Western Area Power Administration

Rocky Mountain Region (WACM)

CURRENT BUSINESS PRACTICES

Rev. September 28, 2007

Business Practices Revision Table

(Changes to the business rules for this revision period are indicated in Red)

Revision Date

Revision

09/28/2007

Transmission Rates (LAPT & CRCM)

02/26/2007

Update of terminology to match NERC’s Functional Model

9/24/2006

New Transmission Rates (LAPT, CRCM)

9/30/2005

New Transmission Rates (LAPT, CRCM)

8/11/2005

Correction to Reactive Supply & Voltage Control Rates

 

5/11/2004

Transmission Service Providers’ (operators)  Loss Responsibility & Unauthorized Use Rate Schedule Number Correction

 

 

GENERAL INFORMATION:

The following are the Current Business Practices and timing requirements for the Rocky Mountain Region. In certain sections, implementation of new business practices is clearly identified with an effective date. This document provides requirements for the transmission reservation and energy scheduling processes. The following Transmission Service Providers are included under these requirements:

·        LAPT - Loveland Area Projects

·        CRCM - Colorado River Storage Project

·        BEPW - Basin Electric Power Cooperative-West

All business practices listed are considered current unless otherwise noted.

 

ACCEPTANCE OF OASIS REQUESTS

Acceptance of OASIS requests will be granted only if the ATC is available.

·        System conditions will prevail.

 

ACCEPTABLE QUANTITY OF REQUESTS

The continued grossly inefficient method of accessing WACM's OASIS node by various parties to submit numerous duplicate requests to secure a single reservation is seriously degrading the performance of multiple systems and negatively affecting all transmission customers. Therefore, effective May 21, 2001, the following business practices will be STRICTLY adhered to and there will be NO exceptions: 

·        Transmission Requests On or Across LAPT, CRSP, or BEPW Systems: WACM will deem EIGHT (8) or more requests for the same posted path submitted by the same customer within any ONE (1) clock hour to be an abuse of the system. If the same customer submits EIGHT (8) or more of these requests within any ONE (1) clock hour, all of those requests will be refused.  Requests include any request that is submitted, regardless of state that the request may be in or become.

·        Monthly Non-firm Requests: For the first twelve (12) hours of the request timing window (00:00:00 to 12:00:00, 60 calendar days prior to the start of service), only ONE (1) request per posted path will be allowed per clock hour. Multiple requests for service submitted during this time frame will result in ALL requests for the abused clock hour being refused. This practice only applies to the first 12 hours of the request timing window. After the 12 hours have passed, the practice of 8 requests, as stated above, will apply. Requests include any request that is submitted, regardless of state that the request may be in or become.

 

UNAUTHORIZED USE OF TRANSMISSION

Unauthorized use is defined as unscheduled or untagged use of the transmission system and any affiliated ancillary service, exceeding reserved capacity at any point of delivery or receipt.  Unauthorized use may also include a Transmission Customer’s failure to curtail transmission when requested.

 

- If a Transmission Customer (including the Transmission Service Provider for third-party sales) engages in unauthorized use of RMR-managed transmission systems, the Transmission Customer shall be charged 150 percent of the demand charge for the type of service at issue (reserved); e.g., hourly, daily, weekly, monthly, or yearly, with a maximum demand charge set at monthly.

 

- Additionally, as stated above, the Transmission Customer may also be subject to applicable Balancing Authority ancillary service charges against their unauthorized use:  L-AS1, Scheduling, System Control, and Dispatch Service; L-AS2, Reactive Supply and Voltage Control Service from Generation Sources; L-AS3, Regulation and Frequency Response Service; L-AS4, Energy Imbalance Service; and L-AS9, Transmission Losses Service. 

 

 

SCHEDULING PATHS

·        Transaction schedules must be tagged from the same POR/POD combination as identified in the confirmed OASIS reservation.

·        Transaction schedules that do not match POR/POD as identified in OASIS will not be allowed and the E-tag will be denied.

 

CONSTRAINED PATHS:

Western - RMR manages four constrained interfaces involving multiple transmission owners, referred to as:

·        TOT-1A, Northwest ColoradoSoutheast Utah

·        TOT-2A, Southwest Colorado - New Mexico & Arizona

·        TOT-3, Southeast Wyoming - Eastern Colorado

·        TOT-5, Western Colorado - Eastern Colorado

Many transactions taking place across the Colorado River Storage Project (CRSP) and/or Loveland Area Projects (LAP) transmission systems involve at least one of these interfaces. Three of these paths are qualified paths for unscheduled flow mitigation through the WECC UFAS procedures. WECC refers to these paths as:

·        Path 30 (TOT-1A)

·        Path 31 (TOT-2A)

·        Path 36 (TOT-3) (A competing path with Path 66 California - Oregon)

Any of the above paths may become overloaded as a result of unscheduled flow.  Coordinated phase shifter operation and/or schedule reductions may be required on the qualified paths. The WACM Balancing Authority Operator may determine that current system conditions are such that the anticipated schedule(s) cannot be implemented, and adjustments to the existing schedules may be required.

