Deliverability Study October 2015 SPP Staff Southwest Power Pool, Inc. Revision History Revision History Date or Version Number Author Change Description Version 0.0 February, 2015 Michael Odom Initial Draft Version 3.0 June, 2015 SPP Staff Proposed new study concept Version 5.0 July, 2015 SPP Staff Modified study assumptions Version 6.0 August, 2015 SPP Staff Provided options for reporting deliverability results Version 9.0 October, 2015 SPP Staff Updated language per Stakeholder feedback Deliverability Study 1 Comments Southwest Power Pool, Inc. Table of Contents Revision History ...........................................................................................................................................1 Background and Introduction ....................................................................................................................3 Deliverability Study .....................................................................................................................................4 Deliverables ..................................................................................................................................................8 Deliverability Study 2 Southwest Power Pool, Inc. Background and Introduction Firm transmission service needed to deliver power from generation to load has historically been required by SPP in order for that generating capacity to count toward meeting a load’s reserve margin requirements. SPP is now developing an option to rely upon a pre-established determination of deliverability to allow the Load Responsible Entity (LRE) to meet its reserve margin requirements in excess of its peak load, including losses, without having request and obtain firm transmission service. A confirmed firm transmission service request, whether for network or point-to-point service, will still be required, consistent with the existing SPP Criteria, in order for an LRE to obtain the firm transmission necessary to serve load. Acquisition of firm transmission will continue to be necessary to acquire Auction Revenue Rights (ARRs). The approach described below will allow an LRE to rely on transmission capacity being developed in SPP transmission planning processes for its reserve margin requirements, in excess of its peak load plus losses, without sacrificing reliability. This process would allow an LRE to obtain capacity necessary to meet its reserve margin requirements in a quicker manner that is more consistent with the potential needs of the proposed Reliability Assurance policy, in comparison to the timing associated with the current process used to obtain long-term firm transmission service. Deliverability Study 3 Southwest Power Pool, Inc. Deliverability Study Study Purpose Reserve margin allows for reserve capacity to be readily available in the situation of unexpected loss of generation or unexpected significant increase of demand. Annually, each LRE in SPP must report capacity committed to supply its load and reserve margin obligations. Under the existing SPP Criteria, firm transmission service must be secured for the delivery of capacity, including reserves, to meet each LREs peak load obligation. In the future, it has been proposed that the deliverability of capacity resources needed to meet only the required reserve margins, not the load itself, could be assured through either the acquisition of appropriate firm transmission service through the acceptance and confirmation of a request for firm transmission service or by being obtained from generating facilities with capacity that is deemed to be deliverable to the load through the performance of a deliverability study. It is proposed that the deliverability study should take the form of analyzing all reported generation registered in the Integrated Marketplace in order to determine if the associated capacity is deliverable to the SPP Consolidated Balancing Authority (CBA). Study Models SPP develops CBA models as part of the ITPNT process by performing a security constrained economic dispatch treating SPP as a single Balancing Authority in an effort to simulate a dispatch similar to the Integrated Marketplace. Transmission projects are developed through the ITPNT process to address thermal and voltage needs in each CBA model. The CBA models will be the base models for deliverability analysis. Analysis The current-year summer ITPNT CBA model will be used to evaluate deliverability of each plant participating in the Integrated Marketplace. The initial assumption is that any resource generating in the CBA model is automatically deliverable to the SPP BA for the dispatched output. Each eligible plant that was not committed or dispatched at its maximum output is then evaluated individually to determine that plant’s total deliverability. A transfer level equal to the difference between the nameplate capacity and CBA dispatched amount is determined for each plant. The transfer will be analyzed as a generation to load transfer sinking into SPP CBA so as the output of the generator is increased, the SPP CBA load uniformly increases. A First Contingency Incremental Transfer Capability (FCITC) analysis of each transfer will be performed to determine the deliverability of the resources. If the FCITC is equal to the transfer amount then the resource is fully deliverable to the SPP CBA. SPP facilities 100 kV and above will be included in the FCITC analysis. Limits associated with invalid contingencies and Transmission Operating Guides (TOGs) will be excluded as constraints. A three percent transfer distribution factor will be used to analyze constraints impacted by the transfer. Deliverability Study 4 Southwest Power Pool, Inc. Plant Max Cap MW CBA Output MW Study Transfer MW FCITC Deliverability % of Plant PMAX to SPP CBA Plant 1 Plant 2 Plant 3 Plant 4 128 200 140 1348 119.7 0 138.6 0 8.3 200 1.4 1348 8.3 200 1.4 997.5 100% 100% 100% 74% Table 1: Example of Deliverability Results Applicability The CBA Deliverability percentage allows an entity to use the SPP CBA deliverability percentage amount to contract capacity. This is an Integrated Marketplace simulated approach so that as load increases across the SPP CBA, individual plant generation increases accordingly to serve the incremental CBA load. Examples: Plant 2 is offline in the CBA powerflow model and has a max capacity of 200MW. An FCITC analysis showed that Plant 2 is could deliver 200MW without breaching a transmission constraint. Therefore, Plant 2 is 100% deliverable to the SPP CBA region, and the Generator Owner and an LRE could contract capacity up to 100 % of the Plant 2 maximum capacity (MW) amount. Plant 4 is offline in the CBA powerflow model and has a max capacity of 1348MW. An FCITC analysis showed that Plant 4 is could deliver 997.5MW until breaching a transmission constraint. Therefore, Plant 4 is 74% deliverable to the SPP CBA region, and the Generator Owner and an LRE could contract capacity up to 74 % of the Plant 4 maximum capacity (MW) amount. Jointly Owned Units (JOUs) For generators that have more than one owner, the percentage of ownership will be determined based on the data submitted in the Resource Adequacy Workbook. The ownership percentage will then be multiplied by the deliverability amount (MW) to determine each Generator Owner’s percentage of deliverability. Example: Plant 4 is a JOU with 25% ownership by GO 1 and 75% ownership by GO 2. Plant 4 has a deliverability amount of 74% to the SPP CBA. PMAX for Plant 4 is 1348 MW and 74% of 1348 is 997.5 MW. GO 1 would have 0.25 * 997.5 MW which equates to 249.3 MW total available for contract capacity. GO 2 would have 0.75 * 997.5 MW which equates to 748.1 MW total available for contract capacity. Deliverability Study 5 Southwest Power Pool, Inc. Figure 1: Regional map indicating the dispatch boundary for deliverability analysis Deliverability Study 6 Southwest Power Pool, Inc. Study Timeline Deliverability Study Timeline 4/16/2016 SPP Board approves NTCs 2/1/2016 3/1/2016 6/17/2016 CBA model finalized 4/1/2016 5/1/2016 7/1/2016 Deliverability Study Performed (1 & 2 year out look) 6/1/2016 7/1/2016 8/1/2016 10/1/2016 Deliverability Study Results provided to GOs 9/1/2016 10/1/2016 11/1/2016 12/1/2016 1/1/2016 12/31/2016 8/1/2016 - 10/1/2016 Internal review of Deliverability Study results Deliverability Study 7 Southwest Power Pool, Inc. Deliverables The findings of the Deliverability study results for each plant will be provided to each appropriate Generator Owner in the last quarter of the current year. Based upon these results, each GO can work with applicable LREs to develop a plan for acquiring the necessary capacity for reserve margin requirements. The results of each annual study will extend for two consecutive summer periods. Each LRE may obtain a capacity contract based on the latest results for no more than two summer periods. Deliverability Study 8