Draft Final Proposal Stakeholder Meeting Megan Poage Sr. Market - - PowerPoint PPT Presentation

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Draft Final Proposal Stakeholder Meeting Megan Poage Sr. Market - - PowerPoint PPT Presentation

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Imbalance Conformance Enhancements (ICE) Draft Final Proposal Stakeholder Meeting Megan Poage Sr. Market Design Policy Developer February 6, 2018 ISO PUBLIC ISO PUBLIC Agenda Time Topic Presenter 10:00 10:05 Welcome and

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ISO PUBLIC ISO PUBLIC

Imbalance Conformance Enhancements (ICE) Draft Final Proposal – Stakeholder Meeting

Megan Poage

  • Sr. Market Design Policy Developer

February 6, 2018

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ISO PUBLIC

Agenda

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Time Topic Presenter 10:00 – 10:05 Welcome and Introductions Kristina Osborne 10:05 – 10:30 Imbalance Conforming

  • Scope Changes
  • Stakeholder Comments
  • ISO Response

Megan Poage 10:30 – 11:00 Imbalance Conformance Limiter

  • Scope Changes
  • Stakeholder Comments
  • ISO Response

Megan Poage 11:00 – 11:30 Data Analysis Megan Poage 11:30 – 12:00 Questions & Next Steps Kristina Osborne

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ISO PUBLIC

IMBALANCE CONFORMING

Imbalance Conformance Enhancements

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ISO PUBLIC

Scope related to conforming has been expanded based on stakeholder feedback

  • Original Scope:

– Clarification of the ISO’s authority to conform for imbalance in the real-time market, and – Clarification of the ISO’s authority to conform for imbalance in the day ahead market through the residual unit commitment (RUC) net short process.

  • Expanded Scope:

– Improvements to the conformance process in the ISO BAA.

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ISO PUBLIC

Stakeholders support tariff clarifications but request improvements to conformance process

  • Frequency, magnitude, and pattern with which the ISO

conforms should be addressed

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Conformance in the ISO BAA 2016 & 2017 Q3 Frequency & Magnitude of Conformance July – September 2017

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ISO PUBLIC

The ISO agrees the pattern of conforming should be addressed with tool improvements

  • Frequency of Conforming (% of intervals):

– Conforming in the ISO BAA and EIM BAAs is not directly comparable – Result of increased renewable generation in CA (17,000+ MW)

  • Magnitude of Conforming:

– Roughly 1-2% of load

  • Pattern of Conforming:

– Improvements should be made to eliminate the need to manually conform for a known pattern

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ISO PUBLIC

In addition to tariff clarifications, the initiative scope is expanded to improve the tools used for conforming.

  • Existing initiatives will minimize need for conformance:

– Real-Time Dispatch Persistence Market Model Enhancement – Day Ahead Market Enhancements – Flexible Ramping Product Improvements

  • Tool improvements will provide operator transparency

and increase accuracy of imbalance conforming:

– Imbalance Conformance Tool – Ramping Capacity Tool

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ISO PUBLIC

IMBALANCE CONFORMANCE LIMITER

Imbalance Conformance Enhancements

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ISO PUBLIC

Scope related to the imbalance conformance limiter has been expanded based on stakeholder feedback.

  • Original Scope:

– Implementation of enhancements to improve the imbalance conformance limiter currently used in the real-time market.

  • Expanded Scope:

– Removal of the conformance limiter from the real-time market within approximately two years.

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ISO PUBLIC

Stakeholders have mixed opinions regarding the use

  • f the limiter in the real-time market

Entity Reason Notes Support

APS DMM PG&E Six Cities Enhancements improve functionality of the limiter and ensure it triggers accurately Implementation of enhancements should be monitored. Market improvements should be prioritized. SCE Limiter should be applied in two step approach Two step approach will minimize price volatility

Conditional

PGP Requests data analysis to determine pricing impact of proposed limiter Market design improvements should be prioritized

Oppose

Portland Powerex Limiter may asymmetrically impact price formation by suppressing valid penalty prices Limiter should be removed from the real- time market

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ISO PUBLIC

The ISO plans to remove the limiter from the real-time market in two years (Fall 2020)

  • Coarse over-estimated adjustments justify use of the limiter
  • Valid scarcity condition cannot be recognized or used in the

limiter logic

  • Implement enhancements (improvement from current limiter)

and address coarse conformance adjustments

  • When coarseness is corrected, limiter is no longer needed

and can be removed from the real-time market

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ISO PUBLIC

DATA ANALYSIS

Imbalance Conformance Enhancements

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ISO PUBLIC

CAISO RTD conformances changes (“deltas”) between intervals for 2017

Conformance is “coarse” as indicated by blocks.

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ISO PUBLIC

CAISO conformances including intervals with no change

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20% of intervals with a conformance have coarse changes. 80% of intervals with a conformance have no change.

