reliable power reliable markets reliable people performance targets for the customer interconnection...
TRANSCRIPT
Reliable Power
Reliable Markets
Reliable People
Performance Targets for the Customer Interconnection Process
January, 2008
2
Purpose
Purpose of today’s session:
• Provide context on the current project environment
• Present the performance target concepts outlined in the discussion paper issued in December 2007
• Enable stakeholders to obtain additional information and clarity on performance targets
3
Outcomes
• Stakeholders have sufficient information on proposed performance target areas and can provide comments to AESO on:
– Performance target areas
– Reasonable cycle times for each target area
– Reporting on performance targets
4
Agenda
• Current project environment
• Customer interconnection process and performance targets
• Next steps
• Questions
5
Current Project Environment
•Alberta leading North America in load growth
– Growth in demand equal to adding two cities the size of Red Deer each year
– Adequate supply in the near term but need ~ 5,000 MW by 2017 and 11,500 MW by 2027
•Over last 20 years, power demand in Alberta has doubled but no major upgrades to the transmission backbone
– Need transmission to interconnect loads and generation for adequate supply and for reliability
– Alberta’s competitive electricity market is working and is providing more options
6
Current Project Environment
• Customer applications continue to increase
61 66
87
0
20
40
60
80
100
Vo
lum
e
2005 2006 2007
Year
Customer Applications
7
Current Project Environment
• 200 active customer projects• ‘Active’ refers to projects that are at some stage between an application being
received by AESO and final cost reconciliation with the customer
Project Analysis - by Project Type
Other - behind the fence, 4
Industrial Load, Generator, ISD Projects, 133
Existing Substation Projects, 52
New Substation Projects, 11
68 of the 133 are wind projects
8
Current Project Environment
Project Analysis
126
15 1219
28
43
0
20
40
60
80
100
120
140
Application toCustomer's
Acceptance on theCustomer Proposal
Issued by AESO
NID Filing Facility Application Construction,Energization,
Commissioning
Project Close System Projects
Nu
mb
er
of
Pro
jec
ts
9
Current Project Environment
• Managing project cycle times continues to be challenging under current conditions:
– Significant system reinforcement projects; can impact the complexity of customer projects
– Increasing lead times for equipment• Transformers:
• 240 kv @ 24+ months• 138 Kv @ 20+ months
• Circuit Breakers: 24+ weeks
• Steel poles: 26+ weeks
– Increasing regulatory requirements:• Participant Involvement Program
– Increasing project volumes• Results in a queue; resources may not be available to commence work immediately on each
application
– Resource capacity for the industry• Project volumes continue to increase
• Tight human resource market
10
Current Project Environment
11
Current Project Environment
12
Current Project Environment
•Bitumen production in the Fort McMurray region expected to triple over the next ten years.
•New Upgraders and expansion of existing plants in Fort Saskatchewan to process the increased bitumen supply
•Both regions are supported by generation in the Lake Wabamun area
13
Customer Interconnection Process & Performance Targets
• Overview of the process
• Proposed performance target areas
• Actual cycle time information
• Reporting on performance targets
14
Performance Targets for the Customer Interconnection Process
• Opportunity to evolve the process
– Begin by measuring performance against established targets
– Further enhance the process based on the performance target results
• Compliance with the Transmission Regulation, Section 6
• Implementation of the performance targets by April 2008
15
Transmission Regulation Section 6
ISO business practices and performance targets
6 (1) The ISO must establish and make available to the public
(a) practices for the efficient and effective processing and making decisions about system access service applications, and
(b) performance targets and timeframes with respect to processing and making decisions about system access service applications.
• (2) The ISO must periodically make available to the public reports on meeting the performance targets and timeframes established under subsection (1).
• (3) The ISO must establish the practices, performance targets and timeframes described in subsection (1) not later than one year after this Regulation comes into force.
16
Customer Interconnection Processes & Key Phases
Key Phases:
Processes:
•Existing Substation process
•New Substation process
•Industrial Load, Generator, ISD process
Project Initiation
Customer Proposal
NID FilingFacilities
Application
Construction, Energization,
Commissioning
AESO Direction
Project Close
17
Proposed Areas for Performance Targets
1. Project Initiation – Receipt of Customer’s application to AESO’s acknowledgement of application
2. Customer Proposal – AESO’s acknowledgement of application to AESO’s issuance of the customer proposal
3. Need Identification Document (NID) Filing – Customer’s acceptance of the proposal issued by AESO to AESO’s filing of the NID with the Alberta Utilities Commission (AUC)
4. AESO Direction – AUC approval on the NID to AESO’s issuance of a Direction Letter to a Transmission Facility Owner (TFO)
Project Initiation
Customer Proposal
NID FilingFacilities
Application
Construction, Energization,
Commissioning
AESO Direction
Project Close
18
Performance Target Area – Project Initiation
Customer (DFO, Industrial Load,
Generator, ISD) applies for system access services
Proposed Target Area
AESO verifies completeness of
application information
AESO acknowledges the application to the
customer
Project Initiation
Customer Proposal
NID FilingFacilities
Application
Construction, Energization,
Commissioning
AESO Direction
Project Close
19
Performance Target Area - Customer Proposal
AESO reviews the
Interconnection Proposal
Existing Substation Process
AESO endorses the
Interconnection Proposal
AESO prepares & issues the
Customer Proposal
AESO reviews application, performs planning studies,
identifies alternatives, obtains +/- cost estimates from TFO, selects preferred alternative
New Substation Process Industrial Load, Generator & ISD Process
AESO prepares the
Interconnection Proposal
AESO prepares & issues the
Customer Proposal
Proposed Target Area
Proposed Target Area
Customer reviews & accepts the
proposal issued by AESO
Customer reviews &
accepts the proposal issued
by AESO
AESO acknowledges the application to the customer
AESO acknowledges the application to the customer
Project Initiation
Customer Proposal
NID FilingFacilities
Application
Construction, Energization,
Commissioning
AESO Direction
Project Close
20
Performance Target Area – NID Filing
Project Initiation
Customer Proposal
NID FilingFacilities
Application
Construction, Energization,
Commissioning
AESO Direction
Project Close
AESO Participant Involvement
AESO prepares & files the NID with
the AUC
AUC reviews and, if appropriate, approves
the NID
Proposed Target Area
Customer accepts the Proposal
issued by AESO
21
Performance Target Area – AESO Direction
Project Initiation
Customer Proposal
NID FilingFacilities
Application
Construction, Energization,
Commissioning
AESO Direction
Project Close
AESO requests Proposal to
Provide Service (PPS) from TFO
TFO prepares PPS (+20/-10% cost estimates)
AESO reviews &
accepts PPS
Proposed Target Area
AESO issues a Direction Letter to TFO to file
Facilities Application
AUC approves the NID
Ensures alignment with Functional Specifications &
Need Identification Document
AESO prepares functional
specifications
22
Facilities Application
• TFO prepares and files a facilities application.
