Energy Imbalance Market
Design Overview
Jim Price, Senior Advisor, Market Development & Analysis
California ISO
[email protected]
August 7, 2015, Puget Sound Energy
CAISO Public
Topics for discussion
•
•
•
•
•
•
•
Overview of EIM market offering & benefits
Participant roles involved in EIM
Base schedule, resource plan, & resource sufficiency
Other inputs to market
How bids are used
Market results and settlement
References: links to material beyond what is covered
here
CAISO Public
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CAISO & EIM markets provide a responsive
foundation for matching changes in supply & demand
60 Hz
Load
Generation
Real Time
Market
Day Ahead
Market (CAISO)
Hourly & 15-minute
Scheduling
Hourly market for 24 hours
of next day
As start of real-time (RT) market,
schedule energy and ancillary
services for static hourly
interchange and for 15-minute
intervals
Manage energy flows on
transmission grid with
telemetry and 1-minute
state estimator solutions
Manage congestion using FNM
Update FNM for RT
conditions
Establish energy and
ancillary service schedules
Manage congestion
(transmission access)
using Full Network Model
(FNM)
Determine residual unit
commitment requirements
As one of 4 RT pre-dispatch
processes, establish unit
commitment & advisory
schedules for internal & dynamic
resources
CAISO Public
Dispatch balancing
energy/ ancillary service
3
Energy Imbalance Market is an easily-scalable
extension of real-time market to broader region
• Builds on existing market: automated
dispatch facilitates renewables,
resolves imbalance & avoids
congestion
• Situational awareness enhances
reliability
–
FERC staff paper assessed EIM reliability benefits:
http://www.caiso.com/Documents/QualitativeAssessment
-PotentialReliabilityBenefitsWesternEnergyImbalanceMarket.pdf
• No critical mass required. No exit fees
• Easily scalable, low-cost, low risk,
voluntary option for new participants
• Preserves BAA autonomy, including
compliance, balancing, and reserve
obligations
CAISO Public
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Changing resource mix over the next 10 years
presents new operational challenges
• Over 20,000 MW of wind and solar capacity is expected to be
interconnected by 2020 – Increased supply volatility
• Potential changes to load patterns as a result distributed
generation and electric vehicles – Changing, less
predictable load patterns
• Approximately 18,000 MW of thermal generation will be
repowered or retired by 2020 – Uncertainty surrounding
thermal resources
o Phase out 12,000 MW of coastal plants with once-through
cooling
o Greenhouse gas reductions limit replacement generation
o Water flow management affects hydro availability
CAISO Public
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What benefits can be realized through EIM?
• Inter-regional and intra-regional dispatch cost savings:
– BAAs start the hour with matched generation and forecasted load, but
deviations occur within hours – that is, imbalance energy
– Security constrained economic dispatch automatically resolves imbalance &
avoids congestion, at least cost
• Optimization of unused transmission capacity within participants’
ownership or rights
• Greatest savings with single footprint, but can function even without
transfers
• Flexibility reserves, renewable integration, reduced renewable
curtailment:
– All BAs maintain reserves for contingency events
– Most BAs procure extra flexibility to balance variable supply and demand
– EIM combines geographical diversity of load and resources
•
Increased reliability: Information that improves operational awareness and
responsiveness to grid conditions across a large footprint (difficult to quantify)
CAISO Public
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EIM provides significant net benefits and will operate
in eight western states
PacifiCorp
NV Energy
Puget Sound
Energy
Arizona Public
Service
November
2014
November 2015
Fall 2016
Fall 2016
9,500
8,148
4,912
7,000
~ Annual benefits
(in millions)
$21-$129
$9-$18 (2017),
$15-$29 (2022)
$18-$30
$7-$18
~ Start-up costs
(in millions)
$20
$11.2
$14.2
$13.5
~ Annual ongoing costs (in
millions)
$3
$2.6
$3.5
$4
Go Live
Peak Demand
(MW)
CAISO Public
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Operating benefits over consistent with earlier
benefit analysis, over $21 million for first 8 months
Benefits include:
• Efficient, automated
dispatch, both inter- and
intra-regional, by 15- and
5-minute intervals
• Reduced renewable
energy curtailment through
resource & load diversity
• Reduced flexibility
reserves (measured for
PacifiCorp, to be added in
future reports for CAISO)
• Benefits increase with
more transfer volume
between BAAs and higher
market prices
BAA
Nov-Dec
2014
Jan-Mar
2015
April-June
2015 *
ISO
$1.24 M
$1.45 M
$2.46 M
PACE
$2.31 M
$2.62 M
$3.26 M
PACW
$2.42 M
$1.19 M
$4.46 M
Total
$5.97 M
$5.26 M
$10.18 M
* The April-June 2015 analysis includes
both 15 minute and 5-minute benefits. Prior
reports only quantified 15-minute benefits.
