Unscheduled Flow Administrative Subcommittee Report Pete Heiman January 13, 2016 Western Electricity Coordinating Council

Western Electricity Coordinating Council Meetings Next meeting January 19-20, 2016 Western Electricity Coordinating Council

Western Electricity Coordinating Council Membership UFAS chair is working on filling two vacant At- Large Member positions Western Electricity Coordinating Council

Western Electricity Coordinating Council Lifting 1995 Caps PacifiCorp has filed paperwork on behalf of the Qualified Device Owners December 17, 2015. Western Interconnection Unscheduled Flow Mitigation Plan, (WIUFMP) Docket No. ER16-193-000 FERC has performed a preliminary review and requested additional information. Western Electricity Coordinating Council

New Cost Allocation Methodology UFAS last presented a cost allocation methodology that included a BA base charge, and a charge based on BA load and generation. Some small and large entities indicated that they felt load should not be used. Specifically, it was felt that if a BA is simply using generation to serve its load, it should not be paying USF assessments. There was also disagreement on the amount of the base charge. Western Electricity Coordinating Council

New Cost Allocation Methodology The takeaways from the last meeting and follow-on discussions with stakeholders were: - Don’t penalize entities who are just serving their load. - Use data that is more correlated to USF to determine assessments. Western Electricity Coordinating Council

New Cost Allocation Methodology In response to stakeholder feedback, a different methodology based on monthly FERC 714 Net Actual Interchange (NAI) data was developed by WECC staff and reviewed by the UFAS. The new method allocates monthly COPS costs to BAs based on their monthly NAI values. The new method uses the same year for COPS costs and NAI data, and the calculations are greatly simplified. Western Electricity Coordinating Council

New Cost Allocation Methodology Both USFTF and UFAS evaluated the Interchange methodology and considered including a base charge, generation, and/or a load component. Ultimately UFAS felt that a simple charge based on Net Actual Interchange (NAI) data was the best approach. Western Electricity Coordinating Council

New Cost Allocation Methodology Straw vote at the October OC meeting approved the Net Actual Interchange methodology but asked that UFAS continue evaluating additional options. The USFTF and UFAS will most likely make another attempt to address the deficiencies of the existing methodology by proposing a new one that hopefully the majority of entities can agree on. Western Electricity Coordinating Council

Net Actual Interchange Methodology Benefits: Net Actual Interchange data excludes generation used to serve native load. Net Actual Interchange captures dynamic and pseudo-tied resources for each BA. Net Actual Interchange is correlated to USF. FERC 714 data is publicly available and international entities can easily provide the data. Western Electricity Coordinating Council

Net Actual Interchange Methodology Weaknesses: Net Actual Interchange does not always cause USF. FERC 714 Net Actual Interchange data is for all paths and not just the Qualified Paths. Gen-only BAs only have interchange. Western Electricity Coordinating Council

Net Actual Interchange Methodology 2014 Calculations The top 10 BAs pay 80% of the costs. The bottom 28 BAs pay 20% of the costs. Monthly COPS costs and monthly Net Actual Interchange are correlated. Overall cost equates to about 1.7 cents per MWh of Net Actual Interchange. Western Electricity Coordinating Council

Western Electricity Coordinating Council Other UFAS Activities UFAS is coordinating with PEAK to migrate the webSAS program into webIntegrity after completing the current phase. WebSAS functionality should not be impacted by the integration and no changes in how events are handled (from present) are expected. Western Electricity Coordinating Council

Path and Device Updates New Pinto PST will be operated in parallel with other qualified devices Device went into service late last year PacifiCorp pursuing Device Qualification Paths 22 & 23 are eligible for disqualification. Western Electricity Coordinating Council

Plan Year 21 Operating Statistics Activity as of October 2, 2015: 634 hours of COPS 188 hours of tag curtailments At this point in 2014: 1,950 hours of COPS 831 hours of tag curtailments Western Electricity Coordinating Council