1. Unscheduled Flow Administrative Subcommittee Report for MIC
Pete Heiman
October 14, 2015
Western Electricity Coordinating Council

2. Western Electricity Coordinating Council
Meetings
Last meeting September 29-30, 2015
Western Electricity Coordinating Council

3. Western Electricity Coordinating Council
Lifting 1995 Caps
Paperwork in nearly complete and PacifiCorp has agreed to file on behalf of the Qualified Device Owners.
Filing will go forward as soon as the documents are ready.
Western Electricity Coordinating Council

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Net Actual Interchange Methodology
Questions?
Western Electricity Coordinating Council

12. Net Actual Interchange Methodology
The UFAS would like to take a straw vote to gauge overall support. Straw Motion: OC approves of UFAS moving forward with the new cost allocation methodology based on BA Net Actual Interchange.
Western Electricity Coordinating Council

13. 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

14. Path and Device Updates
New Pinto PST will be operated in parallel with other qualified devices and expected to be in service in November 2015
Paths 22 & 23 are eligible for disqualification.
Western Electricity Coordinating Council

15. 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