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Enron Mail |
I would like to keep you informed on the issue of small generation
interconnection to the BPA transmission network. I am trying to find sites to locate some mobile generators that Enron has available. There are several Public Power utilities (BPA customers) in the Region that are interested in having these units located in their service areas. My understanding is that BPA is requiring small generators to go through an interconnect process if they want to sell the power on the market. But, if the utility owns the generation, or if the utilities industrial customer owns it, and they are displacing BPA power then they don't have to go through this interconnection process. That seems to me like self-dealing in that BPA's Power Business Line gets the benefit of this load that the Transmission Business Line is allowing to slip in, but other marketers, such as Enron, has to play by different rules if we want to have access to this power. I have a meeting Thursday with one of BPA's VP's in theTransmission Business Line to talk about this issue. I will send you other email and correspondence I receive on this. At some point Enron may want to take a stand on BPA's activity if they are not going to be cooperative with our efforts. Jeff ---------------------- Forwarded by Jeff Shields/PDX/ECT on 03/21/2001 11:14 AM --------------------------- "Paschke, Al - TM" <afpaschke@bpa.gov< on 03/21/2001 10:18:31 AM To: "'Jeff.Shields@enron.com'" <Jeff.Shields@enron.com< cc: "Bennett, Ruth - TM-DITT1" <rbbennett@bpa.gov<, "Peterson, Edward A - TOC-DITT2" <eapeterson@bpa.gov< Subject: FW: Small scale generation Jeff--Thanks for your e-mail. I have responded to your questions below. My responses are in BOLDFACE. Also, please note that I am sending to you two relevant documents via separate e-mail. These documents are noted in my response to your first question below. As I mentioned in the voice mail that I left with you this morning, you may want to come in and talk to us concerning your plans. Engineering staff would be available to discuss BPA-TBL's interconnection requirements. Take care. Al Paschke (360)418-8283 -----Original Message----- From: Jeff.Shields@enron.com [mailto:Jeff.Shields@enron.com] Sent: Saturday, March 17, 2001 3:58 PM To: rbbennett@bpa.gov; Alburns@bpa.gov Subject: Small scale generation I realize you are not permitted to talk directly with each other about this subject, but I find myself in the middle of this policy issue and need clarity on how to respond to requests I have received from customers in the past few weeks. At issue is how to connect new "small scale" generation in order to get generation on-line as quickly as possible. If we set aside local and state permit requirements for the sake of this conversation, I would like to ask about the process for working with Public Power utilities, or their end-use consumers that have expressed an interest in installing small-scale generation with the idea of selling the output to Enron. I have access to several turbine technologies ranging in size from 75 kW to as large as 22 MW. These units are available in the next 4-20 weeks. I have been contacted by various BPA utility customers, or in two cases, industrial customers served by Public Power utilities that would like to have Enron install these units at their facilities. The basic idea is that Enron would install units and operate them and sell the out-put. The host end-user and/or host utility will be paid a fee in return for supporting this installation. In some instances the host would own the generation asset and Enron would have a toll, in other instances Enron may own the asset. Questions that I have include: What is the process for interconnection with BPA's transmission system? SEE THE DRAFT DOCUMENT ENTITLED, "BPA TRANMSISSION BUSINESS LINE PROCESS FOR SMALL GENERATION INERCONNECTIONS WITH UTILITY SYSTEMS WITHIN THE BPA LOAD CONTROL AREA." ALSO, SEE THE DRAFT DOCUMENT ENTITLED, "BPA TRANSMISSION BUSINESS LINE PRELIMINARY QUESTIONS FOR SMALL GENERATION INTERCONNECTIONS LESS THAN 50 MW." I AM SENDING COPIES OF THESE DOCUMENTS TO YOU VIA SEPARATE E-MAIL. Is a traditional interconnection request necessary? YES. If the host utility effectively takes this energy to load and virtually consumers all of the power can Enron pay BPA a transmission few as though the power were delivered over the federal transmission system? TO THE EXTENT THAT POWER IS TO MOVE OVER THE FEDERAL TRANSMISSION SYSTEM, TRANSMISSION AND ANCILLARY SERVICES MUST BE ACQUIRED FROM BPA-TBL. (UNDER SOME CIRCUMSTANCES, CERTAIN ANCILLARY SERVICES CAN BE SELF OR THIRD PARTY-PROVIDED.) TO THE EXTENT THAT THE PROJECT WOULD BE INTERCONNECTED WITH THE SYSTEM OF ONE OF BPA'S REQUIREMENTS CUSTOMERS, (WHO PURCHASES NT TRANSMISSION SERVICE)AND THE POWER SERVES THAT CUSTOMER'S LOAD REQUIREMENTS, THE CUSTOMER IS OBLIGATED TO PURCHASE TRANSMISSION AND ANCILLARY SERVICES ASSOCIATED WITH SUCH LOAD REQUIREMENTS. THE CUSTOMER IN BPA'S CONTROL AREA WOULD HAVE TO ENTER INTO ARRANGEMENTS WITH BPA-TBL FOR METERING, ET AL. Would this power have to be sold in the Northwest? NO. Is BPA interested in a 3-5 yr toll on these smaller generation technologies? IF YOU ARE ASKING WHETHER BPA WOULD BE INTERESTED IN PURCHASING SUCH GENERATION FOR A PERIOD OF 3-5 YEARS, YOU SHOULD DISCUSS THIS WITH BPA'S POWER BUSINESS LINE. OTHERWISE, PLEASE CLARIFY YOUR QUESTION. THANKS. I have had conversations with Scott Wilson about tolls on larger production units and advised Scott that Enron has these smaller units available. I expect to talk with him further this week about siting a 22 MW natural-gas fired generator in the region. The tricky part is understanding how we get the power to BPA and/or the market within the rules for interconnection with the Federal Transmission System. Any help that you can offer on expediting this process would be greatly appreciated. I am sure there are more questions and I suspect you will have some as well. Please feel free to contact me. Jeff
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