 

CREDIT FOR OUTAGES/CURTAILMENTS:

Non-Firm:

·        Credit will be provided to the customer for all curtailments occurring on a specific purchased path caused by outages to that path.

·        No credit will be provided for outages or curtailments occurring on other facilities that may impact transactions on a purchased transmission path.

Firm:

·        Credit will be provided for Forced Outages occurring on a specific purchased transmission path.

·        No credit will be provided for Planned Maintenance Outages on a specific purchased transmission path.

·        No credit will be provided for outages or curtailments occurring on other facilities that may impact transactions on a specific purchased transmission path.

 

OASIS 1.4 UPGRADE AND RELATED SERVICES

 Effective March1, 2001, as part of the OASIS S&CP 1.4 upgrade, the following new types of service are currently not offered and any request of these types will be INVALID:

·        Deferral

·        Resale (case by case basis)

When Western-RMR is capable of offering some or all of the above services, these business practices will be revised and re-posted to reflect any new offerings.

 

Expanded Transmission Service:

 

  • Redirect: Redirect will be available only on all firm reservations.  Redirect service will be expanded to include all firm reservations (Long Term, Short Term) as of July 20, 2004. Redirect requests shall be submitted as Secondary Hourly from Alternate POR/POD. 
  • Partial Service:  If WACM cannot accommodate customer’s request in its entirety for lack of ATC, WACM will Counteroffer the transmission capacity that is available.

 

 

TRANSMISSION LOSS COLLECTION

Transmission losses will be assessed for all real-time and prescheduled transactions on transmission facilities managed by Western - RMR as follows:

·        Import Transaction: Import Transactions are those which show the source as a Balancing Authority outside of WACM and a sink in WACM; excluding network service transactions from designated or non-designated resources.

·        Export Transaction: Export transactions are those transactions that show the source as WACM and the sink as another Balancing Authority.

·        Wheeled-Through Transactions: Wheeled-through transactions are those transactions that flow through the entire WACM system for which WACM is an intermediary Balancing Authority / Scheduling Entity (neither the Source/Generating Balancing Authority nor the Sink/Load Balancing Authority).

Loss Percentages (retroactive to October 1, 2001) are as follows:

·        CRCM 5.0%

·        LAPT 5.0%

·        BEPW 5.5%

If more than one Transmission Service Provider is used in one transaction, the higher of the percentages shall apply.

Effective July 1, 2002, Western began assessing an additional 1.7% loss on schedules across Sidney DC Tie during the times when Sidney and Stegall DC Ties are running in opposite direction.

*NOTICE TO TRANSMISSION CUSTOMERS OF WESTERN AREA POWER ADMINISTRATION ROCKY MOUNTAIN REGION (RMR)

Pursuant to RMR's Open Access Transmission Tariff (OATT), Attachment A (Firm Point to Point), Section 10.1.1; Attachment B (Non-Firm Point to Point), Section 9.1.1; and Attachment F (Network Integration Service), Section 4.1.1, this posting constitutes official notification that RMR is adjusting the specified transmission loss rate applicable to transmission service. This rate is applicable to service provided by Loveland Area Projects Transmission (LAPT). Effective October 1, 2001, the new loss rate for services under the OATT will be 5.0 % of the transmission service amount.

 

 Transmission Service Providers Loss Responsibility to WACM Balancing Authority

 

This provision applies to all the Transmission Service Providers (TSP) who market transmission inside WACM Balancing Authority (BA).  Those TSPs include but are not limited to the following entities: BEPW, BHBE, CRCM, CSU, LAPT, PRPA, PSCO, TSGT, and UMPS.  The loss responsibility for all outgoing transactions (interchanges starting in WACM BA) falls on the last TSP inside WACM BA as identified in the e-tag.  The loss responsibility for wheeling transactions (interchanges which does not source from WACM or sink in WACM) falls on the last TSP in WACM as identified in the e-tag. The loss responsibility for certain incoming interchanges such as those which sink in Black Hills Power Sub Balancing Authority (BHP) or Colorado Springs Utilities Sub Balancing Authority (CSU) falls on the last TSP before entering CSU or BHP Sub Balancing Authority. 