• AUC reviews the application and if approved, issues a permit and license.
• AESO Quarterly Reports provide facility application filing date and application approval date for each project.
www.aeso.ca>>transmission>>project updates>>quarterly reports
Project Initiation
Customer Proposal
NID FilingFacilities
Application
Construction, Energization,
Commissioning
AESO Direction
Project Close
23
Construction, Energization, Commissioning
• TFO completes the detailed engineering, procures materials and constructs the facilities.
• Once all energization requirements are met AESO signs off on energization.
• TFO energizes facilities.
• Generators perform commissioning activities.
• AESO Quarterly Reports provide planned, forecast and actual energization dates.
www.aeso.ca>>transmission>>project updates>>quarterly reports
Project Initiation
Customer Proposal
NID FilingFacilities
Application
Construction, Energization,
Commissioning
AESO Direction
Project Close
24
Project Close
• AESO receives final costs from the TFO.
• AESO reconciles final costs with the customer contribution and contract terms.
Project Initiation
Customer Proposal
NID FilingFacilities
Application
Construction, Energization,
Commissioning
AESO Direction
Project Close
25
Actual Cycle Times Based on Current Customer Projects
1. Unless indicated as a range, all cycle durations are the median for those projects having completed that particular process phase; information presented in “calendar” days.
2. Median is the midpoint in a set of data (e.g. 50% falls above the median and 50% fall below the median)
*Reflect cycle times prior to the AUC Participant Involvement Program requirement.
Existing Substation
Projects
New Substation Projects
Industrial Load, Generator, ISD
Projects
Project Initiation 11 days 14 days 14 days
Customer Proposal 55 days 143 – 532 days(range)
90 - 541 days(range)
Need Identification
Document Filing*11 days 9 days 19 days
AESO Direction 34 days -- 37 days
26
Reporting (Data presented is for illustrative purposes only and does not represent actual project data)
Suggested Reporting Frequency – January 31st each year, commencing January 2009.
Number of Projects that Completed a Performance Target Area
(January 1 - December 31, YYYY)
0
2
4
6
8
10
12
Project Initiation Customer Proposal NIF Filing AESO Direction
Nu
mb
er
of
Pro
jec
ts
Existing Substation Process
New Substation Process
Industrial Load, Generator, ISD process
Total Active Customer Interconnection projects as at December 31, YYYY is ###
27
Reporting(Data presented is for illustrative purposes only and does not represent actual project data)
Suggested Reporting Frequency – January 31st each year, commencing January 2009.
For Each Process(January 1 - December 31, YYYY)
0
1
2
3
4
Project Initiation Customer Proposal NIF Filing AESO Direction
Mo
nth
s
Actual Median Cycle Time
Performance Target
28
Reporting(Data presented is for illustrative purposes only and does not represent actual project data)
Suggested Reporting Frequency – January 31st each year, commencing January 2009.
05
101520253035404550
# of ProjectsCompleted
Median CycleTime
Project Cycle Time (From application through to energization)
50 projects
were energized
in YYYY
Median cycle time
was 21 months
29
Summary
Stakeholders are encouraged to comment on:• Proposed target areas:
– Project Initiation
– Customer Proposal
– NID Filing
– AESO Direction
• Reasonable cycle times for each target area and for each process:
– Existing Substation process
– New Substation process
– Industrial Load, Generator, ISD process
• Reporting approach and frequency:
– Graphs
– Annual reporting
30
Next Steps
• Presentation will be posted on AESO website by Friday, January 11, 2008
• Stakeholders submit written responses to AESO by January 24, 2008
• AESO summarizes stakeholders comments with AESO responses and posts on AESO website by February 15, 2008
• Performance targets will be finalized, implemented and communicated to stakeholders by March 31, 2008
31
Performance Targets for the Customer Interconnection Process
Questions
Contact: Rene Baillargeon
Phone: 403 – 539 – 2709
E-Mail: [email protected]