CAPACITY LIMITED
RESOURCES (CLR)
/
ENERGY LIMITED
RESOURCES (ELR)
1
INTRODUCTION
î
A new bidding mechanism is available for
qualified generators which allows them to
offer generation in the New York market
which is either limited in availability or
difficult to obtain at the top of its operating
range.
î Being registered as a CLR and, if
appropriate, an ELR offers generators
special balancing energy and ICAP
consideration while making energy and/or
capacity available to the markets.
The information contained in this presentation was primarily
obtained from Technical Bulletin #76, which has been developed in
conjunction with the implementation process associated with the
activation of the CLR/ELR provisions scheduled for
implementation in September, 2001.
Additional information was obtained from the cover letter
associated with the FERC filing on CLR/ELR dated June 29, 2001
and prepared by Ted Murphy of Hutton & Williams as well as
review by the NYISO Customer Relations Department.
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INTRODUCTION
(Cont.)
î
This presentation is accompanied by a
narration; it is important to view the slides
in the context of the provided dialogue.
î A print copy of the presentation is
available from the same web site as this
presentation.
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Definition of CLRCapacity Limited Resource
î
Generation unable to readily provide
energy at the top of the unit’s operating
range for operational or plant
configuration reasons, except for
emergency situations
î Examples of generation possibly
qualifying:
§
§
§
§
Steam units
Combined Cycle units
Gas Turbines
Run-of-River Hydro
To begin this presentation it is necessary for us to understand what
CLRs and ELRs are. CLR is the acronym for Capacity Limited
Resource and represents capacity at the top of a generator which
for some defined reason is not readily available as energy.
Examples of generation which may qualify as Capacity Limited
Resources include:
Steam units which may require such actions as removal of auxiliary
equipment or limited as a result of cooling water temperatures.
Combined Cycle and GT’s for limits resulting from ambient air
temperature
and for run of river hydro, water availability.
4
Definition of ELREnergy Limited Resources
î
Generation with limiting factors affecting
their ability to operate continuously on a
daily basis
î Limitation on total amount of energy
produced over a period of time
§
î
Has ability to operate for a minimum of 4
consecutive hours each day
Subset of CLR classification
An ELR or Energy Limited Resource is generation which has a
limiting variable which prevents the unit from operating
continuously on a daily basis but IS able to operate for at least four
consecutive hours each day.
An ELR is a subset of a CLR with unique settlement and operations
rules.
5
Definition of ELR (cont.)
î
Limiting Factors include:
§
§
§
î
environmental restrictions (NOx/SOx Averaging)
cyclical requirements (need to recharge or refill)
other non-economic reasons
Units which may qualify as ELR:
§
Hydro with storage capability (pondage) to include
pump storage facilities
I PURPA units wishing to qualify may not be able to
retain their PURPA status
§
facilities impacted by 24-hour NOx/SOx Averaging
The limiting factors affecting an Energy Limited Resource may
include environmental restrictions, specifically, generation affected
by NOx or SOx averaging. Cyclical requirements such as refilling a
water reservoir and other non-economic reasons.
The best examples of units possibly qualifying as ELRs are Hydro
facilities with storage capability and the generation affected by
NOx or SOx averaging.
PURPA units should be aware that in qualifying as an ELR, they
may be placing their status as a qualifying PURPA unit in jeopardy.
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PURPOSE
î
To allow CLR/ELRs to submit bids that
accurately reflect their ability and
willingness to generate above their Upper
Operating Limit
î To better accommodate generation units
with limitations on their ability to operate
for:
§
§
î
sustained periods of time
a portion of their upper operating range
Enable generation the ability to offer ICAP
capacity (including emergency capacity)
in an economically rational manner
There are several reasons why the NYISO has implemented
CLR/ELR bidding provisions. The market now better
accommodates and reflects the limitations which are common to
much generation.
It provides ICAP suppliers with a realistic means of bidding their
generation into the Day-Ahead market and allows generators to
offer their full available capacity into the Day-Ahead Market
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PURPOSE (Cont.)
î
Provides ISO Operations with an accurate
expectation of generation actually
available
§
§
î
increase supply available during emergencies and
tight supply
enhance efficiency of scheduling and dispatching
decisions
Enhancement of the NY energy market
It provides NYISO operations with a good idea of our true
generation resources available during periods of tight capacity.
And CLR/ELR is intended to permanently correct bidding protocol
problems experienced in the past…It enables suppliers’ to submit
bids that are indicative of their increased operating and
maintenance cost in this region.
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Registration for CLR/ELR
î
To qualify as a CLR and/or ELR,
registration must be requested in writing
through NYISO Customer Relations.
