NWPP Members’
Market Assessment and Coordination
Initiative
WECC Market Interface Committee
October 14, 2015
Agenda
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Introductions
Recent News
Introduction to the MC Initiative
MC Portfolio and Elements
Next Steps
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Agenda
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Introductions
Recent News
Introduction to the MC Initiative
MC Portfolio and Elements
Next Steps
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Recent News
• PGE and Idaho Power announced intent to pursue CAISO
EIM sub-hourly market solution
• BANC has announced its intent to withdraw from the
NWPP MC market initiative
• NWPP MC participants, including PGE, expressed strong
support for continuing reliability and infrastructurefocused programs that have come from this effort
• The NWPP MC continues to evaluate market alternatives
that have been part of the initiative to inform decisionmaking later this year
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Petition for Declaratory Order
• Petition for Declaratory Order (PDO) was filed Friday,
Sept. 4th
• FERC public comment period closed Oct. 5th
• Link to PDO:
http://elibrary.ferc.gov:0/idmws/file_list.asp?document_id=14374378
• Order expected by end of year
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Agenda
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•
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Introductions
Recent News
Introduction to the MC Initiative
MC Portfolio and Elements
Next Steps
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NWPP MC Initiative
Members of the Northwest Power Pool Market Assessment and Coordination Committee (NWPP MC)
believe in the value of collaborating to deliver near- and long-term benefits to their customers by
enhancing the reliability and efficiency of the region’s power system and maximizing the benefits of
the region’s resources while preserving local decision making now and in the future.
Current NWPP MC Membership
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Avista Corporation
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NorthWestern Energy
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Balancing Authority of Northern California
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PacifiCorp (Phase 3 Tools)
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Bonneville Power Administration
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Portland General Electric
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BC Hydro, Powerex
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Puget Sound Energy
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Chelan County PUD
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Seattle City Light
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Clark County PUD (Phase 3 Tools)
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Snohomish County PUD
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Eugene Water & Electric Board
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Tacoma Power
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Grant County PUD (Phase 3 Tools)
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Turlock Irrigation District
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Idaho Power Company
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Western Area Power Administration, Upper Great
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NaturEner Wind Holdings
Plains
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NWPP MC Initiative Objectives
• Address operational and commercial challenges affecting
regional power system:
– Manage transmission constraints, impacts of variable energy resources
– Access regional balancing diversity
• Respect unique attributes of NWPP MC footprint, including:
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Extensive coordinated hydro-thermal systems
Multiple transmission providers, overlapping systems
Tightly correlated variable energy resources
Significant presence of non-jurisdictional entities
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Agenda
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•
•
•
•
Introductions
Recent News
Introduction to the MC Initiative
MC Portfolio and Elements
Next Steps
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NWPP MC Portfolio Solution
• Key elements include market-focused (automated 15-minute
energy market) and operations-focused (centralized
regulation reserve sharing group) initiatives:
– Centrally Cleared Energy Dispatch (CCED) -- automated 15-minute
market. Market operator centrally clears voluntary bids and offers
from participants to inform regional energy dispatch; facilitated under
existing regional transmission framework
– Regulation Reserve Sharing Group (RRSG) -- centralized program;
enables MC participants to manage to single Area Control Error for
NWPP footprint and share in natural offsetting diversity of loads and
resources
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NWPP MC Portfolio Solution, Continued
• Key elements supported by:
– Common resource sufficiency standard for program participants
– Transmission service and operational coordination enhancements
– Advanced data sharing tools implementation
• Intended outcome:
– Reliable, efficient within-hour operating environment, with potential
to enhance in future to bring additional regional benefits
• Framework provides wide range of benefits while:
– Preserving local decision making
– Protecting integrity of region's power system, which has delivered lowcost, clean, reliable power to customers for decades
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MC Portfolio Implementation Plan
2015
2016
2017
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
FERC
Approval
Petition for Declaratory Order
FERC Grants
PDODevelop Tariff Filing
EC Approval
Contracting
w/Vendors
CCED
SOW
Design
specifications
Regulation
Reserve Sharing
Group
Refresh Price &
Schedule
Contracting
w/ Vendors
CCED Fully
Implemented
Development and Testing
Market Trials
SOW
Design
Specifications
Reserve Regulation
Sharing Program Fully
Implemented
Data Analysis Pilot
Market
Administration
FERC Approves CCED
Tariff
Tariff Filed at FERC
Contracting
w/ Vendors
Development and Testing
Finalize Req.