CAISO Public
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Basics of EIM operation & settlement
Base schedule: Forward energy
schedule, including hourly load
forecasts, generation schedules,
and interchange schedules, as the
baseline for EIM’s financial
settlements.
Resource plan: How to balance
A resource is
dispatched at its
location, and is
paid the nodal
price
supply and demand and ensure
resource sufficiency:
• Load, generation, and
interchange base schedules
• Energy bids from participating
resources
• Ancillary service plans
Other data: Outages, metering/
telemetry, transmission capacity
Load pays the weighted
average price of all load
nodes in the Load
Aggregation Point
(LAP)
These examples are not
meant to reflect actual
resource or load locations
CAISO Public
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Several key roles are involved in enabling EIM participation
•
– EIM Entity Scheduling Coordinator coordinates and facilitates EIM for one
or more EIM Entities, and is responsible for resource plans and financial
settlements on behalf of non-participating resources and loads.
– Base Schedule Coordinator submits base schedules and resource plans.
– EIM Transmission Service Provider controls transmission in the EIM Entity
BAA, and voluntarily informs EIM Entity that it is making its transmission
available for EIM.
ESC
•
PRSC
EIM Entity is a balancing authority that enables EIM to occur in its area.
By enabling EIM and coordinating with its area’s loads, resources and
transmission service providers, all load and generation imbalances within
its area will settle through the EIM.
EIM Participating Resource is a resource within the EIM Entity
represented by a Scheduling Coordinator that has voluntarily offers
economic bids for availability in EIM’s real-time market, subject to EIM
Entity’s eligibility requirements.
– EIM Participating Resource Scheduling Coordinator is certified to bid in
ISO markets, submits bid, reports outages, and receives settlements and
invoices.
CAISO Public
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EIM Entities and Participating Resources
determine key aspects of participation
EIM Entity determines:
•
•
•
•
•
•
Eligibility of resource types
(generators, participating loads &
demand response, non-generator
resources, etc.)
Types of eligible dynamic transfers
(dynamic schedules, pseudo-ties)
Eligibility of 15-minute economic
bidding on its interties
Requirements of transmission service
within its BAA
Definition of Load Aggregation Points
Settlement of EIM charges or credits
to entities within its BAA
CAISO Public
EIM Participating Resource
determines:
•
Registration to participate in
EIM
•
Hour-to-hour quantity and
price of economic bids
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The EIM implementation process depends on
information from EIM Entity and EIM Participating
Resources, including:
Agreements
Modeling
(to 3 MW
generator
size for
PacifiCorp)
Metering
and
telemetry
Resource
parameters
12
CAISO Public
Prior to each dispatch, EIM receives a variety of inputs
to automatically assess the entire footprint
Economic benefits
Reliability benefits
CAISO Public
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EIM participants submit base schedules and
resource plans to initiate the market
EIM Entity
Loads
Ba
se
Sch
ed
Base Schedules Visibility
& override
ule
s
Nonparticipating
resources Base Schedules
Participating Base Schedule
resources
- SIBR EIM Base
Schedules
Rules &
workflow
Powerflow
supply/load MW mismatch,
supply and load base schedules,
network flow MW overloads
Balance & Feasibility Results
(balance & feasibility)
C
Real-Time Market
Application
- CMRI EIM Balance &
Feasibility Reports
Financially Binding Base Schedules
Financially Binding Base Schedules
Financially Binding Base Schedules
EIM Entity Scheduling Coordinator has full visibility of all
base schedules.
