  preserved.
• All markets for GW operation must be voluntary.
• The GW Transmission Agreement must be structured
  so that it does not violate the legal limitations
  on sub-delegation of federal responsibilities,
  including the need for a workable exit strategy.

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TIG Challenges

• Creating an effective decision-making structure
  independent of market participants.
• Developing a proposal that provides
• adequate transmission backstop authority
• reliability improvements through voluntary
  consolidation of control areas
• a common flow-based ATC approach
• effective congestion management
• Engage a broader range of regional stakeholders

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The Region Must Decide
Timelines for Developmental Board Seating
Information Production 170 days
Review Period 100 days
Bylaws Req. 50 - 75 days
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2005
Work Groups
Aug 1
Sep 29
Goal Board Elected by Nov 23 but no later than
Dec 15
Note Start and end dates for Pricing Work
Group are tentative. Final dates will be
established by the work group after it is
functioning.