Overview of DSASP; Telemetry/Communication Alternatives

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1 Overview of DSASP; Telemetry/Communication Alternatives The New York Independent System Operator Price Responsive Load Working Group May 12, 2010

2 Agenda Overview of DSASP Market Rules Current Communications/Telemetry Requirements for DSASP Direct Communications Option for DSASP Proposed Timeline Market Participant Feedback 2

3 Purpose of DSASP Allow Demand Side Resources to participate in NYISO s Ancillary Services markets Regulation service Demand side resources will be committed to raise or lower demand via dispatch from Automatic Generation Control (AGC) Operating Reserve services Demand Side Resources will provide demand reductions when economics of the offer result in least cost solution for Operating Reserves 3

4 Reserve Provider Criteria DSASP Reserve resources: Must be located in NYCA Minimum 1 MW reduction Sustained reduction for 1 hour Modeled and offered as a supplier Specify a Day-Ahead availability offer for each category of reserve for which the resource is qualified Reduce demand when dispatched by the NYISO 4

5 Reserve Provider Criteria Eligibility Criteria Spinning Reserve (10-minute synchronous) Demand Side Resources that are not supporting their Demand Reduction through the use of Local Generators 10-Minute Non-Synchronized Reserve Demand Side Resources that are supporting their demand reduction through the use of Local Generators 30-Minute Reserve (Spinning and Non-Synchronized) ) Spinning: Demand Side Resources that are not supporting their Demand Reduction through the use Local Generators Non-Synchronized: Demand Side Resources that are supporting their demand reduction through the use of Local Generators that are capable of starting, synchronizing, and increasing their output level within thirty minutes 5

6 DSASP Regulation Requirements Minimum 1 MW reduction Capable of Regulation response Capable of supplying Regulation Service continuously in both the up and down directions for intervals in the scheduled hour and for all hours with accepted bids Capable of responding to automatic generation control signals on a 6-second basis 6

7 Current DSASP Communication Requirements through a Transmission Owner Be capable of receiving automatic control signals through the Transmission Owner and optionally with NYISO On a six-second periodicity for regulation On a five-minute periodicity for operating reserves Be capable of providing telemetered output data through TO and optionally with NYISO that can be scanned every 6 seconds. Telemetry measures load curtailment Compliant with NERC Disturbance Control Standards (DCS) Must be positive during energy schedule and zero at all other times Provide for all required interfaces to the Transmission Owner (TO) control centers as defined by the TO-MP Interconnection Agreement, if applicable 7

8 Sample Communication Path Through Transmission Owner 8

9 NYISO is considering Direct Communications for DSASP Direct Communications are currently available to suppliers as an additional path to connection through the Transmission Owner Direct Communications under consideration for DSASP would remove the requirement for connection through the Transmission Owner This type of Direct Communications would be limited to DSASP resources only 9

10 Why Direct Communications for DSASP? Connection through the Transmission Owner has presented challenges for some market participants Lead time to complete the integration into the Transmission Owner s EMS Potential upgrades to Transmission Owner systems to incorporate DSASP resources have also been identified Procurement, installation and testing of equipment based on Transmission Owners requirements and schedule 10

11 Why Direct Communications for DSASP? The NYISO believes that the option to connect through the Transmission Owner should still be available to demand resources providing ancillary services However, as a result of market participant feedback for a more streamlined approach to overcome the technical challenges of participation, the NYISO will identify and evaluate options based on the requirements for demand resources to receive direct communications from the NYISO without the requirement for connection through the Transmission Owner 11

12 Benefits of Direct Communication for DSASP on Aggregations Provides a foundation for work associated with implementation of DSASP aggregations Simplifies implementation Single set of hardware and communication requirements Composite signal to/from aggregator Aggregator coordinates resources Direct communications is the only practical approach for Aggregators in multiple Zones Current approach would require integration with multiple Transmission Owners Any tariff changes, market rules or procedural changes specific to aggregations will be considered during the Direct Communications for DSASP effort 12

13 Potential Communication Flow through Transmission Owners for DSASP Aggregations Aggregation A Via ICCP Transmission Owner #1 Resource (TO #1) (Subzone 1) Via TO EMS To Aggregation A Via Aggregator Comm To Aggregation A Resource (TO #1) (Subzone 1) Aggregation B NYISO Via ICCP Transmission Owner #2 Via TO EMS To Aggregation B Via TO EMS Aggregator Via Aggregator Comm To Aggregation B Aggregation C Resource (TO #1) (Subzone 2) Resource (TO #1) (Subzone 2) Via TO EMS Via Aggregator Comm Resource (TO #2) (Subzone 3) Resource (TO #2) (Subzone 3) Via ICCP Transmission Owner #3 Aggregation D Via Aggregator Comm Resource (TO #3) (Subzone 4) Resource (TO #3) (Subzone 4) 13

14 Simplified Direct Communication Flow for DSASP Aggregations 14

15 Direct Communications for DSASP NYISO sends dispatch instructions via ICCP to the DSASP resource The DSASP resource sends response directly to the NYISO NYISO updates the Transmission Owner on each update/scan cycle (6 seconds) Transmission Owner incorporates DSASP information according to its own operating procedures 15

