1. WEQ OASIS Subcommittee
Consolidation
The ability for a Transmission Customer to combine all or a portion of their like firm PTP reservations into a single reservation.
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WEQ OASIS Subcommittee

2. Consolidation What Is Addressed in This Presentation
Overview of Consolidation Recommendation
Benefits of Consolidation
Limitations and Restrictions
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WEQ OASIS Subcommittee

3. Consolidation Recommendation Overview
The recommendation creates a new request type called CONSOLIDATION, which would be used by a Transmission Customer to merge like reservations in order to more efficiently manage their transmission inventory as a single assignment reference number in their day-to-day business. The recommendation also changes the current standards to prohibit Resales where the reseller and assignee are the same entity.
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WEQ OASIS Subcommittee

4. Consolidation Benefits
Customer Benefits
Consolidation reservation stands by itself (capacity is removed from Parent reservations)
There is no limit on the number of Parent reservations
Tagging of a single reservation rather than tagging of multiple reservations
Consolidation reservation is always unconditional and not subject to preemption
Consolidation reservation may be resold
Consolidation reservation may be redirected
Redirect a single reservation rather than redirecting multiple reservations
Provider Benefits
Consolidation reservations will not need to be reported in EQR
Capacity is moved as opposed to only moving scheduling rights in resale
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WEQ OASIS Subcommittee

5. Consolidation Key Limitations and Restrictions
Consolidation may only combine reservations that are alike (path, product, etc.)
Consolidation request must be pre-confirmed
Consolidation request cannot include conditional Parent reservations
Consolidation request cannot include CCO Parent reservations
Consolidation request cannot include non-firm Parent reservations
Consolidation request cannot include NITS Parent reservations
Rollover rights are not conveyed to the Consolidation but, instead, remain with the Parent reservation
“Resales to self” are no longer permitted
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WEQ OASIS Subcommittee

6. WEQ OASIS Subcommittee
Consolidation
Questions?
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WEQ OASIS Subcommittee

7. Supplemental Information
Consolidation
Supplemental Information
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WEQ OASIS Subcommittee

8. Consolidation Conditionality of Firm Reservations
Section 13.2(iii) of the pro forma tariff establishes conditional reservation deadlines for firm PTP service.
one day before the commencement of daily service
one week before the commencement of weekly service
one month before the commencement of monthly service.
Conditional reservations are those that have not passed the conditional reservation deadline. These requests may be preempted.
Unconditional reservations are those that have passed the conditional reservation deadline. These requests may not be preempted.
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WEQ OASIS Subcommittee

9. Consolidation Conditionality of Non-Firm Reservations
Section 14.2 of the pro forma tariff does not technically establish conditional reservation deadlines for non-firm PTP service, but rather establishes response times for agreeing to match a non-firm PTP competing request.
immediately for hourly Non-Firm PTP
within 24 hours (or earlier if necessary to comply with the scheduling deadlines provided in section 14.6) for all other Non-Firm PTP
No time limit is established for preemption by other higher priority requests
NAESB WEQ A confirmed, non-firm PTP reservation for the next hour shall not be displaced within one hour of the start of the reservation by a subsequent non-firm PTP reservation request of longer duration.
All non-firm PTP reservations are unconditional from challenges by other non-firm PTP requests within one hour of start. Response times may vary if challenged by another non-firm PTP but all are such reservations may be preempted except within 1 hour of start.
Non-firm PTP reservations are conditional at all times when challenged by another higher priority request.
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WEQ OASIS Subcommittee

10. Consolidation Resales to Self
“Resales to self” are no longer permitted
Resales must be reported each quarter to FERC by the Transmission Provider in the EQR Report
Consolidation provides the same, or better, functionality as a “Resale to self”
The Request for Standards Development wanted to constrain the use of resales to actual commercial transactions between two unique entities
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WEQ OASIS Subcommittee

