Emergency Load Reduction Program Technical Panel February 14, 2006 - - PowerPoint PPT Presentation

Emergency Load Reduction Program

Technical Panel February 14, 2006 Jeannette Briggs, IESO

Background and Objectives

• Why Now?
• Program Potential
• Emergency Load Reduction Program

(ELRP) Design

Why Now?

• Tight demand/

supply conditions during 2005

– 12 days of public appeals – Three occasions when we implemented five percent voltage reductions – Numerous other occasions where we took other emergency control actions to preserve the reliability

• f the power system
• This program is one of several initiatives that we

are taking before summer 2006 to avoid or limit the need for these emergency control actions to maintain reliability

ELRP Potential

• Implementation before other emergency control

actions

• Allowing loads a greater opportunity to provide

reliability support under stressed system conditions

• Reduced reliance on other emergency control

actions

• Increased demand response involvement (such

as aggregated response, back up generation etc.)

ELRP Design

• Eligibility
• Demand Response Criteria
• Notification and Activation
• Payment

Who is Eligible to Participate?

• Open Participation; this is a voluntary program:

– Available to both interruptible loads and emergency backup generation; must be MP

• Should be of interest to:

– Wholesale market participant loads – Individual embedded loads – Aggregators

• Minimum 1 MW
• Measurable and verifiable (M&V)
• Not concurrently part of any other program

When and What?

• Can be used on business days 8:00 a.m. – 8:00

p.m.

• Reduction lasting 2, 3 or 4 hours
• One activation per day
• Eligible participants that want to offer the

service on a given day will submit an ELRP form

• nce we notify them of our need
• Submission of form represents a commitment by

MP, at direction of IESO, to reduce load by amount specified and in hours specified

Notification and Activation

Notification

• Electronic notification of our needs can be either day-

ahead or day at hand

• Day-ahead: we notify by 4:00 p.m., those wishing to

supply submit the form by 6:45 a.m. next day

• Day at hand – we notify by 9:00 a.m.; those wishing to

supply must submit the form by 10:45 a.m.

Activation

• You must reduce when activated if you have submitted

the demand reduction form

• Electronic activation will be a least 1 hour prior to

required reduction hour

Payments

Standby payment:

• For committed hourly MW reduction capability
• $15/

MW per hour

• Stops once activation occurs
• On preliminary settlement statement for last day of

month

Activation payment (subject to M&V):

• The greater of HOEP or

– $400/ MWh for 2 hours of consecutive reduction, or – $500/ MWh for 3 hours of consecutive reduction, or – $600/ MWh for 4 hours of consecutive reduction. – Payment post M&V submission

How Often Will It Be Used?

• Reliability needs are highly unpredictable as

they are dependent on a many variables

• Without knowing how often the program will

be used, it is difficult to forecast an income stream

• As a proxy, we can compare standby and

activation payments that would have taken place in the summers of 2004 and 2005

Payment Example Using 2004 and 2005

2004 2005 Notifications 1 12 Activations

One 4 hour event (Activation Hr 17) One 3 hour event (Activation Hr 13) Two 4 hour events (Activation Hr 13 and Hr 16)

Payment/MW

(Notification & Activation combined)

$2,535.00 $8,130.00

Going Forward

• Information available at:

http:/ / www.ieso.ca/ imoweb/ consult/ consult_drrp.asp

• Board Meeting, February 3, 2006 directed IESO

Management to develop and implement for use in the summer, 2006 the Emergency Load Reduction Program

• Targeting April 7th Board approval of the rules
• First Quarter 2006- Market Rules to Technical Panel
• Second Quarter 2006 – Consultation with stakeholders
• n Market Manual