Western UGP - SPP Integration News



SPP Integration Related News, Last Updated: 11/04/2014  (1 Item)


See also, UGP's Website for SPP Membership:  http://www.wapa.gov/ugp/PowerMarketing/sppmembership/sppmembership.htm


11/04/14 : (Western UGP Transmission and Ancillary Rates for SPP Integration) Notice of Proposed Western UGP Transmission and Ancillary Rates - Announcement of Public Information and Public Comment Forums

As described in the November 3, 2014, Federal Register notice ( FRN-Proposed-UGP-Trans-Anc-Service-Rates-2014-1103.pdf),
the Western Area Power Administration (Western), a power marketing administration within the Department of Energy (DOE), is proposing new formula transmission and ancillary services rates for the Pick-Sloan Missouri Basin Program—Eastern Division (P–SMBP—ED). The proposed formula rates would become effective October 1, 2015, and remain in effect until September 30, 2020, or until Western changes the formula rates through another public rate process pursuant to 10 CFR part 903, whichever is sooner. Western’s Upper Great Plains Region (Western-UGP) has joined the Southwest Power Pool (SPP) Regional Transmission Organization (RTO) contingent upon Federal Energy Regulatory Commission (FERC) approval of Western-UGP’s negotiated provisions in the SPP Membership Agreement, Bylaws, and Tariff (SPP Governing Documents). Transmission and ancillary services will be provided over Western-UGP facilities under the SPP Open Access Transmission Tariff (Tariff) by SPP as the transmission service provider upon Western-UGP transferring functional control to SPP.  Western-UGP needs to adopt new formula rates for these transmission and ancillary services so Western-UGP’s costs can be recovered under the SPP Tariff. These formula rates will provide Western sufficient revenue to pay all annual costs, including interest expenses, and repay required investments within the allowable periods. Western-UGP’s membership in SPP and the functional control of its facilities will be in accordance with the SPP Governing Documents and other contractual arrangements with SPP. Publication of this Federal Register notice begins the formal process for the proposed rates.

Western sent the following letter, dated 11/3/14, to its Transmission Customers and Other Interested Parties:  Customer-Letter-2014-0903-FRN-Announcement.pdf

Publication of the November 3, 2014, FRN begins the formal process for the proposed formula rates.  The consultation and comment period begins with the Federal Register notice publication and will end February 2, 2015.  Western will accept written comments any time during the 90-day consultation and comment period. Western will present a detailed explanation of the proposed formula rates at the following public information forums:

November 19, 2014,
from 9 a.m. to 12 p.m. CST -- Holiday Inn Downtown Omaha, 1420 Cuming St. Omaha, NE
November 20, 2014, from 9 a.m. to 12 p.m. CST -- Ramada Plaza & Suites and Conf. Center, 1635 42nd St. South, Fargo, ND

Western will accept oral and written comments at the following public comment forums:

December 17, 2014, from 9 a.m. to 12 p.m. CST -- Holiday Inn Downtown Omaha, 1420 Cuming St. Omaha, NE
December 18, 2014, from 9 a.m. to 12 p.m. CST -- Ramada Plaza & Suites and Conf. Center, 1635 42nd St. South, Fargo, ND

 Information on this rate process is posted on Western's OASIS and at the Upper Great Plains Region's Rates Web Page at: http://www.wapa.gov/ugp/rates/default.htm .


The proposed Transmission and Ancillary Rates are described in the Rate Brochure (TO BE POSTED WHEN AVAILABLE):
UGP-Trans-Anc-Service-Rate-Brochure-Nov-2014.pdf .
 
The presentations given at the public meetings and any future information, will be available in the "SPP Integration" Folder on Western's OASIS.

If you have any questions, please contact Steve Sanders at (406) 255-2840 (sanders@wapa.gov )



09/11/14 : SPP FERC Filing of proposed changes to SPP's Tariff, Membership Agreement, and Bylaws for Western (and other IS members) Integration into SPP

SPP-FERC-Filing-ER14-2850-IS-Tariff-Changes-2014-0911.pdf

SPP-FERC-Filing-ER14-2851-IS-Bylaws-MA-Changes-2014-0911.pdf

 (09/05/14 Update - Customer Letter Posted) 08/31/14 : Status of Western UGPR (and other IS Parties) Efforts to Pursue Membership in SPP, Impacts to Existing IS Customers, Proposed Kick-off Informational Webinar on 9/12/14 @ 1pm CDT

(Update) Customer Letter Dated 9/3/14

Western (UGPR) and the other IS Parties have completed formal negotiations with the Southwest Power Pool (SPP) concerning membership and have received SPP Board of Director's approval of the requested changes to the SPP Membership Agreement, SPP Bylaws, and SPP Tariff to accommodate the integration of the IS Parties into SPP, planned for October 1, 2015.