CAISO Public
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After advisory feedback period, interactive resource
sufficiency evaluation prevents “leaning” among BAAs
Resource
sufficiency
tests:
Balanced
load and
generation?
T-75: Base schedules and energy bids due (Resources)
T-55: Updated base schedules are submitted if necessary (Resources)
T-40: Updated base schedules are
submitted if necessary (Entity SC)
T-20: E-tagging deadline
(Entity SC)
Sufficient
ramping
capability?
15-minute dispatch intervals
(4.5 hour look-ahead)
T
X:00
Free of
congestion?
EIM Market
Participants
X:15
X:30
X:45
Y:00
5-minute dispatch intervals
(65-minute look-ahead)
T-22.5: 15-minute scheduled awards published
T-37.5: Start of Market 1 optimization
T-45: Results of sufficiency test
published
T-60: Results of sufficiency test published (Balanced?
Feasible transmission? Sufficient flexible ramping?)
CAISO Public
Market
Operator
(T = start of the hour)
15
15-minute market (FMM) allows ISO intertie bidding,
using transmission profile on dynamic schedule e-Tag
to manage EIM transfers
Both an overall intertie
scheduling limit and an
EIM transfer limit apply
in FMM
Transmission Profile on e-Tag
ISO
EIM Transfer Limit
EIM Entity
BAA
Only the EIM transfer capacity
offered through EIM Entity is
available in RTD (also constrained
by variable transfer limit)
Biddable nodes
Non-biddable nodes
(non-participating resources)
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CAISO Public
Real-time outputs
CAISO Public
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Market systems for publishing results depend on
purpose of the outputs
CAISO Public
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Automated Dispatch System sends real-time
binding instructions
Energy dispatch to meet imbalance requirements
15-minute reserves, e.g., for flexible ramping
Resource startup and shut down instructions
Dispatch of static system resources
Contingency and exceptional dispatches
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CAISO Public
Participant-specific market results are available in
Customer Market Results Interface, through Market
Participant Portal (https://portal.caiso.com/)
CMRI – Market results – MW
Market results - $
Base schedule information
CAISO Public
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Oasis.caiso.com provides extensive public
information
Prices
Energy
•
•
•
•
Locational marginal
prices
Constraint shadow prices
Fuel and reference prices
Transmission
•
•
•
Available capacity
Usage
Outages
•
•
•
•
•
Load and resource
schedules
Exceptional dispatch
Market power mitigation
Resource adequacy
Virtual bidding
Losses
System demand
Congestion
revenue rights
•
•
•
•
Demand forecasts
Wind & solar forecasts
Auction clearing prices
Inventory of awards
Ancillary services
Public Bids
•
•
•
•
Reserve requirements
Market awards
Actual reserves
Market bids with certain
fields masked, with 90-day
delay
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CAISO Public
The ISO settles with scheduling coordinators, who allocate
payments and charges to the appropriate customers.
Market Operator settles
deviations of EIM
Participating Resources
from base schedules at
LMP of resource locations.
For resources that do not
participate in EIM, Market
Operator settles with EIM
Entity Scheduling
Coordinator, who is
responsible for settlement of
deviations from their base
schedules.
22
CAISO Public
Real-time energy charge codes reflect cost causation.
Primary settlement: instructed and uninstructed imbalance
energy.
Illustrative set of common charge codes (See
http://www.caiso.com/Documents/ChargeCodeMatrix-EnergyImbalanceMarket.xls
for further detail)
Instructed Imbalance Energy (IIE)
Uninstructed Imbalance Energy (UIE)
Other settlements
Bid Cost Recovery (ensures resources recover daily RT
costs, recovered within BAA with EIM Transfer considered)
Unaccounted for Energy (UFE)
Congestion Offset (neutrality accounts by BAA)
Marginal Losses Offset (neutrality accounts by BAA)
Imbalance Energy Offset (can shift costs or payments
between BAAs based on EIM Transfers)
Greenhouse Gas Emission Cost Revenue
EIM Administrative Charge ($0.19/MWh imbalance energy)
CAISO Public
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When resources deviate from dispatches (or
base schedules), other resources must be
dispatched to maintain balance.
