Opportunities

On July 1, 2001, SaskPower posted an Open Access Transmission Tariff (OATT) which began the process of opening our transmission system to wholesale energy suppliers and users. Service bookings began November 1, 2001.

An Open Access Transmission Tariff is an open offer of transmission service. This type of tariff has become the North American standard for doing business in the electrical industry.

For a fee, eligible users are able to access SaskPower's transmission system to transport electricity to our two wholesale customers -- the municipal utilities in Saskatoon and Swift Current -- or wheel it across the province to other jurisdictions. Independent power producers within Saskatchewan also have the ability to transport electricity to our two wholesale customers and to transport electricity out of the province.

Saskatchewan's OATT is similar in principle with tariffs in British Columbia, Manitoba and the lower 48 U.S. states. Our OATT has a few "made-in-Saskatchewan" aspects, but basically it is consistent with the North American pro forma tariff, the standard for open access transmission tariffs. Transmission service is provided into and out of jurisdictions that provide reciprocal service to SaskPower.

In jurisdictions that don't provide wheeling services, the only way to move electricity between markets is for each utility along the delivery path to purchase the energy and, in turn, resell it to the next utility en route.

Wheeling, on the other hand, means that a supplier pays a fee -- called a transmission tariff - for transmission access and retains ownership of its product until it is delivered to the buyer.

The OATT will allow SaskPower access to the transmission system of other utilities with similar tariffs. this permits sales of our excess generation to external markets where opportunities exist, as well as permits SaskPower to buy supplies as needed for internal reliability requirements.

This type of tariff has become the North American standard for doing business and it was essential to establish this in order for SaskPower to keep pace and not risk losing the ability to buy and sell electricity in other jurisdictions.

This work included developing the tariff and related policies and procedures, establishing a process to determine available transmission capacity, evaluating hardware and software needs, and assessing staffing requirements.

We also consulted with potential users of transmission access, as well as prepared the service agreements under the OATT that eligible companies will sign to purchase transmission services from SaskPower.

No. In fact, the level of transmission access offered through our ability to pursue market opportunities in other jurisdictions helps maintain and even enhance the security of electrical supply province-wide.

SaskPower uses computer analysis of actual and forecast loads and generation availability to determine the transmission capability for third-party use.

This ensures there is no overbooking of the transmission system and that province-wide supply needs are met first.

Potential users of SaskPower's transmission grid book contracts based on available transmission capacity. There is a ranking of contracts for use of the grid, with duration and price of the contracted amount influencing the ranking.

Booking rules and procedures adhere to standard industry practice, and SaskPower's own booking and energy marketing functions are separate from the OATT services. This ensures independence and impartiality in executing contracts for transmission service.

Non-firm service can be interrupted by the transmission provider for any reason that is consistent with the provider's transmission service tariffs or contract provisions. Firm service can only be curtailed by the transmission provider in cases where system reliability is threatened or emergency conditions exist.

Interested parties are directed to service booking locations on the SaskPower OASIS (Open Access Same-time Information System) website.

There is limited existing capability for long-term, firm transmission service across Saskatchewan. The OATT provides for eligible users to request a system impact study and facilities study to identify the options and costs to increase long-term, firm capability. Such an upgrade would be paid for by the eligible user, according to terms and conditions provided in the OATT.

In addition to available firm transmission service, all or part of the remaining total transfer capability may be offered as short-term, non-firm transmission service. This depends on system conditions.

As available, non-firm transmission service is offered on the SaskPower OASIS website. The amount will vary, depending on Saskatchewan load, generation and other system conditions.

The methodology for determining the amount of transfer capability for both firm and non-firm service is in the Open Access Transmission Tariff document.