Transmission Settlements, Billing & Accounting

September 28-29, 2022 | Online :: Central Time

0922-transmission-settlements

“Lots of material, detail, and discussion well-presented in a compact timeframe.” Power Engineering Manager, LADWP

“Excellent Transmission Settlements training from Background to Billing.” Wholesale Services – Midwest, Customized Energy Solutions

This one-and-a-half day course will spell out the fundamentals and best practices of billing and settlements for all transmission transactions involving transmission owners (TOs), transmission providers (TSPs), transmission customers (TCs) and ISOs.  It will cover workflows for both groups of utilities:  1) those operating as local balancing authorities (LBAs) in all seven U.S. RTOs, and 2) those operating as stand-alone local balancing authorities (BAs) and transmission service providers (TSPs).  This is the perfect primer for those new to transmission settlements, billings and accounting functions, and full of granular detail for seasoned transmission settlement professionals requiring sharper definition on new transmission rules, regulations, and processes. 

A pre-course workshop will provide much needed definition on the E-tag submission process, an essential element of transmission settlements for point-to-point services.

Learning Outcomes

Attendees will cover content, engage in discussions, and participate in exercises that will allow them to:

• Examine transmission billing and settlement design and process workflows for both groups of utilities – those operating as local balancing authorities (LBAs) in all seven U.S. RTOs and those operating as stand-alone balancing authorities (BAs)
• Assess the correlation between transmission ratemaking and tariffs to billing, settlements and accounting
• Explain settlement methodology and the basis for settlement pricing values
• Identify transmission usage billing determinants
• Illustrate how to unpack transmission schedules, statements and invoices
• Analyze the timing, validation and reconciliation of transmission settlements and their connection to accounting
• Compare the shadow settlement and trend analysis approaches of energy market vs. transmission settlements
• Evaluate the process adjustments to transmission settlements required by FERC’s ROE Order
• Estimate how FERC Order 2222 for DERs will affect transmission settlements and accounting
• Discuss transmission billing and settlements challenges, tips and traps

Wednesday, September 28, 2022 : Central Time

9:00 – 9:15 a.m. :: Overview & Introduction

9:15 a.m. – 12:30 p.m. :: Transmission Regulation And Rates Background

(Includes a break)

Regulatory Foundations

• Federal Power Act structure and principles
• FERC Orders and processes
  • 888, 889, 890, 1000 and 2000
  • OATT (Open Access Transmission Tariff)
• OASIS (Open Access Same-Time Info System)
• FERC vs. State regulatory authority 
  • RTO vs. stand-alone BA
  • Rate/PSCR cases vs. FERC approved templates
• Differentiating between transmission settlement parties
  • Transmission Owners
  • Transmission Customers
• Special issues
  • Understanding the turbulent history of return on equity (ROE) concept for RTOs
  • How to allocate cost of transmission upgrades

Ratemaking, Tariffs and Their Relationship to Settlements

• FERC pages 
• Main tariff transmission schedules 
• Network vs. regional cost sharing 
• Submittal of schedules and attachments
• Capturing settlement data correctly and “TS-12”
• True-up of formula rate

Review of Different Transmission Schedules

• FERC schedules
  • Schedule 1 for scheduling control and dispatch service
  • Schedule 2 for reactive service charge
  • Schedules 7 (firm) and 8 (non-firm) for point-to-point (PTP) service
  • Schedule 9 for network integration transmission service (NITS)
  • Schedule 11 for transmission upgrades
  • Schedule 12 for FERC fee
• Key billing determinants
  • What they mean and how they’re settled

12:30 – 1:15 p.m. :: Lunch Break

1:15 – 3:00 p.m. :: Transmission Settlements Processes for Utilities in ISOs

Perfecting the Basics

• Unpacking transmission settlements
• Transmission formula rate
• ISO rates files
• Cost share allocation projects and how those revenue requirements are determined
• Review of cost-sharing on formula rate

