Gas-Electric Coordination Enhancements. Webinar - May 7, 2015

Transcription

1 Gas-Electric Coordination Enhancements Webinar - May 7, 2015

2 Agenda Objective Background IESO Review Interim Changes Proposed Enhancements Proposed Timelines and Target Dates Summary Recent Regulatory Developments Next Steps 2

3 Objectives Provide overview of proposed changes to gaselectric coordination Update stakeholders on work-to-date Seek input on proposed enhancements Identify and seek input on recent regulatory developments that may impact scheduling and operations 3

4 Background - Rationale Characteristics of Ontario s gas generation fleet: Represents approx. 30% of Ontario s Installed Capacity Assists in load following (fluctuations and variations in demand) Provides crucial support to meet peak demands Reliance on gas fired generation expected to further increase Coincident peak demand with gas pipelines and electricity systems could create fuel supply limitations during tight supply days 4

5 Background Recent Events Weather related events highlighted the following: Impact of gas pipeline infrastructure constraints on reliability of electric system Need for better cross-sector communication between gas pipeline companies and electric system operators Develop processes to enable improved coordination for planning and operations Address any associated confidentiality and regulatory barriers to transfer of information 5

6 Background FERC Order #787 FERC Order # 787 (issued June 14, 2014) Authorizes interstate pipeline companies and ISOs to share nonpublic, operational information Permits the sharing of information deemed necessary to promote the reliability and integrity of gas and electric systems Several ISOs in the USA share gas generator schedules with pipeline and storage providers Pipelines in the USA share maintenance and outage plans with ISOs 6

7 Background Ontario Energy Board (OEB) OEB 2014 Natural Gas Market Review (NGMR) Recommendations: Consider issues related to the gas/electricity market interface including, but not limited to: The timing of gas purchase/delivery options and electricity supply commitments Relevant service offerings and prices for gas-fired generator customers Potential future cross-sector synergies Review and provide direction on the Board s regulatory instruments pertinent to the disclosure by gas distributors of information on pipeline and storage operations that may be required to facilitate gas/electric market coordination 7

8 IESO Review Summer 2014 IESO conducted a review of 2013/2014 winter operations including a review of gas prices, storage and electricity demands IESO assessed the need for enhanced information sharing between gas pipeline and IESO Fall 2014 sought feedback from stakeholders on opportunities and challenges to share gas generator schedules with gas pipelines: IESO Gas Generator Webinar APPrO Conference Gas Plant Managers Group Various discussion with pipeline companies Ontario Energy Board - IESO discussed a potential review of regulatory instruments that may prohibit gas pipelines and gas storage providers from sharing non-public operational information that is necessary for promoting reliability and operational planning Early feedback indicated support to enhance IESO communication and coordination efforts with gas generators and pipeline and storage companies 8

9 Interim Enhancements IESO engaging with gas pipelines through semi-annual meetings to: Communicate any potential operational constraints that may affect future supply Develop appropriate processes to enable better cross-sector communication Identify and address any confidentiality and regulatory barriers that may prohibit sharing of non-public information Based on the IESO s review the following interim changes were implemented: Instituted the monitoring of publically available gas industry information Introduced new messaging in System Status Reports (SSRs) Improved communication and coordination with gas generators Continue to work with gas pipeline and storage providers to improve communication for operations and planning 9

10 Interim Enhancements cont d The IESO expects that enhanced coordination efforts will evolve into more frequent near term and real-time communications with pipeline operators Review the processes implemented by other ISOs with significant gas generation fleet 10

11 Proposed Enhancements The IESO is seeking stakeholder input to identify challenges and opportunities in the implementation of the following proposed enhancements: IESO to provide committed gas generator schedules to pipelines (subject to Non- Disclosure Agreement (NDA)) By exception, gas pipelines will report to the IESO when commitments may be unachievable due to pipeline constraints. If the IESO receives information from a gas pipeline that a committed generator may not be able to supply its scheduled energy, the IESO will confirm that restriction with the gas generator and request that the generator provide the IESO with the appropriate information through their normal channels (e.g., revise offers, submit derates). The IESO will not take any action on information supplied by a gas pipeline, unless confirmed by a gas generator. An exception would be a catastrophic event or similar threat that could compromise the entire gas generation fleet. Any cooperation with these procedures by gas pipelines is voluntary and will be governed by NDAs and their applicable OEB regulations. 11

12 IESO Gas-Electric Coordination Report: Example of the report that will submitted to gas pipeline operators 12

13 Proposed Timeline and Target Dates LEGEND Task Ongoing Task Scheduled Project Completion MARKET RULE AMENDMENT PROCESS (June Nov. 2015) April 2015 May 2015 June 2015 July 2015 Aug Oct Sept Nov Dec Work with pipelines to draft NDA s Introductory presentation to Technical Panel request to consider rule changes (June 02) Request Technical Panel to post the MR amendment for broader stakeholder comments (Aug. 11) IESO Board to consider the MR amendment for approval (Oct 22) IESO work completed (reports, NDA) in time for winter 2016 Information Session for Stakeholders (May 07) Present Amendment Proposal (redline version of proposed market rule changes) (July 07) Request Technical Panel vote for IESO Board Approval (Sept 22) Market Rules Effective Date (earliest Nov. 13) 13

14 Summary Increased reliance on gas generators in Ontario and recent weather events are driving this initiative. IESO is proactively engaging gas pipeline operators to fill any communication gaps that may exist to facilitate better cross-sector coordination. IESO is working with OEB to address any barriers to sharing of nonpublic information. IESO is actively tracking regulatory developments and collaboratively working with entities that may be impacted. IESO intends to place appropriate communication channels to enhance coordination and ensure preparedness for winter 2015/16. 14

15 Recent Regulatory Developments Additional feedback is requested on FERC Order issued April 4, 2015 (Docket No. RM ) FERC revised regulations relating to the scheduling of transportation service on interstate natural gas pipelines to better coordinate the scheduling practices of the wholesale natural gas and electric industries. Specifically, the revised regulation changes the nationwide (US) Timely Nomination Cycle nomination deadline for scheduling natural gas transportation from 11:30 AM Central Clock Time (CCT) to 1:00 PM CCT, and revises the intraday nomination timeline to include an additional intraday scheduling opportunity during the Gas Day. FERC also instituted proceedings to ensure that the scheduling practices for each ISO and RTO (particularly its day-ahead scheduling practices) correlate with any revisions to the natural gas scheduling practices. Ninety days after publication of this draft Final Rule in the Federal Register, each ISO and RTO is required to propose tariff revisions to coordinate its day-ahead market with the natural gas pipeline scheduling changes adopted in the Final Rule, or to show cause why its existing scheduling practices need not be changed. 15

16 Recent Regulatory Developments Questions to Consider Please consider the following questions for input in light of the recent changes instituted by FERC: How should the Day-Ahead Commitment Process (DACP) timing change to better align with the changes in the timely nomination window? What is the impact on gas generator and gas pipeline operations due to these changes? 16

17 Next Steps Stakeholder feedback is due by May 15 to Proposed enhancements Recent regulatory developments IESO to post response to stakeholder feedback by May 26 Target proposed market rule changes on June 2 via IESO Technical Panel 17