FNM Expansion Training Webinar Cynthia Hinman Lead Client Trainer August 11, 2014 The information contained in these materials is provided for general information only and does not constitute legal or regulatory advice. The ultimate responsibility for complying with the ISO FERC Tariff and other applicable ISO PUBLIC laws, rules or 2014 regulations CAISO lies with you. In no event shall the ISO or its employees be liable to you or anyone else for any decision made or action taken in reliance on the information in these materials.
What is the purpose of this initiative? Reliability September 8 th event FERC-NERC finding 1: Lack of Updated External Networks in Next-Day Study Models FERC-NERC finding 2: Lack of Real-Time External Visibility Market efficiency More accurate model leads to more efficient dispatch Real-time congestion costs due to infeasible schedules Page 2
Phase 1 and Phase 2 changes October 1, 2014 3
Applications impacted by this change Application What is it? Change Master File SIBR DAM/RTM Holds resource-specific information Bid/Schedule/Forecast submission Day-ahead and Real-time market Define external BAA scheduling points Transaction IDs will be created based on SC submission Receive transaction IDs, perform analysis which includes external BAA constraints and outages CMRI Market Reports Use transaction IDs (as applicable) in reports ADS Binding instructions Use transaction IDs (as applicable) in ADS instructions Settlements Market settlement information Use transaction IDs (as applicable) for settlements Use intertie/scheduling point combination Page 4
Objectives Why is the ISO making these changes?
Current full network model How do we model the external network today? As injections and withdrawals at the ISO intertie ISO does not model power exchanges between other balancing authority areas (BAAs) WECC (Illustrative interties in red) Page 6
Current full network model How do we schedule and price the external network today? As injections and withdrawals at the ISO intertie (aligned with modeling) ISO does not consider impact of external systems on cleared bids WECC (Illustrative interties in red) Page 7
The expansion of the full network model increases ISO s modeling capabilities. WECC (Illustrative interties in red) Modeled BAA WECC (Illustrative interties in red) Modeled BAA Slide 8
Full network model expansion If ISO wants to improve reliability and market efficiency, how will FNM expansion help? Will allow us to more accurately model loop flow Enhanced security analysis Better analysis and outage coordination Accurate HVDC modeling Page 9
Full network model expansion How will ISO achieve these objectives? Activity 1 Model new generation and load aggregation points and scheduling points Activity 2 - Enforce constraints for both scheduled and physical flow Activity 3 - Include variables in HVDC modeling Page 10
Activity 1 - Modeling New generation and load aggregation points, and scheduling points
Full network model expansion: Activity 1 - modeling How do we transition the modeling in the current FNM to expanded FNM? Phased approach start modeling neighboring BAAs and work towards rest of WECC Current initiative includes September 8 th entities, BPA and EIM Future phases to be decided Two types of BAAs Not modeled Modeled Page 12
Full network model expansion: Activity 1 - modeling Un-modeled and modeled BAAs BAAs not modeled at the FNM boundary Most like today s injection and withdrawal at interties Single point in the network Modeled BAAs Does not exist today Create base schedules estimated transactions not involving ISO but will impact physical flow on ISO interties Page 13
Base Schedules, Net Schedule Interchange Base Schedules - For EIM purposes, EIM resources do not participate in DAM, only in FMM/RTM - so need a base value to compute incremental or decremental quantity for settlements (IIE) - For modeled non-eim BAA, still account for MW flow but do not settle, (market awards will not exist) Net Schedule Interchange (NSI) - Net energy exported from a BAA if positive - Net energy imported into a BAA if negative (D) + (N) = (G) Demand + NSI = Generation Slide 14
Full network model expansion: Activity 1 - modeling How will ISO model the BAA once it has the data? Based on historical values from the state estimator, will use generation distribution factors (GDF) and load distribution factors (LDF) to distribute D, G, and N to each BAA Example assume BAA1 has: 1,100 MW of total generation (G) 1,000 MW of demand (D) 100 MW of net scheduled interchange (N) GDF and LDF (%) Base Schedule (MW) Gen 1 60 660 Gen 2 40 440 Load 1 50 500 Load 2 50 500 Assuming no losses, D + N = G NSI - 100 Page 15