Instruction 10 MW
Instruction 10 MW
Meter = 12 MW
Uninstructed
Imbalance
Energy = 2 MW,
as payment for
delivered energy
Meter = 7 MW
Uninstructed Imbalance
Energy = -3 MW,
charged to resource for
undelivered energy
Instructed imbalance energy is the energy in dispatch
instructions, then uninstructed imbalance energy is the
difference between the dispatch and meter.
CAISO Public
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Settlement statement timeline provides prompt
clearing, with later changes limited to
unresolved disputes or FERC decisions
• Initial settlement statement – T+3B (uses estimated settlement
meter data)
• Recalculation settlement statement – T+12B, T+55B
– Disputes due T+26B, T+77B
• Recalculation settlement statement – T+9M through T+36M
(optional)
– Disputes limited to only incremental charges
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CAISO Public
Recap: EIM extends ISO‘s real-time market
experience and systems to EIM participants
• Optimized 15- and 5-minute interval dispatch accounts
for operating characteristics and constraints of
participating resources as well as the underlying
transmission
• Multi-interval look-ahead horizons anticipate changes
in system conditions and ensure flexibility of dispatch,
to efficiently manage system balance and congestion
• Short-term unit commitment allows efficient economic
dispatch, recognizing state-of-art renewable energy
forecasts, hydro limits, complexity of resources like
combined-cycle, and other factors
• The result is efficient use of transmission offered by
EIM participants & cost reduction to consumers
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CAISO Public
What changes for reliability entities?
If you are:
Balancing Authority
• Current NERC and WECC responsibilities
will not change
• May commit resources as they do today
• Manage interchange tagging
• Will be EIM Entities
• Will submit balanced schedules to the
Market Operator
• Will communicate with Market Operator
about outages and operating limits
Transmission Owner,
• TSP determines available transmission
Transmission Operator,
capability (ATC) and prior commitments,
Transmission Service
to inform Market Operator of capacity
Provider (TSP)
available for EIM Transfers
• No other change in role or responsibilities
CAISO Public
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What changes for market participants?
If you are:
Utility affiliated with EIM
Entity
• Submits load and resource information to
Market Operator as well as EIM Entity BA
Other Utility in EIM Entity
BAA
• Submits load and resource information to
Market Operator as well as EIM Entity BA
Resource (e.g., merchant
generator) in EIM Entity
BAA
• If electing to participate in EIM as an EIM
Participating Resource
• Communicate availability through SC
• Provide outage information to Market
Operator as well as EIM Entity BA
• Respond to dispatch instructions
Scheduling Coordinator
• Submits bids and schedules for EIM
participants
• Receives settlement statements and invoices
from ISO
CAISO Public
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Resources available for EIM
• CBT - Introduction to the Energy Imbalance Market
This Computer Based Training provides a high level overview of the Energy
Imbalance Market
http://content.caiso.com/training/Introduction%20to%20EIM/My%20Articulate%20Projects/Introduction%
20to%20the%20Energy%20Imbalance%20Market/player.html
• CBT - How the Energy Imbalance Market Works –
This Computer Based Training describes the roles and responsibilities of the key
players in EIM and the business processes that will take place.