11. Consolidation Conditionality of Parent Reservations
Conditional reservations are not permitted to be Parent reservations of a Consolidation
Under version 3.1 Business Practice Standards, only the unconditional portion of the Consolidation could serve as the Parent reservation for a firm redirect
There is no easy way to determine the conditional nature of the Consolidation
OASIS does not support a reservation with multiple segments, each with differing conditionality
If the Consolidation is deemed to be conditional until last Parent reservation becomes unconditional, then it would be possible to have real-time tags tied to conditional reservations (could be curtailed in real time if preempted)
If the Consolidation is deemed to be unconditional if any of the Parent reservations is unconditional, it could create a mechanism for converting conditional reservations to unconditional reservations
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WEQ OASIS Subcommittee

12. Consolidation Rollover Rights
Rollover Rights are not lost – they remain on the Parent and are not conveyed to the Consolidation
Consolidation of Yearly reservations with Rollover Rights would likely lead to a complex reservation with multiple renewal dates and capacities
Rollover Rights left on Parent reservations would preserve the ability of a customer to submit a renewal for each Parent reservation
Renewals could be combined with other Yearly reservations in subsequent Consolidation requests
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WEQ OASIS Subcommittee

13. Consolidation Different Service Increments
Consolidation does not permit combinations of reservations of different service increments
Consolidation reservations inherit the Service Increment of the Parent Reservations
OASIS does not support a reservation with multiple segments, each with differing Service Increments
What is the Service Increment of the combination of reservations that have different Service Increments
Each Service Increment has a different price (e.g. $/day, $/week, etc). What is the price structure for the combination and how is the price calculated?
Price must be known for Consolidation as Parent of a Firm Redirect
If there is a differential in price between the Parent and the Firm Redirect (e.g., different priced POD) the Transmission Provider may charge the difference
If the Firm Redirect is for part of the Consolidation’s capacity, how does the price of the Consolidation change once the Firm Redirect is unconditional and capacity on the Consolidation is reduced
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WEQ OASIS Subcommittee

14. Consolidation Combination of Different Service Increments
What should the price be for a combination of different products?
Examples of prices for products are given below for use in examples on the next page. Effective daily prices are computed, rounded to the nearest 3 decimal places.
Price
Effective Daily Price (28 day month)
Effective Daily Price (30 day month)
Effective Daily Price (31 day month)
Monthly
$500/month
$17.857
$16.667
$16.129
Weekly
$125/Week
Daily On Peak
$25/Day
$25
Daily Off Peak
$15/Day
$15
The effective daily price varies by product and also varies for monthly dependent on the number of days in the month.
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WEQ OASIS Subcommittee

15. WEQ OASIS Subcommittee
Consolidation Price Calculation with Combination of Different Service Increments
The consolidation of different service increments is not permitted because of the complexities outlined in the diagram below related to the different prices for each increment.
Day 1 (On Peak)
Day 2 (On Peak)
Day 3 (On Peak)
Day 4 (Off Peak)
Monthly (30 day)
20 MW
15 MW
10 MW
Weekly
Daily On Peak
30 MW
25 MW
Daily Off Peak
40 MW
Total
50 MW
Effective Daily Price
$21.667 $ $
$15.333
The table above gives an example of a four day consolidation with 50 MW total each day.
Each day has a different mix of products that are consolidated.
Each day has a different computed price.
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WEQ OASIS Subcommittee

16. WEQ OASIS Subcommittee
Consolidation NAESB Business Practice Standards That Impact Consolidation - Redirects
The Transmission Provider shall ensure the Transmission Customer’s rights to take firm PTP on the original unconditional Parent Reservation’s reserved POR and POD are preserved until such time that the confirmed Redirect on a firm basis has reached its conditional reservation deadline as defined in Section 13.2 of the pro forma tariff.
The Transmission Provider shall reduce the Transmission Customer’s scheduling rights on the Parent Reservation’s POR and POD by the capacity redirected once the Redirect on a firm basis is confirmed and unconditional. Subsequent curtailments or other capacity reductions affecting the reserved capacity on the Redirect reservation shall not affect the Parent Reservation nor result in a reinstatement of capacity on the Parent Reservation
The Resale reservation shall inherit the conditional nature, if any, of the Parent Reservation resold, and shall be considered unconditional at the same point in time that the Parent Reservation becomes unconditional.
If the Resale reservation is an aggregate of multiple Parent Reservations, the Resale reservation shall not be considered unconditional until all of the aggregated Parent Reservations have become unconditional.
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WEQ OASIS Subcommittee