î Submission of two Operating Curves
§
§
î
A few generators may qualify to be
registered as BOTH a CLR & ELR
§
î
Normal Upper Operating Limit with significantly
impacting variable (e.g., ambient air temperature)
Maximum Upper Operating Limit with significantly
impacting variable
daily settlement will be either as a CLR OR ELR
Details available in Tech Bulletin #75
Generator wishing to qualify as a CLR or ELR must first submit a
request in writing to the NYSIO Customer Relations. The
registration will include two Operating Curves; one showing the
Normal Upper Operating Limit of the unit as the significantly
impacting variable (e.g., ambient temperature) changes. The
second, showing the MAXIMUM Upper Operating Limit as the
same variable changes.
Generators qualifying as ELRs also qualify as CLRs but, in any
given day, receive special treatment rules under only one of the
classifications.
For more details on the Registration process, review Tech Bulletin
#75
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Normal Upper Operating Limit
(UOL)
î
Registered upper limit for regular and
continuous operation
î Limit above which lies the CLR/ELR
capacity
î May vary hourly, daily, seasonally, in
response to a “significantly limiting
variable”
§
§
§
Air/WaterTemperature
Pondage
River flow
Normal UOL represents the upper operating limit that a generator
desires not to exceed for one of a variety of variables affecting the
units generation send-out.
Capacity/Energy above the Normal UOL represents the generators
capacity or energy limited resource.
A generators Normal UOL may vary as frequently as each hour due
to a significantly limiting variable such as ambient air/water
temperature, water pondage or river flow.
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CLR Normal UOL
î
Upper limit for regular and continuous
operation
î Limit above which lies the CLR capacity
î Normal UOL Curve
§
§
recognizes and defines the impact of a
“significantly limiting variable” on a unit’s Normal
UOL
Day-Ahead Bid UOL is to be based on reasonable
forecast of limiting variable and Normal UOL curve
A Capacity Limited Resource’s Upper Operating Limit represents
the unit’s upper limit for regular and continuous operation or, the
limit above which lies the CLR capacity.
CLR classification recognizes that the Normal UOL may fluctuate
due to a “significantly limiting variable” which is what the Normal
UOL Curve should reflect as accurately as possible.
When a CLR unit is bid in the Day-Ahead Market, the Bid UOL
should be based on a reasonable forecast of the limiting variable
and its impact on the Upper Operating Limit.
11
ELR Registration
î
Requires a description of the unit’s
physical energy limiting characteristics
î Magnitude of the feasible energy output
î Bidding ELR Normal Upper Operating
Limit
§
For special treatment of energy imbalance, sum
of hourly bid UOL’s should not exceed the unit’s
feasible energy output for the day
An Energy Limited Resource is a subset of CLR with some unique
settlement and operations rules.
An ELR application includes a description of the unit’s physical
energy limiting characteristics, as well as the magnitude of the
feasible energy output of the unit.
Bidding an Energy Limited Resource will require careful
management of a daily schedule. This will be expanded upon later
in this presentation.
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Normal UOL Curve
î
Submitted as part of CLR registration
î Accurately reflects the effect of the
“significantly impacting variable” has on
the Normal UOL
î Curve is to be applied when populating
the Upper Operating Limit field of the
Generator Bid for each hour- Bid UOL
§
§
use a reasonable forecast of significant variable
Normal UOL Registration Curve
See slide #16
500
495
M 490
W
485
480
475
0
20
40
60
80
100
Temp
It is expected that a generator will use the Normal UOL curve
provided for registration, and a reasonable forecast of the
significant variable for the energy hour being bid, to arrive at a
Normal UOL bid for each hour in the DAM.
The Normal UOL is entered in the “Upper Operating Limit” field
of the generator bid is referred to as the Bid UOL
The diagram on Slide #16 shows where this value is placed.
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Maximum UOL
Upper Operating Limit
î
The absolute maximum amount of energy
that a CLRis capable of producing
§
§
î
limited periods of time
may require plant configuration changes
May fluctuate hourly in response to
“significantly impacting variables”
The Maximum UOL represents the absolute maximum energy that
a CLR is capable of producing and like the Normal UOL, may also
vary hour to hour due to a significantly impacting variable
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Maximum UOL Curve
î
Submitted as part of CLR registration
î Accurately reflects the effect that the
“significantly impacting variable” has on
the Maximum UOL
î Curve should be applied when populating
the last point in the bid curve of the
Generator Bid each hour- Bid Maximum
UOL
Max UOL Registration Curve
525
§
See next slide
520
M 515
W
510
505
500
0
20
40
60
80
100
Temp
Registration information also requires a curve of the Maximum
UOL value versus the significantly impacting variable.
