NWPP Market Assessment and. August 3, 2012

Transcription

1 NWPP Market Assessment and Coordination Committee (MC) Purpose, Objectives, andtimeline PNUCC Board of Directors PNUCC Board of Directors August 3, 2012

2 Northwest Power Pool Footprint Source: NWPP & DTC TF: search.cfm search DTCTFPhaseFullReport pdf 2

3 What s happening in the West? Ad hoc measures (intra hour scheduling, etc) Western Electric Coordinating Council (WECC) studies Western Governor s and Public Utility Commission studies Columbia Grid review Northwest Power Pool (NWPP) new effort 3

4 Problem Statement Dialogue within the NWPP Balancing Authority community over the past 24 months has revealed several challenges associated with operating the regional power system in a reliable and cost effective manner: 1. Additional tools are needed to respond to rapid changes in load resource balance (ramps); individual BAs within the NWPP footprint are managing load and resource balance without systematically sharing the diversity between their systems; 3. A increasingly constrained transmission system; 4

5 Problem Statement (continued) 4. The costs and compliance risks associated with operating a Balancing Authority are increasing; Evolving operational measures must clearly address cost causation and cost allocation; and 5. NWPP BAs wish to recognize and, if possible, leverage existing platforms (such as automated sharing of contingency reserve) and innovative and valuable work from more recent initiatives within the NWPP footprint; and 6. Preserve the significant value that Power Pool Members already receive from the existing reserve sharing program. 5

6 NWPP Members Establish New Market Assessment Committee On March 19, after several months of discussions, senior executives of the Northwest Power Pool (NWPP) member utilities met and agreed to establish a new committee to address these problems: MC s Executive Committee is Co Chaired by Pacific Power President/CEO Pat Reiten and BPA Administrator Steve Wright Governance subcommittee Chaired by PGE CEO Jim Piro and Tacoma Public Utilities Director/CEO Bill Gaines Organizing Committee (PacifiCorp, Northwestern Energy, Portland General Electric, Snohomish PUD, Tacoma Power, Puget Sound Energy, Avista, Seattle City Light, Chelan County PUD, Balancing Authority of Northern California (BANC), Northwest Power Pool) Communicating actively with WAPA. 6

7 MC Participants Avista Corporation Public Utility District No. 1 of Clark Balancing Authority of Northern County, Washington California Public Utility District No. 1 of Cowlitz Bonneville Power Administration County, Washington British Columbia Hydro and Power Public Utility District No. 1 of Douglas Authority County, Washington Eugene Water & Electric Board Public Utility District No. 2 of Grant Iberdrola Renewables, LLC County, Washington Idaho dh Power Company NaturEner Wind Holding, LLC NorthWestern Energy PacifiCorp Portland General Electric Company Puget Sound Energy Public Utility District No. 1 of Chelan County, Washington PublicUtility DistrictNo No. 1 of Snohomish County, Washington Seattle City Light Tacoma Power Turlock Irrigation District Western Area Power Administration, Upper Great Plains 7

8 NWPP MC Mission Develop a decision quality assessment of options to address the challenges identified in the Problem Statement and improve the efficiency and maintain the reliability of regional power system operations, with recommendations for moving forward. This assessment should include/address: Identification of options (e.g., ranging from enhanced bilateral markets to a centralized imbalance market) Costs and Benefits Governance Qualitative assessment of how each option addresses the problems identified in the Problem Statement Implementation mechanism (i.e., centralized? special purpose entity? virtual or bricks and mortar?) Identify desired end state and implementation steps to get there Building blocks (modularity/optionality) a menu of elements that can be included or excluded 8

9 NWPP MC Work plan Identify an array of operational and market alternatives beginning with bookends Emerging Market/Operational Tools (EMT) Energy Imbalance Market (EIM) Fill in continuum with hybrid or intermediate options Identify and obtain needed data Evaluate alternatives Recommend path forward 9

10 NWPP MC Organizational i Structure Executive Committee Chairs: Pat Reiten (PacifiCorp), Steve Wright (BPA) The Executive Committee includes one executive from each MC participant. Organizing Committee Chair: Elliot Mainzer (BPA) Communications Subcommittee Chairs: Gregg Carrington (Chelan PUD) David Mills (PSE) Market Assessment & Coordination Committee Lead: MC Facilitator (Sarah Dennison Leonard) Staffing: Contributed by MC Participants Executive Subcommittee on Governance Chairs: Bill Gaines (TPU) Jim Piro (PGE) Data Subcommittee Chairs: Kevin Nordt (Grant PUD) Vicken Kasarjian (SMUD) 10

11 NWPP MC Scope of Work NWPP MC will evaluate a full range of options Do nothing Enhanced operational practices and bilateral sub hourly markets (EMT Working Group) Centralized energy imbalance market (EIM Working Group) Options to be evaluated during 2012 Goal to recommend the best strategy to meet the region s operational needs 11

12 Timeline May 24 Kickoff meeting June July Define bookend alternatives Define intermediate alternatives Review and gather data August October Conduct analysis Thorough review and revision of assumptions used in Gridview (WECC) and Plexos (PUC EIM) models Complete additional studies and/or model runs, as required November December Develop recommendations December 31 Final Recommendation to Executive Committee 12

13 Non-NWPP participation A Communications Subcommittee will focus on outreach and coordination withotherregional regional andnational national organizations, including utility and stakeholder groups, PUCs, WECC, WGA, CREPC, and FERC. MC Meetings August 2 September 11 13