17. WEQ OASIS Subcommittee
Consolidation NAESB Business Practice Standards That Impact Rollover Rights
The Transmission Provider upon approving a long-term firm PTP request with rollover rights, shall post on OASIS the information relevant to the rollover rights associated with that request. Such information shall be posted such that it can be viewed and queried using the transstatus and rollover OASIS Templates (See Business Practice Standards WEQ-002 and WEQ-013) The Transmission Customer shall indicate their intent to convey on-going rollover rights held on a long-term firm PTP reservation through a request to Redirect on a firm basis submitted on the Transmission Provider’s OASIS in accordance with the following: The Transmission Service attributes of the request to Redirect on a firm basis must correspond to a valid long-term firm PTP offered by the Transmission Provider; however, the duration (stop/start time) may be as noted in Business Practice Standard WEQ The request to Redirect on a firm basis must be submitted prior to the deadline for exercising the Transmission Customer’s rollover rights on the Parent Reservation being redirected The stop time of the request to Redirect on a firm basis must be identical to the stop time (end of term) of the Parent Reservation being redirected The capacity of a request to Redirect on a firm basis must not exceed the Eligible Rollover Capacity held on the Parent Reservation at the time of request submission All other aspects of the request to Redirect on a firm basis must meet all additional requirements for a request to Redirect on a firm basis as specified in this Business Practice Standard WEQ or established by the Transmission Provider’s tariff, including any limitations on Redirects on a firm basis with respect to paths available for redirect, handling of differentials in pricing, etc Any request to Redirect on a firm basis submitted that does not meet all of the requirements of Business Practice Standards WEQ through WEQ shall not be considered eligible for conveyance of rollover rights and shall be treated as any other request to Redirect on a firm basis as provided for in these standards.
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WEQ OASIS Subcommittee

18. Consolidation Request for Standards Development
Request R09015: Create a new OASIS mechanism that allows for the merger of like reservations without the use of the resale mechanism
Transmission Customers may from time-to-time may have a portfolio of transmission service reservations from a single provider on a single path. For ease of tracking and efficiency, the customers desire to combine or merge like reservations (i.e., firm, non-firm, etc.) into a single reservation. Under existing OASIS business practices and protocols, customers must use the Resale mechanisms to merge two or more like reservation under a single assignment reference number. In other words, customers sell their reservations back to themselves.
While use of the resale mechanism gives the customer a single reservation to manage, it is not desirable because: 1) the use of Resale to merge reservations presents a false picture of what is really happening, and 2) Transmission Providers must report all resales to FERC and establish transmission reassignments agreements with the assignee.
This request is for a new OASIS mechanism (a combination of business practices and protocols) that allows for the merger of like reservations without the use of the resale mechanism and resulting the additional contracting and administrative requirements (for additional details refer to FERC Order 890).
The proposed standard or enhancement would be used by the transmission customer to merge like reservations in order to more efficiently manage a single assignment reference number in their day-to-day business. It would also not allow resales, reassignments, or transfers to occur where the reseller and assignee are the same entity.
This would allow customers to merge like reservations into a single reservation allowing the customer to more effectively and efficiently manage their transmission portfolios.
This would constrain the use of resale, reassignment, and transfers to actual commercial transactions between two unique entities.
This would reduce the Electronic Quarterly Reporting burden on both FERC staff and Transmission Providers by reducing the resale reporting to actual bilateral transactions.
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WEQ OASIS Subcommittee