The agreement will help the aforementioned distribution companies move from JDA to Western EIM. ISO works with partners to provide resource schedules, usage plans and failure reports. The agreement also includes the participation of other members of the Joint Dispatch Agreement (JDA): Black Hills Energy Colorado Electric, Colorado Springs Utilities and Platte River Power Authority. 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 order followed a previous rejection of the plan, a letter of deficiency and a conference to bring the parties together to try to reach an agreement, with the decision that culminated a few years of work by PSCo, Black Hills Corp. (NYSE:BKH) and Platte River Power Authority, said FERC Commissioner Cheryl LaFleur at the Commission meeting on February 18. FERC has committed PSCo to submit annual reports on the Common Transit Agreement for the first two years of operation. The Commission has instructed the company to submit, within six months from the end of the first two years of joint transit operations, a report summarising the costs and savings that each participant has incurred, information on the route of transmission and comparisons of the costs of the last marginal energy unit under the agreement and the year before the implementation of the agreement. « The parties will be able to achieve substantial savings by sending their collective resources more efficiently, » ferC said.
« These savings will be passed on to their customers. » In addition, the parties agreed to create a web portal through which they would enter information on the entry price of their resources, thereby preventing the staff of each party`s distributor function from accessing confidential transit data subject to FERC`s standards of conduct, according to the decision. PSCo amended the agreement to ensure that its distributor function does not have access to certain customer loading data. 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.