Update on the Gas Usage Profile Project Reliability Subcommittee June 1, 2017 Purpose & Key Takeaways Purpose: Provide project update and follow-up to April 6 RSC discussion Key Takeaways: • Project is an incremental step building on the direction and success of past MISO gas-electric coordination efforts • Helps promote reliability by communicating aggregated data in a way that’s useful for operators of gas pipelines/utilities in the short-term operating window • Project to begin by end of 2017 Gas-electric coordination continues to be a priority, most notably for maintaining reliable operations during peak conditions • • MISO has described its gas-electric objectives, past advancements, and current projects* There are significant increases in MISO gas-fired generation, as reflected in history and projections − • Drivers: fuel economics, coal retirements, new gas capacity, increasing renewables (and variability), and overall low reserve margin environment • Gas is critical in MISO for increased baseload capability and, importantly, for reserves, swing, and ramp Since the April 6 meeting, stakeholders provided valuable feedback which MISO used to further refine the approach for the Gas Usage Profile project 3 *See RASC presentations November 30, 2016, and January 11, 2017 MISO is initiating a gas usage profile program with three gas pipelines/utilities in 2017 • Each gas pipeline/utility will receive a customized daily summary of gas usage forecasts based upon the gas generators connected to their system and the associated MISO day-ahead clearings ‒ Forecasted daily totals and hourly profiles • MISO will focus on coordinating with gas pipelines/utilities to develop the most meaningful gas usage aggregations for their gas systems • Illustrative example for a gas pipeline (values in MMBtu): 4 Sharing non-public operational information is consistent with FERC Order 787*. Profiles will provide benefits that promote reliability • To protect non-public information, MISO will execute nondisclosure agreements and notify gas pipelines/utilities of existing FERC rules which enforce protection of non-public information • Gas usage profiles will help gas pipelines/utilities forecast gas demand as part of their daily preparations for system flows • Gas usage profiles improve communication around system conditions and provide further opportunities for advanced dialogue between electric and gas operators • Most relevant in severe weather or contingency conditions when coordination matters the most 5 *Please see appendix for additional information MISO plans to begin sharing gas usage profiles by the end of this year • MISO did not receive stakeholder comments specific to the proposed tariff language which would enable sharing of non-public information with gas pipelines/utilities • MISO filed proposed tariff revisions with FERC on May 5, 2017: Docket No. ER17-1556-000 • Thank you. For any follow-up, please contact: 6 − Mark Thomas ([email protected]) − Scott Wright ([email protected]) Appendix RTOs that provide similar reports cite benefits related to operational reliability, emergency preparedness, and communication • • 8 Comments from gas pipelines/utilities − Hourly gas usage forecasts allow gas pipelines/utilities to forecast large swings in generator demand − Pipelines could use this information to help structure line pack and enhance compression for reliable operations ahead of time Comments from RTOs − Gas usage profiles were instrumental in managing contingency events − Gas usage profiles help enable open operational discussions with gas pipelines/utilities This project is consistent with FERC Order 787 to promote reliability The goal of Order 787 is to promote reliability of both electric and natural gas systems “Communication between transmission operators serve a valuable and necessary purpose to help ensure reliability on both systems.” • “…interstate natural gas pipelines and electric transmission operators need other operational information, including non-public information, in order to reliably manage the operations of these systems.” • § 284.12 Standards for pipeline business operations and communications • (b)***(4) Communication and information sharing among pipelines and public utilities. • (i) A pipeline is authorized to share non-public, operational information with a public utility, as defined in § 38.2(a) of this chapter or another pipeline covered by this section, for the purpose of promoting reliable service or operational planning. • (ii) Except as permitted in paragraph (b)(4)(i) of this section, a pipeline and its employees, contractors, consultants, and agents are prohibited from disclosing, or using anyone as a conduit for the disclosure of, non-public, operational information received from a public utility pursuant to § 38.2 of this chapter to a third party or to its marketing function employees as that term is defined in § 358.3(d) of this chapter. 9 The following disclaimer will be included when MISO sends gas usage profiles to gas pipelines/utilities • MISO and its sources of information do not make any representations or warranties regarding accuracy, integrity, or content quality of the information provided. In no event shall MISO or its sources of information be liable for damages of any kind in connection with the use of the information provided. 10
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