Transcript Slide 1

Reserves…Where are we???
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Service Schedule C
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C-3.10 Seller shall be responsible for ensuring that Service
Schedule C transactions are scheduled as firm power
consistent with the most recent rules adopted by [WECC].
WECC rules, or at least their interpretations, have
changed.
“It is up to Purchasing Selling Entities to determine
their level of acceptable deliverability risk and
determine who has contingency reserve responsibility.”
Contingency Reserve Responsibility = CRR
Reserves Task Force Report
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Identified 6 possible solutions.
Passage of Bal 002 was identified as one that
would go a long way toward resolution.
Bal 002 passed WECC OC.
Must be approved by WECC Board, NERC,
FERC.
Effective date: Possibly January 2009 (early),
more likely mid-2009.
What does Bal 002 mean?
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CRR depends on larger of MSSC or 3%
generation plus 3% load.
Interchange transactions only affect CRR to the
extent they affect generation or load. No longer
a direct link between WSPP Schedule C
interchange transactions and reserves beginning
with implementation of Bal 002.
RTF recommends leaving existing language of
Schedule C alone.
Balancing Authorites A and B both have Contingency
Reserve Requirements of 30 MW, which is 3% of net
generation and 3% of net load.
X
500 MW Gen
500 MW load
(.03 x 500) + (.03 x 500) = 30
Y
500 MW Gen
500 MW load
(.03 x 500) + (.03 x 500) = 30
Assume there is a sale from BA x to BA y of 100 MW.
X
600 MW Gen
500 MW load
100 MW G-F
Y
400 MW Gen
500 MW load
Assume there is a sale from BA x to BA y of 100 MW.
If BA x increases its generation to supply the sale, its
CRR will increase to 33 MW.
X
100 MW G-F
600 MW Gen
500 MW load
(.03 x 600) + (.03 x 500) = 33
Y
400 MW Gen
500 MW load
Assume there is a sale from BA x to BA y of 100 MW.
If BA x increases its generation to supply the sale, its
CRR will increase to 33 MW.
If BA y reduces its generation because of the import,
its CRR will decrease to 27 MW.
X
100 MW G-F
600 MW Gen
500 MW load
(.03 x 600) + (.03 x 500) = 33
Y
400 MW Gen
500 MW load
(.03 x 400) + (.03 x 500) = 27
Assume there is a sale from BA x to BA y of 100 MW.
If BA x imports power to supply the sale, its CRR will
not change since its generation will not change.
100 MW import
X
100 MW G-F
500 MW Gen
500 MW load
(.03 x 500) + (.03 x 500) = 30
Y
400 MW Gen
500 MW load
(.03 x 400) + (.03 x 500) = 27
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Notice that the transaction was tagged as G-F.
Does not imply “schedule C Firm with reserves”
Schedule C defers to WECC, WECC definition
of firm power exists in product codes.
More than one product considered “firm.”
WECC Product Codes
Energy
G-F: Firm Energy
G-FC: Firm Contingent.
G-FP: Firm Provisional Energy.
G-F1: Hourly firm energy.
G-EX: Exchange of Firm Energy.
G-NF: Non-firm energy
Reserves
C-SP: Capacity for spinning reserve.
C-NS: Capacity for non-spinning reserve.
C-RE: Capacity associated with energy
recallable for reserves.
WECC Definition of Firm
Energy
G-F: Firm Energy
This product may be curtailed only in the event of a
reliability condition or to meet Seller’s public utility or
statutory obligations for reliability of service to native
load. A G-F product cannot be interrupted for economic
reasons.
Brief WECC Explanations
Energy
G-FC: Firm Contingent. Tied to specific unit or source. Interruptible only if
source is de-rated or down. Cannot be interrupted for economic reasons.
G-FP: Firm Provisional Energy. Buyer and seller determine allowable
conditions for interruption. A G-FP product cannot be interrupted for
economic reasons.
G-F1: Hourly firm energy. Buyer and seller determine allowable
conditions for interruption provided the PSE or LSE receives notification of
the interruption at least 40 minutes prior to start of the operating hour. A GF1 product cannot be interrupted for economic reasons.
Brief WECC Explanations
Energy
G-EX: Exchange of Firm Energy. An exchange of firm energy where by
one entity delivers energy to another entity at one point on the grid and
receives an agreed upon amount of energy from that entity at another
point on the grid.
G-NF: Non-firm energy - This product may be interrupted for any reason
or no reason, without liability on the part of either the buyer or seller.
Brief WECC Explanations
Reserves
C-SP: Capacity for spinning reserve. On-Demand spinning reserve
obligation/resource is a spinning reserve product that can be
activated through the adjustment of a capacity e-tag.
C-NS: Capacity for non-spinning reserve. On-Demand nonspinning reserve obligation/resource is a non-spinning reserve
product that can be activated through the adjustment of a capacity etag.
C-RE: Capacity associated with energy recallable within ten
minutes of reserves activation. Source BA can claim it as a
reserve resource.
WECC/WSPP Cross Reference
WECC
Product
code
Closest WSPP
Product
Brief description
G-F
Schedule C
Firm Energy
G-NF
Schedule A
Non-firm Energy
G-FC
Schedule B
Unit contingent Energy
C-SP
Schedule C
Spinning Reserves
C-NS
Schedule C
Non-spinning Reserves
C-RE
Schedule A
Recallable Energy
Assume there is an IPP inside BA x that is making a
sale to BA y of 50 MW.
Depending on the relationship between IPP and BA
x, the IPP generation may affect the CRR.
X
100 MW G-F
Y
350 MW Gen
500 MW load
600 MW Gen
500 MW load
IPP
50 MW G-FC
(.03 x 650) + (.03 x 500) = 34.5
(.03 x 350) + (.03 x 500) = 25.5
WECC Product Code G-FC
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Neither Source nor Sink BA’s Contingency
Reserve obligation depends on the type of
transaction.
Seller may or may not call upon own reserve
group to cover lost generation for the period of
the reserve group response.
Seller is not obligated to re-establish the
schedule until the unit returns
Sale of source specific power
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A sale of power from a single source is allowable under
Schedule C.
Loss of the source unit does not remove the obligation
to provide the power.
It is up to the parties to determine the level of
performance risk they are willing to take.
Probability of performance may depend on the
relationship between the generator and its Balancing
Authority or Reserve Sharing Group.
Tagging issue associated with FC under WSPP
Schedule C.
Upshot
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Task Force believes Bal 002 will not require a
change to Schedule C language.
Bal 002 provides clarity that energy is uncoupled
from reserves.
WECC reserves products can be traded under
WSPP Schedule C.
There continues to be concerns over withinhour interruptions, and damages associated with
them.
Next Steps
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WECC to revisit eTag 1.8
Reserves Market
Educational effort continues
WECC ISAS
 NWPP ATF
 WSPP Workshop?
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Reserves Market
(Different Models)
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Merchants buy and sell capacity used to satisfy
reserve criteria under Schedule C, using WECC
product codes.
WSPP develops ancillary service product
approved by FERC. Like other products,
market-based rate tariff specifically for ancillary
services likely to be required.
WSPP develops standard language to be
included in utilities OATTs.