Resale Business Practice Standards
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Resale Business Practice Standards

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Resale Business Practice Standards




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Presentation on theme: "Resale Business Practice Standards"— Presentation transcript:

Slide1

Resale Business Practice Standards

3 Options remain

Slide2

Scope of the issue – 2 scenarios

Resale is done in the unconditional window

Resale

does

not

get competed or bumped

Resale is done in the conditional window

Resale could be identified as a Defender in Short Term Competition and Preemption.

Questions are:

What do you do with the Resale?

How do you do it?

Slide3

Real Issue – When the parent is Conditional

Current State:

ISSUE: WEQ 001 and WEQ 013 are not consistent in the treatment of capacity on a Resale

BPS WEQ 001 refers to the movement of scheduling rights not capacity.

BPS WEQ 013 refers to the movement of capacity

ISSUE: FERC language and guidance

FERC has already approved the current language and definition of

Resales

ISSUE: Transparency and traceability

Current BPS WEQ 001 and WEQ 013 do not explicitly call out how to ensure that the resale has capacity to redirect, they just state that a resale shall have the ability to redirect.

Slide4

Option 1 – Status Quo

Current WEQ Version 3 Standards and Implementation guide remain unchanged in regards to

Resales

Assignees do not have ROFR

Resales

are not subject to P&C

Only the Parent is subject to Competition

This option allows TP to annul all

Resales

due to P&C on the parent

ISSUES

We will still have the same contradiction between WEQ 001 and WEQ 013

We will still have issues in traceability and transparency

Billing

Resale to self would shield TC from P&C

Aggregation of

Resales

Slide5

Option 2 – Move Capacity

Move Capacity from the parent to the Resale

Assignee has ROFR

Does not limit Secondary Transmission Market

Customer Satisfaction

ISSUES:

Business Practice Standards Change

Changes to WEQ Resale definitions and WEQ 001

TP

Defender identification meta data

tracking

WEQ

EC and FERC Support

Billing (Although this is an issue, NAESB Should not be addressing Billing issues as a standards making organization)

System/Process

updates

Aggregation of

Resales

Slide6

Option 3 - Restrict Resales to the Unconditional window

Do not allow

Resales

until the Unconditional window

Conditionality transfers from the parent to the child

If parent tries to Resell in the conditional window, they will not be able to do so.

I

SSUES:

Business Practice Change

Implementation Guide Change

Minimizes Secondary Transmission Market

Low customer satisfaction

Slide7

Agreement on Options

Do you understand all Three options?

Are there other options?

Slide8

Issues with Each Option

Option 1:

We

will still have the same contradiction between WEQ 001 and WEQ 013

We will still have issues in traceability and transparency

Billing (Although

this is an issue, NAESB Should not be addressing Billing issues as a standards making organization

)

Resale to self would shield TC from P&C

Still have issue with Daisy

Chain

Aggregation of

Resales

Option 2:

Business Practice Standards Change

Changes to WEQ Resale definitions and WEQ 001

TP Defender identification meta data tracking

WEQ

EC and FERC

resistance to Support

Billing (Although this is an issue, NAESB Should not be addressing Billing issues as a standards making organization)

System/Process

updates

Aggregation of

Resales

Option 3:

Business Practice Change

Implementation Guide Change

Minimizes Secondary Transmission Market

Low customer

satisfaction

Possible FERC

resistance to

Support

Slide9

Benefits of Each Option

Option 1:

No changes to current Business Practice Standards

Already approved by WEQ EC and FERC

Option 2:

Update to Standards will make WEQ 001 and WEQ 013 consistent

Traceability

Encourages Secondary Transmission Market Flexibility

Ability to redirect a Resale is already described in Standards

Option 3:

Ease of implementation

Minimal WEQ Business Practice Standard changes required

Easiest for TP to implement

Slide10

Options Side by Side

Option 1

Option 2

Option 3

Change to Standard

No

Yes

Yes

Is there a contradiction between WEQ BPS

Yes

No

No

EC

approval

Yes

Not yet

Not Yet

FERC Approval

Yes

Not

Yet

Not Yet

Change to Implementation

guide

No

No

Yes

Slide11

Options Side by Side – continued

Option 1

Option 2

Option 3

Traceability

Little

Yes

Little

Secondary market impact

Little to None

Little

Yes

Conditionality

Stays with the parent and the child is part of the parent (WEQ 001-scheduling rights )

Conditionality transfers from the Parent

to the Child

Un-conditionality transfers from the Parent

to the Child

Duration

Not an issue

Must be determined

Not an issue

Queue Time

Not an issue

Must be determined

Not an issue

Slide12

Option 1

Option 2

Option 3

Price

Not an issue

Must be considered

Not an issue

Billing

Same Billing Issues

as now

Billing issues

in regards to a Resale exercising ROFR, loss of capacity on Resale

Billing does

not have to account for loss of capacity on a Resale due to P&C

Aggregation

Issue

Issue

Not

an Issue

Slide13

Recommendation

Option 2

Keeps Secondary Market Flexibility

Treatment of

Resales

is both transparent and traceable

Facilitate consistency in BPS and Implementation

Consistent with current BPS regarding redirecting a Resale

Allows for Aggregation of

Resales

to be processed as their own capacity

Slide14

Option 2 – Draft language

Conditional Parent

Resale in the Conditional Window

Child will inherit the Conditionality of the Parent

Child will inherit the Service Increment of Parent

Child has it’s own Duration

Duration will be consistent with current motion 3

Based on Start Date and Time and End Date and Time

Child has it’s own Queue Time

Queue time is set when the Resale is entered into OASIS

Child has it’s own Price

Price is that amount entered into OASIS when the Resale is entered.

Slide15

Option 2 – Draft Language

A Resale will be evaluated to determine if it is a valid Defender on but not limited to the SERVICE_INCREMENT , Capacity and POR/POD inherited from the Parent, and the duration, queue time and price determined when the Resale is entered into OASIS

A Resale will be identified as a Defender consistent with all other Business practice standards for P&C

Slide16

Option 2 – Draft Language

Resale Matching request will be based off of the Resale reservation in OASIS and must match duration of the Challenger

Slide17

Resale Defender Example

When Resale is identified as a valid Defender based on it’s TSR in OASIS, the resale will have ROFR.

To exercise ROFR the Resale must match the duration of the Valid Challenger

Example

Parent is monthly, 3 month duration

Child has Service Increment of 1 month, but is 1 week in duration

Both the parent and the child are identified as valid defenders to a 4 month request

Parent must match the remaining month to exercise ROFR

Child must match all four months to exercise ROFR

Slide18

Slide19

Slide20