Imports (exports) as incremental (decremental) to the base schedules Distribute demand forecast per BAA to load nodes - Use default load distribution factors (LDF) Distribute generation per BAA to resources - Identify Generation from Demand + Net Scheduled Interchange (NSI) = Generation (e.g., day-ahead schedules with ISO or other balancing authority areas, prior to the real-time market) - Use historical generation patterns using generation distribution factors (GDF), or based on state estimator solution in RTM Slide 16
Data sources for base schedule information Demand forecast for non-eim BAAs from WECC Interchange schedules between external BAAs WIT (WECC interchange tool) External transmission outages from Reliability Coordinator 17
Why do we need to use transaction IDs? The network model will be expanding and will provide multiple possibilities for scheduling with the ISO. Therefore using the master file for each resource s physical registration becomes impractical. Uniquely identifies static system resource bids and schedules Certain types of system resources will still be registered in the master file 18
Registered Intertie Resources Resources with resource adequacy obligations ETC/TOR contracts Certified to provide ancillary services IBAA agreements for transmission loss adjustment Trans Bay Cable resource ID Resource recirculating resource ID Losses, Inadvertent payback, emergency assistance MSS load following EIM transfer schedule defined by intertie and transmission service provider Slide 19
Intertie Transaction - fictitious examples Non-resource specific Physical Import bid : SC05-AMARGOSA_1_SN001-AMARGO-I-P-F-DECM01 SC05-AMARGOSA_1_SN001-AMARGO-I-P-F-DECM01.1 SC05-AMARGOSA_1_SN001-AMARGO-I-P-F-DECM01.2 SC05-AMARGOSA_1_SN001-AMARGO-I-P-F-DECM01.9 Non-resource specific Physical Export bid: SC05-AMARGOSA_1_SN001-AMARGO-E-P-F-DECM01 SC05-AMARGOSA_1_SN001-AMARGO-E-P-F-DECM01.1 Scheduling Coordinator Intertie Scheduling Point Primary Intertie Identifier Direction Bid Type Energy Type Purchase-Selling Entity Identifier Non-resource specific Physical Wheeling Import bid: SC05-AMARGOSA_1_SN001-AMARGO-I-P-W-DECM01 Non-resource specific Physical Wheeling Export bid: SC05-BLYTHE_1_N101-BLYTHE-E-W-P-DECM01 Page 20
SIBR UI Inter-tie Inter-tie 21
SIBR UI 22
SIBR UI 23
Intertie transaction inputs Field Scheduling Coordinator Scheduling Point Primary Tie Direction Bid Type Alternate Tie Energy Type Purchase- Selling Entity Identifier Description Scheduling Coordinator identifier (required) Intertie Scheduling Point identifier (required) Primary Intertie identifier (required) Direction (required): I for import, E for export Bid Type (inserted): P for physical, V for Virtual Alternate Intertie identifier (optional) Energy Type (required for physical transactions): F Firm N Non-Firm U Unit Contingent D Dynamic Interchange W Wheeling A registered Purchase-Selling Entity identifier (required for physical transactions); allow PSE, PSE.1, PSE.2 PSE.9 24
SIBR UI - Wheeling 25
SIBR UI Wheeling Counter Resource 26
SIBR UI Wheeling Hourly Components screen Intertie Transaction (not a registered resource) 27
SIBR UI Wheeling Hourly Components screen Registered resource 28
Go to Transaction ID Illustration document 29
Transaction ID 30
FMM Schedule Effective Intertie Transaction ID includes the primary tie information Effective Intertie will show which tie was used (primary or secondary, if applicable) 31
Changes are effective October 1, 2014 Required for new intertie resources Existing intertie resources should transition on the effective date above, however the mandatory transition date is April 1, 2015 Does not apply to resources that will be required to remain as registered intertie resources. 32
Activity 1 Modeling - Summary What will SC have to do different as a result of Activity 1? Provide transaction information for interties resources in SIBR Understand reporting changes in other applications What is importance of Activity 1 to the SC? More accurate modeling is a benefit for both reliability and settlement purposes Better outage coordination Reduce real-time congestion offset charges 33
Activity 2 Enforcing constraints Enforce constraints for both scheduled and physical flow
