In addition to the three distribution companies participating in the agreement, Golden Valley Electric Association Inc., Homer Electric Association Inc. and Seward City Electric System worked on a marginal program or Transco business model, with the assistance of Wisconsin-based American Transmission Co. LLC or ATC, which would include the six railbelts. The agreement provides for a one-year period for the parties to develop and agree specific transit regimes for fuel production, transmission and supply, as well as for a billing process. The year will also allow parties to upgrade supervision and data collection, communication and economic modeling. Most of these upgrades are already underway, says the filing. (Docket I-15-001) PSCo explained that the objective of the Joint Transit Agreement was to establish a more efficient mechanism for providing auxiliary energy between the parties, in accordance with the order. Each party will continue to use sufficient production resources to cover its own native and operational resource requirements, but will also determine the amount or limited choice it intends to set for joint shipping and system-wide marginal price compensation. This price is the nearest incremental cost of the megawatt of electricity, which can be produced by a party`s expeditious unit, FERC said. The parties have structured the common transit agreement so that any charge service of the PSCo BAA that undertakes to provide resources to production and whose transport provider accepts the common mail-order service can become a contracting party to the common transit agreement, as pointed out by ferc. While the joint notification of an electricity pool and a common transit agreement is less complete than a Transco model, the first was filed in the same docket that the regulatory commission opened in 2015 to deal with the pooling of electricity and/or a centralised transport network between railbelt distribution companies.
Using their most efficient production facilities, regardless of location or owner, distribution companies estimate that they will save $12 million to $16 million a year in fuel, operating and maintenance costs and reduce carbon dioxide emissions by 90,000 to 120,000 tonnes per year, according to a press release. “The agreement on the merger of electricity is linked to this, but a separate effort,” Hasquet wrote. “The other three railbelt power companies are cordially invited to join the electric pooling agreement. [Golden Valley, Homer Electric] and Seward are already involved in the development of the Power Pooling. Three Alaskan electricity suppliers have signed a joint pooling and shipping agreement to share their production and transportation facilities for the mutual benefit of their customers.