WestConnect, a group of 11 Southwest utilities, is focused on improving the
wholesale market in the region, but will not likely form a regional transmission
organization, Charles Reinhold, the group's project manager, said recently in an
interview.
WestConnect is "focused on creating wholesale market enhancements-basically RTO-like
functions … that we can implement by contracts among transmission owners or
collaboration of some kind without forming the central organization," he said.
"We're going the 'light' approach."
WestConnect's members decided that the Southwest power markets are generally
fluid, so the benefits of forming an RTO are outweighed by the costs. "The state
of the markets don't seem to warrant moving toward [RTO formation]," Reinhold
said. "There are no large disparities in the market prices and clearing prices
at Palo Verde and Mead and Four Corners indicating major transmission problems
affecting the markets."
Instead, WestConnect is looking at several ways it can improve the power
markets, Reinhold said. The group is in the early stages of considering an
experimental regional transmission tariff to see if eliminating rate pancaking-the
accumulation of fees when electricity moves through multiple transmission
systems-across the region would improve the wholesale market, he said.
WestConnect would need Federal Energy Regulatory Commission approval for an
experimental tariff, which could be limited to perhaps two years, he said.
The group also is looking at using software to mimic the effects of
consolidating control areas, but without changing operational authority,
Reinhold said. "We're trying to emulate the effect of consolidated control
areas, but would not change operational authority of existing control areas," he
said. The plan could make the balancing of load and generation on the grid
system more efficient, Reinhold said. Numerous control areas can lead to sets of
generators moving, sometimes in different directions, Reinhold said.
Also, WestConnect is considering beefing up its WesTTrans Open Access Same-Time
Information System (OASIS) Website, which is shared by 26 Western transmission
owners, he said. The Website, launched in 2004, provides a single source for
obtaining transmission service for much of the Western Electricity Coordinating
Council.
The group also is looking at ways to improve transmission planning in the West.
For example, WestConnect is trying to formalize the planning relationship
between the Southwest Area Transmission planning group and the Colorado
Coordinated Planning Group, Reinhold said. By working together, the Southwest
and Colorado groups could plan in the same timeframes and use the same planning
assumptions, he said.
Meanwhile, Nevada Power has joined WestConnect, the Sierra Pacific Resources
utility subsidiary said recently. Southern Nevada, where Nevada Power operates,
is a key part of the Southwestern electricity market, Reinhold said. Nevada
Power, which had been a Grid West member, had been considering joining
WestConnect since 2003. About 90% of Nevada Power's import capacity is via
interties with WestConnect or the California Independent System Operator. Sierra
Pacific Power, an SPR subsidiary operating in northern Nevada, is a Grid West
member. The Nevada Public Utilities Commission in August approved Nevada Power's
move to join WestConnect.
WestConnect now includes: Arizona Public Service Co., El Paso Electric Co.,
Imperial Irrigation District, Nevada Power, Public Service Co. of Colorado,
Public Service Co. of New Mexico, Salt River Project, Southwest Transmission
Cooperative, Tri-State Generation & Transmission Assn., Tucson Electric Power
Co. and Western Area Power Administration.
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