Allocating Unaccounted for
Energy (UFE) in MISO
Shawn Fountain
Vice President
Presentation overview

Overview of MISO market

What is UFE

Common UFE allocation methods

Financial Impact
All numbers in this presentation are
for illustration purposes only
Incorporating
Main processes by functional area
MDM
Load
Research
Settlement
Process Inbound
Reads
Determine
Samples
Create Profiles
Dynamically
Report Missing
Required Data
Validate Reads
Validate for
Profiling Process
Estimate Usage
Dynamically
Estimate Usage
Dynamically
Estimate
Estimate Reads
Reads
Perform Analyses
Edit Reads
Create Profiles
Report Missing
Reads
Create
Profiles
Create
Profiles
Estimate
Apply Profiles
Usage
Aggregate
Apply
Profiles
Send Data to
Market
Receive Data from
Market
Reconcile Data
Incorporating
Billing
Estimate
Usage
Apply
Profiles
Calculate
Determinants
Apply
Profiles
Prepare Bills
MISO “MDM” Market Participants


Meter Data Management Agent (MDMA) ─
An entity designated by a Market Participant
to manage and conduct the metering
services on the Market Participant’s behalf
Billing Agent ─ An entity designated by a
Market Participant to manage and conduct
the settlement and billing services on the
Market Participant’s behalf
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MISO Commercial Model


A representation of relationships between
Market Participants and their Resources,
Commercial Pricing Nodes, and transactions
Derived from the Transmission Network Model
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Entities in the Commercial Model

ENode (Electrical Node) ─ Physical point of injection
or withdrawal in the network model

EPNode (Elemental Pricing Node) ─ An ENode for
which a price is calculated
 Lowest level of granularity of the LMP calculation and the
lowest level represented in the Commercial Model
 EPNodes and their LMPs are not published

CPNode (Commercial Pricing Node) ─ An aggregate
price for a collection of EPNodes
 All settlements occur at the CPNode level
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MISO Commercial Model structure
Physical
Entity
External
Control Area
Financial
Entity
Flowgate
Flowgate
MISO
Internal
Control Area
Internal
Control Area
CPNode
(Gen)
CPNode
(Load Zone)
CPNode
(Hub)
EPNode
EPNode
EPNode
Enode
ENode
ENode
CPNode
(Load Zone)
CPNode
(Load Zone)
CPNode
(Gen)
EPNode
EPNode
EPNode
EPNode
ENode
ENode
ENode
ENode
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MISO settlement runs

Settlement 7 (S7) ─ 7 days after Op Day

Settlement 14 (S14) ─ 14 days after Op Day

Settlement 55 (S55) ─ 55 days after Op Day

Settlement 105 (S105) ─ 105 days after Op Day
2/8/2006
Settlement 7
2/1/2006
Operating Day
2/15/2006
Settlement 14
January
3/28/2006
Settlement 55
5/17/2006
Settlement 105
May
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What is UFE?


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The difference between aggregated
metered load adjusted for distribution losses
AND the net energy delivered (generation,
imports and exports) adjusted for transmission
losses
Sources of UFE include metering errors, invalid
profiles, loss errors, unreported load or
generation, etc.
UFE is also referred to as residual load
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MISO calculation for Balancing Area
UFE
(BA_BLL_MTR + NAIBA + BA_LOSS ) * (-1)
Where


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BA_BLL_MTR = Sum of all asset Commercial Node meter
data within the given Balancing Authority Area. Injections
are represented by negative values and load by positive
values
NAIBA = The Net Actual Interchange. A positive value
represents energy flowing out of the area while a negative
value represents energy flowing into the area
BA_LOSS = The transmission losses for the given Balancing
Authority Area. Losses are positive values
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MISO rules for UFE allocation


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MISO recommends “that Balancing
Authorities be responsible for allocating UFE to
all load serving entities on a Balancing
Authority Area load ratio share or other fair
and equitable allocation methodology”
UFE may be allocated to each Retail CP
Node using a load ratio share methodology
There is no single approach to allocating UFE
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Assigning UFE to load owners