Full network model expansion: Activity 2 Activity 2 enforce constraints for both scheduled and physical flow on each intertie Current FNM only enforces scheduling constraint, but not physical constraint on each intertie Enforcing dual constraint Account for loop flow in the market solution Result in more accurate congestion management Lower congestion offset Page 35
Full network model expansion: Activity 2 Activity 2 accounting for loop flow Scheduled flow Modeled physical flow Provides counterflow in model Market model accounts for loop flow
Full network model expansion: Activity 2 Activity 2 enforce constraints for both scheduled and physical flow on each intertie Expanded FNM will enforce: A scheduling constraint based on the intertie declared in intertie bids against the operational limit of the intertie A physical constraint based on the modeled flows for an intertie taking into account the actual power flow contributions from all resource schedules in the FNM against the operational limit of the intertie NOTE: same operational limit of the specific intertie for both constraints Page 37
Full network model expansion: Activity 2 Scheduling vs. physical constraints Scheduling constraint Honors contract paths and used for tagging intertie schedules No shift factors Considers physical bids and virtual bids Energy schedules are netted but ancillary services are not Enforced against limit of each intertie Currently enforced Physical constraint Models physical flows from schedules Shift factors Considers physical and virtual bids Energy schedules are netted Enforced against limit of each intertie New Generally same limit Page 38
Activity 2 - Enforcing Constraints - Summary What is the importance of Activity 2 to the SC? May see price impact due to congestion on other interties because of modeling the external network and enforcing physical constraints Enforcing both scheduling and physical constraints will take loop flow into account in market solution; lower real-time costs Expect a decrease use of exceptional dispatch 39
Activity 3 HVDC modeling Include variables in high voltage direct current transmission modeling not part of this release. Will be discussed in future training.
E-Tagging Rules
E-Tagging rules The transaction ID will replace the resource ID on the e-tag If the tag is for the next day in the day-ahead market timeframe or the next hour (HASP hour) in the real-time timeframe and the transaction ID and the tag do not match, the tag will be automatically denied by the scheduling system. If the tag is for a future trading day/hour and the transaction ID in the tag doesn t match, the tag will be approved per NAESB deadlines for taking action on an e-tag. Later on it will be revalidated after the market has run for the time period the tag is submitted. The transaction ID in the tag will be validated against the most recent transaction ID payload. If at that time the transaction ID and the tag do not match, scheduling system will automatically adjust the e-tag to zero 42
E-Tagging rules In any validation process, if the transaction ID matches, the tag is accepted A tag without a transaction ID or without a (Master File defined) resource ID, will be automatically rejected 43
Settlements Impact
Settlements Scheduling point and intertie will both be considered in settlements This will be accounted for in the attributes of the formulas. Old Attribute Financial Node New Attributes APNode APNode type Intertie ID Pricing Node Because there is a one-to-one correspondence between scheduling point and the intertie, the above change will have minimal system configuration impact (Phase 1 only, existing scheduling points) 45
Pre-Implementation Analysis
Pre-implementation analysis Powerflow-based modeling assessment showing the difference between the current and expanded FNM modeling Will compare the modeled versus actual unscheduled flow for a set of representative days for COI Palo Verde Eldorado-Mead Victorville-Lugo Internal constraints September 2014 - Board of Governors briefing 47
FNM Expansion Phase 1 THANK YOU FOR ATTENDING! Questions: MarketTraining@caiso.com
References 49
References and additional information Business Requirements Specification http://www.caiso.com/pages/documentsbygroup.aspx?groupid= 46A52171-EF30-47FA-8A2D-78A8D51C07F5 Draft Final Proposal http://www.caiso.com/documents/draftfinalproposal- FullNetworkModelExpansion.pdf Tariff Amendment http://www.caiso.com/documents/may22_2014_tariffamendmen t_fullnetworkmodelexpansion_er14-2017-000.pdf 50