RTO Transmission Settlements in Depth

• Settlement schedule
• How FERC orders affects settlements.
• TO billing determinants
• Transmission settlement files
• Revenue files (OISRs)
• Invoices
• Reconciling data submittals to actual transmission settlements

ISO Billing Protocols

• Connecting invoices, OISRs and files
• Tying out and validating
• Shadow settlements for peak load data or revenues received and settlements
• NERC TLR process

Identifying Transmission Usage Billing Determinants

• Referencing an ISO’s best practices manual (BPM) for guidance
• Network peak and volumetric consumption
• Revenue distribution examples
  • Review a Schedule 7 and 8 reservation
  • TPF (transaction participation)

3:00 – 3:15 p.m. :: Afternoon Break

3:15 – 5:15 p.m. :: Transmission Billing Workflows for Utilities Operating as
Transmission Service Providers (TSPs)

Understanding Transmission Billing Regulations

• Reviewing key FERC schedules for utilities operating as stand-alone balancing authorities (BAs)
• Open access transmission tariff (OATT)
• Reviewing key billing determinants for network integration transmission service (NITS) and point-to-point (PTP) services
• Recent regulation updates – FERC orders 676-I and 676-J

Transmission Billing Workflow for Transmission Providers

• Roles for transmission service providers (TSPs)
• Validating meter data for generation resources and loads
• Compute billing for NITS customers
• Bilateral transactions – reading OASIS and E-tag data to compute billing for firm and non-firm point-to-point services
• How are transmission losses (physical vs. financial) handled in transmission billing?
• Generating settlement invoices
• True-ups and prior period adjustments
• Handling disputes

Transmission Billing Workflow for Transmission Customers

• Timing, validation and reconciliation for transmission invoices received from transmission service provider (TSP)
• The importance of shadowing transmission bills received from TSP
• Input data to shadow transmission bills – E-tag, transmission service requests (TSR), tariff rates, meter data
• Reconciling data submittals to actual transmission invoices
• Validating prior period adjustments
• Tools and methodologies
• Disputes

5:15 p.m. :: Course Adjourns for the Day

Thursday, September 29, 2022 : Central Time

9:00 a.m. – 12:15 p.m. :: Contemporary Issues Affecting Transmission Settlements and Billing

(includes break)

Transmission Billing in Imbalance Energy and Exchange Markets

• Should OATT be revised when entering imbalance energy markets (CAISO WEIM and SPP WEIS)?
• How are transmission costs allocated in imbalance energy markets?
• How are financial losses computed for the nascent SEEM market?

Risk Management and Financial Controls

• Internal controls – Sarbanes Oxley compliance
  • SSAE 18_SOC 1 Type II Report
  • Bridge Letter
• RTO credit policies
  • Credit exposure calculation / determining margin call
• Settlement system replacement by ISOs
• Scheduling changes

Transmission Projects Across ISO Seams

• Apportionment of cost recovery
• Documentation
• Settlement
• Transmission studies

FERC Order 2222 for DERs

• Role of DERs in wholesale markets
• Do transmission tariffs have to be revised to reflect DERs?

Addressing Special Operating Anomalies and Their Impact on Transmission

• Storm and weather events
• Are billing adjustments needed?

12:15 p.m. :: Course Adjournment

Fundamentals of E-Tags for Transmission Scheduling & Billing

Thursday, September 29, 2022 : Central Time

Overview

This workshop will dive deep into the fundamentals and common practices of creating, updating and settling of E-tags.  It will provide important background and context for transmission owners (TOs), transmission providers (TSPs), transmission customers (TCs) and ISOs – who must all be familiar with interchange schedules – by which energy is transferred and coordinated among balancing authority areas (BAAs).  The primary tool for providing this coordination is the NERC E-Tag, used to channel energy in pre-schedule as well as real-time scenarios.  E-Tags form the basis for the ensuing, required workflows and settlement.  

