MIC Market Assessment Expansion Working Group Overview of - - PowerPoint PPT Presentation

Qualitative Reliability Assessment of Expanding the EIM to Day-ahead Market Services

July 16, 2020 MIC Meeting

MIC Market Assessment Expansion Working Group

▪ Overview, Key Findings and Next Steps

• Alaine Ginocchio, WIRAB

▪ Communications Plan

• Jordan White, Vice President of Strategic

Engagement & Deputy General Counsel, WECC

• Victoria Ravenscroft, Senior Policy & External

Affairs Manager, WECC

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Overview of Presentation

▪ A qualitative assessment of potential reliability impacts from expanding EIM to include day- ahead market services.

• Does not address potential economic benefits or

estimate cost savings

• Based on assumptions for the market design. (See

appendix slide)

• Full presentation at last MIC meeting

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Overview of Report

▪ Goals of Report

• Describes key changes in day-ahead processes

and the potential impact these changes could have on reliability

• Provides clear understanding of core operations

and concepts in the two markets

▪ Accessible to WECC Board of Directors & state & provincial policymakers and regulators

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Overview of Report

▪ Evaluating impact of DAMS addition only

• EIM impacts have been evaluated
• DAMS impact on real-time operations included

▪ What we are comparing

• Day-ahead (DA) operations now outside of

CAISO: bilateral market paradigm

• Real-time operations: EIM
• DA operations in an EIM + DAMS: CAISO’s

current DA operations with some adjustments

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Overview of Report

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MIC Working Group

Organization Robert Follini Avista Andrew Meyers Bonneville Power Administration Darren Lamb California ISO Jamie Austin PacifiCorp Charles Faust WAPA, Sierra Nevada Region Jason Smith Xcel Energy Angela Amos FERC, OEMR Ben Foster FERC, OEPI Dillon Kolkmann FERC, OEPI Jomo Richardson FERC, OER Monica Taba FERC, OER Layne Brown WECC Jennifer Gardner / Vijay Satyal Western Resource Advocates Alaine Ginocchio WIRAB

Explored significant changes and their impact on

• reliability. Evaluated in five areas:

1. General day-ahead operations 2. Transmission congestion management 3. Seams 4. Ancillary services 5. Contingency analysis

Themes emerged.

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Overview of Report

▪ Improved coordination across a broader geographic footprint ▪ Utilizing an advanced set of tools in the day-ahead time frame and applying them uniformly over multiple BAs.

• Improved wide-area view by the market operator for use in

developing the day-ahead commitment

• Improved response to variability
• Improved congestion management and relaxed impact of

seams

▪ Better positioning and set-up for real-time operations

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Reliability Benefits: Themes

The following challenges could become risks: ▪ Additional complexity for transmission

• perations: new challenges managing seams

between organized markets and operating closer to System Operating Limits (SOLs) ▪ Reduction of liquidity in the bilateral trading market ▪ Voluntary transmission provision: there may be incentives to retain transmission capacity ▪ Potential challenges in gas – electric coordination

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Potential Risks

▪ Continue to monitor the development of the market design with emphasis on:

• The design for transmission operations including

coordination plans and agreements between BA’s and between markets.

• The design for the resource sufficiency evaluation.
• How day-ahead market timelines could impact

gas scheduling including business practices and tools that could be employed to offset potential reliability impacts.

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Recommendations to WECC

▪ Continue to monitor the effectiveness of reserve requirements: reduced amount of reserves carried by BAs when day-ahead market operations begin (because of market efficiencies) could potentially require re- evaluation of reserve requirements.

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Recommendations

Questions

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Report Overview

▪ Posting Final Draft of Report Early August ▪ Communications and Dissemination Plan

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Next Steps

▪ Jordan White, Vice President of Strategic Engagement & Deputy General Counsel, WECC ▪ Victoria Ravenscroft, Senior Policy & External Affairs Manager, WECC

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Communications Plan

Milestones to Completion

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Finalize draft report

July August

WECC internal review Post for MIC approval MIC approval Post final report Launch comm. plan

Communication Plan

Standard activities ▪ Post on MIC committee page ▪ Announce in WECC weekly ▪ Email committee Additional activities ▪ Announcement section, homepage, WECC.org ▪ Social media campaign (Twitter/LinkedIn) ▪ Expanded email distribution

• Standing committees
• Others?

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Questions / Discussion

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Communications Plan

Contact:

Alaine Ginocchio, WIRAB: aginocchio@westernenergyboard.org Robert Follini, Avista: Robert.Follini@avistacorp.com

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What do we mean by “EIM + DAMS”? Core Assumptions

• BAA boundaries and NERC-related compliance responsibilities will

remain intact.

• Control of transmission facilities will not be transferred to a market
• perator.
• Integrated resource planning, resource adequacy procurement, and

transmission planning and investment decisions will remain with each BA (and state/local regulatory authority).

• DAMS will be a layer on top of the EIM, using CAISO’s market services

as the model

Transmission

• Complement the contract reservation regime
• Sufficient incentives to make enough transmission available to address

reliability requirements

• No assumptions about design

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Assumptions for the Market Design

• Participation: BAs, voluntary, no DAMS stand-alone
• Geographic Footprint: All EIM Entities (see figure)
• CAISO’s Market Analysis Engine:

SCUC, FNM and flow-based modeling, LMP

• Ancillary Services: Offered as an option
• Resource Sufficiency: RS evaluation in the day-ahead, no

assumptions about design of test

• Other Markets: DAMS will operate along-side the day-ahead

bilateral market; no centralized capacity market

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Assumptions for the Market Design

CAISO’s Market Analysis Engine