Transcript MISO Update for Annual Business Meeting

Enhancing Interruptible Rates
Through MISO Demand Response:
WIEG Annual Meeting
June 19, 2008
Presented by:
Kavita Maini, Principal
KM Energy Consulting, LLC
Protecting Your Bottom Line
Role of Interruptible Load in Wisconsin
 Counted towards reserve margin requirements
 Utilities use interruptible load in lieu of building a
peaking plant – In exchange customers get a
capacity based credit
 Utilities typically have minimum requirements in the
tariff including notification time, maximum hours of
interruption, contracted firm demand levels
 Used mainly for capacity based interruptions by
most Wisconsin utilities
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Interruptible Load in Wisconsin By Major
Utility
WE ENERGIES
ALLIANT - WPL
WPSC
MGE
OTHER (NSP,DPC,WPPI,SWLP)
Totals
Interruptible
Load (MW)
134
127
328
25
65
679
Unadjusted
Peak
Electric
Demand
Supply (MW)
5,600
6,288
2,584
3,594
2,470
2,822
684
846
4,348
3,296
15,686
16,846
% of
Unadjusted
Peak
Demand
2%
5%
13%
4%
1%
4%
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Participation of Interruptible Load
in MISO




Price responsive demand bids
Reserve Margin Requirements
Ancillary Services
Emergency Demand Response
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Emergency Demand Response Initiative
 Main outcome from the August 2006 Energy Emergency
Events – To compensate for energy reduction
 Retail customers not direct participants in EDR; Utilities are
the market participants and eligible to participate
 Utilities would need to develop an additional rider or make
this an option in the existing rate
 Voluntary program
 Interruptible load can be counted towards reserve margin
requirements and also participate in EDR
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EDR Requirements
 Need to register with MISO 30-days in advance
 Static offer for 30 days; MISO does not have the ability
accept daily offers
• Exception – exigent circumstances
• Penalties for not curtailed amount reflected in the offer (real time
market price multiplied by the amount deficient)
 Participants can either specify the number of MW to be
curtailed or curtailing down to the firm level
 Provide notification time needed
 Hourly curtailment offer not to exceed a cap of $3500/MWh
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EDR Compensation
 Provided that market participants respond as instructed by
MISO, they will be compensated using the higher of the
market price or the participants’ curtailment offer multiplied
by the amount of energy curtailed
 Compensation only if MISO issues deployment request
 To the extent that market participants are paid higher than
the market price, the costs are collected from the zone
where the resource deficiency occurred
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Energy Emergency Event (EEA) Protocol
 EEA-0: Alert – Heads up
 EEA-1:Warning
 EEA-2: The EVENT
• Once designated external resources are committed, interruptible
load that does not participate in EDR gets initiated first
• This is followed by interruptible load that is participating in EDR
• Emergency dispatch ranges of generators
• Emergency purchases from bordering balancing authorities
• Firm load shed
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