EVALUATION OF BIDS’ TRANSMISSION COSTS Sample Clauses

EVALUATION OF BIDS’ TRANSMISSION COSTS. The valuation methodology assigns estimated transmission costs to the contract price of generation in order to compare Offers fairly, taking into account the full cost of generating power including upgrades required to achieve reliable deliverability for new generation. Many features of the transmission cost methodology are specified by regulatory decisions. The methodology has a few strengths: • It provides a means to level the playing field between Offers that deliver directly into PG&E’s service territory at uncongested locations and those whose proposed facilities will require expensive new transmission upgrades and new substation facilities to maintain grid reliability. • It provides a view of full costs of the project rather than only the energy procurement cost. The transmission cost methodology also has some drawbacks: • The process of estimating transmission adders is analytically burdensome. It requires checking of Participant’s information by transmission experts and consumes a considerable portion of the total time for valuation analysis. • TRCR adders are a generalized, regional proxy for the actual cost of a particular- sized project at a particular interconnection point. There can be rather large deviations between the final cost of network upgrades written into an interconnection agreement and an early TRCR estimate. • In those cases where the TRCR adder turns out to be an underestimate of actual network upgrade cost, PG&E’s prior practice of only performing the full LCBF valuation including transmission adders during solicitations impedes the transparency of decision-making. • TRCR adders are available only for California IOUs, and only for specific transmission clusters that the IOUs have analyzed. They are not available for other balancing authorities in California or outside the state. It would be challenging for the PG&E team to estimate a proxy for network upgrade cost for projects interconnecting, for example, in the Sacramento Municipal Utility District’s or IID’s grid unless the project had obtained a system impact study or facilities study or interconnection agreement from that balancing area authority. Given the focus on new renewables in Imperial Valley, this shortage of information is inconvenient. • CAISO Phase I studies have been known to provide gross early overestimates of the actual network upgrade costs. In some transmission clusters, excessive numbers of new projects have applied for interconnections; their aggregate new...
Sample 1Sample 2Sample 3See All (8)
AutoNDA by SimpleDocs
EVALUATION OF BIDS’ TRANSMISSION COSTS. The valuation methodology has a complex set of algorithms and steps to assign proxies for actual transmission cost to the contract price of generation in order to compare proposals fairly, taking into account the cost of moving power from the delivery point to customers. These include estimates of the cost of moving power from non-CAISO delivery points to PG&E customers, and of the allocated cost of transmission network upgrades required to achieve deliverability for new generation facilities that propose to interconnect in congested locations. Many of the features of the transmission cost methodology are specified by regulatory decisions. The methodology has a few strengths: • It provides a means to level the playing field between Offers that deliver directly into PG&E’s service territory at uncongested locations and those whose proposed facilities will require expensive new transmission upgrades and new substation facilities to maintain grid reliability.
Sample 1Sample 2
EVALUATION OF BIDS’ TRANSMISSION COSTS. The valuation methodology has a complex set of algorithms and steps to assign proxies for actual transmission cost to the contract price of generation in order to compare proposals fairly, taking into account the cost of moving power from the delivery point to customers. These include estimates of the cost of moving power from non-CAISO delivery points to PG&E customers, and of the allocated cost of transmission network upgrades required to achieve deliverability for new generation facilities that propose to interconnect in congested locations. Many of the features of the transmission cost methodology are specified by regulatory decisions. The methodology has a few strengths: • It provides a means to level the playing field between Offers that deliver directly into PG&E’s service territory at uncongested locations and those whose proposed facilities will require expensive new transmission upgrades and new substation facilities to maintain grid reliability. • It provides a means to level the playing field between projects located within the CAISO and those delivering outside the CAISO for whom the cost of moving power to PG&E customers requires wheeling across foreign control areas, tariff payments to other transmission owners, and/or shaping and firming services needed to achieve firm scheduled deliveries into the CAISO in order to quality as eligible renewable resources under CEC guidelines. The transmission cost methodology also has some obvious drawbacks: • The two-step process of calculating Transmission Cost Ranking Report adders is so analytically burdensome that it slows the turnaround time of the valuation ranking.
Sample 1

Related to EVALUATION OF BIDS’ TRANSMISSION COSTS

  • Transmission Charge The cost for transporting electricity from the generation source to your electric distribution company. For most electric customers who select a new supplier, transmission costs will be included in the charges from your new supplier. The Federal Energy Regulatory Commission regulates retail transmission prices and services. This charge will vary with your source of supply.