When entering the Maximum UOL in the generator bid the value
selected should accurately reflect the Maximum UOL curve
submitted.
The next slide demonstrates where the Bid Maximum UOL is
placed on the bid form.
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Normal UOL Registration Curve
Max UOL Registration Curve
500
525
495
520
M 490
W
485
M 515
W
510
505
480
500
475
0
20
40
60
80
100
0
20
40
60
80
100
Temp
Temp
BID UOL
BID MAX
UOL
The Normal UOL is entered in the “Upper Operating Limit” field
of the generator bid is referred to as the Bid UOL
You enter the Maximum UOL in the generator bid as the last point
on the bid curve. This final value entered in the generator bid
curve is referred to as the “Bid Maximum UOL”
16
Bidding ICAP Under
ELR/CLR
î
ICAP providers are required to bid at least
their contracted ICAP in the Day-Ahead
Market
î Bid Maximum UOL may be less than the
ICAP contract
§
§
must accurately reflect the Max UOL curve using a
reasonable forecast of the impacting variable
subject to review for possible ICAP deficiency
As a registered CLR or ELR unit, a generator may not be required
to enter a Maximum Upper Operating Limit equal to its ICAP
contract.
The bid Maximum UOL may be less than the contracted ICAP of a
unit provided it accurately reflects the registered Maximum UOL
curve with a reasonable forecast of the impacting variable.
If the Bid Max UOL does not accurately reflect the curve
submitted, the generator may be found to be deficient in fulfilling its
ICAP obligation.
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CLR/ELR schedule
î
SCUC may schedule energy and/or
reserves up to Bid Maximum UOL for up to
all hours of day if “economic”
î BME may schedule energy and/or
reserves up to the BME Bid UOL
Generators will not be scheduled above the BME Bid UOL in the
Hour-Ahead or Real-Time Markets
The bid UOL passed to BME will be the greater of the DAM Bid
UOL or the DAM schedule.
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CLR/ELR Scheduled in the
DAM
î
Units scheduled at or below Bid UOL in
the DAM will have a BME UOL that is equal
to the DAM Bid UOL.
î Units scheduled above the DAM Bid UOL
will have a BME Bid UOL that is equal to
the DAM schedule.
In other words, if a unit is not scheduled above it’s bid UOL in the
Day-Ahead market, the upper operating limit fed to the Balancing
Market Evaluation and Real-Time SCD is the Bid UOL as
submitted by the bidder.
If after the close of the DAM, SCUC schedules generation ABOVE
the units Bid UOL, then that Day-Ahead schedule becomes the
BME Bid UOL. The software will not schedule the generator above
that point in the Hour-Ahead Market and will not be dispatched in
Real-Time above that level as well.
19
CLR Derate
î
Generator Operator may request a CLR
derate
§
§
§
§
§
§
operation above DAM Bid UOL non-attainable
specify hours of requested CLR derate
request must be made the later of 2 p.m.,dayahead, or three hours following SCUC post time
CLR derate granted by ISO upon request
CLR derate limited to DAM Bid UOL level
derates in below the DAM Bid UOL will be treated
as a normal derate (without special settlement
treatment for imbalance)
If a CLR generator receives a Day-Ahead schedule above its Bid
UOL, and the generator’s operator determines that the schedule is
not attainable, he will have a minimum of three hours to notify the
ISO through their Transmission Operator. He must specify the
hours he is requesting the CLR derate and, to obtain special
treatment, the request must be specifically identified as a CLR
DERATE.
The request for the derate will be granted by the ISO. However,
requested derates below the DAM Bid UOL will not receive special
treatment for the settlement of Real-Time imbalances.
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CLR Derate (cont.)
î
Results of Derate
§
§
BME Bid UOL set to CLR Derate/ used in R-T
Energy, Regulation & Reserve imbalances will
be balanced at the DAM clearing prices
I limited to Bid UOL MWs
I derates in excess of the Bid UOL settled at Real-Time
clearing prices
§
§
DAM Bid UOL reviewed by the Market Monitoring
Unit
DAM Bid UOL subject to adjustment for billing
purposes, if found inconsistent from Normal UOL
Curve
As a result of a CLR derate, the BME Bid UOL of the unit will be
set to the derated value and the unit will not be scheduled above this
point in the Hour-Ahead Market or dispatched in Real-Time above
the derate.
Energy, Regulation and Reserves scheduled Day-Ahead but not
provided due to the CLR derate will be balanced at the Day-Ahead
clearing prices which means the unit will neither be rewarded nor
penalized for the derate.