 

The above provisions may not apply if there are pre-existing contractual arrangements or other specified method for loss assessment.

 

 

TRANSMISSION LOSSES SERVICE:  CALCULATION AND SETTLEMENT

Transmission losses will be assessed against all real-time and prescheduled transactions on transmission facilities managed by the Western Area Power Administration or within the Western Area Colorado Missouri Balancing Authority (WACM). 

Transmission Customers will be allowed the option of either:

1) Returning in-kind energy to settle their transmission loss obligations with the Western Area Colorado Missouri Balancing Authority; or

2) Settling the loss obligation financially using the Loveland Area Projects weighted hourly average purchase price. 

For those Transmission Customers selecting 1), above, they further have the option of scheduling the energy concurrently or 1 week in arrears, in the same energy profile.  This selection of an option for energy settlement must be made on an annual basis.  WACM will contact customers annually and request that they submit an e-mail to the Balancing Authority indicating their preference.  This request will be annually for implementation each October 1st (exception this year will be March 1, 2004).

 

Two types of customers are eligible to take Transmission Losses Service:

1) Transmission Customers who are purchasing Point-to-Point Transmission Service managed by WACM (generally wheeled-through activity); and

2) Transmission Customers who are taking both Transmission Losses Service and Energy Imbalance Service from WACM. 

 

The calculation, settlement, and pricing of the loss obligations incurred by both of these types of Transmission Customers, differ as outlined below.

 

Transmission Losses Service for Customers Taking Only Point-to-Point Transmission Service (No Energy Imbalance Service Taken):

 

Transmission Customers taking only Point-to-Point Transmission Service will also be allowed the option of either:

1) Returning in-kind energy to settle their transmission loss obligations with WACM; or

2) Settling the loss obligation financially using the Loveland Area Projects weighted hourly average purchase price. 

For those Transmission Customers selecting 1), above, they further have the option of scheduling the energy concurrently or 1 week in arrears, in the same energy profile.  Transmission Customers must select an option for energy repayment (concurrent or 1 week in arrears) and be measured against that selection on an annual basis.  The Balancing Authority will contact customers annually and request that they submit an e-mail to the Balancing Authority indicating their preference.

 

Pricing for Transmission Losses Service for Point-to-Point Transmission Customers

The pricing for Transmission Losses Service for Point-to-Point Transmission Customers is the LAP weighted hourly average purchase.  When there is no real-time purchase within the hour, the pricing defaults will be applied in the following order:

 

1.       Weighted hourly average real-time purchase pricing for the day (on and off peak).

2.      Weighted hourly average real-time purchase pricing for the current month (on and off peak).

3.      Weighted hourly average real-time purchase pricing for the prior month (on and off peak).

4.      Weighted hourly average real-time purchase pricing for the month immediately prior to the prior month (on and off peak), and continuing in this manner until real-time purchase pricing is located.

 

Those Transmission Customers with loads within the WACM may request to have their export activity loss calculations integrated into their Energy Imbalance Service calculations.

 

Calculating and Tagging Point-to-Point Transmission Loss Obligations

For these Point-to-Point Transmission Service transactions that are to be settled as energy-in-kind, the loss obligation will be calculated hourly, but rounded on a daily basis, using standard rounding criteria (.49 and lower being rounded down to the nearest whole MW, and .50 and higher being rounded up to the nearest whole MW).

Transmission losses for both prescheduled and real-time Point-to-Point Transmission Service transactions can be submitted using one aggregated electronic tag for each activity, for all losses applicable to the prescheduled or real-time activity.  In the comment field of the electronic tags, it must be clearly designated as a "Prescheduled Loss Tag for mm/dd/yy" or “Real-time Loss Tag for mm/dd/yy”. The profile shall be flat MW schedules separated into on-peak and off-peak periods.

 

Settlement for Transmission Losses Service for Point-to-Point Transmission Service Transactions

·        Settlement for Deficient Energy Return:  If ‘energy return’ is indicated as the preferred method by the Transmission Customer, and the loss obligation is underpaid (either partially or in full), the balance due will be settled financially using the LAP weighted hourly average real-time purchase price and billed on a calendar month basis.   Financial settlement will always be the default when losses promised to be delivered are not received by WACM. 

