Seams Management at the RTO level

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Neil Fletcher
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1 Seams Management at the RTO level IEEE Winter Meeting January 29, 2002 New York, NY Mike Gahagan V. P., CIO and Chief Strategic Officer

2 The Midwest Independent Transmission System Operator, Inc. A Brief Review

3 Background Midwest ISO Agreements file with the FERC December, 1997 Conditional Approval September, 1998 Board of Directors elected December, 1998 First Board of Directors Meeting January, st Employee hired August, 1999

4 Midwest ISO Structure 7 Independent Board Directors Currently 3 Formal Committees Advisory Committee Transmission Owners Committee Planning Advisory Committee Numerous Support and Working groups plus task forces Non-profit organization Appendix I for Transcos developed and accepted by the FERC

5 Recent Milestones Parallel Scheduling with existing CAs began October 15, 2001 OASIS began parallel operation November 28, 2001 Completed MAPP Acquisition December 1, 2001 Security Coordination + other functions began December 15, 2001

6 Transmission Owning Members Alliant American Transmission Company (ATC) (includes Alliant- WP&L, MG&E, WPS, and WE transmission facilities) CILCO Cinergy DTE / ITC Dairyland Power Coop* Great River Energy* Hoosier Energy IMPA IP&L LG&E *conditional NW Wisconsin Electric Lincoln (Neb.) Electric Manitoba Hydro Minnesota Power Otter Tail Corp. SIGECO (Vectren) SIPC SMMPA* Springfield, IL Sunflower Electric* Utilicorp United Wabash Valley Power Xcel Energy

7 Non-Transmission Owning Members Marketers American Electric Power Co. Automated Power Exchange Cargill-Alliant Conectiv Energy Supply Constellation Power Source Consumers Energy Co. Detroit Edison Enron Power Marketing Exelon Generation Co. Mirant Americas Energy Marketing Tenaska Power Services Williams Energy Marketing Industrial Customers Granite City Steel (IL) Air Products and Chemicals (OH) IPPs Calpine Power Services Duke Energy North America Dynegy Edison Mission Marketing and Trading Indeck-Rockford PG&E Generating Co. Reliant Energy Munis/Coops/TDUs/Other American Municipal Power, Ohio Commonwealth Edison Cleveland Public Power FirstEnergy Corp. Illinois Municipal Electric Madison Gas & Electric Missouri River Energy Services Co. Wisconsin Public Power Inc. Wisconsin Electric

8 Midwest ISO Operations Manages 100kV and above Facilities Performs ATC (AFC) Calculations Processes Transmission Service Requests Schedules Transmission Service Manages Transmission Congestion

9 Midwest ISO Operations Provides and audits ancillary services Coordinates generation maintenance Coordinates transmission maintenance Provides system security

10 Operation Functions Retained by Owners Physical operation of facilities. Maintenance of facilities. Generation/load balance within control area. Economic dispatch within control area.

11 What is a Seam? Webster defines a seam as: 1) A similar line, ridge, or groove made by fitting, joining, or lapping together two sections along their edges. or 2) Any line across a surface, as a crack, fissure, or wrinkle.

12 What is an RTO Seam? Information Exchange Reliability System Re-Dispatch Curtailments Outage Coordination Scheduling Tariff Administration ATC / AFC Calculation One Stop Shopping Business Practices Transmission Request Approval Transmission Rates Transmission Planning

15 Midwest ISO/TRANSLink/SPP/Alliance/TVA

17 Seams Management What are its objectives? Seams Management seeks to eliminate or at least to minimize the effects due to the existence of the seams Effects are as follows: Operational the day to day physical operation of the transmission system and the operations of the current day transmission market. Legal rights and obligations as pertaining to assets external to the RTO both short and long term Financial settlement and payments to both internal and external parties involved with transactions across a seam.

18 Seams Management Implementation AFC/ATC Calculation methodologies and models Transmission Service one stop shopping Operational Planning outage coordination Congestion Management system redispatch Long Term Transmission Planning joint planning with neighboring RTOs Tariff Reciprocity

19 Benefits to Successful Seams Management Reduced costs to customers 1. More effective system redispatch 2. Larger potential energy markets 3. Ease of conducting business Greater system reliability 1. Reduce over subscription of transmission capacity leading to a reduction in curtailments 2. Greater diversity resulting in enhanced reserve capability

20 Steps required to implement successful seams management program 1. Formal agreements with neighboring RTOs 2. Exchange of power system model information 3. Exchange of real time information including topology statuses, energy flows and generator outputs 4. Coordination of Operations 5. Financial Settlements

21 Current Work Working Groups formed to work on seams issues FERC s approach to the formation of a minimal number of RTOs FERC s standard market design Combination with the SPP MOU with TVA Working with PJM on development of 1 market for the combined entities

22 Future Actions Continue progress on agreement between MISO and Alliance Companies. Work with other RTOs to obtain agreements with them. Achieve commercial operation by 02/01/02. TransLink Transmission Company to form under Appendix I end of 2002

23 Questions? See

Midwest ISO Year in Review Accomplishments

Midwest ISO Year in Review Accomplishments Midwest ISO Year in Review 2006 Accomplishments 1 Reliability Accomplishments Spring storms Sustained summer heat July 31 ramping at 6,000 Megawatts (MW) per hour