16 Sample Direct Communications Path for DSASP NYISO SCAN 6-second (update and read) 1 NYISO EMS NYISO UPDATE TO SCAN Up to 10 Seconds (update and read) 1. NYISO (1,2) to DSASP RTU (6) via ICCP 2. METERS (8) TO TOTALIZER (7) TO DSASP RTU (6) 3. NYISO to TO ICCP (3) to TO EMS (4) 2 NYISO ICCP 3 TO ICCP 4 TO EMS DSASP SCAN? Seconds (update and read) Communications Requirements for Direct Communication for DSASP 6 DSASP RTU??? SECOND SCAN (Digital) 7 TOTALIZER??? SECOND SCAN Requirement Specifications New to NYISO 8 METER 8 METER 8 METER 16

17 Sample Direct Communication Path for DSASP Aggregation NYISO SCAN 6-second (update and read) 1 NYISO EMS NYISO UPDATE TO SCAN Up to 10 Seconds (update and read) 1. NYISO (1,2) to DSASP AGGREGATOR RTU (6) via ICCP 2. DSASP AGGREGATOR (6) to RESOURCE METERS (8) via DSASP AGGREGATOR DISPATCH/TOTALIZER SYSTEM (7) 3. NYISO to TO ICCP (3) to TO EMS (4) 2 NYISO ICCP 3 TO ICCP 4 TO EMS Communication Requirements for Direct Communication for DSASP 6 DSASP AGGREGATOR RTU DSASP SCAN? Seconds (update and read)??? SECOND SCAN (Digital) 7 DSASP AGGREGATOR DISPATCH/TOTALIZER SYSTEM??? SECOND SCAN Market Rules New to DSASP 8 METER 8 METER 8 METER 17

18 Operational Impact of Direct Communications for DSASP NYISO will need to develop specifications, requirements and procedures for operations that have historically been handled by the Transmission Owners Hardware requirements Communication requirements and procedures Security requirements Installation and testing requirements Identify any software or operational procedure changes 18

19 Hardware and Communication Requirements Hardware Research RTUs and meters for use by DSASP providers Develop specification documents Identify acceptable meter configurations Communication Identify communication requirements Develop protocol documentation Establish requirements, as necessary, for Encryption Redundancy (e.g., PCC/ACC, multiple Frame Relay Network provider as option) Backup and emergency procedures 19

20 Security Requirements Hardware Communication Authentication Procedures Potential implications of NERC CIP requirements 20

21 Installation and Testing requirements Installation of RTU, Communications and Metering Specifications Configurations Inspection Testing Hardware tests Communication tests 21

22 Other Impacts of Direct Communications for DSASP Cross-functional team will involve several NYISO departments Identify changes to NYISO documents and procedures Prioritization with other demand response initiatives 22

23 Identify Changes to NYISO Documents and Procedures Review procedures, tariff and manuals to determine necessary changes Develop procedures For Direct Communications enrollment for DSASP NYISO internal procedures for operation and support of Direct Communications for DSASP Identify any market rule changes Resulting from Direct Communications or DSASP Aggregations Identify any software impacts Review reliability rules Update manuals/procedures Such as the Ancillary Services Manual and Direct Communications Procedure 23

24 Direct Communications Procedure Formerly known as the Direct Generator Communications Manual Changed to Direct Communications Procedure in February 2010 Secure document Requires Critical Energy Infrastructure Information (CEII) Request and Non-Disclosure Agreement CEII Request and Non-Disclosure Agreement available from NYISO Customer Relations Request forms by calling

25 Schedule Prioritization with other Demand Response Initiatives Q Q Q May Jun Jul Aug Sep Oct Nov Dec DEMAND RESPONSE INFORMATION SYSTEM DRIS Training and Market Trials DRIS Deployment DRIS Training and Market Trials DRIS Deployment DRIS Training and Market Trials SCR BASELINE ANALYSIS Baseline Analysis Processing Results of SCR Baseline Analysis Procedures, Tariff and/or Manual Changes resulting from SCR Baseline Analysis and Aggregations DSASP DSASP Workshop NYISO Internal Procedures, Tariff and Manual Changes for Direct Communication for DSASP Tariff Filings, including DSASP Aggregations REAL-TIME DEMAND RESPONSE (ENERGY) Preliminary Market Design: Real-Time Energy for Demand Response 2011 Project Prioritization Schedule prioritization subject to change as necessary to comply with regulatory orders 25

26 Market Participant Feedback on Direct Communications for DSASP Does the proposed plan address the requests for a streamlined approach to communications for DSASP? Are there other issues related to DSASP that should be addressed as part of the plan? 26

27 Market Participant Feedback on Potential Enrollment for DSASP NYISO is looking for feedback from market participants interested in enrolling resources in DSASP using Direct Communications Estimated MW by location Estimated enrollment window relative to NYISO s implementation of Direct Communications (i.e., 3 months, 6 months, etc.) Type of enrollments (individual vs. aggregations) and estimated MW of each Please send estimates to Leigh Bullock (lbullock@nyiso.com) by June 4 27

28 The New York Independent System Operator (NYISO) is a not-for for-profit corporation that began operations in The NYISO operates New w York s s bulk electricity grid, administers the state s s wholesale electricity markets, and provides comprehensive reliability planning for the state s s bulk electricity system. 28

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