All of the IS Parties have received the necessary internal approvals and authorizations to proceed with joining SPP.  On July 8, 2014, the Heartland Consumers Power District Board of Directors approved a resolution authorizing execution of a membership agreement with SPP.  Heartland Press Release.  On July 9, 2014, Western's Administrator Mark Gabriel approved and directed Western’s Upper Great Plains Region to take the necessary actions to accomplish full membership with SPP (contingent upon FERC approval of the Western negotiated provisions).  Western Press Release  Western Approval Memorandum.  On July 16, 2014, the Basin Electric Power Cooperative Board of Directors authorized joining of SPP subject to FERC approval of necessary documents. Basin Press Release

SPP plans to file the proposed IS Parties' Member Agreements, Bylaws changes, and SPP Tariff changes early September 2014 to FERC for approval.

IMPACTS to EXISTING IS CUSTOMERS:
Subject to obtaining the required approvals from FERC that maintain the negotiated provisions with SPP, the IS Parties plan to integrate as full members of SPP effective October 1, 2015.  At that time, no transmission service on the IS will be offered under Western's Tariff and under the IS Rates, and Transmission Customers will need to obtain all transmission and ancillary services from SPP under the SPP Tariff and under the applicable SPP Rates.  Western intends to exercise the provision in Western's Tariff and Transmission and Network Service Agreements allowing Western to terminate such Service Agreements to allow it to join an Independent System Operator by providing a one-year written termination notice.  Therefore, existing IS Customers will need to make arrangements to become eligible Transmission Customers of SPP, document their existing transmission service with SPP to be included in the Transmission Congestion Rights (TCR) market, and transition their existing IS service to SPP service.  Information regarding SPP registration procedures, schedules, and contact information for SPP staff, can be found at the following link:  SPP Registration Information for IS Customers

 KICK-OFF INFORMATIONAL WEBINAR:
Western (UGPR), as the IS Administrator, will be hosting a kick-off Informational Webinar on Friday, September 12, 2014, at 1pm CDT to provide additional details on the upcoming SPP integration and answer IS Customer questions.  Those parties
desiring to attend the Webinar will need to contact Ms. Kass Portra at (406) 255-2842 (or by email at portra@wapa.gov) for access information.

Western will be posting detailed information and status updates regarding the SPP integration
in the "SPP Integration" folder on Western's WAPA OASIS page as it becomes available.

For further information, please contact:  Steve Sanders, (406) 255-2840, email sanders@wapa.gov


11/05/13 : Alternative Operations Study (AOS), Letter to Customers, Announcement of Public Meetings

Western Area Power Administration, Upper Great Plains Region, a power marketing administration of the Department of Energy, is publishing a recommendation to pursue formal negotiations with the Southwest Power Pool, a Regional Transmission Organization, concerning membership.  Western is seeking public comment from Western’s customers, Tribes, stakeholders, and the public at large.  A decision to pursue implementation of the recommendation is expected mid-December and will be posted on Western's AOS website: http://www.wapa.gov/ugp/PowerMarketing/AlternateOperationsStudy/AOS.htm .

The Federal Register Notice was published on 11/01/13.  The 45-day public comment period is open from 11/1/13 through 12/16/13.  Documentation related to the AOS is available at the Western website above.

Western plans several meetings where it will present a detailed explanation of the AOS Team's findings and recommendation.  Public comment forums will be held on the following dates (see the website above for meeting locations and other details regarding submission of comments).

November 13, 2013 (9 am to no later than 1 pm MST) - Webinar
November 19, 2013 (8:30 am to no later than 1 pm CST) - Meeting in Lincoln, NE
November 20, 2013 (8:30 am to no later than 1 pm CST) - Meeting in Sioux Falls, SD
November 21, 2013 (8:30 am to no later than 1 pm CST) - Meeting in Fargo, ND

For further information, please contact:

Jody S. Sundsted, UGP Power Marketing Manager
Western Area Power Administration
Upper Great Plains Region
2900 4th Avenue North, Suite 600
Billings, MT 59101-1266
Telephone (406) 255-2910, email sundsted@wapa.gov