Learning Outcomes

• Discuss the lifecycle of E-tags
• Review the definitions of roles and responsibilities
• Identify E-Tag creation, adjustments, and curtailments
• Evaluate real-time examples of pre-scheduling and real-time E-Tag activities
• Examine the relationship of E-Tags with transmission billing workflows

Agenda

 

1:00 – 1:15 p.m. :: Overview and Introductions

1:15 – 1:30 p.m. :: What is E-Tag?

 

1:30 – 2:15 p.m. :: Who Needs to Create, Maintain and Approve E-Tags

 

2:15 – 3:00 p.m. :: How to Create, Update and Approve E-Tags

3:00 – 3:15 p.m. :: Afternoon Break

 

3:15 – 3:45 p.m. :: E-Tags in Operation

 

3:45 – 4:15 p.m. :: E-Tag, Power Trades and Grid Operations

 

4:15 – 5:00 p.m. :: E-Tag and Transmission Billing

5:00 p.m. :: Workshop Adjournment

 

Micah Cook, Principal Analyst – Transmission Settlements, Midcontinent ISO (MISO)

Micah Cook is a Principal Analyst in Transmission Settlements at the Midcontinent ISO (MISO) Since joining the system operator in 2018, he has worked in both transmission tariff pricing and transmission settlements developing software tools to help automate manual processes and mitigate errors. His previous work experience includes time as a software developer for the semiconductor industry and an Information Technology Manager for a manufacturing company.  Mr. Cook attended Indiana University with studies in computer science.

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Jeff Haselhorst, Tariff Pricing Group Principal Analyst – Transmission Settlements, Midcontinent ISO (MISO)

Jeff Haselhorst is a Principal Analyst in MISO’s Tariff Pricing group, a part of Transmission Settlements.  He joined MISO’s Finance organization in 2003, focused primarily on Capital and Organizational Financial Planning and Analysis (FP&A).  Mr. Haselhorst transitioned to Transmission Settlements in 2010, where he has focused on Transmission Rate Development, including the annual acquisition and review of Transmission Owner rate data. Prior to joining MISO, he held Managerial positions in the Telecommunications (wireless and landline) and Factory Automation Software industries. Mr. Haselhorst is a CPA, and holds bachelor degrees in Accounting and Business Management from Illinois State University.

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Khai Le, Senior Vice President, Power Costs Inc. (PCI)

Khai Le is Senior Vice President at Power Costs Inc.  Over the past 45 years, he has devoted his practice to market-based operations, trading and bidding strategies, portfolio optimization, and shadow settlement for utilities and ISOs worldwide. Mr. Le is currently working with market participants in RTO and bilateral markets to deploy the firm’s software to automate their bid-to-bill, portfolio-optimization, ETRM, and BA-operations workflows. He has authored more 100 technical papers on unit commitment, hydro-thermal coordination, emission dispatch, optimization of ancillary services, post analysis, and short-term planning.  Five of his papers received prize awards. Mr. Le received his BS from Harvey Mudd College and his MS from Carnegie Mellon University. He is a Fellow of the IEEE and a Registered Professional Engineer in Pennsylvania. 

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Byron Reischl, Energy Analyst – Energy Accounting & System Reporting, Arizona Public Services (APS)

Byron Reischl is an Energy Analyst on the Energy Accounting & System Reporting team at Arizona Public Services (APS).  In that capacity, he serves as a regulatory advisor and energy consultant at the utility.  Mr. Reischl has worked at APS since 2013.  He earned a Bachelor of Applied Science (BASc), Actuarial Science, Mathematical Statistics and Probability degree from Western New Mexico University.