·        Settlement for Surplus Energy Return: If ‘energy return’ is indicated as the preference, and the loss obligation is overpaid, the overpaid amount of energy is lost to the Transmission Customer and no credit is given. No financial compensation or energy return will be provided by WACM for overpayment of loss obligations. There should be no condition beyond the control of the Transmission Customer that results in overpayment. The Transmission Customers are entirely in control of knowing how much energy they schedule and calculating and scheduling to repay for losses. 

 

Transmission Customers Taking Energy Imbalance Service

Transmission Customers who take Energy Imbalance Service from WACM also have the same option for all loss obligation energy returns (concurrent or 1 week in arrears, same profile); however, the Energy Imbalance Service calculation will still be calculated hourly, with all resources and obligations measured within that hour, without regard to when the losses were to have covered an obligation.

When a customer taking Energy Imbalance Service overpays its energy settlement for its loss obligations, the overpaid energy will appear in the context of the measurement of the customer’s total resources and obligations, measured hourly, and the customer will be credited financially for the losses over delivered. 

The opposite will occur if a customer taking Energy Imbalance Service underpays its energy settlement for its loss obligations; e.g., the underpaid energy will appear in the context of the measurement of the customer’s total resources and obligations, measured hourly, and the customer will be charged for losses under delivered.

 

Pricing and Settlement for Energy Imbalance Service

 

The Energy Imbalance Service pricing is the Loveland Area Projects’ (LAP) weighted average hourly pricing (sales and purchases) with a penalty of 25 percent for anything outside of a bandwidth of +/- 5 percent of the customer’s load.  Pricing for energy excursions within the bandwidth will be priced as per the WACM hourly energy condition; i.e., when WACM is in a surplus energy condition, the pricing for all excursions (whether they are negative or positive) will be the sales price; conversely, when WACM is in a deficit energy condition, the pricing for all excursions (whether they are negative or positive) will be the purchase price.  When there are no real-time sales or purchases within the hour, the pricing defaults both within and outside the bandwidth will be applied in the following order:

 

1.      Weighted hourly average real-time sale or purchase pricing for the day (on and off peak).

2.      Weighted hourly average real-time sale or purchase pricing for the current month (on and off peak).

3.      Weighted hourly average real-time sale or purchase pricing for the prior month (on and off peak).

4.      Weighted hourly average real-time sale of purchase pricing for the month immediately prior to the prior month (on and off peak), and continuing in this manner until real-time sale or purchase pricing is located.

 

DELIVERY POINTS FOR TRANSMISSION LOSSES

Scheduled losses can be delivered to any POR on the LAPT, CRCM, or BEPW system, except for SCSE (Sidney Converter Station East). The Sidney Converter Station is a controlled device and appropriate transmission capacity MUST be reserved on the Sidney Converter Station to deliver losses to SCSW (SCS West).

 

HOURLY NON-FIRM REQUESTS

·        To maximize transmission availability, ATC for Hourly Non-Firm capacity is calculated hourly.

·        Requests for Hourly Non-Firm reservations must be submitted via the OASIS and in accordance with the timing requirements listed in the table below.

·        All reservations must be requested through the OASIS node.  Verbal requests and confirmations will be permitted within the posted timing requirements should the WACM OASIS node become inoperative.  No exceptions will be allowed for operational problems originating at the customer’s site.

·        Some Real-Time Hourly requests will be refused for insufficient ATC based on system conditions. As system conditions fluctuate, the OASIS may show ATC available, but it may be refused.

·        At no time will a request be accepted when the ATC posted as available is at zero, regardless of system conditions.

 

ENERGY SCHEDULES:

·        Per WECC business practices, an approved transaction tag must accompany all pre-scheduled non-real-time energy transactions. If there is no valid tag, the schedule will not be implemented.

·        Tags for real-time energy transactions shall be submitted in accordance with NERC Interchange Standards.

 

MONTHLY NON-FIRM TRANSMISSION REQUESTS

·        Requests for Monthly Non-Firm reservations may be requested for one month, which is the maximum term for non-firm transmission (see section 14.5, Western's Tariff).

·        When submitting a request for Monthly Non-Firm, it is possible that the request could fall within the timing requirement 60-day "no earlier than" window to permit requesting successive months, however, a separate request must be submitted for each month of service.

 

FIRM TRANSMISSION REQUESTS:

Requests for Short-Term Firm Transmission Service must be made through the OASIS.

·        For a valid request for Daily, Weekly or Monthly Firm Transmission Service for which Western has ATC, a response will be made to the requestor within the timing requirements listed below.

·        All requests for Long-Term Firm Transmission Service must be made through the OASIS.

·        All Long-Term Firm Transmission requests will initially be placed in STUDY mode.

