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Enron Mail |
Elizabeth/Christi
The following is an e-mail I recieved from Wabash with regard to them looking at risk associated with a "Into" product and their concern over the RTO forcing the designation of firm point resources. I thought you would like to see this in conjunction with our last conversation. thanks Oscar -----Original Message----- From: Allen McKee <AllenM@WVPA.com<@ENRON Sent: Thursday, April 05, 2001 4:54 PM To: Dalton III, Oscar Cc: Rick Coons; Kari Wetter; Fred Kunkel Subject: Network Resource Requirements Mr. Dalton, As we have discussed, the control area operators we coordinate with in the NIPSCo, AEP, IPL, and Cinergy areas are increasingly concerned about the reliability of transmission and its dependence on expected power flows from source to sink. Much of this concern comes from incremental reliability requirements being developed by ECAR and NERC, along with potentially substantial fines for failure to comply. In order for Wabash Valley to obtain Network Transmission service we must have firm resources that can be qualified as designated network resources. We received a document from a control-area operator that defines their criteria for network resources. These criteria are defined as follows: * Network resources do not include any generation that is committed for sale to another party on a firm basis. * For a power purchase to qualify as a network resource it must be available to the purchaser on a non-interruptible basis. Power purchases that can be interrupted by the seller for reliability reasons qualify as network resources. This includes power sales that are provided with a curtailment priority below that of the seller's native load. Purchased power that can be interrupted by the seller for economic reasons does not qualify as a network resource, but purchases that can be interrupted for extreme economic penalties other than more economic sale or purchase opportunities qualify as network resources. * For a power purchase to qualify as a network resource, the purchaser must have an obligation to take the power. The obligation to purchase does not need to be in the form of a capacity payment. However, if there is no capacity payment, the contract should include a minimum take obligation. The Commission does not require an around-the-clock purchase obligation; it has approved as a network resource a power purchase with a minimum capacity factor of 80% during on-peak hours and no minimum take in off-peak hours. How much lower a capacity factor the Commission would permit is not clear. * The requirement that a network resource be non-interruptible applies to the transmission service as well as the power supply itself. Therefore, a network customer that designates an off-system resource as a network resource must obtain firm transmission service for the generator to the system of the network transmission provider. If transmission from the generator to the network transmission provider is non-firm transmission service, the power purchase does not qualify as a network resource. However, the requirement of firm transmission service does not apply to any generator that was serving the load on July 9, 1996, because such generation is grandfathered by Order No. 888. It may be that your organization can meet these criteria with documentation of resources and transmission path agreements, so as to not require any additional "firmness" of the power supply you have already proposed to us. Please take a look, and contact me with any further information you can provide. Let me know, also, if you need any else from me. Allen McKee System Planning Principal Wabash Valley Power Association
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