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SZAWG Final Report October 5, 2006 S Z A ettlement one ccuracy WG SZAWG Members S Z A AESO Chris Connoly, Peter Wong AltaLink Paul Lee, Shemin Merali ATCO Electric Bruce Ramsay, Blair Morton Encana Marie Gallant, Wynn Trumpour Department of Energy Kathryn Wood, Bob Deyl EPCOR Distribution Bob Deyl, Greg Rosychuk FortisAlberta Angela Corsi ettlement one ccuracy WG Mandate S Z A • To provide recommendations that will correct problems contributing to inaccuracies in the settlement zone totals. • To provide reasonable certainty that all existing errors in settlement zone totals have been found, so that the suspended PFAMs can be released. ettlement one ccuracy WG Importance of System Level Metering Since the opening of the market in 2001, the market has settled – – – – S Z A ettlement one ccuracy WG 252,000 GW.h in energy. (from WSI) 363 GW.h processed as PFAMs error rate of approximately 0.14% Using average Pool Price of $61.62 that’s $22,368,060 (does not include all amounts re-settled in 2002 through the mandated “Final Final” settlement run) If we do nothing • continued large errors and adjustments to retailers • inaccurate zone totals leading to inaccurate load settlement (e.g. NSLS shape for zone is incorrect) • inaccurate zone totals leading to inaccurate transmission loss allocations • loss of confidence in settlement process and results • inefficient processes in industry • increased retailer risk S Z A ettlement one ccuracy WG Definition S Z A ettlement • “system level” is hourly values for distribution interchange, distributed generation, and border customer consumption that are needed to describe the total hourly energy flow on the AIES at the transmission level and the inputs and outputs to each and every distribution settlement zone for each hour. one ccuracy WG System Level PFAM issues: • • • • • • • S Z A ettlement one Gathers small errors over a long period Long lag time No site level detail in final outcome Coordination with RDS regulation is an issue Impact not manageable Undermines market confidence Causes and consequences of these kinds of errors affect different parties • Was intended for occasional use only ccuracy WG Recommendations Objectives: – Reduce the number of errors made in the future through improved processes, controls, and testing procedures, and – Identify and correct errors prior to Final Settlement. S Z A ettlement one SZAWG did not exhaustively test or vet these across industry as a whole, and expects implementing agencies will gather broader stakeholder feedback on the Final Report. ccuracy WG Business Elements Metering Accountability Logical Layer (modeled reality) M–1 Testing of Metering Priority: A Impact: Highest P–1 Roles & responsibilities for metering Priority: A Impact: Highest L–1 Energy flow into the transmission system due to large DG Priority: A Impact: Highest D–1 Meter Data Controls Priority: B Impact: Highest R–1 Provincial Reconciliation Priority: A Impact: Highest M–2 Metering Inventory Priority: B P–2 MSS integration with SSC Priority: A Impact: Highest L–2 Verifying MPDR Calculations Priority: A D–2 VEE Priority: B R–2 Report Card Priority: B M–3 Interval Meter Thresholds Priority: D P–3 MDM Relationship with Meter and MPDR Priority: A L–3 MPDR Development Process Priority: B D–3 DST Conversion Standard Priority: B R–3 Non–Load Settlement Meter Points Priority: D P–4 Settlement Responsibility Priority: A L–4 Temporary Operating Situations Priority: C D–4 Data Restatement Tracking Priority: C P–5 MPDR Definition Priority: B L–5 Notification of ISD–to– Wire Owner connectivity changes Priority: C D–5 TAA sign conventions Priority: C P–6 Post Final Processing Obligations Priority: B L–6 Disallowing Backdating Business Arrangements Priority D S Z A ettlement one ccuracy WG Data Improvements Reporting and Market Confidence Metering M–1 Testing of Metering Implement standardized end-to-end testing of metering systems on a defined and regular basis. AESO testing EUB rules M–2 Metering Inventory Compile and maintain a complete inventory of all System Level Metering points. AESO M–3 Interval Establish thresholds at