·        The non-refundable processing fee must be received by RMR within 5 business days of the OASIS request, or the request will be INVALID.

·     Information required for a complete application, as defined in section 17.2 of the Tariff, must be received via facsimile (970) 490-7213, (use the Transmission Service Application form found at http://www.oatioasis.com/ under any of WACM Transmission Service Providers) within 5 business days of the OASIS request, or the request will be INVALID.

·        A Service Agreement will be forwarded after Western receives the required information.

Rollover Requests:

Any existing Long-Term customer that wishes to exercise its reservation priority must make an application for its new service term following the usual pro forma tariff procedures. Notification to exercise a right of first refusal for Long-term Firm under Section 2.2 of the pro forma tariff must be received by the Transmission Service Provider no less than sixty days (60 days) prior to the date an existing Long-term contract ends and the commencement of the new service.   In addition, the request to exercise roll over rights on WACM OASIS should be made by selecting Request Type of “Renewal”.


Fixed Rates 

PROJECT

LAPT (10/01/2007-09/30/2008)

CRCM

(10/01/2007-09/30/2008)

BEPW

PROJECT

LAPT (10/01/2007-09/30/2008)

CRCM (10/01/2007-09/30/2008)

BEPW

Hourly Non-Firm ($/MW-hr)

$3.75

$3.03

$1.49

Hourly  Firm (MW-day)

N/A

N/A

N/A

Daily Non-Firm ($/MW-day)

$90.00

$72.67

$36.00

Daily Firm (MW-day)

$90.00

$72.67

$36.00

Weekly Non-Firm ($/MW-week)

$630.00

$510.08

$250.00

Weekly Firm (MW-week)

$630.00

$510.08

$250.00

Monthly Non-Firm ($MW-month)

$2,720.00

$2,210.35

$1,090.00

Monthly Firm(MW-month)

$2,720.00

$2,210.35

$1,090.00

Yearly Non-Firm ($MW-year)

On-Peak: $18,250.00

Off-Peak:

$14,340.00

N/A

N/A

Yearly Firm (MW-year)

$32,590.00

$26,524.25

$13,040.00

 

ANCILLARY SERVICES RATES

 

  • Scheduling, System Control and Dispatch Service:

This service is required to schedule the movement of power through, out of, within, or into the WACM Balancing Authority.  This service can be provided only by the Transmission Service Provider where the transmission facilities are located.  The Transmission Service Providers’ charges for Scheduling, System Control and Dispatch Services are included in Transmission rates.  WACM’s current rate for this service is $31.82 per tag per day. 

  • Reactive Supply and Voltage Support (VAR Support):

In order to maintain transmission voltages on the Transmission Service Provider’s transmission facilities within acceptable limits, generation facilities under the control of the Transmission Service Provider or the Balancing Authority operator are operated to produce or absorb reactive power.  Thus, the transmission customer must purchase this service from the Transmission Service Provider.  The charges for such service are as follows:

 

 

Services

Cost

Hourly

$0.208/MW Hour

Daily

$5.00/MW Day

Weekly

$38.00/MW Week

Monthly

$150.00/MW Month

 

The Transmission Customer will be billed for Transmission and VAR Support charges separately.  Transmission customers with generation facilities in or near the Balancing Authority who agree to provide the Balancing Authority with VAR Support will be exempt from VAR Support charges. 

 

Complete list of transmission and ancillary services’ rates are available at the following links:

Loveland Area Project (LAPT Transmission Service Provider)                         http://www.wapa.gov/rm/ratesRM/TariffRates2008.html

Colorado River Storage Project (CRCM Transmission Service Provider)            http://www.wapa.gov/crsp/l6100doc/ratesche.htm

 

 


FIRM TRANSMISSION SERVICE REQUESTS

TERMS OF SERVICE

 

TRANSMISSION REQUESTS

RESPONSE TIME

DISPLACE/SUPERSEDE

Service Type

Term

Curtailment

Priority

No Later

Than

No Earlier

Than

Provider Evaluation Time Limit

System

Impact

Study

Customer Confirmation Time Limit after ACCEPTED or COUNTEROFFER

No Later

Than

Right of First Refusal

Network

1-10 Years

7

(60) Calendar Days Prior To Initial Month

10-Years Prior To Start of Service

(30) Calendar Days

(60) Calendar Days

(15) Calendar Days

N/A

N/A

Fixed Or Sliding Yearly 1-10 Yr.

Fixed Or Sliding Yearly 1-10 Yr.

7

(60) Calendar Days Prior To Initial Month

10-Years Prior To Start of Service

(30) Calendar Days