CLR derates will be reviewed by Market Monitoring. If the DAM
Bid UOL is not considered to be indicative of a reasonable estimate
derived from the supplied Normal UOL curve, the generator will
have its DAM Bid UOL adjusted to a reasonable value from the
Normal UOL curve for billing purposes.
21
ELR Scheduling
î
If an ELR’s DAM schedule exceeds its
energy limitation
§
§
Gen operator must manage hourly schedules via
CLR derates to re-schedule within the unit’s
energy limitation
Derate can be no greater than DAM bid UOL for
receipt of special balancing treatment
I Bid UOL for ELR should reflect the lowest value unit
may need to take a CLR derate in any hour
§
Value of DAM bid UOL is important
If an Energy Limited Resource’s Day-Ahead schedule over a day
exceeds its energy limitation, then the scheduling and settlement
rules for CLR’s will apply.
When an ELR qualified unit requests schedule relief by means of
one or more CLR derates, the value of the Bid UOL becomes very
important. In order to receive the benefits of the special settlement
rules, the unit can not be derated below the DAM Bid UOL
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NYISO INITIATED ELR
SCHEDULE CHANGES
î
ISO determines schedule changes
§
§
î
Generator operator notified via their TO
Used to prevent/address a system emergency
May schedule operation above DAM bid
UOL for up to 4 continuous hours
§
§
§
CLR derates lifted for affected hours
Raise BME and RT limits to the altered DAM
schedule
NYISO changes will not subject unit to financial
harm from the obligation to cover energy
balancing charges.
The NYISO may notify the ELR generator operator that the
NYISO requires operation above the DAM Bid UOL for a
maximum of 4 consecutive hours of the ISO’s choosing. Notification
may be by Email and/or through the BME schedule posting.
Any existing CLR derates are lifted for the selected hours, and the
BME Bid Limit and/or Real-Time limit are raised to the ISO
altered DAM schedule.
The intent of the ELR rules is to ensure that a unit whose schedule
is modified by the ISO will not be subjected to any financial harm
from the obligation to cover energy balancing charges.
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NYISO ELR SCHEDULE
CHANGES (Cont.)
î
For hours when modified schedule is
LESS than original schedule:
§
§
î
unit derated for ELR purposes
BME and RT schedules set to ELR derated UOL
For hours when modified schedule is
GREATER than original schedule:
§
§
generator is set “Out-of-Merit”
BME and RT schedules set to modified schedule
MWs
When the ISO reduces an hour’s schedule, the unit will be derated
for ELR purposes and both the BME and R-T schedules will be set
at the ELR derated UOL
When the ISO increases an hour’s schedule, the unit will be set
“Out of Merit” and both the BME and R-T schedules will be set at
the modified schedule
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Balancing Rule for ELR
Derates
î
Special balancing rules apply whenever an
ELR derate occurs
§
ELR generators are held financially harmless for
the day if their total margin for energy, regulation
and reserves with the modified schedule is less
than their anticipated day-ahead margin
I the margin is defined as the difference between the
generator’s accepted bid and LBMP
For any day in which there is one or more hours of ELR derate,
Special balancing rules apply. The cost of imbalance, in excess of
the DAM Bid UOL MW value will be capped in order to preserve
the unit’s anticipated Day-Ahead Margin over all 24 hours of the
day.
25
Emergency Operating
Procedures
î
NYISO anticipated capacity shortage in
coming hours
§
§
î
announcement of pending shortage posted on
website
All Bid UOLs raised to BME Bid Maximum UOL for
Hour-Ahead scheduling and Real-Time dispatch
Real-Time Capacity shortage
§
§
announcement of shortage posted on website
All Generator UOLs moved to their Maximum
UOLs for Real-Time dispatch
Generation not scheduled above its Bid UOL in the DAM, will not
be scheduled above that point in the HAM or R/T. However, with a
capacity shortage, NYISO Operators may implement Emergency
Operating Procedures and intervene by manually raising these
limits. If the NYISO anticipates an upcoming shortage, NYISO
operations will post an announcement informing MPs of the
pending capacity shortage and alert generators that their Bid UOL
will be raised to their BME Bid Maximum UOL.
When a capacity shortage occurs in R/T, an announcement will go
out to the market and all generators UOLs will be raised to their
Maximum UOL for R/T dispatch
26
Market Participants are
encouraged to reference Tech
Bulletin #75 for information
regarding Registration for
CLR/ELR
Tech Bulletin #76 may be
referenced for the details and
scheduling rules covered in this
presentation
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