Merchant Network Upgrade Proposed Solution
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1 Merchant Network Upgrade Proposed Solution Jason Connell Project Manager, Interconnection Projects Markets & Reliability Committee July 23, 2015
2 Presentation Approach Presentation Background Four Tariff Change Areas Summary of Tariff Changes Presentation Appendix Redline Changes 2
3 Background Process Customer Name Upgrade Type Queue Entry Form Ownership Requirements Final Agreements Interconnection Customers Generation Interconnection Customer Transmission Interconnection Customer Transmission Interconnection Customer Generator Attachment N Yes ISA/CSA Merchant Transmission Facilities Merchant Network Upgrade Attachment S Yes ISA/CSA Attachment S No ISA/CSA 3
4 Background Process Customer Name Upgrade Type Queue Entry Form Ownership Requirements Final Agreements New Service Customers Generation Interconnection Customer Transmission Interconnection Customer Transmission Interconnection Customer Eligible Customer Generator Attachment N Yes ISA/CSA Merchant Transmission Facilities Merchant Network Upgrade Long Term Firm Transmission Service Attachment S Yes ISA/CSA Attachment S No UCSA Attachment FF No UCSA Upgrade Customer IARR Attachment EE No UCSA developer of an Affected System facility PJM System Impact External Queue Study Notification No UCSA 4
5 Four Tariff Change Areas Definitions: Customer-Funded Upgrade, Upgrade Request, Merchant Network Upgrade, Transmission Interconnection Customer, and Upgrade Construction Service Agreement. Queue Entry: FERC defined a Merchant Network Upgrade as being proposed by a Transmission Interconnection Customer. Tariff lacks path from Part IV to Part VI that parallels Upgrade Requests. Agreements: Attachment O, O-1, P, S, EE and GG RPM: Incremental Capacity Transfer Rights need to include Part VI requests 5
6 Summary of Tariff Changes - Definitions 6
7 Summary of Tariff Changes - Definitions 7
8 Summary of Tariff Changes - Definitions 8
9 Summary of Tariff Changes - Definitions 9
10 Summary of Tariff Changes - Definitions 10
11 Summary of Tariff Changes - Definitions 11
12 Summary of Tariff Changes Queue Entry Part IV Add queue entry path for Transmission Interconnection Customer to request Merchant Network Upgrades, A. Direct those customers to to submit an Upgrade Requests Part VI Create two Upgrade Request types: existing OA 7.8 IARR requests or Merchant Network Upgrades. Copy provisions from Part IV applicable to Transmission Interconnection Customers: e.g. scoping meetings, modifications, entitlement to base case data. 12
13 Summary of Tariff Changes - Agreements Attachment S Form of Transmission Interconnection Request Removed ability to request/study Merchant Network Upgrades Corrected study timeline to align with section 36 requirements. Attachment EE Upgrade Request Added ability to request Merchant Network Upgrades Changed signature block from Upgrade Customer to New Service Customer 13
14 Summary of Tariff Changes - Agreements Attachment O Interconnection Service Agreement Removed all references to Merchant Network Upgrades Copy Negotiated Contract Option into UCSA Copy applicable Charge provisions to UCSA and parallel ISA SCHEDULE E process. Attachment GG Upgrade Construction Service Agreement Incorporated Negotiated Contract Option from ISA Incorporated Charges for Operations and Maintenance for Merchant Network Upgrades and paralleled ISA SCHEDULE E process. 14
15 Summary of Tariff Changes - Agreements Attachment O-1 Interim Interconnection Service Agreement Removed all references to Merchant Network Upgrades Attachment P Construction Service Agreement Removed all references to Merchant Network Upgrades 15
16 Summary of Tariff Changes - RPM Attachment DD Clarify qualifications for Incremental Capacity Transfer Rights Current language identifies New Service Customers, but limits source of requests to Part IV; Upgrade Customers and Eligible Customers are New Service Customer that originate in Part VI; and Upgrade Construction Service Agreement states New Service Customers are entitled to all rights created. 16
17 Presentation Appendix Tariff Redline Changes 17
18 Tariff Definition Changes 18
19 Tariff Definition Changes 19
20 Tariff Definition Changes 20
21 Summary of Tariff Changes - Definitions 21
22 Tariff Definition Changes 22
23 Tariff Definition Changes 23
24 Tariff Part IV Changes 24
25 Tariff Part IV Changes 25
26 Tariff Part IV Changes 26
27 Tariff Part VI Changes 27
28 Tariff Part VI Changes 28
29 Tariff Part VI Changes 29
30 Tariff Part VI Changes 30
31 Tariff Part VI Changes 31
32 Tariff Part VI Changes 32
33 Tariff Part VI Changes 33
34 Tariff Part VI Changes 34
35 Tariff Part VI Changes 35
36 Tariff Part VI Changes 36
37 Tariff Part VI Changes 37
38 Tariff Part VI Changes 38
39 Tariff Part VI Changes 39
40 Tariff Attachment O (ISA) Changes 40
41 Tariff Attachment O (ISA) Changes 41
42 Tariff Attachment O (ISA) Changes 42
43 Tariff Attachment O (ISA) Changes 43
44 Tariff Attachment O (ISA) Changes 44
45 Tariff Attachment O (ISA) Changes 45
46 Tariff Attachment O (ISA) Changes 46
47 Tariff Attachment O (ISA) Changes 47
48 Tariff Attachment O (ISA) Changes 48
49 Tariff Attachment O (ISA) Changes 49
50 Tariff Attachment O (ISA) Changes 50
51 Tariff Attachment O (ISA) Changes 51
52 Tariff Attachment O (ISA) Changes 52
53 Tariff Attachment O-1 (Interim ISA) Changes 53
54 Tariff Attachment O-1 (Interim ISA) Changes 54
55 Tariff Attachment P (CSA) Changes 55
56 Tariff Attachment P (CSA) Changes 56
57 Tariff Attachment P (CSA) Changes Remove reference(s) to Merchant Network Upgrades from the following sections: CSA Sections Requiring Merchant Network Upgrade Reference Removal Schedule L
58 Tariff Attachment S (Transmission Interconnection Request) Changes 58
59 Tariff Attachment DD(Reliability Pricing Model) Changes 59
60 Tariff Attachment EE (Upgrade Request) Changes 60
61 Tariff Attachment EE (Upgrade Request) Changes 61
62 Tariff Attachment EE (Upgrade Request) Changes 62
63 Tariff Attachment GG(Upgrade CSA) Changes 63
64 Tariff Attachment GG(Upgrade CSA) Changes 64
65 Tariff Attachment GG(Upgrade CSA) Changes 65
66 Tariff Attachment GG(Upgrade CSA) Changes 66
67 Tariff Attachment GG(Upgrade CSA) Changes 67
68 Tariff Attachment GG(Upgrade CSA) Changes 68
69 Tariff Attachment GG(Upgrade CSA) Changes 69
70 Tariff Attachment GG(Upgrade CSA) Changes 70
71 Tariff Attachment GG(Upgrade CSA) Changes 71
72 Tariff Attachment GG(Upgrade CSA) Changes 72
73 Tariff Attachment GG(Upgrade CSA) Changes 73
74 Tariff Attachment GG(Upgrade CSA) Changes 74
75 Tariff Attachment GG(Upgrade CSA) Changes 75
76 Tariff Attachment GG(Upgrade CSA) Changes 76
77 Tariff Attachment GG(Upgrade CSA) Changes 77
78 Tariff Attachment GG(Upgrade CSA) Changes 78
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