2019 Project Prioritization and Budgeting Process

Transcription

1 2019 Project Prioritization and Budgeting Process Brian Hurysz Manager, Market Products Budget and Priorities Working Group May 10, 2018, Krey Corporate Center

2 Agenda Project Prioritization Process Project Prioritization Timeline Stakeholder Scoring Survey Stakeholder Scoring Survey Enhancements Stakeholder Scoring Survey Timeline Project Description Changes Project Prioritization Codes and Scoring Milestone Definitions 2019 Project Candidates Next Steps 2

3 Project Prioritization Process Phase Identification Description This phase involves developing the list of project candidates taking into consideration regulatory obligations, strategic initiatives, State of the Market recommendations, necessary infrastructure enhancements, product plans, stakeholder feedback, etc. Prioritization The phase involves the NYISO and stakeholder scoring of projects. The NYISO scores projects using objective criteria that reflects strategic alignment, expected outcomes, risks, and ability to execute. Stakeholders score projects based on their organizational priorities via a survey mechanism. Evaluation Recommendation This phase involves performing a feasibility assessment based on detailed cost and labor estimates, dependencies, priority scores, and stakeholder feedback. This phase involves proposing a feasible set of project deliverables and related budget requirements. The proposal is refined as needed based on stakeholder feedback. 3

4 Project Prioritization Timeline Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018 Sep 2018 Oct 2018 Nov 2018 I D 2/25 3/4 3/11 3/18 3/25 4/1 4/8 4/15 4/22 4/29 5/6 5/13 5/20 5/27 6/3 6/10 6/17 6/24 7/1 7/8 7/15 7/22 7/29 8/5 8/12 8/19 8/26 9/2 9/9 9/16 9/23 9/30 10/7 10/14 10/21 10/28 11/4 11/11 11/18 11/25 2/28 BPWG Stakeholder feedback, proposed improvements & process timeline 3/29 BPWG Stakeholder feedback, proposed improvements & process timeline Identification 4/11 BPWG Initial list of project candidates & descriptions; stakeholder review & advocacy 4/25 BPWG Project updates, stakeholder advocacy & project identification and proposed deliverables 5/10 BPWG Project updates, stakeholder advocacy & project identification deadline 5/30 BPWG Final project updates, initial cost & benefits, stakeholder advocacy & draft scoring survey Prioritization 6/15 BPWG Finalize scoring survey & distribute; review costs & benefits all projects 6/26 BPWG Deadline for completing scoring survey Evaluation 7/11 BPWG Review NYISO priority scores, stakeholder scores, feedback 7/25 BPWG Review initial project budget recommendation Recommendation 8/17 BPWG Review revised project budget recommendation 9/7 BPWG Initial NYISO budget review Overall NYISO Budget 9/26 MC BPWG Chair presents NYISO budget proposal 10/5 BPWG Follow-up NYISO budget review 10/24 MC Stakeholders vote on NYISO budget proposal 11/12 BOD BOD approval decision on NYISO budget proposal 4

5 Stakeholder Scoring Survey The survey will be conducted by Siena Research Institute Registered shared governance organizations including non-voting participants and affiliates will have an opportunity to score projects All survey results are public including identifying organization that provided the scoring and any comments Survey link will be sent to the primary MC representative (unless written notification is provided in advance to use a different contact) Each organization may provide one survey response with 100 points available to assign to projects based on their priorities 5

6 Stakeholder Scoring Survey Enhancements Each organization will be assigned a unique code to access their survey that will be included in to MC representative MC representative can provide others the ability to access survey by sharing code Anyone with survey code can submit the survey There will be a comment section after each project as well as at the end of survey to supplement scoring information Once submitted, the link and code will no longer provide access the survey The survey link and code can be reset if there is a need to revise after submission Contact Brian Hurysz or Member Relations for any survey related issues 6

7 Stakeholder Scoring Survey Timeline A draft of the survey will be distributed to BPWG on May 30 th for review and finalization of project descriptions All project cost and benefit information to be posted by June 12 th with June 15 th BPWG materials Official survey will be distributed June 15 th after BPWG If last minute updates to survey are made at June 15 th BPWG, this may delay the survey distribution Surveys deadline is June 26 th Survey results to be provided July 11 th 7

8 Project Description Changes S&P Credit Ratings Platform Change [Mandatory] Finance Systems Strategic Vision Planning The NYISO Finance team would study current and anticipated technology requirements necessary to support the Finance function and determine what changes and improvements will be required for all supporting software and hardware products and to develop a future implementation path for the products. This project would determine the best approach to building sustainable and secure systems that integrate Finance departments, systems, and processes while maintaining flexibility to adapt to market support requirements. Elimination of Capacity Localities The Elimination of Capacity Localities project would develop a construct for evaluating existing Capacity Localities to identify if the Capacity Localities are still needed. Additionally, this project would also develop a construct to eliminate the Capacity Locality from the ICAP market rules if the Capacity Locality is not needed. 8

