Capacity Performance – Ramp Rate Rebecca Stadelmeyer Sr. Consultant, Market Operating Committee February 9, 2016 www.pjm.com PJM©2015 Unit Parameter/ Values – Stakeholder Venues www.pjm.com 2 PJM©2015 Ramp Rate Inclusion Option Paths Ramp Excluded Ramp Rate Option Path Ramp PLS Problem Statement Potential Long Term Excused MW: • Approved Planned / Maintenance Outage • Not Scheduled by PJM • Scheduled Down by PJM Excused MW: • Approved Planned / Maintenance Outage • Not Scheduled by PJM • Scheduled Down by PJM • Following PJM Dispatch that includes ramp rate Excused MW: • Approved Planned / Maintenance Outage • Not Scheduled by PJM • Scheduled Down by PJM • Following PJM Dispatch that includes ramp rate Non-Performance Charge calculated from ‘desired’ nonramp limited basepoint Non-Performance Charge calculated from ramp limited basepoint Non-Performance Charge calculated from ramp limited basepoint Status Quo (CP Order) www.pjm.com 3 PJM©2015 Example without Proposed Ramp Rate Hour Assessment Emergency Action Issued at 1900 Procedure Effective 1900 - 2000 Performance Assessment Hour is 1900 CP Commitment MW = 60 MW Resource = Generator Ramp Rate = 0.5 MW/min Balancing Ratio = 0.80 Expected Performance = CP Commitment MW * Balancing Ratio Scheduled MW at 1900 = set to 60 MW (desired LMP basepoint) Actual Output for HE 20 = 45 MWh (unit performs to ramp rate) Expected Performance for HE 20 = 48 MWh Shortfall for HE 20 = 3 MWh (48 Expected – 45 Actual) Scheduled MW = 30MW 60 MW Actual Output = 30 MW 60 MW using a 0.5 MW / min rate Expected Performance = 48 MWh Emergency Action Effective Assessment Hour = 1 1915 1900 www.pjm.com 1930 4 1945 2000 PJM©2015 Example with Proposed Ramp Rate Hour Assessment Emergency Action Issued at 1900 Procedure Effective 1900 - 2000 Performance Assessment Hour is 1900 CP Commitment MW = 60 MW Resource = Generator Ramp Rate = 0.5 MW/min Balancing Ratio = 0.80 Expected Performance = CP Commitment MW * Balancing Ratio Scheduled MW at 1900 = start at 30 MW and uniformly ramp to 60 MW (45 MWh integrated) Actual Output for HE 20 = 45 MWh (unit performs to ramp rate) Expected Performance for HE 20 = 48 MWh Shortfall for HE 20 = 0 MWh (48 Expected – 45 Actual – 3 excused*) *3 MW excused because ramp rate considered in the PAH Assessment Scheduled MW = 30 MW 60 MW Actual Output = 30 MW 60 MW using a 0.5 MW / min rate Expected Performance = 48 MWh Emergency Action Effective Assessment Hour = 1 1915 1900 www.pjm.com 1930 5 1945 2000 PJM©2015 PAH Ramp Proposal Initial Proposal New Proposal Compare daily inputted ramp rate to a historical average ramp rate & use the faster of the two during a PAH Members review and update Ramp rate in Markets Gateway by April 1, 2016 Benefits Challenges • • • • • • Technical implementation longer than originally assessed Input historical data quality a concern Agreement on solution by June 1 www.pjm.com 6 Better values in the system for Dispatch Can be implemented by June 1 Can be a transition step until better solution developed, based on how solution is working PJM©2015 Historical vs Bid-In Ramp Rate Evaluation Examples In order to perform a meaningful assessment of unit historical ramp rate performance against bid-in ramp rate, the following sample data selection criteria were applied for the units evaluated. • Sample Hour Selection Criteria • Occurred between December 1, 2015 and February 2, 2016 • No hours with Regulation or Spin Assignments included • No hours with partial or full outages impacting unit output/performance • Only hours where unit was Dispatchable (Eco Min ≠ Eco Max, with Dispatchable on-reason) and operating in Dispatchable range (Eco Min < Unit Output < Eco Max) considered • Sample Minute Selection Criteria (for each of the above sample hours) • Economic Base Point (Eco BP) indicating