  • Errors in Transmission By using the Services you accept the risk that an item may be intercepted or misdirected during transmission. The Bank bears no liability to you or others for any such intercepted or misdirected items or information disclosed through such errors.

  • Transmission of business Where a business is transmitted from one employer to another, as set out in clause 4.4 - Redundancy, the period of continuous service that the employee had with the transmittor or any prior transmittor is deemed to be service with the transmittee and taken into account when calculating notice of termination. However, an employee shall not be entitled to notice of termination or payment in lieu of notice for any period of continuous service in respect of which notice has already been given or paid for.

  • Transmission Delivery Service Implications Network Resource Interconnection Service allows Interconnection Customer's Large Generating Facility to be designated by any Network Customer under the Tariff on Transmission Provider's Transmission System as a Network Resource, up to the Large Generating Facility's full output, on the same basis as existing Network Resources interconnected to Transmission Provider's Transmission System, and to be studied as a Network Resource on the assumption that such a designation will occur. Although Network Resource Interconnection Service does not convey a reservation of transmission service, any Network Customer under the Tariff can utilize its network service under the Tariff to obtain delivery of energy from the interconnected Interconnection Customer's Large Generating Facility in the same manner as it accesses Network Resources. A Large Generating Facility receiving Network Resource Interconnection Service may also be used to provide Ancillary Services after technical studies and/or periodic analyses are performed with respect to the Large Generating Facility's ability to provide any applicable Ancillary Services, provided that such studies and analyses have been or would be required in connection with the provision of such Ancillary Services by any existing Network Resource. However, if an Interconnection Customer's Large Generating Facility has not been designated as a Network Resource by any load, it cannot be required to provide Ancillary Services except to the extent such requirements extend to all generating facilities that are similarly situated. The provision of Network Integration Transmission Service or firm Point-to-Point Transmission Service may require additional studies and the construction of additional upgrades. Because such studies and upgrades would be associated with a request for delivery service under the Tariff, cost responsibility for the studies and upgrades would be in accordance with FERC's policy for pricing transmission delivery services. Network Resource Interconnection Service does not necessarily provide Interconnection Customer with the capability to physically deliver the output of its Large Generating Facility to any particular load on Transmission Provider's Transmission System without incurring congestion costs. In the event of transmission constraints on Transmission Provider's Transmission System, Interconnection Customer's Large Generating Facility shall be subject to the applicable congestion management procedures in Transmission Provider's Transmission System in the same manner as Network Resources. There is no requirement either at the time of study or interconnection, or at any point in the future, that Interconnection Customer's Large Generating Facility be designated as a Network Resource by a Network Service Customer under the Tariff or that Interconnection Customer identify a specific buyer (or sink). To the extent a Network Customer does designate the Large Generating Facility as a Network Resource, it must do so pursuant to Transmission Provider's Tariff. Once an Interconnection Customer satisfies the requirements for obtaining Network Resource Interconnection Service, any future transmission service request for delivery from the Large Generating Facility within Transmission Provider's Transmission System of any amount of capacity and/or energy, up to the amount initially studied, will not require that any additional studies be performed or that any further upgrades associated with such Large Generating Facility be undertaken, regardless of whether or not such Large Generating Facility is ever designated by a Network Customer as a Network Resource and regardless of changes in ownership of the Large Generating Facility. However, the reduction or elimination of congestion or redispatch costs may require additional studies and the construction of additional upgrades. To the extent Interconnection Customer enters into an arrangement for long term transmission service for deliveries from the Large Generating Facility outside Transmission Provider's Transmission System, such request may require additional studies and upgrades in order for Transmission Provider to grant such request.

Time is Money Join Law Insider Premium to draft better contracts faster.