The wind energy records continue to fall in the Southwest, with SPP setting a new wind penetration peak of 48.32% at 2:02 a.m. April 5. That led the RTO to tweet it had set “a new record for all North American ISO/RTOs,” as the mark bettered ERCOT’s wind penetration high of 48.28%, set March 23.
Last week’s record came when SPP’s load was approximately 21,600 MW, with wind accounting for about 10,430 MW. The RTO’s wind peak remains 10,783 MW, set March 21. SPP’s previous wind penetration high was recorded March 7 at 45.1%.
SPP’s vice president of operations, Bruce Rew, has said he expects SPP to cross the 50% threshold this year. He noted the RTO has added 5,130 MW of wind energy to its footprint over the last year — 900 MW coming from the Integrated System — and that SPP is now seeing the full impact during the low-load, high-wind spring months.
Rew told the Board of Directors in January that SPP can handle wind-penetration levels of up to 60% with additional transmission and monitoring tools. (See “Wind Study, Capacity Margin Work Nears Completion,” SPP Board of Directors/Members Committee Briefs.)
The RTO has about 12,400 MW of installed wind capacity, with another 33,800 MW in development.
Z2 Task Force to Present Final Recommendations
The Z2 Payment Plan Task Force will present two options for resolving the oft-delayed Z2 crediting issue during this week’s Markets and Operations Policy Committee meeting in Santa Fe, N.M.
The Z2 project dates back to 2008 as a result of years of incorrect credits for transmission upgrades.
SPP CEO Nick Brown acknowledged stakeholder frustrations over their inability to get an idea of their liabilities or credits during January’s board meeting, telling members, “Z2 will be the focus of the organization this year.” (See “Brown: Finishing Z2 Crediting Project RTO’s Top Priority,” SPP Board of Directors/Members Committee Briefs.)
The Z2 task force has developed two plans for market participants to pay off their liabilities: a level-payment option and a staggered-billing option.
The task force and the Regional Tariff Working Group both voted to recommend the level-payment option in February. Xcel Energy and Western Farmers Electric Cooperative opposed the RTWG recommendation, and and Tenaska Power Services abstained.
Under the level-payment plan, each entity with a net payable will be given the option to pay the entire amount at once or in equal installments every three months, beginning in November, with the final installment due in August 2017. FERC’s interest rate will apply to the outstanding balances.
Under the staggered-billing option, SPP would bill all entities incrementally based upon subsets of the historical period, with settlement statements issued every three months until the entire period is billed. For example, SPP could charge and credit 2008-2010 amounts in Month 1, 2011-2012 amounts in Month 4, 2013-2014 amounts in Month 7 and 2015-2016 amounts in Month 10.
Oklahoma Gas & Electric’s David Kays, chair of the RTWG, said during an April 7 teleconference that the incremental periods would be selected to “smooth out” the invoiced amounts. No interest would be included in the amounts charged.
The Z2 task force estimated last summer the total at stake is $750 million; lead regulatory analyst Charles Locke estimates it is now “north of $800 million.” Locke said SPP expects to release a final amount to stakeholders in September.
“By that time, we will have worked through the settlements and be able to identify those amounts at a fairly accurate level,” he said.
Seams Steering Committee Seeks ‘Targeted’ MISO Seam Study
The Seams Steering Committee last week agreed to pursue a targeted joint transmission study with MISO.
David Kelley, SPP’s director of interregional relations, said the RTO could improve the process by focusing on targeted areas. Although last year’s comprehensive joint study identified 67 possible interregional transmission projects, SPP and MISO were unable to reach agreement on any. (See MISO, SPP Considering Second Joint Tx Study.)
Kelley said a narrower study could zero in on high-settlement market-to-market flowgates, the Northeast Nebraska-Western Iowa region and the new seam from the Integrated System’s inclusion into SPP.
“We can look at the new footprint closer than we did last time,” Kelley said. “That doesn’t take a lot of time. As long as the scope isn’t too broad, we can spend some time working on process improvements too. That includes staff and stakeholder time.”
“We’ve spent a lot of time and effort and money, and there’s not a lot to show for it,” OG&E’s Jake Langthorn said. “I’m not sure we need to do a [comprehensive study] every year if that’s the case.”
SPP and MISO are still gathering written stakeholder feedback from last month’s Interregional Planning Stakeholder Advisory Committee meeting. MISO’s IPSAC members will vote on a potential joint study April 20.
The Joint Planning Committee, comprising Kelley and MISO’s Eric Thoms, manager of planning coordination and strategy, will consider all written feedback and each party’s IPSAC recommendations before determining whether to begin a second study. The JPC will have 45 days from MISO’s April 20 meeting to make a decision.
Kelley said SPP has also proposed a targeted study along its seam with Associated Electric Cooperative Inc. He said the study’s scope is being revised, with the hope of beginning work in May and completing it by the end of the year. (See “SPP, AECI Begin Biennial Joint-Study Process,” SPP Briefs: State of the Market, Study w/ AECI.)
FERC Approves SPP, MISO Revisions to JOA
FERC last week approved SPP and MISO’s March compliance filings amending their joint operating agreement in accordance with Order 1000’s interregional transmission coordination and cost allocation requirements (ER13-1937). The commission’s April 6 order said SPP and MISO’s revisions met the requirements of FERC’s February compliance order.
– Tom Kleckner
