Winter Weather Procedure Changes Webinar

Transcription

1 Winter Weather Procedure Changes Webinar System Operator Training Dept. November 24, 2014

2 Disclaimer: PJM has made all efforts possible to accurately document all information in this presentation. The information seen here does not supersede the PJM Operating Agreement or the PJM Tariff both of which can be found by accessing: For additional detailed information on any of the topics discussed, please refer to the appropriate PJM manual which can be found by accessing: 2

3 Objectives Given the changes to Cold Weather Operating Procedures since the Polar Vortex of 2014, the learner will be able to: Identify the impact of these changes on operations Analyze operating situations and provide the proper response Identify the impacts of increasing reserve requirements and imposing interchange caps during emergencies List the new requirements on generators and the possible impacts on generation scheduling

4 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

5 January 7, 2014 Peak Load vs. Typical Load 35,000 MW Review

6 Forced Outages - Evening Peak January 7, 2014 at 7:00 p.m. Review

7 Polar Vortex All Time Peak Winter Loads Review 7

8 Generator Performance: Common Trends Fuel Natural gas interruptions: supply injection, compressor outages and one pipeline explosion Fuel oil delivery problems Inability to procure gas Fuel oil gelling Cold Weather Effects Wind turbine low temperature limits Hydro icing Failed auxiliary equipment Stress of extended run times Frozen instrumentation Review Drum level sensors Control valves Flow and pressure sensors 8

9 RF: Outages vs Temperature 9 Review

10 NERC Polar Vortex Recommendations Examine and review the natural gas supply issues encountered during the event Review and update power plant weatherization programs as a result of lessons learned from this event Continue to improve operations management awareness of the fuel status of all generators, including improved awareness of pipeline system conditions Ensure that the fuel on hand and/or ordered for the winter season is appropriately protected from the effects of cold weather at the expected extreme temperatures Review 10

11 2014 / 2015 Projected Capacity and Peak Load RTO MW 2014 / 2015 Unrestricted Load Forecast* 133, Total Installed Capacity (ICAP)** 183,013 *50/50 PJM Coincident Peak Load. Unrestricted means Demand Response was not subtracted **ICAP, includes generation internal to PJM (internal RPM / FRR and other internal iron in the ground), external imports to PJM, and Annual DR as of 12/01/2014) Review 11

12 Existing Installed Capacity (MW) by Fuel Type (12/01/ 2014) Source: PJM Review 12

13 Winter Upgrades Expected Review 13

14 Generation Additions Since Last Winter Name Added Output (MW) Zone New or Up-rate Status Crown Point - West Deptford 650 AE New Testing Warren County - Front Royal 1,350 DOM New Testing Review

15 Generation Retirements Since Last Winter Unit Name Capacity (MW) Zone Actual / Projected Deactivation Date Indian River #3 40 DPL 12/31/13 Beckjord #4 150 DEOK 2/17/14 Portland #1 158 METED 6/1/14 Portland #2 243 METED 6/1/14 Deepwater #1 78 AE 5/31/14 Deepwater #6 78 AE 5/31/14 B.L. England #1 129 AE 5/1/14 Burlington #9 GT 184 PSEG 6/1/14 Chesapeake #1 111 DOM 12/31/14 Chesapeake #2 111 DOM 12/31/14 Chesapeake #3 147 DOM 12/31/14 Riverside #6 118 BGE 6/1/14 Review

16 Planned Pre- Winter 2014 / 2015 Implementations Pre-Winter 2014 / 2015 Considerations Cold weather resource capability testing and preparation checklist Gas Unit Commitment coordination in real-time operations to include clarity in dispatcher communications, sharing of updated unit parameters (e.g. notification times, dual fuel capability and availability, fuel inventories, resource limitations), commitment of long lead-time units Reduction in uplift via improved scheduling practices and modeling Improvements to setting the caps on cost-based and price-based offers Improved data sharing and coordination with the gas industry Energy and reserve pricing improvements to more appropriately reflect real-time operations Improvements in interregional coordination to improve situational awareness during emergencies Improvements in emergency procedures Voltage reduction data and procedures and emergency energy bid procedures Review 16

