Transcript Pres- WGR- NPRR264

Generator Re-Interconnection
Using the IA Procedure
WMS
09 February 2011
Needed: Rational Procedure for ReInterconnecting Generation Resources
 Re-interconnecting Generation Resources adds value
 CREZ Transmission Plan economics depended in part on
re-interconnecting constrained WGRs
 Transmission operations and planning could benefit
from multiple generation interconnections
 Horse Hollow Gen Tie demonstrates value
 Need a procedure for reliable re-interconnection
without imposing unnecessary costs
Stakeholder Review of the Market
Implications
 Joint ROS/WMS Task Force: Market benefits from
generation, regardless of technology, responding to
price signals by changing its delivery point
 TAC voted unanimously to:
 Grandfather Generation Resources using earliest SGIA
 Minimize transmission costs for a new interconnection
 Re-Interconnect via the Gen Interconnect procedure
 Similar to process for evaluating asynchronous ties
ERCOT’s Latest Proposal is Ambiguous
 Links a Generation Resource’s “grandfathered” date to the
Point of Interconnection (POI) defined in its SGIA
 A change in Transmission Facilities , by definition is a new POI
 ERCOT pointed out in the June 09 RPG meeting, a new
interconnection could be as trivial as changing connection
from a 138kV bus to a 345 kV bus at the same station
 Alternative reading is that all re-interconnections require
upgrading to current code
 A case specific determination of performance required at
the new POI makes more sense
 At least better define “new POI”
ERCOT’s Proposal Undermines
Grandfathering
 Substituting “Protocols and Other Binding Documents” for
SGIA suggests generators will face new requirements
 Transmission upgrades could have the same effect as
changing POI; would Generators be required to retrofit
then?
 Which studies support VRT & Voltage Support retrofits?
 Grandfathering should remain in effect unless a need is
demonstrated
Re-Interconnection Should be Studied
for Impacts before Requiring Retrofits
 Re-interconnection should follow the Generation
Interconnection or Change Procedure
 Provides Generator a degree of certainty
 Any upgrades needed can be provided most
economically
 Studies could be funded by generator similar to SSI
approach now under consideration
 Offers a way around the tipping point problem while
preserving open access
References
Point of Interconnection (POI)
 Depends on the Transmission Facilities
 “The location(s) where a Generation Entity’s
interconnection Facilities connect to the Transmission
Facilities as reflected in the Standard Generation
Interconnection Agreement (SGIA) between a
Generation Entity and a Tranmission [sic] Service
Provider (TSP) or the location(s) where Load
interconnects to the TSP Facilities.” NP Section 2
CREZ Plan Design Assumes
Re-Interconnection
 “The estimated cost of this plan [Scenario 2] is $4.93
billion. One-line diagrams depicting this plan are
provided in Appendix A. All of the components of this
plan are listed in Appendix B. Based on production-cost
modeling, the expected average annual wind
curtailment is 2.31%, with a total wind generation of
64,031 GWh. In this plan, 820 MW of existing wind
generation was moved to a new interconnection
location.” P. 24 CREZ Transmission Optimization Study
Benefits Noted in MIG TF White Paper
 “MIGs are desirable in that they have the capability of
reducing prices in some areas and offer additional
operational flexibility to ERCOT;”
 “The group determined that ERCOT must also have
the right to direct the Generation Resource… to
connect to the grid or to change connections in order
to use a specific interconnection point during
emergencies.”
10