1. NORTHWEST POWER POOL Reliability through Cooperation
Brazilian Delegation
May 6, 2009

2. Presentation Outline Northwest Power Pool Background*
Presentation Outline
07/16/96
Northwest Power Pool Background
Pacific Northwest Coordination Agreement
Headwater Benefits *

3. Regional Reliability Councils

4. North American Interconnections
NWPP

5. NERC/WECC Subregions NWPP RMPP CAMX AZNM Rocky Mountain Power Pool
Public Service Company of Colorado
Western Area Power Administration – CM
Arizona-New Mexico
Arizona Public Service Company
Arlington Valley
Harquahala
Gila River
Griffith
El Paso Electric Company
Imperial Irrigation District
Nevada Power Company
Public Service Company of New Mexico
Salt River Project
Tucson Electric Power Company
Western Area Power Administration – DSW
California-Mexico
California Independent System Operator
Comision Federal de Electicidad
Los Angeles Dept. of Water and Power
Northwest Power Pool
Alberta Electric System Operator
Avista Corporation
Bonneville Power Administration
British Columbia Transmission Corporation
Chelan County PUD
Douglas County PUD
Grant County PUD
Idaho Power Company
NaturEner (Glacier)
Northwestern Energy
PacifiCorp-East
PacifiCorp-West
Portland General Electric Company
Puget Sound Energy
Sacramento Municipal Utility Board
Seattle City Light
Sierra Pacific Power Company
Tacoma Power
Turlock Irrigation District
Western Area Power Administration – UGP

6. NWPP HISTORIC DATES 1942 - Operating Committee
Pacific Northwest Coordination Agreement signed
Transmission Planning Committee

7. *
07/16/96
VISION
The Northwest Power Pool serves as a forum for reliability and operational adequacy issues in the area for both transmission and generation *

8. DEMOGRAPHICS 8 U.S. States 2 Canadian Provinces*
07/16/96
DEMOGRAPHICS
8 U.S. States
2 Canadian Provinces
Federal, Public, Private, Provincial Ownership
International Border (Treaties associated with water)
Non-Jurisdictional as well as Jurisdictional
Preference Act – Public Law
160 Consumer-owned electric utilities
19 Control Areas (35 in the Western Interconnection (WI)).
~ 90,000 Megawatts Total Resources (44% WI)
~ 50% Peak load of the WI
~ 50% Energy load of the WI
Automated Reserve Sharing Procedures
Hydro Coordination
Hydro Thermal Integration
Hydro located on the West (BC, ID, OR, WA)
Thermal located on the East (AB, MT, NV, UT, WY) *

10. THREE MAIN COMMITTEES Operating Committee Coordinating Group
Foster coordination and communication.
Coordinating Group
Administer the Pacific Northwest Coordination Agreement, optimizing Columbia Basin hydro generation.
Transmission Planning Committee
Provide a forum for reliable transmission planning.

11. RELIABILITY – Defined Two Foundational Elements*
07/16/96
RELIABILITY – Defined
Two Foundational Elements
Adequacy - The ability to supply the aggregate electrical demand and energy of consumers
Security - The ability to withstand sudden disturbances
Definition of Reliability
NERC defines the reliability of the interconnected bulk electric systems in terms of two basic, functional aspects:
.Adequacy – The ability of the electric system to supply the aggregate electrical demand and energy requirements of customers at all times, taking into account scheduled and reasonably expected unscheduled outages of system elements.
.Security – The ability of the electric system to withstand sudden disturbances such as electric short circuits or unanticipated loss of system elements.
In another way of saying it - supplying what the customer has contracted for. *

12. PHYSICAL FACTORS (that Drive Northwest Reliability)*
07/16/96
PHYSICAL FACTORS (that Drive Northwest Reliability)
Generation/Resources
Load
Transmission
Temperature *

13. COLUMBIA RIVER TREATY 1948 Vanport flood 1950’s Treaty negotiated
Canada builds three dams: Duncan, Arrow and Mica
U.S. allowed to build Libby
Canada gets flood control payment
Canada gets 1/2 of the “coordinated” U.S. benefit from the Mica, Arrow, and Duncan
30 years of benefit calculated and sold to U.S. utilities

14. COLUMBIA RIVER TREATY
Revelstoke filled
Non-Treaty Storage Agreement

15. PNCA COORDINATION Federal Government Municipals
Bonneville Power Administrator
Corps of Engineers
Bureau of Reclamation
United States Entity (Canadian Treaty)
Municipals
City of Eugene, OR
City of Seattle, WA
City of Tacoma, WA

16. PNCA COORDINATION Public Utility District Investor Owned Utility
Grant County
Chelan County
Douglas County
Pend Oreille County
Cowlitz County
Investor Owned Utility
Portland General Electric Company
PacifiCorp
Avista
Puget Sound Energy
Independently Owned Entities
PP&L Montana
Alcoa Power Generation, Inc.