17 PJM Winter Preparations PJM Studies, Data Requests & Drills PJM Operations Assessment Task Force (OATF) Winter Operating Study (Nov. 2014) PJM Emergency Procedures Drill (Nov. 17, 2014) Fuel Inventory Survey (Oct. 2014) Cold Weather Webinar (Nov. 24, 2014) Reliability Coordinator Meetings ReliabilityFirst Winter Assessment (Nov. 2014) Joint MISO/PJM/NPCC Operations Coordination Meeting (Nov. 12, 2014) SERC Operating Committee / VACAR Pre-winter coordination Meetings (Oct. 2014) NYISO / PJM Winter Coordination meeting (October 23, 2014) Gas / Electric Coordination Joint INGAA Inter-RTO Council Meeting (Sept. 3, 2014) Pennsylvania Independent Oil & Gas Association (PIOGA) Pipeline and Gas Market Development Committee (Sept. 8, 2014) PJM Winter gas preparation meeting (October) Review 17

18 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

19 The Problem Coincident with the cold weather and high demand, generator forced outages and failures to start were significantly higher than expected (22% / 40,000 MW) during the January 6-8, 2014 operating days Manual M-13 Section 3.3 includes a chart of potential generator unavailability due to cold weather based on historical performance Outage rates in January 2014 exceeded these estimates by greater than 200% PJM presented improvements in the performance of resources during extreme cold weather are necessary and some level of performance verification or testing of certain resources during cold weather should be implemented Review 19

20 Gen Resource Ops Exercise Program Objectives Enhance unit performance during cold weather operations and ensure units are prepared for extreme cold weather Ensure that units can start-up and run on alternate fuels if necessary Schedule the system economically and reliably NEW! 20

21 Manual References A new section 7.5, Cold Weather Generation Resource Preparation added to Manual 14D Section Generation Resource Operational Exercise A new Attachment N added to Manual 14D Cold Weather Preparation Guidelines and Checklist NEW! 21

22 M-14D Section Prior to winter, PJM will request generation resource owners and operators exercise some of their generation resources to determine they are capable of operating and responding to PJM dispatch instructions Exercise will be conducted prior to onset of cold weather Generation Resource Owner may elect to self-schedule a resource to validate its cold weather operation Exercise will assist in identifying and correcting start-up, operational and fuel switching problems NEW! 22

23 Prior to November 1st Prior to November 1 st of each year, PJM will compile a list of generation resources eligible to participate in the exercise Generation will be eligible if they have not been operated by PJM or the resource owner on the generation resource s primary or alternate fuel for eight weeks or more prior to the eligibility cutoff date NEW! 23

24 By November 10th PJM will provide the list of eligible generation resources to the resource owner s Operating Committee representative, PJM System Operations Subcommittee representative or their designee by November 10 th NEW! 24

25 By November 20th By November 20 th or the first business day thereafter each year: The generation resource owner will provide PJM the list of generation resources that the owner wants to exercise and the following information in order to qualify to participate: Preferred dates and times to test within the month of December and the fuel the resource owner is willing to operate the generation resource The minimum MW and minimum run time to be used during the exercise Note: If the minimum MW or minimum run time submitted for the test are different than the applicable emkt parameters, the owner must provide justification for the difference NEW! 25

26 Eligibility If a generation resource is initially determined to be eligible by PJM as of October 31st, but operates between November 1st and the date the generator is scheduled to participate in the exercise, the generator will no longer be eligible to participate PJM will review generation operations on a two week rolling basis to determine if a generator has not operated within the most recent eight week period and may add that generator to the eligibility list and inform the owner the generator should be included in the exercise NEW! 26

27 Exclusions Following generators would normally be excluded from the exercise: Nuclear Wind Turbines Hydro Large Super Critical Steam These types of generation are expected to be operating during the winter season prior to an extreme weather event Would normally not be inactive after November 1 NEW! 27

28 Operating Schedule PJM will only schedule generation if they will be operating on their cost-based schedules for the duration of the exercise Generation resources expecting to operate economically during December will be excluded from eligibility to participate NEW! 28

29 During December During December, PJM will notify generation in advance of 1000 EPT the day prior that a generation resource the owner has selected will be scheduled to operate the next day Owner should submit an informational edart ticket documenting the unit is scheduled to operate under the cold weather operational exercise Use cause code Cold Weather Preparation Exercise edart NEW! 29

30 Cancelling the Exercise If the projected temperature in the transmission zone where the resource is located is above 35 degrees Fahrenheit on the day the generator is schedule to exercise, PJM may elect to cancel the operation of the generator Unit owner maintains the option to self-schedule the generator if desired NEW! 30

31 Day-ahead Postings On a day-ahead basis, PJM will post the total MW amount of generation scheduled hourly to operate under this exercise Total generation expected daily to be scheduled in the exercise will not be greater than 1000 MW NEW! PJM will prioritize the list based on last operation date, past winter performance and fuel selection 31