http://content.caiso.com/training/HowEIMWorks/player.html
• EIM Stakeholder processes and tariff filings
http://www.caiso.com/informed/Pages/StakeholderProcesses/EnergyImbalanceMarket.aspx
• EIM Business Process Manual
http://bpmcm.caiso.com/Pages/BPMDetails.aspx?BPM=Energy Imbalance Market
CAISO Public
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Additional
Information
CAISO Public
California ISO is one of 9 ISO/RTOs in North America,
providing open, non-discriminatory transmission access
Responsibilities:
• Reliability, grid planning, outage coordination
• Market development, operations, monitoring
23% renewables
(biogas, biomass,
geothermal, small hydro,
solar, wind)
10% nuclear
7% large hydro (2014 drought,
more commonly ~14%)
<1% coal
<1% oil
59% natural gas
CAISO manages approximately 80% of California’s
electricity load
– 50,270 MW record peak demand (7/24/2006)
– $8.5 billion annual market (2012)
– 60,703 MW in-state power plant capacity
– 16,470 MW import capacity
– 26,024 circuit-miles of transmission lines
– 30 million people served
– 246 million annual megawatt-hours of electricity
delivered (2012)
– 38,000 generation & transmission outages per
year
– 26,500 market transactions per day
CAISO Public
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EIM Transitional Committee is finalizing a governance
proposal for EIM matters
Issue
Straw
Paper Proposal
Jan 2015
Revised
Proposal
Spring
TC
Approval
ISO
Board
Approval
Summer
Governance
Implementation
Fall 2016
• Transitional Committee is an advisory committee to ISO Board
consisting of 13 members
• The committee is following an iterative stakeholder process for the
development of the governance proposal
• Transitional Committee’s proposal to be finalized in August and
presented to the ISO board in September. It outlines:
o
o
o
o
o
relationship between ISO Board and EIM body
nature and degree of the influence over EIM rules
makeup and criteria for board members
process for selecting new members
formation of an advisory body of state regulators
CAISO Public
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Changing resource mix leads to changes in pattern of net
load for dispatch, with new needs for market products
Load, Wind & Solar Profiles -- Base Scenario
January 2020
34,000
30,000
6,700 MW in
3-hours
7,000 MW in
3-hours
8,000
7,000
28,000
6,000
26,000
5,000
24,000
12,700 MW
in 3-hours
22,000
20,000
4,000
3,000
18,000
2,000
16,000
1,000
14,000
0
Net_Load
Load
Wind
Wind & Solar (MW)
Load & Net Load (MW)
32,000
9,000
Total Solar
Net Load = Load - Wind - Solar
CAISO Public
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New events (like negative energy prices indicating
risk of over-generation) introduce new opportunities
for economy energy, load management, etc.
ISO's Net Load vs. Average 5-Minute Energy Prices
April 12, 2014
22,000
80
21,000
60
40
19,000
18,000
20
17,000
0
5-Minute Energy Prices ($)
ISO's Net Load (MW)
20,000
16,000
-20
15,000
14,000
0
1
2
3
4
5
6
Net Load
7
8
9
10
MCP_RTD
11
12
13
14
15
5-Min_Prices<=Zero
16
17
18
19
20
21
22
23
-40
5-Min_Prices>$100
Example, April 12, 2014:
Coincident 8300+ MW of wind & solar was 35% of total 23,450 system
load, dropping net load to 15,000 MW.
With limited decremental bids, energy prices were zero or negative
(blue dots) for 43% of 5-minute RTD intervals.
CAISO Public
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Market Operator (ISO) determines load and
resource forecasts, and runs and settles the market.
• Initial optimization starts
to manage congestion
and refine inputs
• Market optimization
ensures physical
resource feasibility by
refining network
constraints, iterating
between network
analysis and
optimization
• Optimization uses Mixed
Integer Programming
CAISO Public
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ISO markets build on full network model & energy
management system (EMS) state estimator
Detailed network model
is foundation for grid
(EMS) & market
operations:
• Both model Western
region, mostly the same
• Real-time market starts
from current state
estimator solution
o 167,000 telemetry data
points, including 17,000
for PacifiCorp, adding
11,000 for NV Energy
o State estimator solves
every minute, including
contingency analysis
CAISO Public
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Day-ahead advisory process for EIM runs with ISO’s
market, for feedback on feasible scheduling
The process begins 7 days before the operating day.
EIM Entity SC may submit demand forecasts to the ISO.
The ISO provides hourly demand forecasts to the market.
By close of ISO’s day-ahead market, EIM Entity BSC submits base
schedules for participating and non-participating resources to the
Market Operator.
ISO’s day-ahead market models EIM Entity BAA
and informs EIM Entity of issues to address..
10:00
1:00
37
CAISO Public
Building on FERC Order 764 with financially binding
15- and 5-minute functions promotes market efficiency
CAISO
EIM
Base Schedule
(basis of financial
settlement)
Day Ahead Schedule
15-Minute Unit Commitment
& Energy Schedule, and
Incremental AS Awards
15-Minute Unit
Commitment & Energy
Schedule
5-minute Real-Time Dispatch
Settlements apply to incremental changes from previous market process
CAISO Public
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EIM Entity’s base schedule should be
balanced prior to start of real-time market
Demand (load, exports, & losses)
=
Resource plans: base schedules
– Self-scheduled resources
– Base generation schedules
– Intertie schedules
Resource plans also include:
– Ancillary services reservations protected
from dispatch
– Operational characteristics (e.g., ramp rate)
– Economic Bids
Base schedule must be balanced or they will be adjusted prior to start of EIM.