Program Testing
Design Processes
Refine Procedures
and Market Rules
Training
Market Testing
Resource
Sufficiency
Process build
Contracting
w/Vendors
RS process testing
SOW
Infrastructure
Build
Development of RMD
Hardware and Software Integration
Testing
Resource
Sufficiency
Fully Implemented
2015 Milestones
2016 Milestones
2017 Milestones
• PDO Filed with FERC
• EC gives Approval to
Proceed
• FERC declaratory order on key
CCED elements
• CCED tariff filed at FERC
• RS & RRSG Pilot Projects
• RRSG fully implemented
• RS fully implemented
• CCED fully implemented
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MC Portfolio Estimated Annual Costs
Years 1 & 2
On-going
$25 to 28 million
$10 to 11 million
(total over 2 years)
(per year)
Includes all anticipated start-up
and implementation costs with
staffing, consulting expenses,
and IT costs as major drivers of
the cost range
Staffing and consulting
expenses associated with the
scope of transmission and
market expansion will be
substantive long-term drivers of
the cost range
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Illustrative Evolution Path
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CCED is a foundation upon
which near and long-term
enhancements can be
developed
Initial opportunities have been
identified in Phase 4
These will be further developed
and evaluated going forward
Examples:
1. Full network model and LIPs
2. Meter & settle imbalance energy
3. Model generator constraints
4. Ancillary services
5. Loss optimization
SCED-like
Features
Category 3
Additional
Market
Evolution
Examples:
1. Resolve load balance constraints
2. Optimize transmission
3. Zonal prices
4. 15 => 5 minute dispatch
Bug fixes and “experience” enhancements
Additional Value Adds
Examples:
1. Phase B Step 2 – further reduce transmission barriers
2. Use RS data to introduce demand signal
3. Shorten dispatch interval lead-time to 7.5 minutes
Bug fixes and “experience” enhancements
Category 2
Category 1
Near-Term Value Adds
Examples:
1. Allow offer curves OR separate INC/DEC bids
2. Feasibility test for market Transmission Service Providers using 0-NX
3. Phase B Step 1 – reduce transmission barriers
Bug fixes and “experience” enhancements (examples: application programming interface updates, enhanced reporting, portal features)
CCED Go-Live – Foundational
1.
2.
3.
4.
Central clearing of displacement energy
Simple feasibility assessment
“Phase A” transmission policy
Create initial “Market Zone” centroid
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Oct `17
Oct `18
Oct `19
Oct `20
Future…
Regional Tools Update
• Regional Flow Forecast (RFF) and Resource Monitoring &
Deliverability (RMD) Beta Version 1.3 is in production; 4th
release since first release (Mar. 31, 2015)
• MC members working through deployment process of RFF
tool to merchant function employees and OATT customers
• Software enhancements to RMD and RFF continue and will be
finalized in Q4 2015
• Data quality issues are a key activity for 2015; team deployed
additional resources and developed tools to monitor, measure
improvements, and provide feedback to MC members and
Peak Reliability for correction
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Centrally Cleared Energy Dispatch (CCED)
• CCED is a 15-minute economy energy market that is
predicated upon all market participants being resource
sufficient prior to participating in the market
– Allows resources already committed to run to meet energy and
flexible capacity needs, or quick responding resources, to be
incremented (INC’ed) or decremented (DEC’ed) based on economics,
resource flexibility and market flow feasibility
– Not a market to plan on prior to the hour for meeting requirements
– Market Resources can represent a single generator/plant all the way
to entire system or portfolio of resources
• CCED removes major barriers to sub-hourly trading economics
– Simple execution, transparent pricing, single interchange update
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CCED (continued)
• Design objectives are simplicity and compatibility with existing
systems and processes, allowing full participation at go-live
– Accepts bids/offers in merit order; produces single transparent price
– Awards checked for physical feasibility by Market Administrator (MA)
so Market Flows will not exceed Market Available Transmission (MAT)*
– Awarded/scheduled CCED transactions treated as normal schedules
– Individual TSPs perform congestion management as normal
– MA central counterparty to all transactions; performs financial
settlement directly with market participants
* If schedules must be reduced to meet MAT limits, the User Group supports a method
that maximizes the overall economic value of feasible transactions.
