Prepared Direct Testimony of Robert McCullough on Behalf of the ...

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Page 40 <strong>of</strong> 76SEATAC-400will be overloading the transmission system, operators will order temporary rotating blackouts <strong>of</strong>limited size to avoid the possibility <strong>of</strong> catastrophic failure. This, apparently, is what occurred inthe winter <strong>of</strong> 200012001.The California ISO's use <strong>of</strong> congestion fees to manage schedules is entirely a theoreticaloperation. The ISO's CONG computer program calculates the degree <strong>of</strong> congestion and derivesthe appropriate level <strong>of</strong> payment to induce generators to adjust their proposed gmerationschedule to the needs <strong>of</strong> the transmission system. After CONG has been run and the adjustmentsto schedules calculated, the operators can enter "real time" knowing that the basic operation <strong>of</strong>the system is consistent with the physical constraints <strong>of</strong> the transmission lines.Q. Are these schemes easy to explain and measure?A. No. The problem is compounded by the complexity <strong>of</strong> IS0 terminology. The following diagramshows both the ISO's basic areas and the transmission routes that connect them. The specificlocations that are central to the Death Star schemes are indicated both in IS0 terminology and inmore traditional industry defined geographic names.
Death StarsThe schedules <strong>of</strong> importance to Death Star and its related schemes are those that flowover the COI in the north, the flows between San Francisco and Los Angeles (NP-15 andSP-15) and lines to the east which allow imports from the Desert Southwest - SilverPeak, Mead, and Palo ~erde.'~Q. Please describe the "Death Star" strategy.A. In essence, a Death Star is any set <strong>of</strong> schedules that <strong>of</strong>fset each other, using two or more differentsystems on which to file these schedules. The basic ingredients in a complete "Death Star" are<strong>of</strong>fsetting import and export schedules on the IS0 system, combined with <strong>of</strong>fsetling import and~ --"Map available at htto://www.caiso.com.
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Page 77: CERTIFICATE OF SERVICEI hereby cert

Prepared Direct Testimony of Robert McCullough on Behalf of the ...

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