October 6, 2006 Public Stakeholder Review Portland, Oregon Conditional Firm.

October 6, 2006Public Stakeholder Review

Portland, Oregon

Conditional Firm

Meeting Objective and Agenda Objective:

Initiate a collaborative process to identify opportunities, issues and solutions to PacifiCorp’s offering of a conditional firm product

Agenda: Discuss goals for implementation of a conditional firm

product Discuss proposed process for stakeholder input and

product formulation Review historical compilation of PacifiCorp system

schedules Discuss concerns with product implementation and

possible remedies

Commitment

MEHC and PacifiCorp will support the Bonneville Power Administration in its development of short-term products such as conditional firm.

No less than three months following the close of the transaction, PacifiCorp will initiate a process to collaboratively design similar short-term transmission products and will include stakeholders in this process. On June 16, 2006, PacifiCorp provided notice describing steps it

will take to comply with the merger commitment Conduct a review of operational and technical requirements

necessary to offer service Conduct a historic firm contract schedule and flow audit of specific

commercial paths Schedule stakeholder meetings

PacifiCorp will make every reasonable effort to complete a product by the end of 2008.

Process Overview/Timeline

Stakeholder/Customer meetings Portland – October 6 Salt Lake City – October 23

Comment submittal - via PacifiCorp internet (Q4 2006) PacifiCorp review of comments and proposed product

description (Q4 2006) Publish schedule for additional public meetings

(January 2007) Review of FERC 888 NOPR Reform Order (Q1 2007) Final comment session (via electronic public forum)

(Q2 2007) Product analysis, finalization, and FERC filing process

(Q4 2007)

Conditional Firm Goals and Guiding Principles Goals

Optimize the use of existing transmission system Increase product flexibility for customers

Guiding Principles for Product Development Maintain reliability of transmission system Avoid diminishing firm rights to existing network and

PTP customer contracts Avoid cost shifts between customers or customer

classes Limit economic risk to other transmission customers

Current PacifiCorp Products/Services

PacifiCorp OATT Network Integration Service Point to Point

Firm Long term (greater than one year)

Partial Firm (seasonal, or as allowed by capacity)

Short term Non-firm

PacifiCorp System Specifics

PacifiCorp system specifics Many paths are scheduled near capacity a high

percentage of time High usage long term schedules are not always

“grouped” in specific seasons or months Limited ability to re-dispatch thermal generation Network load increasing at fast rate

Limited ability to accurately forecast load growth over long term

Elements of Current Proposed BPA Conditional Firm Product Only available to customers requesting long term firm Point to

Point service where ATC is determined not to be available for at least one month in a twelve month period Maintains original long term firm queue position

Firm for specified months (when ATC is available) Curtailment

Pro Rata with all other firm Conditional firm in months where ATC is not available

Conditional firm hour limits fixed at contract initiation (either annual or monthly limits)

Curtailment priority Before all firm After all Point to Point non-firm Tagged as “Network – Non-Firm” - NERC curtailment priority 6

BPA Proposed Curtailment Position

Product NERC Curtailment Priority

PTP Secondary 1

Hourly NF 2

Daily NF 3

Weekly NF 4

Monthly NF 5

Network NF 6

Firm 7Conditional Firm

Concerns with BPA Conditional Firm Proposed Product Design Network upgrade cost allocation Queuing position

Queue blocked by un-resolved long term firm requests

Limited ability to forecast native load growth to determine hourly curtailment limits Transmission provider and other firm

customers take all risk of congestion occurring over forecasted limits

Historical Examples of Firm Schedules on PacifiCorp Paths

PACE - FC3 (TOT-2B-1)

PACE - FC3 (TOT-2B-1)PACE - FC3 (TOT-2B-1) (TTC vs Schedules)

0

100

200

300

400

500

600

700

800

900

Time

Sc

he

du

les

(M

W)

0

100

200

300

400

500

600

700

800

900

TT

C/T

RM

(M

W)

Sum NetworkFirm Sum PTP Firm (1 year or greater) Sum PTP Firm (<1 year)

TTC minus TRM (MW) TTC (MW)

PACE - FC3 (TOT-2B-1)PAC E - FC3 (TOT-2B -1)

Available Usage H ours per S iz e of C onditional Firm C ontract (MW)(TTC - TR M - N etw ork Firm & Point to Point Firm (> 1 year))

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10 40 70100

130160

190220

250280

310340

370400

430460

490520

550580

610640

670700

730760

790

Size of Conditional Firm Contract (M W)

Ho

urs

Av

ail

ab

le f

or

Co

nd

itin

oa

l F

irm

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Un

av

ail

ab

le H

ou

rs f

or

Co

nd

itio

na

l F

irm

Hours Available for Conditional Firm Unavailable Hours for Conditional Firm

PACE – GLC2 (TOT-2B-2)

PACE – GLC2 (TOT-2B-2)PACE - GLC2 (TOT-2B-2) (TTC vs Schedules)

0

50

100

150

200

250

300

350

400

Time

Sch

ed

ule

s (

MW

)

0

50

100

150

200

250

300

350

400

TT

C/T

RM

(M

W)



PACE – GLC2 (TOT-2B-2)PAC E - GLC2 (TOT-2B-2)


0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10 40 70100

130160

190220

250280

310340

370400

430460

490520

550580

610640

670700

730760

790


Ho

urs

Av

ail

ab

le f

or

Co

nd

itin

oa

l F

irm

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Un

av

ail

ab

le H

ou

rs f

or

Co

nd

itio

na

l F

irm


WYOE – TOT 4A

WYOE – TOT 4AWYOE - TOT4A (TTC vs Schedules)