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ISO PUBLIC

CAISO RTD conformances as a percentage of total RTD intervals in which the limiter is triggered

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ISO PUBLIC

Impact of Enhanced Limiter Logic – CAISO, 2017

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10 20 30 40 50 60 70 80 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Average RTD Price ($/MWh) Operating Hour (2017)

Impact of Enhanced Limiter Logic - CAISO

Average Price with Current Limiter Logic Average Price with Enhanced Limiter Logic Average Price with No Limiter

Actual Average Price = $31.20 With Enhanced Limiter = $32.07 (+2.7%) With No Limiter = $32.34 (+3.5%)

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ISO PUBLIC

NEXT STEPS

Imbalance Conformance Enhancements

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ISO PUBLIC

ISO Policy Initiative Stakeholder Process

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POLICY AND PLAN DEVELOPMENT

Issue Paper Stakeholder Input

We are here

Straw Proposal Draft Final Proposal

May 2018 ISO Board April 2018 EIM BOG

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ISO PUBLIC

Initiative Schedule

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Milestone Date

Post Issue Paper/Straw Proposal November 29, 2017 Stakeholder Conference Call December 8, 2017 Stakeholder Written Comments Due December 20, 2017 Post Draft Final Proposal January 30, 2018 Stakeholder Conference Call February 6, 2018 Stakeholder Written Comments Due February 20, 2018 EIM Governing Body Meeting April 24, 2018 Board of Governors Meeting May 16, 2018

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ISO PUBLIC

Stay connected

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Sign up for the Daily Briefing at www.caiso.com Download ISO Today mobile app @California_ISO

THANK YOU

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ISO PUBLIC

APPENDIX: IMPACT OF ENHANCED LIMITER LOGIC – EIM ENTITIES

Imbalance Conformance Enhancements

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ISO PUBLIC

Impact of Enhanced Limiter Logic – AZPS, 2017

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10 20 30 40 50 60 70 80 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Average RTD Price ($/MWh) Operating Hour (2017)

Impact of Enhanced Limiter Logic - AZPS

Average Price with Current Limiter Logic Average Price with Enhanced Limiter Logic Average Price with No Limiter

Actual Average Price = $26.04 With Enhanced Limiter = $29.86 (+12.8%) With No Limiter = $30.14 (+13.6%)

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ISO PUBLIC

Impact of Enhanced Limiter Logic – NEVP, 2017

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10 20 30 40 50 60 70 80 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Average RTD Price ($/MWh) Operating Hour (2017)

Impact of Enhanced Limiter Logic - NEVP

Average Price with Current Limiter Logic Average Price with Enhanced Limiter Logic Average Price with No Limiter

Actual Average Price = $31.77 With Enhanced Limiter = $33.05 (+3.9%) With No Limiter = $33.27 (+4.5%)

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ISO PUBLIC

Impact of Enhanced Limiter Logic – PACE, 2017

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5 10 15 20 25 30 35 40 45 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Average RTD Price ($/MWh) Operating Hour (2017)

Impact of Enhanced Limiter Logic - PACE

Average Price with Current Limiter Logic Average Price with Enhanced Limiter Logic Average Price with No Limiter

Actual Average Price = $24.41 With Enhanced Limiter = $24.85 (+1.8%) With No Limiter = $25.00 (+2.3%)

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ISO PUBLIC

Impact of Enhanced Limiter Logic – PACW, 2017

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5 10 15 20 25 30 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Average RTD Price ($/MWh) Operating Hour (2017)

Impact of Enhanced Limiter Logic - PACW

Average Price with Current Limiter Logic Average Price with Enhanced Limiter Logic Average Price with No Limiter

Actual Average Price = $20.03 With Enhanced Limiter = $20.07 (+0.2%) With No Limiter = $20.12 (+0.5%)

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ISO PUBLIC

Impact of Enhanced Limiter Logic – PGE, 2017

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5 10 15 20 25 30 35 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Average RTD Price ($/MWh) Operating Hour (2017)

Impact of Enhanced Limiter Logic - PGE

Average Price with Current Limiter Logic Average Price with Enhanced Limiter Logic Average Price with No Limiter

Actual Average Price = $23.72 With Enhanced Limiter = $24.23 (+2.1%) With No Limiter = $24.23 (+2.1%)

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ISO PUBLIC

Impact of Enhanced Limiter Logic – PSEI, 2017

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5 10 15 20 25 30 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Average RTD Price ($/MWh) Operating Hour (2017)

Impact of Enhanced Limiter Logic - PSEI

Average Price with Current Limiter Logic Average Price with Enhanced Limiter Logic Average Price with No Limiter

Actual Average Price = $19.21 With Enhanced Limiter = $19.35 (+0.7%) With No Limiter = $19.46 (+1.3%)