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MISO performs this calculation and allocates
all of the UFE to a Residual Load Owner
For Market Participants submitting load to
MISO, it may be beneficial to calculate and
allocate UFE prior to data submittal
If actual reads are adjusted to account for
UFE prior to submittal to MISO, the MISO UFE
calculation should yield little to no UFE
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Scalar and interval meters

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Scalar meters are cumulative meters
generally read once per month
If interval meters are working properly, interval
meters will have negligible impact on UFE
Scalar usage is profiled to determine the
necessary interval values using a process
called profile application
Most of deviation resulting in UFE is thought to
be due to profile application of scalar usage
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Definitions (slide 1)

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Profile Creation ─ The creation of shape and volume
profiles generally via sample interval meters
Profile Application ─ Applying the shape from a
profile to scalar usage to convert the scalar usage to
interval data
Usage Estimation ─ The estimating of scalar usage for
scalar meters, or interval usage for interval meters,
when no actuals exist for a given time period and
that period is prior to the system date and time
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Definitions (slide 2)

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Usage Forecasting ─ The forecasting of usage for a
time period that is after the system date and time
Dynamic Profile Creation ─ Using historic data in a
modeling process like regression to directly produce
an interval estimate for a scalar meter for the
settlement period
Dynamic Profile Creation generally takes a profile
from the Profile Creation process as an input
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Profiling techniques are dependent
on the available data


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Actual readings available for settlement day
No readings for settlement day, but historical
readings are available
No readings for any period (e.g. new
construction)
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Nine main data states for profiling
Read Data State
Profile Data State
Profile Exists
for Profile
Profile Exists
for
Profile
Exists
Exists
Profile Does
Read for Settlement
History and for History but not for
Not
Exist
for History
for History
Profile
Period
Settlement
Period Settlement
Period
and for
but not for Does Not
Read for
Scenario
1
Scenario 2
Scenario 7
Historical
Read but No
Settlement
Period
Settlement Settlement
Exist
Historical
ReadRead
for Settlement
Period 3
Period 4
but No Read Period
for
Scenario
Scenario
Scenario 8
Settlement Period
No readNo read
Scenario 5
Scenario 6
Scenario 9
There are many more possible data states,
e.g., a read or profile exists for part of the
settlement period
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Illustration of primary calculation
approach for Scenario 1
Feb
Mar
Meter Reads
System
Date
Existing Profile
X
Settlement Period
For each interval in the settlement period,
(profile value for interval / total profile for the
start and stop of the meter read) * the meter
read consumption value
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Estimating meter consumption


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Regression ─ Regression against one or more
independent variables
Proxy Day ─ Historical usage from the most
like day in history based on the shape,
volume, day type and/or other attributes;
typically used when regression not viable
Like Day ─ The avg of historical usage for like
days (e.g. day type and season); more
commonly used for forecasting
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Reasons for profile application
error

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Profile shape is not accurate for a given day
and/or for hours across that day
Usage may have to be estimated and the
estimate will almost always never be 100%
Arguably not profile application error but usage
estimation error compounds profile accuracy error
Incorporating
Allocating UFE to all meters by LRS

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MDMAs can generally estimate the UFE %
within a tight tolerance
The simplest approach is spreading UFE across
all scalar and interval meters
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Allocating UFE only to scalar
meters
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
It is generally accepted that most UFE is the
result of inaccuracies from profile application
Therefore an approach is to assign all UFE to
scalar meters
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Side by side view
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Financial impact of allocating UFE
via these two different approaches

Assuming 68,000 meters with avg 50 kW peak
demand and avg 60% load factor

Assuming average LMP = $60/MWh

Multiplying by 8760 hours
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Wrap-up
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MISO allows Market Participants to allocate
UFE in different ways
Market Participants can adjust their meter
reads by the estimated UFE and provide
those adjusted values to MISO
A common approach for allocating UFE is to
allocate all UFE to scalar meters based on
load ratio share
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Contact the organizers
For any additional
information, please do
not hesitate to contact
the organizers
Devi Paulsen
Spintelligent
Phone: 888 559
8017 (US)
devip@spintelligent.com
www.american-utilityweek.com
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