32 Exercise Communications Contact PJM regarding the exercise at: NEW! 32

33 Timeline of Exercise - Review Prior to November 1 st, PJM will compile a list of eligible generation By November 10 th, PJM will provide the list to the generation resource owner s representative By November 20 th, the generation resource owner will provide a list of units they would like to exercise Within the month of December, PJM will notify the generation resource owner by 1000 hours EPT the day prior that they have been selected NEW! 33

34 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

35 The Checklist Provide generators with a guide to lessen and optimistically eliminate problems during future cold weather events Not meant to be all-inclusive Generators should review their plant design, configuration, areas of potential exposure to the elements and ambient temperatures Tailor and address plans accordingly Located in Manual M-14D Generator Operational Requirements Attachment N Additional information in Manual M-14D section NEW! 35

36 Manual 14-D Attachment N NEW! 36

37 What is done with the checklist? Checklist should be used annually prior to the winter season to prepare generation resources for extreme cold weather event operations Prior to December 15 th of each year, the generation resource owner s Operating Committee representative or designate shall report to the OC chair via that the represented generation resources have completed the items on the checklist The resource owner may also utilize a substantially equivalent checklist developed by the owner Designate should include a list of resources included and may also include a signed copy of the checklist used NEW! 37

38 Desired Outcome Identify and prioritize components, systems and areas of vulnerability which may experience freezing problems or other cold weather operational issues Includes components and systems that have the potential to Initiate an automatic unit trip Impact unit start-up Initiate automatic unit runback schemes or cause partial outages Cause damage to the unit Adversely affect environmental controls that could cause full or partial outages Adversely affect the delivery of fuel or water to the units Cause other operational problems such as slowed or impaired field devices Create a safety hazard NEW! 38

39 Checklist Sections Safety Training Pre-winter Season Items Personnel Preparation Staffing Equipment Preparation Fuel and Environmental Preparation Action when cold weather is forecasted Actions during cold weather Actions following cold weather More detail on each section can be found in the Appendix of this presentation! NEW! 39

40 Checklist Submittal Checklist completion must be verified through edart by 12/15/14 GO Survey functionality used for this purpose Detailed information NEW!

41 References NERC website Cold weather event postings February 2011 Southwest event Lessons Learned Reliability Guidelines for Cold Weather Prep Extreme Winter Weather Events Training Presentation PJM Polar Vortex Presentation at FERC Technical Conference NEW! 41

42 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

43 Key Concepts PJM does not schedule when outages should take place PJM only accepts or rejects outage request Generation owner determines its own best time to schedule an outage PJM only rejects requests when the reliability of the PJM RTO is affected All outage requests analyzed together Both capacity and energy only resources shall provide generator outage data to support PJM obligations as a Reliability Coordinator to report generator outage information required for reliability analysis (TOP-003 R1) Review 43

44 Forecasted Planned Scheduled well in advance Usually occur during lower load periods Have flexible start dates Pre-determined duration May last several weeks Examples: Overhauls, Nuclear Refueling, Annual Inspections Review 44

45 Forecasted Planned-Request Procedures Minimum of 30 days notice Can be scheduled 3 years into future If outage denied, member re-submits Submitted through edart Applies to MW Outages only Outage approval can be withdrawn with at least 24 hours notice Only done for reserves or reliability Review 45

46 Business Rules Forecast Planned Outages Generation owners submit MW outages of greater than 31 days in the future, and up to 3 years in the future as Forecasted Planned Each evening the edart system will automatically change to Planned all Forecasted Planned outage due to start in less than 31 days Once ticket is changed to Planned, and has a status of approved, a reduction revision can be submitted, but only to decrease the amount of reduction Start date can be increased only (no more than 30 days into the future) End date may be changed Other than cancellation, no other changes can be made Review 46

47 Approval Process Forecast Planned Outages Submit Ticket Ticket Scheduled During PPM? (summer) No Blackstart Scenarios Violated? No Adequate Reserves Available? No Yes Is generator a Hydro unit Yes Yes No No PJM Review or (change dates) Yes Yes Rejected Approved Outage type changes from Forecasted Planned To Planned After ticket start date is < 31 days in future Review 47

48 Approval Criteria Forecast Planned Outages Ticket Scheduled During PPM? Peak Period Maintenance (PPM) is defined as the weeks containing the 24th through the 36th Wednesdays of the calendar year with each week beginning on a Monday Usually from about Mid-June through Early September Review 48

49 Approval Criteria Forecast Planned Outages Blackstart Scenarios Violated? In the simplest terms this means no more than one critical blackstart unit planned outage per station Some transmission zones have other specific outage requirements that will be verified Review 49