unit raise occurred within the last 5 minutes • Unit Raise required by Base Point ≥ Bid-in ramp rate. For example, if a unit has a ramp rate of 10 MW/min, minute sample selected if within the last 5 minutes the Eco BP increased by at least 10 MW) • Unit MW output remained the same or increased from the last minute www.pjm.com 7 PJM©2015 Actual Unit Example: Combined Cycle Unit A Unit A Bid-in Ramp Rate = 10 MW/min Histogram of Actual Operating Values www.pjm.com 8 • Green Bars show % Frequency (left Y axis values) that unit A responded for each positive MW Ramp (X axis values) • Light Blue Bar identifies the Bid-in Ramp rate of 10 MW/min • Dark Blue Line represents Cumulative % Frequency (right Y axis values) for each MW Ramp. The Bid-in Ramp rate (Light Blue Bar) intersects this line at ~92% indicating that the unit A ramps in response to a valid (≥+10 MW) Eco BP signal at less than 10 MW/min about 92 % of the time for the sampled data. • From this data, it can be inferred that unit A rarely exceeds its bid-in ramp rate of 10 MW/min. • Unit A normally ramps below its bid-in ramp rate, but is capable of ramping at or slightly above (10 – 13 MW/min) its bid-in ramp rate in response to a PJM dispatch signal. PJM©2015 Actual Unit Example: Super Critical Steam Unit B Unit B Bid-in Ramp Rate = 8 MW/min Histogram of Actual Operating Values www.pjm.com 9 • Light Blue Bar identifies the Bid-in Ramp rate of 8 MW/min • Dark Blue Line represents Cumulative % Frequency (right Y axis values) for each MW Ramp. The Bid-in Ramp rate (Light Blue Bar) intersects this line at ~73% indicating that the unit B ramps in response to a valid (≥ +8 MW) Eco BP signal at less than 8 MW/min about 73% of the time for the sampled data. • From this data, it can be inferred that unit B has ramped up at a rate greater than its bid-in ramp rate of 8 MW/min a significant number of times. It appears that unit B has a conservative bid-in ramp rate based on actual performance. • Unit B ramps up normally below its bid-in ramp rate, but appears to be capable of ramping at above its bid-in ramp rate (in the 10 – 14 MW/min range) in response to a PJM dispatch signal. PJM©2015 New Proposed PAH Ramp Rate Details • Members to provide updated values into eMKT / Market Gateway by 4/1/16 • PJM / IMM review submitted ramp with member and compare to actuals observed • Expectation is ramp rate NOT to change during a Hot Weather / Cold Weather Alert • PJM will run a daily report to see if ramp rates changed during HW / CW alert • If changed, PJM will require documentation to explain the reason for change • If PJM does not agree with the explanation: • PJM will assess Non-Performance Charge based on ‘desired’ basepoint • Ramp rate will be an allowable excused MW when: • Unit is at or above its economic minimum • PJM has not issued a Manual Load Dump Action • Manual Load Dump Action considered a ‘no notice’ event - generation ramp rate nor DR notification time will be considered excuses for PAH Assessment • Tariff change required to allow ramp included in the PAH Assessment www.pjm.com 10 PJM©2015 Potential Long Term Solutions Historical Comparison PLS Value Others? Compare daily inputted ramp Create a PLS value for ramp rate to a historical average ramp rate and treat it like all other rate & use the faster of the two PLS / Unit specific parameters during a PAH Tariff changes Tariff and OA changes Long Term Solution discussions should start as soon as transition plan is filed at FERC www.pjm.com 11 PJM©2015 Next Steps • Stakeholder consensus • Stakeholder Voting and FERC filing • First Read at February MRC and MC • First Read and/or Vote at March OC • Is an additional OC needed before March 8? • Vote at March MRC and MC • File at FERC by March 31 with effective date of May 31 www.pjm.com 12 PJM©2015