which Meter interval meters are required for Thresholds System Level Metering Points. S Z A ettlement one ccuracy WG EUB Accountability P–1 Roles & responsibilities for metering Amend the EUA to identify and assign all of the responsibilities for metering. DOE P–2 MSS integration with SSC Rationalize the SSC and the MSS to cover all System Level Metering Points. EUB P–3 MDM Relationship with a Meter and MPDR Amend the SSC to address the relationships among MDMs, meters and MPDRs. EUB P–4 Settlement Responsibility Amend the SSC to clearly and uniquely assign load settlement responsibility. EUB P–5 MPDR Definition Amend the SSC to adopt the MPDRs disciplines for Load Settlement. EUB P–6 Post Final Processing Obligations Amend the SSC to require MDM’s to report all system level data variances by way of the PFAM process. EUB S Z A ettlement one ccuracy WG Logical Layer L–1 Energy flow into the transmission system due to large DG Develop a standardized solution for the accommodation of flow into the transmission system due to large Distributed Generation EUB L–2 MPDR Calculation Verification Develop a process that will verify that MPDR calculations are being performed correctly by MDMs. AESO L – 3 MPDR Development Process Implement an approval process for any MPDR used in load settlement that includes review and acceptance by LSA, MDM, and AESO. EUB L–4 Temporary Operating Situations Amend the rules for load settlement to ensure that energy flow during temporary operating situations are accounted for. EUB L–5 Notification of ISD-toWire Owner connectivity changes Require Wires Owners and ISDs to notify the AESO of any changes regarding connectivity of ISDs to Wire Owners. EUB L–6 Disallowing Backdating Business Arrangements Adopt an AESO policy that states that business arrangements that impact measurement point data provision are not to be backdated prior to the 1st of the current month. AESO S Z A ettlement one ccuracy WG Data Improvements D–1 Meter Data Controls Ensure that automated data controls are put in place to confirm that meter data sent by the MDM to other parties is received correctly, to the satisfaction of both the MDM and the receiving parties. EUB D–2 Validation, Editing and Estimating Establish a working group to improve VEE standards. EUB D–3 Daylight Savings Time (DST) Conversion Standard Clarify Settlement System Code to address the differing interpretations of the existing wording on DST. EUB D–4 Data Restatement Tracking The process for submitting restated system level data after the initial monthly settlement runs to be enhanced to permit the gathering of metrics. EUB D–5 TAA sign ettlement conventions S Z A one ccuracy WG Amend TAA adjustments in the SSC to clarify sign conventions EUB and to make s B.6.6.1 and s B 6.6.3 consistent. Reporting and Market Confidence R–1 Provincial Reconciliation Review and improve Provincial Reconciliation. AESO R–2 Report Card Develop comprehensive market reporting of load settlement indicators. AESO R-3 Non-Load Settlement Meter Points Review the processes and standards for system level metering and data not involved in load settlement. AESO S Z A ettlement one ccuracy WG Other Issues Micro-Generation Discussion includes related issues and input for DOE policy development DOE Status Report Develop a process to keep industry informed of progress on recommendations EUB AESO DOE Audit Field DSM transaction needs audit tracking field EUB MPDR Process Same MPDRs to be used in LS and in TA functions EUB S Z A ettlement one ccuracy WG Conclusion • These recommendations will: – reduce error overall, – catch most remaining errors prior to Final Settlement – reduce PFAM to occasional use – as was intended. • No reason, from SZAWG point of view, to continue the PFAM suspension. S Z A ettlement one ccuracy WG – Things will get better gradually as recommendations are implemented Next Steps • Written feedback to be provided by October 19, 2006 to: – [email protected] – [email protected] – [email protected] • Implementing agencies to S Z A ettlement one ccuracy WG – accept recommendations, – establish a plan to implement, and – develop a process to measure and report progress.