50 Approval Criteria Forecast Planned Outages Adequate Reserves Available? If Adequate Reserves are not available the generation owner may opt for PJM to review it, or they can make an adjustment to the ticket In the Summer months, and the shoulder months of Spring and Fall, PJM maintains installed capacity reserves of 15% PJM does not set a summer reserve target for outages Financial incentives typically limit summer outages In the Winter months, after removing units on a planned outage, PJM maintains 27% available reserves above each winter week s peak Review 50

51 Maintenance Outages Outages that may be deferred beyond the next weekend (Next Monday Morning, 0800hrs) Work has to be done before next planned outage Flexible dates Much shorter than planned outages Predetermined duration Review 51

52 Maintenance Outages Timeline Weekend Period - Friday at 2200 to Monday at 0800 Limitations Peak Period - 9 days Non-Peak Period - Unlimited Peak Periods 24th thru 36th Wed. of calendar year Review 52

53 Summary - Process for Maintenance Outage Notify PJM Scheduling Coordinator Yes Does requested outage affect current or next day? No Submit edart ticket Notify PJM Scheduling Coordinator at start of outage Bid unit in emkt as Unavailable as appropriate (Day-ahead) Submit GADS data after the fact Review 53

54 Unplanned Outages Types of Unplanned Outage Immediate unit trip Unit Failed to Start Unit can t operate when requested by PJM Advise PJM of outage as promptly as possible Verbal notification to PJM GD Provide expected return date and time Submit outage information Review 54

55 Unplanned Outages Responsibilities upon an Unplanned Outage: Notify PJM Generation Operator Update Unit Limits/Status in emkt Unit Hourly Update screen Submit edart ticket in timely manner When unit status is known Submit egads data By 20 th day of following month Review 55

56 Summary - Process for Unplanned/Forced Outage Did unit trip or fail to start? Yes No Notify PJM Master Coordinator Notify PJM Generation Dispatcher Submit edart ticket Bid unit in emkt as Unavailable as appropriate Notify PJM Master Coordinator at end of outage Submit GADS data after the fact Review 56

57 Unforced Capacity Effective Forced Outage Rate (Demand) or EFOR d Provides the basis for Unforced Capacity Requires reporting GADS data directly to PJM Based on NERC / GADS reporting Verification, Testing and Reporting Requirements (PJM Green Book) Unit Performance Measurements 12 Month Rolling Average Unit Performance Substantial penalties for late / bad data (up to $500 a day for data not submitted in accordance with published guidelines) data required by the 20th day after proceeding month IF data missing and NOT addressed, IT will be assumed as FORCED Outage Review 57

58 Differences in Electronic Reporting edart GEN Checkout Used to compare generation availability in emkt to edart Differences are displayed in Gen Checkout application Differences must be rectified in either emkt or edart Ensures consistency of data between applications edart Unit A = emkt Unit A Available generation = 100 MW Which system is correct? Available generation = 150 MW Review 58

59 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

60 New Generator Data Purpose of new data Provide PJM operators more information on generator capabilities and restrictions Reduce number of phone calls to/from PJM and GOs during gas restrictions or emergency operations Most data is updated on a generator Schedule basis Generators will submit data via emkt NEW! 60

61 Fuel Type Data - emkt Energy Fuel Type Fuel used to achieve full load for the generator (Existing field, but will now be made a required field) Schedule Detail page Start Up Fuel Type Fuel used to ignite or start up the generator (Required Field) Schedule Detail page NEW!

62 Dual Fuel Data - emkt Dual Fuel Capability (Yes/No) Indication whether or not the unit can switch its operation between two (or more) different fuels. Can be defined at the unit level (Default = No) Dual Fuel Availability (Yes/No) Can be defined at the schedule level (Default = No) Time to Transition (Minutes) Amount of time in minutes to transition from one fuel type to another (Default = 0) MW output during Fuel Transition MW output where unit must operate to facilitate fuel transition (Default = 0) Fuel Policy: Provide PJM / MMU with fuel policy for intra-day offers via MMU MIRA tool See _Template.doc for details NEW! 62

63 Operating Restriction Data - emkt Operational Restrictions Defined at the schedule level Operational Restriction Type Dropdown list of the type of restriction (s) (e.g. emissions, de-mineralization of water process). Can also type in an Other restriction. Defined at the schedule level (Default = blank) Hours at Full Load Remaining over next 7 days (hours) Default is 168 hours (i.e. no restriction). Updated at schedule level NEW! 63

