Proposed Incorporation of Merced Irrigation District into ISO Balancing Authority Area in 2015 Stakeholder Webconference February 28, 2013
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Merced Irrigation District (Merced) Background Merced Irrigation District (Merced) is a community-owned utility that provides retail electric service to approximately 8,000 customers The municipal utility owns about 110 megawatts of installed generating capacity, which is currently connected to the ISO grid. Merced s peak load is approximately 98 MW Merced presently operates within the Turlock Irrigation District Balancing Authority Area Merced transmission system includes 34 miles of 115 kv Merced submitted a transmission interconnection request to PG&E for a 230kV interconnection at the PG&E owned Wilson substation. This agreement paves the way to: resolve future transmission limitations for Merced bring their generation into the market, which benefits Merced customers and adds flexible capacity to the system Page 3
The ISO and Merced have entered into an MOU that will form the basis of a transition agreement Merced becomes a Participating Generator Owner July 2014. Merced could become a PTO, UDC, and load-serving entity as early as July 2015 (the Transition Date ) Interconnection request with PG&E at Wilson sub MOU addresses 4 primary areas: Interconnection of generating facilities currently in the ISO balancing authority area 230 kv transmission interconnection to PG&E Transition of load and 115 kv facilities Allocation of congestion revenue rights Page 4
Interconnection of Merced generating facilities will occur before the transition Merced owned generation is presently interconnected to the ISO controlled grid Merced will enter into ISO pro forma contracts, including Participating generator agreement Meter service agreement Generator interconnection agreement Merced will engage the services of a scheduling coordinator for participation in the ISO markets Page 5
Merced will apply as a participating transmission owner upon completion of the transmission interconnection. Transmission interconnection currently being studied by PG&E and reviewed by Merced and the ISO Merced will enter into a transmission interconnection agreement with PG&E Merced will apply to become a participating transmission owner Execute the Transmission Control Agreement File TO tariff and revenue requirement with FERC Compete NERC certification as a TOP and enter into a coordinated functional responsibility agreement with ISO Page 6
Merced will become a load serving entity in the ISO balancing authority area Merced will execute a utility distribution company operating agreement The ISO will allocate Merced congestion revenue rights to hedge its exposure to congestion Tier 1 allocation (priority renewal) ISO will enable Merced to participate in Tier 1 allocation for 2013 Similar to process used for CRR year 1 ISO will include Merced in CRR network model for 2015 annual CRR allocation, to be performed in summer 2014 Page 7
Process to seek ISO Board approval and necessary authorizations from FERC March 20-21, 2013 ISO governing board authorization to enter into the transition agreement September 30, 2013 transition agreement filing with FERC January 1, 2014 transition agreement effective date Activities in 2014 for 2015 transition PTO application and associated processes Resource adequacy showings CRR allocation Pro forma contract execution WECC and NERC processes Page 8