Message-ID: <25481072.1075863288947.JavaMail.evans@thyme> Date: Thu, 15 Nov 2001 14:04:33 -0800 (PST) From: alliance@eei.org To: alliance_info@listserver.eei.org Subject: Update on FERC Interconnection Meetings Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "The Alliance of Energy Suppliers" X-To: Alliance Information X-cc: X-bcc: X-Folder: \VKAMINS (Non-Privileged)\Kaminski, Vince J\Inbox X-Origin: Kaminski-V X-FileName: VKAMINS (Non-Privileged).pst Overview Since many of you can not attend every meeting at FERC regarding Generator Interconnection, we would like to provide you with a few highlights of the past two weeks. Interestingly, generators are finding that the Transmission Owning (TOs) entities and ISOs have been less-combative than one may have thought. This is largely due to Daniel Larcamp's, Director of OMTR at FERC, statement to the TOs that they can not hide behind the excuse that prior practice and their Open Access Transmission Tariffs (OATT) prevent them from granting many of the reasonable requests of the generators. Larcamp said in no uncertain terms that the current OATTs are not hard- and-fast anymore, instead, they are most likely going to be subject to revisions per recent FERC orders. The generator group is working very well together. We, the Alliance of Energy Suppliers, are present and very involved in all of the generator strategy sessions and industry meetings, in addition to having Chuck Linderman of our Alliance on the "process group". This process group develops the issue lists for discussions and decides on logistics and procedures for the upcoming meetings. The Alliance has also sponsored lunch for the generator group and continues to offer our offices and conference rooms to any generators that may need office space amenities during their extended visits here in Washington. Procedural Schedule for Interconnection Meetings 9:00AM Llarger industry session convenes to receive direction from FERC staff on the day's topics and process 9:15-9:30- Break into sector caucuses, i.e. Generators, Transmission Owners (TO), RTOs/ISOs, Transmission Dependent Utilities (TDU), and Others. 10:30-12PM- All caucus groups come together to express desired outcomes on certain issues and topics 12:00-1:30- Caucus Group Working Lunches 1:30-3:30- Larger groups convene to discuss individual caucus groups' concerns and issues and attempt consensus 3:45-4:45- Individual caucus groups meet again to discuss positions and find compromise or consensus on issues 5:-5:30PM- Plenary session to chart out next steps and topics for next meeting. Positive Meeting Developments Scope of Service Generators were very successful in negotiating to receive an option for generators to have three product levels of Interconnection Service. Optionality was a paramount issue for generators. TOs conceded to offer the following services: (1) Energy Resource- based on the PJM study process model (2) Network Resource- transmisison rights will be firm and comparable to TOs network resources (3) "Simple interconnection" which allows for several options to be chosen, but basic interconnection of the directly assigned facility is the minimum. Queuing TOs recognized that the queue positioning issues were generator v. generator issues, so suggested that we offer suggestions to them as to how to structure and administer the queue. Generators agreed and developed the rights and timing it wished. Functions of the Queues (1) identify order of studies (2) identifies timing of projects for developers (3) identifies and allocates costs responsibility Limited Consensus TOs suggested, as generators had articulated that Best practices #4 of te ANOPR be adopted as the minimum and build fro those principles. So in essence (1) queue position for all interconnection requests be based on the date the TP receives the request; ( (2) the Generator must meet reasonable milestones to retain position in the queue; (3) if a generator misses stipulated milestones, it will be able to have a time period which to "cure" the deficiency. But if after the reasonably agreeable time frame is exhausted, if not cured, the generator may be at risk for losing its place in the queue; (4) queue position may be at risk, if a generator makes substantial "material change". ( material changes must be further defined by the generators) Scope of Studies and Interceonnection Agreement and Procedures Outstanding Questions and Issues to be addressed in Later Session (1) when is a generator included in the "base case" study or modeling (2) when is a generator on the hook for costs (3) time line for when a generator receives a feasibility study and that all developers should receives a feasibility study, unlike the current practice where that is not the norm (4) if a generator cancels a project that had been allocated costs for upgrades associated with its facilities, who pays for the necessary upgrades if the generator drops out and does not complete the project? Milestones Generators requested that milestones be tied into the progression of a construction project. These milestones will include time lines and schedules. The milestones will begin when a generator applies for interconnection. Note: TOs asked if generators could develop the milestones since they viewed them as a generator-to-generator issue. As a result, a group of generators joined a group of transmission owners to help develop the milestone language. Drafting Team A drafting team was formed that contains representatives from each participatory group at the Interconnection meetings. This group will draft consensus language for the final Interconnection document submittal. This group takes day-by-day issues and attempts to fashion language that represents broad consensus on these issues. The language proposals are then vetted back through the individual caucus groups and voted on for later approval by the entire industry group. (FERC distributed a voting guide that helps categorize what is consensus and what is not) Next Meetings Thanksgiving week- Nov 19-23. NO MEETINGS There will be no FERC Interconnection meetings for this week. However, the generators will have a caucus conference call on Monday Nov., 19 at 11AM to prepare for the following week's meetings. If you would like that call in number please e-mail Chuck Linderman at Clinderman@eei.org - Tonja Wicks.vcf