9 Project Description Changes Creation and Elimination of Capacity Localities The Creation and Elimination of Capacity Localities project would develop a construct for 1) evaluating existing Capacity Localities to identify if the Capacity Localities are still needed, and 2) evaluating potential Capacity Localities to identify if that Capacity Locality is needed. Additionally, this project would also develop a construct to create or eliminate the Capacity Locality from the ICAP market rules as needed. External CRIS Right Supply Failure Reset The External CRIS Right Supply Failure Reset project would examine the intersection of the External CRIS Right renewal rules and the External CRIS Right Supply Failures. Under the current tariff, holders of External CRIS Rights hold such rights for a specified Award Period. In the event of four Supply Failures within an Award Period, the associated External CRIS Rights will be terminated in their entirety with no ability to renew. If, however, an External CRIS Right holder s Award Period is renewed, such renewal being requested prior to the end of the term (i.e., Award Period) for which the External CRIS Rights were awarded, External CRIS Right Supply Failures are reset. This project would examine whether the consequence of four Supply Failures should be applied to all Award Periods equally to both Award Periods are as short as 5 years and Award Periods as long as 20-years or whether it would be appropriate to adjust that provision should be considered. 9

10 Project Prioritization Codes and Scoring Project Type Mandatory Description Strategic Initiatives and FERC Orders. These projects will be included in the budget Continuing Future NYISO Scored Stakeholder Scored Approved in a prior year and have progressed to either software design or development complete. These projects will be included in the budget Based on NYISO s view of this projects priority relative to other projects, these projects will not be initiated in the coming budget year. Resources, time constraints, and other project dependencies have been taken in to consideration Includes both stakeholder scored and internal facing (IT) projects that do not have a direct impact on our Stakeholders. Inclusion in the budget of internal facing (IT) projects scored by the NYISO only is conditioned on resource and budget availability Identifies those projects that will be included in the NYISO Stakeholder Survey. 10

11 Milestone Definitions 11

12 2019 Project Candidates Product Area Project Name Code Proposed Deliverable NYISO Scored Business and Finance Products CRM Integration with Chat Deployment Yes Yes Business and Finance Products Key Topics Enhancements Deployment Yes Yes Business and Finance Products Public Website Redesign Phase II Deployment Yes Yes Business and Finance Products Mobile Functionality Deployment Yes Yes Business and Finance Products Enterprise Information Management - Data Integration Phase IV Continuing Deployment Business and Finance Products Fuel Mix Data Query Enhancement Deployment Yes Yes Business and Finance Products Transactions Modifications and Confirmation Tool Functional Requirements Yes Business and Finance Products Metering Submission and Access Redesign Deployment Yes Business and Finance Products Rate Schedule 12 Settlement Continuing Deployment Business and Finance Products S&P Credit Ratings Platform Change Mandatory Deployment Business and Finance Products Financial Risk Assessment and Scoring Enhancement Functional Requirements Yes Business and Finance Products Oracle Financials Upgrade Architectural Design Yes Business and Finance Products FERC Form1 Redesign Deployment Yes Business and Finance Products Vendor Management Tool Continuing Deployment Business and Finance Products Position Control System Deployment Yes Business and Finance Products Finance Systems Strategic Vision Planning Study Complete Yes Stakeholder Scored 12

13 2019 Project Candidates Product Area Project Name Code Proposed Deliverable Capacity Market Products ICAP AMS Redesign Phase III Continuing Deployment Capacity Market Products CRIS for External - ROS Transmission Investments Mandatory Deployment NYISO Scored Capacity Market Products Treatment of Locality Imports (SOM) Market Design Concept Proposed Yes Yes Capacity Market Products Dynamic Creation of Zones Market Design Concept Proposed Yes Yes Capacity Market Products Tailored Availability Metric Market Design Concept Proposed Yes Yes Capacity Market Products Competitive Entry Exemption for Increased CRIS Market Design Complete Yes Yes Capacity Market Products Enhanced BSM Mitigation Study Period Market Design Concept Proposed Yes Yes Capacity Market Products Review Capacity Physical Withholding Rules Market Design Concept Proposed Yes Yes Capacity Market Products Capacity Transfer Rights for Internal Transmission Upgrades (SOM) Future Capacity Market Products Economically Allocate Import Rights Future Capacity Market Products BSM Repowering Market Design Complete Yes Yes Capacity Market Products EDR and UDR Enhancements Market Design Concept Proposed Yes Yes Capacity Market Products EDRs for External Transmission Investment Market Design Concept Proposed Yes Yes Capacity Market Products Explore Locational Reliability Pricing (SOM) Study Complete Yes Yes Capacity Market Products External Capacity Performance & Obligations Market Design Complete Yes Yes Capacity Market Products Demand Curve Reset Mandatory Study Complete Stakeholder Scored 13

