Overview
Title
Pick-Sloan Missouri Basin Program-Eastern Division-Rate Order No. WAPA-218
Agencies
ELI5 AI
The people in charge of electricity in a part of the U.S. want to change how they charge for delivering power starting in 2026, so they can join a bigger group that shares electricity; they're planning a big update to make everything work smoothly for five years.
Summary AI
The Western Area Power Administration (WAPA), part of the Department of Energy, is proposing new rates for transmission and related services for the Upper Great Plains region. These changes are related to WAPA's potential increased involvement in the Southwest Power Pool (SPP), a regional transmission organization. If approved, the new rates will begin on April 1, 2026, and will last for five years. WAPA aims to update its rate formulas to account for future participation in SPP's expanded network, ensuring that costs are covered efficiently while adapting to new settlement requirements.
Abstract
The Upper Great Plains (UGP) region of the Western Area Power Administration (WAPA) proposes new formula rates for the Pick-Sloan Missouri Basin Program--Eastern Division (P-SMBP--ED) transmission and ancillary services for UGP's costs to be recovered under the Southwest Power Pool's (SPP) Open Access Transmission Tariff (Tariff) should UGP decide to expand its participation in SPP in the Western Interconnection. These rates will be used by UGP to provide rate data to SPP, the Regional Transmission Organization (RTO) of which UGP is a member, after SPP's planned expansion of the RTO into the Western Interconnection on April 1, 2026. The existing UGP rates for services expire on September 30, 2025, but are being extended under a separate rate process, Rate Order No, WAPA-217, to continue to provide existing rate data to SPP between October 1, 2025, and final implementation date of the planned RTO expansion into the Western Interconnection. The proposed rates will address UGP operating changes and new provisions and settlement requirements under the proposed revisions to SPP's Tariff filed with the Federal Energy Regulatory Commission (FERC) to accommodate their RTO expansion into the Western Interconnection. The proposed formula rates will become effective on the go-live date of the expansion of the SPP RTO into the Western Interconnection (scheduled for April 1, 2026, as of the date of this notice) and will remain in effect for five years from the effective date, which with an effective date of April 1, 2026, will be March 31, 2031, or until superseded.
Keywords AI
Sources
AnalysisAI
The document under consideration is a proposal notice from the Western Area Power Administration (WAPA), a part of the Department of Energy. It outlines a plan to implement new rates for transmission and ancillary services for the Upper Great Plains region. This proposal is tied to the potential expansion of WAPA's involvement in the Southwest Power Pool (SPP), a regional transmission organization. These changes, set to commence on April 1, 2026, are intended to accommodate the planned expansion of the SPP into the Western Interconnection and will remain in effect for five years.
General Summary
The document provides detailed information on the proposed formula rates for services necessary for WAPA's continued operation and cost recovery under the SPP arrangement. The new rates are designed to adapt to new operational and settlement requirements introduced by the expansion of SPP's network. Noticeably, the document also discusses the termination of specific services such as Regulation and Frequency Response, which implies changes in WAPA's service roles due to its integration into SPP's marketplace.
Significant Issues and Concerns
One primary concern is the use of technical terms and acronyms like ATRR (Annual Transmission Revenue Requirement), BAA (Balancing Authority Area), and MEU (Market Efficiency Use) without initial definitions. This complexity could potentially hinder understanding for those not already familiar with the subject matter.
Additionally, the document references multiple sections, rate schedules, and footnotes, which might necessitate additional research and cross-referencing by readers to gain full understanding. This could be overwhelming and time-consuming for those attempting to assess the document's full implications.
Moreover, there are questions about whether changes in rate formulas might unfairly benefit certain organizations, particularly in terms of DC Tie charges. These specific changes could necessitate further examination to ensure they offer equitable treatment across all parties.
The proposed termination of services raises concerns about how these roles will be managed in the future. Stakeholders might worry about potential cost implications in the absence of these services. Additionally, the language describing this transition is complex, which could benefit from simplification to aid public understanding.
Lastly, details regarding the environmental compliance process are vague. The statement that "WAPA is in the process of determining whether an environmental assessment or an environmental impact statement should be prepared" lacks specifics and would benefit from a more concrete timeline or progress report.
Impact on the Public and Stakeholders
Public Impact
While the notice primarily concerns technical updates to transmission rates and services, it does have broader implications for energy costs and efficiency, potentially affecting electricity price stability for the public depending on how costs are passed through the system.
The complexity of these changes may also mean that the public will need to trust that such updates are justified and equitable, although the nuances may be beyond the typical consumer's understanding.
Stakeholder Impact
For stakeholders directly involved in the energy market, particularly those engaged in transmission services or who manage power plants, the proposed changes in formula rates and terminated services could significantly affect financial planning and operations.
Stakeholders such as electric utilities and energy customers in the affected region could see changes in how transmission costs are allocated and billed. This may impact their financial situations differently based on how the formula rates are ultimately applied, with potential new or adjusted costs.
Certain stakeholders might benefit from increased visibility and structured accountability in the outlined processes. However, others might experience challenges adapting to the new rates, potentially leading to increased administrative burdens.
In sum, while the proposed changes aim to streamline and modernize processes in line with market expansions, the effect of these changes hinges on how they are implemented and perceived by various affected groups. The effectiveness of communication and transparency throughout the process will be crucial in assuaging public and stakeholder concerns.
Issues
• The document uses complex terminology and acronyms such as ATRR, BAA, and MEU without initial definitions, potentially causing confusion for readers not familiar with the subject matter.
• The document makes references to numerous sections, rate schedules, and footnotes that might require cross-referencing with other documents, which could be cumbersome and require clarification.
• There could be concerns about whether the proposed changes in rate formulas favor particular organizations, especially given the specificity of the proposed DC Ties charges. This might require further scrutiny to ensure equitable treatment across all parties involved.
• The proposed termination of several services (Regulation, Operating Reserves, Energy Imbalance, and Generator Imbalance Services) raises questions about how these services will be managed in the future and whether this could lead to increased costs for other stakeholders.
• Language regarding the transition of roles and services with respect to the Balancing Authority and the integration into SPP’s marketplace is potentially complex and may benefit from simplification.
• Details regarding the environmental compliance process are vague, with the statement 'WAPA is in the process of determining whether an environmental assessment or an environmental impact statement should be prepared' requiring a more concrete update or timeline.
• The financial implications of certain tariff adjustments, such as the 'Incremental Market Efficiency Use Charge,' are briefly mentioned but could benefit from a more detailed analysis to ensure transparency in financial impact and stakeholder implications.