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Justin Shearer, Senior Director – Enterprise Solution Management, Power Costs Inc. (PCI)

Justin Shearer is a senior director for Enterprise Solution Management at Power Costs Inc. (PCI), joining the team in 2013. He initially analyzed and developed settlements solutions, subsequently assuming the role of product ownership management for the company’s CAISO EIM solution. In this role, he has participated in helping all PCI EIM clients successfully enter that market. Approximately two years ago, Mr. Shearer began working in PCI’s Solution Management division that helps clients actively apply PCI solutions to meet clients’ ever-changing needs. Before joining PCI, Mr. Shearer was a quality assurance team lead for a multi-billion dollar hedge fund and a security class actions analyst for a leading financial services firm. He earned his bachelor’s degree in English Literature and Language from University of Oklahoma. He then received his MBA with a focus in MIS and supply chain management from the Price School of Business at the University of Oklahoma.

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Steve Davis, Supervisor – Transmission Settlements, Southwest Power Pool (SPP)

Steve Davis is the Supervisor of Transmission Settlements at Southwest Power Pool, which he joined in 2008.  In this role, he is responsible for all transmission settlements in the SPP region. He contributed to the design and creation of existing policy, business practices and market design concepts, the implementation of the Integrated System and the WEIS, negotiated settlement agreements, and helped design and implement SPP’s last 3 settlement systems.  Prior to working for SPP, Mr. Davis spent 15 years working with financial services and banking clients in areas of financial planning, credit management and banking software and systems creation. He has a Bachelor of Science in Business Administration from the University of Arkansas.

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Suiyi Su, Director, Power Costs Inc. (PCI)

Suiyi Su is a Director at PCI.  He has 6 years of working experience with settlements allocation, transmission billing, and energy accounting.  He has been closely involved with the deployment of PCI Transmission Billing at Arizona Public Service, Puget Sound Energy, and Salt River Project. Mr. Su received his master’s degree in Industrial Engineering from the University of Florida.

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Chad Wilcox, Principal, Chad Wilcox Consulting

Chad Wilcox is Principal of the firm Chad Wilcox Consulting, which he founded in 2021.  He provides a broad range of utility rates and accounting consultation including rate reviews, technical expertise for rate case proceedings, cost of service modeling, rate design analysis, and utility accounting guidance.  Mr. Wilcox’s consultancy is rooted in more than 10 years of utility finance and ratemaking experience including as a Lead Tax Analyst at a multinational utility, as Manager of Rates for a major investor owned utility and as Senior Project Manager with a leading U.S. engineering and consulting firm.  He earned a B.S. degree in Accounting at Husson University and a J.D. degree at the University of Maine School of Law.

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Valeria Herrera, Development Manager, Power Costs Inc. (PCI)

Valeria Herrera is Development Manager at PCI, where she has served the past five years.  She earned a MS in Chemical Engineering at the University of Oklahoma.

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

• IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
• You will receive a meeting invitation will include a link to join the meeting.
• Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
  • You will need to join the appropriate meeting at the appropriate time.
• If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
• The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all attendees for 7 days after the event

REGISTER NOW FOR THIS EVENT:

Transmission Settlements, Billing & Accounting

September 28-29, 2022 | Online

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RELATED WORKSHOPS:

Fundamentals of E-Tags for Transmission Scheduling & Billing

September 29

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Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before August 26, 2022 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.0 CEUs for this course and 0.4 CEUs for the workshop

Requirements for Successful Completion of Program

Participants must log in each day, be in attendance for the entirety of the course

Instructional Methods

Power Point presentations and open discussion will be used

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Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 11.5
Workshop CPE Credits: 4.5
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

 

Who Should Attend

Traditional utilities, transmission organizations, power marketing entities, balancing authorities and state regulatory staff whose roles focus on transmission tariffs, rates and settlements from the following divisions:

• Transmission settlements (ISO utilities) and billings (BA utilities)
• Market settlements (ISO utilities)
• Energy accounting and general accounting
• Middle and back office
• Power delivery
• System operations
• Finance
• Regulatory policy and compliance
• State regulatory staff