17. PNCA COORDINATION
Parties shall coordinate with all of the other Parties the planning and operation of its System.
System means for any Party such Party’s Firm Resources and transmission facilities that are adequately interconnected and that interconnected with the Systems of other Parties to accomplish the objected of the agreement
The Parties shall coordinate their System to make available to each Party its optimum Firm Load Carrying Capability (“FLCC”), to provide optimum FLCC for the Coordinated System, and, to produce the optimum amount of useable secondary energy for each Party

18. PNCA COORDINATION
Coordination for the production of power must take into consideration non-power uses for water resources – recreation, irrigation, transportation, biological opinion (fish), and others.
Coordinated System means the aggregated Systems of each of the Parties, including generating plants, reservoirs, transmission system and associated facilities owned or controlled by such Party and coordinated by such Party under this Agreement. The Coordinated System shall include Treaty Storage to the extent such inclusion is not inconsistent with the Treaty.

24. COORDINATED RESERVOIR OPERATIONS
Annual Firm Load Carrying Capability
Preliminary Regulation (not later than March 15)
maximum Critical Period Energy Capability
Establish Critical Period
Modified Regulation (May 1)
Firm Energy Load Carrying Capability
Firm Peak Load Carrying Capability
Final Regulation (July 1)

25. COORDINATED RESERVOIR OPERATIONS - Factors
Retirements of Resources
Project Data – Load and Firm Resources
New Resources
Purchases
New Non-Power Requirement
Exchanges
Maintenance
Reserve
Operations

26. COORDINATED RESERVOIR PRODUCTS - Flexibility
Holding Energy
Storage
Interchange Energy
Interchange Capacity
Credits for in Lieu of Energy Spilled
Transfers to Avoid Spill

27. COORDINATED RESERVOIR TRANSMISSION
Capacity available in transmission lines and associated facilities owned, leased, or otherwise controlled as part of the Systems of other Parties may be used without charge for the delivery of the products of coordination

28. COORDINATED RESERVOIR HEADWATER BENEFITS
Under section 10(f) of the Federal Power Act, an owner of a hydropower project is required to reimburse upstream headwater project owners for an equitable part of the benefits it receives. These benefits, referred to as Headwater Benefits, are the additional energy production possible at a downstream hydropower project resulting from the regulation of river flows by an upstream storage reservoir.

29. COORDINATED RESERVOIR HEADWATER BENEFITS
Headwater Improvement Annual Charges
Interest
Maintenance
Operations
Depreciation
Property Taxes (if applicable)

30. COORDINATED RESERVOIR HEADWATER BENEFITS
All parties with a right to coordinated storage releases from upstream reservoirs in the United States have the obligation to make payments to the owners/operators of the upstream reservoirs.
The payments are to cover a portion of the maintenance costs related to storage paid by the upstream party that provide a benefit to the downstream party.

31. COORDINATED RESERVOIR HEADWATER BENEFITS
Owners/operators provide the annual costs for each reservoir, and the portion of these costs that is apportioned to the storage function is calculated:
A weighted average of useable energy from at-site storage and downstream at-site storage (A-sub-s + P-sub-s) is calculated.
A weighted average of useable energy from unregulated flow plus storage releases from upstream reservoirs (A-sub-h + P-sub-h) is calculated.
The portion of energy from storage compared to total useable energy [(A-sub-s + P-sub-s) / (A-sub-s + P-sub-s + A-sub-h + P-sub-h)] is calculated.
“P” values are derived from the Final Regulation, which determines the Firm Energy Load Carrying Capability of each project for the year.
“A” values are the average derived form a 70-year, non-continuous study that uses the beginning levels of storage as determined by the Actual Energy Regulation as the initial values for each year of the study.

32. COORDINATED RESERVOIR HEADWATER BENEFITS
Total annual cost is multiplied by the percentage from (3.) to determine cost apportioned to storage. This cost cannot exceed the value of the benefit received from the storage project itself.
Allocation of the amount owned by each downstream reservoir is determined by applying the percentage of total energy gain it gets from the upstream reservoir’s storage releases to the annual storage costs for that upstream reservoir.

33. *
07/16/96
QUESTIONS?
We’re just getting started, and expect to have some milestones and dates out for review later this year. *

34. *
07/16/96
We’re just getting started, and expect to have some milestones and dates out for review later this year. *