CAISO Public
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Under- and over-scheduling penalties provide
incentives for balanced base schedules
• No exposure to penalty if EIM Entity using Market Operator forecast
– If Market Operator demand forecast differs from EIM Entity SC base
schedule supply by >1%, then deemed to be using own forecast and
subject to penalties
• If EIM Entity is using own load forecast for base schedule
– If load imbalance exceeds 5% (but at least 2 MW) of actual demand,
then
• Price for excess demand = 125% of the LAP’s Locational Marginal Price
(LMP)
• Price for excess supply = 75% of applicable LMP
– If load imbalance exceeds 10% of LAP, then
• Price for excess demand = 200% of the LAP LMP
• Price for excess supply = 50% of applicable LMP
• Revenue collected over day allocated to EIM Entities that have not
incurred a scheduling penalty in any hour of the day
CAISO Public
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Energy bids provide the ability to cover
fluctuations in load.
$/MWh
$50
$40
$35 Clearing price
Economic Bid
$30
$20
$10
Bid range
MW
20
25
30
35
CAISO Public
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45
50
55
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Economic bids in resource plan ensure real-time balance,
feasibility and flexibility of deviation from base schedules
Actual
operation
Hourly base schedules
(Forward energy schedule;
including hourly generation and
interchange schedules, as a
baseline for financial settlements).
Base schedules must be within economic bid
ranges (e.g., the base schedule for a
participating resource with a bid from 10 to
100 MW could not exceed 100 MW.)
CAISO Public
Bid
range
Resource Plan:
Available
resources to
balance supply
and demand
and evaluate
resource
sufficiency.
Comprised of:
• Load,
generation and
interchange
base schedules
• Energy bids
from
participating
resources
• Ancillary service
plans
42
Along with forecasts & market inputs, current
operational data are also needed: metering, outages,
transmission
• Telemetry data is communicated from the EIM Entity to the
Market Operator via ICCP.
• With implementation of the EIM, ISO allows scheduling
coordinators and other entities submitting meter data for EIM
resources to submit meter data in the following granularity
levels:
a) Generation for participating generators at 5-minute
intervals; non-participating generators at 5, 15 or 60minute intervals.
b) Interties at 5-minute intervals.
c) Load at 5, 15 or 60-minute intervals.
• Metering standards are determined by local regulatory
authority.
CAISO Public
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Given the inputs, market determines optimal dispatch and
resulting 15- & 5-minute locational marginal prices (LMPs)
• Energy: Changes in system demand and
supply cause incremental dispatches.
Uniform system energy price differs by
location due to congestion and losses.
• Congestion: Due to limited transmission
capacity or outages, lowest-priced electricity
can’t flow freely
Locational
Marginal
Price
($/MWh)
Supply bids
• Loss: Energy is lost as it flows through the
grid. LMPs include incremental change when
serving additional load.
• Greenhouse Gas: California regulations
apply to resources that serve load in CAISO
BAA. Optimization dispatches for least cost,
recognizing compliance costs. GHG
component compensates resources and
avoids charges to non-CA load. Separate bid
component shows availability for dispatch.
CAISO Public
Market
Clearing
Demand
44
Real-Time Economic Dispatch (RTD) meets
energy balance in 5-minute intervals
45
CAISO Public
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Ramping capacity ensures sufficient flexibility in RTD to
manage the probability of varying grid conditions, and
enable sharing of diversity
Flexible ramping:
• Secures ramping capability in 15minute market & RT dispatch
• Forward-looking procurement,
considering future uncertainty
• Compensates resources whose
dispatch is held back in financially
binding interval to meet future
ramping needs
• Allocates costs to movement that
requires others to beEnergy
dispatched
Energy
Product enhancements (Fall 2016):
• Add bidding & flexible downward
ramping
• Replace flexible ramping
constraint compensation & cost
allocation
CAISO Public
46
Real-time self-schedules (e.g., forecasted VER
output, e-tag curtailments, reloads) may be updated
before 15-minute intervals
T-37.5: FMM Optimization Starts
T-22.5: FMM Energy Schedule Awards
T-5: FMM Energy Schedule e-Tag Deadline
20
Minutes
T
FMM interval
37.5 Minutes
T-40: Schedule change can be reflected in
FMM dispatch, as instructed imbalance energy
Intertie changes up to 20 minutes before 15-minute intervals are allowed
but may be limited by e-tag’s transmission reservations.