0

100

200

300

400

500

600

700

800

900

1000

1/1

/20

05

1/1

5/2

00

5

1/2

9/2

00

5

2/1

2/2

00

5

2/2

6/2

00

5

3/1

2/2

00

5

3/2

6/2

00

5

4/9

/20

05

4/2

3/2

00

5

5/7

/20

05

5/2

1/2

00

5

6/4

/20

05

6/1

8/2

00

5

7/2

/20

05

7/1

6/2

00

5

7/3

0/2

00

5

8/1

3/2

00

5

8/2

7/2

00

5

9/1

0/2

00

5

9/2

4/2

00

5

10

/8/2

00

5

10

/22

/20

05

11

/5/2

00

5

11

/19

/20

05

12

/3/2

00

5

12

/17

/20

05

12

/31

/20

05

Time

Sc

he

du

les

(M

W)

0

100

200

300

400

500

600

700

800

900

1000

TT

C/T

RM

(M

W)



WYOE – TOT 4AW YOE - TOT4A


0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10 40 70100

130160

190220

250280

310340

370400

430460

490520

550580

610640

670700

730760

790


Ho

urs

Av

ail

ab

le f

or

Co

nd

itin

oa

l F

irm

0

500

1000

1500

2000

2500

3000

Un

av

ail

ab

le H

ou

rs f

or

Co

nd

itio

na

l F

irm


WYOE – TOT 4B

WYOE – TOT 4BWYOE - TOT 4B (TTC vs Schedules)

0

100

200

300

400

500

600

700

Time

Sch

ed

ule

s (

MW

)

0

100

200

300

400

500

600

700

TT

C/T

RM

(M

W)


TTC minus TRM/WAPA (MW) TTC (MW)

WYOE – TOT 4BWYOE - TOT 4B

Available Usage Hours per S iz e of Conditional Firm Contract (MW)(TTC - TRM - Netw ork Firm & Point to Point Firm (> 1 year))

0

1000

2000

3000

4000

5000

6000

7000

8000

9000


Ho

urs

Av

ail

ab

le f

or

Co

nd

itin

oa

l F

irm

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Un

av

ail

ab

le H

ou

rs f

or

Co

nd

itio

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l F

irm

Hours Available for Conditional Firm Unavailable Hours for Condit ional Firm

PACEW – PACE (Monument – Naughton)


PACEW - PACE (MONUMENT - NAUGHTON) (TTC vs Schedules)

0

100

200

300

400

500

600

700

1/1

/20

05

1/1

5/2

005

1/2

9/2

005

2/1

2/2

005

2/2

6/2

005

3/1

2/2

005

3/2

6/2

005

4/9

/20

05

4/2

3/2

005

5/7

/20

05

5/2

1/2

005

6/4

/20

05

6/1

8/2

005

7/2

/20

05

7/1

6/2

005

7/3

0/2

005

8/1

3/2

005

8/2

7/2

005

9/1

0/2

005

9/2

4/2

005

10/8

/20

05

10/2

2/2

00

5

11/5

/20

05

11/1

9/2

00

5

12/3

/20

05

Time

Sc

he

du

les

(M

W)

0

100

200

300

400

500

600

700

TT

C/T

RM

(M

W)




PACEW - PACE (MONUMENT - NAUGHTON) Available Usage Hours per Size of Conditional Firm Contract (MW)

(TTC - TRM - Network Firm & Point to Point Firm (> 1 year))

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Size of Conditional Firm Contract (MW)

Ho

urs

Av

ail

ab

le f

or

Co

nd

itin

oa

l F

irm

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Un

av

ail

ab

le H

ou

rs f

or

Co

nd

itio

na

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irm


PacifiCorp Conditional Firm Product Alternative 1 Conditional firm with transmission customer arranging re-dispatch for

congested periods Schedules would be firm - customer responsible to arrange their own

re-dispatch to alleviate congestion If re-dispatch is not completed upon congestion per agreement, then

schedule will transform to a non-firm tag subject to curtailment Benefits

Allows greater utilization of transmission system Limit economic risk to other transmission customers Protects existing rights of other network and firm customers (check)

Concerns Transmission customer curtailment hours not limited Transmission customer takes risk of marginal prices of redispatch May not be a long-term solution

PacifiCorp Conditional Firm Product Alternative 2 Bridge product

Initial schedules would be firm with committed-to hourly curtailment limits by PacifiCorp

Network upgrades to allow firm service per current PacifiCorp OATT

Product duration would be subject to Network Upgrades being completed on timely basis

No rollover – Service would transfer to firm after Network Upgrades are completed per current OATT provisions

Benefits Allows for transmission usage while network upgrades are

under construction Limits economic risk to other transmission customers Protects existing rights of other network and firm customers

Concerns Cost of network upgrades may preclude implementation

PacifiCorp Conditional Firm Product Alternative 3 Two (existing) product approach

Utilize existing partial firm product for un-congested months Utilize existing non-firm product for higher usage months Arrange LT firm via Network Upgrades, and transfer service

to LT firm after Network Upgrades are complete Benefits

Limits economic risk to other transmission customers Protects existing rights of other network and firm customers Allows for transmission usage while network upgrades are

completed Concerns

Transmission customer curtailment hours not limited

Next Steps

Submit comments to PacifiCorp by December 10, 2006 [email protected]

All comments and replies will be posted on PacifiCorp’s web portal http://www.pacificorp.com

News and Info Conditional Firm Development

Publish schedule for additional public comment sessions by January 10, 2007

October 6, 2006 Public Stakeholder Review Portland, Oregon Conditional Firm.

Documents

Transcript of October 6, 2006 Public Stakeholder Review Portland, Oregon Conditional Firm.