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RRSG Objectives
• Capture geographic generation and load diversity
• Reduce individual regulating reserve obligation
• Opportunity to monetize capacity reduction
• Reduce machine movement
• Coordinated BAL-001-2 compliance
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RRSG Program Update
• ACE Diversity Interchange (ADI)
– Avista, BANC, TID, PGE, Tacoma will participate by year end
– Consider operating limit expansion in 2016
– Rocky Mountain utilities (WAPA, Xcel) evaluating
participation
• BAL-001-2 Compliance
– Individual compliance July 1, 2016
– WECC guidance to designate compliance entity per NERC
Bulletin
– Requires delegation letter and participant agreement
– Draft documents in October
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RRSG Functional Design Highlights
• Operates in parallel with ADI program
• Participants allocated BAL-001 Reserve Obligation (BRO)
– Continuously held until deployed by RRSG program
– Fully deployable in 10 minutes
• BRO deployed if compliance level exceeded
– Majority ACE participants deploy first
– All participants (Majority and Minority) deploy if needed
– Additional deployment as backstop
• Participants compensated for energy deployed
• Expect actual deployment to be limited (< 1 event per day)
• RRSG implementation planned for Q1 2017
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RRSG Deployment Example
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Resource Sufficiency (RS)
• The NWPP MC Resource Sufficiency Metric designed to
ensure that BAs have sufficient resources to meet obligations
prior to the operating hour
– All BAs are assumed sufficient today, therefore, the RS Metric is not
intended to increase the amount of reserves required
– RS Metric provides a common methodology to assurance sufficiency
and relies on standard utility practice
– One-year, non-binding pilot will test these objectives and allow for
adjustments
– RS Metric to be fully implemented and binding in October 2017
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RS Design
Completed Work
Ongoing Work
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VERs and DERs: capacity credit,
forecasting and source
Timing of binding RS check
Load forecasting methodology
Deliverability
Transaction scheduling clarity
Administration
Enforcement
Finish Balancing Reserve
Obligation (BRO) determination
• Completed 2 of 3 elements
• Data from 15 BAs
• Data Quality improvements
• Results provided Oct. 5
• Treatment of exports from the
footprint
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TSP / TOP Coordination Update
• Objective: Define opportunities for regional efficiencies,
improvements to providing transmission service and
managing operations
• Opportunities identified:
– Constraint and congestion relief coordination
– Communication regarding dynamic changes in SOLs from TOPs to TSPs
that may result in changes to TTC updates on key flowgates
– Coordination of models between WECC, Peak and individual
TSPs/TOPs
– Open Access Transmission Tariffs and business practices alignment
– Real-time coordinated TOP operations
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TSP / TOP Coordination Next Steps
• Continue TSP/TOP design work
• Work with vendors on costing
• Expand Regional Flow Forecast (RFF) and Resource Monitoring
and Deliverability (RMD) in concert with TSP/TOP activities
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Agenda
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•
•
•
•
Introductions
Recent News
Introduction to the MC Initiative
MC Portfolio and Elements
Next Steps
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Next Steps
• NWPP MC Executive Committee will meet in October and
November to determine 2016-17 plans
• Staff continue to work on evaluating MC portfolio and what
options exist given recent events
• Stakeholder updates will be provided
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Questions
questions@nwppmc.org
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