Any difference between the FMM intertie schedule and change in selfschedule will be settled at the RTD price, not FMM price, until FMM can
recognize schedule change. .
CAISO Public
47
Price stability after November 14 shows importance of
current knowledge of outages, operator response, and
sufficient available resources
15-minute Market Aggregate Price,
PacifiCorp West
15-minute Market Aggregate Price,
PacifiCorp East
Waiver
effective
Waiver
effective
48
CAISO Public
Various factors caused PacifiCorp’s initial MW
undersupply
• Outages, derates/rerates management
• Timely informing the market about out-of-market actions impacting
energy balance
• Wind forecast accuracy and managing wind deviations
• Data and software issues
• Within the hour interchange schedule variations
• Load forecast variation and load biasing coordination
• Network and resource model discrepancies
• 5 minute rate of change constraint on some transmission
interfaces
Waiver of pricing rules let prices be set by economic bids rather than
constraint violations. CAISO is proposing ongoing transition
mechanism and readiness criteria for new EIM Entities.
CAISO Public
49
Outage rates for participating gas and coal capacity in
PacifiCorp West averaged about 10 percent
CAISO Public
50
Outage rates for participating gas and coal
capacity in PacifiCorp East averaged about 15
percent – but much higher in some hours
CAISO Public
51
Transmission service uses simple principles
• EIM Entities make transmission capacity available through dynamic
e-Tag and transmission registry:
– EIM Participating Resources can offer contracted capacity, and EIM
Entities offer unsold capacity – confirmed through standard dynamic e-Tag
– Network service within EIM Entities allows redispatch up to network
capacity
– EIM coordinates transmission usage with EIM participants’ Transmission
Service Providers (e.g., Bonneville Power Administration (BPA) in
PacifiCorp’s case)
– EIM transfers respect both scheduling rights and actual flow constraints.
– ISO constantly updates EIM Entities’ NSI to reflect EIM transfers
• Reciprocity: To consider bids equally on economic merit, initial
design proposed no incremental charge for transmission for EIM
transfers between EIM Entities
– EIM maintains existing transmission rate structures within EIM Entities
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For PacifiCorp, separate static and dynamic schedules
manage EIM transfers within variable transfer limits (VTL)
Illustrative
example:
TR rights
available for
EIM = 200 MW
VTL = ±50 MW
Static e-Tag
TR = 150
En = 145 = FMM
Dynamic e-Tag
TR = 50
En = 50 (updated
after the hour)
• Before bid closure, PacifiCorp creates dynamic and
static e-tags across COI with transmission profiles for
maximum allowed EIM flows on COI.
• EIM produces 15-minute awards at T-22.5 minutes for
each FMM interval, updates the static e-tag (four
times per hour), then issues 5-minute dispatches
within these intervals within BPA’s VTL limits.
• After the hour, the dynamic e-Tag’s energy profile is
updated to the hourly average of 5-minute dispatches.
Results Published
T-22.5
FMM run starts at T37.5 using 15-minute
Limit = 150
En=145 En=140 En=140 En=150
FMM Intervals
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EIM year one enhancements are pending at FERC
• Scalability of EIM design:
– Optimal management of multiple EIM transfer limits
– Flexible ramping constraint BAA combinations
• Compliance with 6/19/2014 FERC Order:
– Greenhouse Gas flag and cost based bid adder
• Implementation details:
– EIM administrative charge redesign
– Administrative pricing rules (price to use in market
disruption)
– Settlement rules for non-participating resources
• Phase 2 (just started) will consider transmission usage
charges plus other enhancements
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