14 2019 Project Candidates Product Area Project Name Code Proposed Deliverable NYISO Stakeholder Scored Scored Capacity Market Products BSM to Address Other Price Suppression Actions (SOM) Market Design Concept Proposed Yes Yes Capacity Market Products Dynamic Setting of Import Rights Limits Market Design Concept Proposed Yes Yes Capacity Market Products Elimination of Capacity Localities Study Complete Yes Yes Capacity Market Products Creation and Elimination of Capacity Localities Study Complete Yes Yes Capacity Market Products External CRIS Right Supply Failure Reset Market Design Complete Yes Yes DER Products DER Participation Model Mandatory Functional Requirements DER Products Enabling Technologies for DER Study Complete Yes Yes DER Products NYISO Pilot Framework Continuing Study Complete Energy Market Products ESR Participation Model (SOM) Mandatory Deployment Energy Market Products Long Island PAR Optimization & Financial Rights (SOM) Future Energy Market Products RTC-RTD Convergence Improvements (SOM) Market Design Complete Yes Yes Energy Market Products Enhanced PAR Modeling (SOM) Future Energy Market Products Review of RACT Compliance Plans (SOM) Market Design Concept Proposed Yes Yes Energy Market Products Performance-based Reserve Payments (SOM) Future Energy Market Products 5 minute Transaction Scheduling with HQ Market Design Concept Proposed Yes Yes Energy Market Products Model 100+kV Transmission Constraints (SOM) Functional Requirements Yes Yes 14

15 2019 Project Candidates Product Area Project Name Code Proposed Deliverable NYISO Stakeholder Scored Scored Energy Market Products Dynamic Reserve Requirements (SOM) Future Energy Market Products Constraint Specific Transmission Shortage Pricing (SOM) Market Design Complete Yes Yes Energy Market Products Eliminate Fees for CTS Transactions with PJM (SOM) Future Energy Market Products Enhanced Fast Start Pricing (SOM) Mandatory Functional Requirements Energy Market Products Pricing Reserves for Congestion Management (SOM) Future Energy Market Products Carbon Pricing Market Design Complete Yes Yes Energy Market Products Energy Market Software Performance Study Complete Yes Yes Energy Market Products More Granular Operating Reserves Market Design Complete Yes Yes Energy Market Products Reserve Procurement for Resilience Market Design Concept Proposed Yes Yes Energy Market Products Flexible Ramping Product Study Complete Yes Yes Energy Market Products Ancillary Services Shortage Pricing Study Complete Yes Yes Energy Market Products Real-Time Performance Incentives Market Design Complete Yes Yes Energy Market Products DAM Congestion Settlement Re-Allocation Automation Development Complete Yes Energy Market Products LPT's Redesign Market Design Concept Proposed Yes Yes Energy Market Products Automated Default Mitigation Implementation Software Design Yes Enterprise Products Database Platform Upgrade Continuing Deployment 15

16 2019 Project Candidates Product Area Project Name Code Proposed Deliverable NYISO Stakeholder Scored Scored Enterprise Products Application Platform Upgrade Phase Continuing Deployment Enterprise Products Identity and Access Management (IAM) Continuing Deployment Enterprise Products Microsoft Systems Upgrade Continuing Deployment Enterprise Products Network Infrastructure Upgrade Continuing Deployment Enterprise Products IT Service Management Improvements Functional Requirements Yes Enterprise Products IT Infrastructure Automation Deployment Yes Enterprise Products Network Attached Storage (NAS) Replacement Deployment Yes Operations & Reliability Products EMS/BMS System Upgrade Continuing Deployment Operations & Reliability Products - PI System Upgrade Continuing Deployment Operations & Reliability Products - EMS/BMS Workstation Upgrade Continuing Deployment Operations & Reliability Products Gurobi (MIP) Refresh Continuing Deployment Operations & Reliability Products TOA Platform Upgrade Phase III Continuing Development Complete Operations & Reliability Products E-Tagging Refresh & Performance Improvements Software Design Yes Yes Planning Products Interconnection Project Queue (or Portal) Automation Continuing Deployment Planning Products Comprehensive System Planning Process Review Continuing Market Design Complete Planning Products Deliverability Base Case Automation Deployment Yes 16

17 Next Steps Written feedback may be provided until May 17 th Send to Leigh Bullock and Brian Hurysz : (518) : (518) Stakeholder Advocacy at May 30 th BPWG meetings Cost and benefits review all projects June 15 th, and approx. 75% of projects at the May 30 th BPWG The deadline to submit stakeholder scoring surveys is June 26 th Review stakeholder and NYISO priority scores scoring at the July 11 th BPWG 17

18 Questions?. 18

19 The Mission of the New York Independent System Operator is to: Serve the public interest and Provide benefit to stakeholders by Maintaining and enhancing regional reliability Operating open, fair and competitive wholesale electricity markets Planning the power system for the future Providing factual information to policy makers, stakeholders and investors in the power system 19