64 New Generator Data Unit Detail Screen NEW! 64

65 New Generator Data Schedule Detail Screen Re-label as Energy Fuel Type. Add new field Startup Fuel Type # NEW! 65

66 New Schedule Restriction Info Tab Entered data will carry forward until updated by user NEW! 66

67 New Generator Data - Example Unit has dual fuel capability, but does not want to run the unit on oil due to emissions limitations when running on oil There is currently no requirement for dual fuel units to make alternate fuel available Unit should set Dual Fuel Availability flag on available gas schedules to NO Unit should submit an Operational Restriction on oil schedule to communicate the emissions limit and number of hours at full load remaining on oil NEW! 67

68 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

69 Cold Weather Alert Purpose - Prepare Personnel and facilities for expected extreme cold weather conditions Can be initiated in RTO or on Control Zone basis Forecasted or actual temperatures at 10 degrees or less Can be issued at higher temperatures for increased wind chill or expected gas delivery concerns Cold Weather Alert will now be used as a trigger for additional actions (more later) Interchange cap Increased Day-ahead Scheduling Reserve requirement Increased RT Synchronized Reserve and Primary Reserve requirements Review 69

70 Cold Weather Alert PJM Actions Notifies PJM management, PJM public information personnel and members Issue Cold Weather Alert with the following information: Control Zone(s) Forecasted low temperature Forecasted duration of the condition Estimated Operating Reserve and Reserve Requirement Note: Fuel Limited resources have daily availability of less than 8 hours per day PJM Dispatch communicates whether fuel limited resources are required to be placed into Maximum Emergency Category Review 70

71 Cold Weather Alert PJM Actions These points should be delivered in Cold Weather Alert All Call Issue Cold Weather Alert with the following information: Reminder to GOs to update all their unit s parameters in emkt to reflect actual or expected capability Includes Startup and Notification Times, Min Run Times, Max Run Times, Unit limits and status Units with Startup plus Notification Time of more than 24 hours are required to submit binding offers for energy, startup and no load costs for a full 7 day period 7 days NEW! 71

72 Cold Weather Alert PJM Actions PJM approximates unavailability rates of generation based on the chart below: Review

73 Cold Weather Alert PJM Actions Review PJM may assume an unavailability factor for schedule interchange that could range from 25% to 75% of the pre-scheduled interchange Based on severity of conditions, recent interchange curtailment experience and weather in neighboring systems If predicted temperature is -5 or less or if recent performance has shown increase in unit unavailability, an additional level of unavailability is added to the amount of CTs expected to operate PJM may ask generator owners to schedule staffing for CTs or Diesels to gradually start equipment during midnight period to allow it to be available for morning peak May bring units on at engine idle or loaded as necessary to maintain reliability Once started, units remain online until PJM requests them to be shut down

74 Cold Weather Alert Member Actions Transmission/Generation dispatchers notify management of the Alert Transmission/Generation dispatchers defer maintenance where possible Generation dispatchers, based on direction from PJM schedule personnel to ensure CTs and Diesels will be available when needed for the morning load pick up GO may be compensated for staffing costs PJM Manual M-28, Section 5.2 Review 74

75 Cold Weather Alert Member Actions Generation Dispatchers review CT capacities Generation Dispatchers review fuel supply and delivery schedules Generation Dispatchers contact PJM if generation becomes unavailable due to gas limitations Generation Dispatchers inform PJM of units placed in Max Emergency Generation due to less than 8 hours of gas available (if requested by PJM) Review 75

76 Cold Weather Alert Member Actions Generation Dispatchers monitor and report projected fuel limitations to PJM dispatcher by updating their unit s Maximum Run Time and Operational Restriction fields in emkt Generation Dispatchers update all their units parameters in emkt to reflect actual or expected capability Includes Startup and Notification Times, Min Run Times, Max Run Times, Unit limits and status Units with Startup plus Notification Time of more than 24 hours are required to submit binding offers for energy, startup and no load costs for a full 7 day period 7 days NEW! 76

77 Cold Weather Alert Member Actions Generation Dispatchers with dual fuel units shall confirm if the equipment is functional and available hours Dual Fuel availability will be reflected in generator schedules using new emkt fields Described previously NEW! 77

78 Cold Weather Alert Emergency Procedure Message All Call message should also cover these key points NEW! 78

79 Last Updated Field- emkt Screen Schedule Detail Screen Unit Hourly Update Screen Last Updated Date, Time (EPT) Last Updated Date, Time (EPT)

80 Existing Data Field Accuracy PJM is requesting to ensure the unit s actuals parameters are documented in emkt to ensure dispatch decisions are based on accurate information What if the approved PLS parameters are not reflective of the unit s actual parameters? Generation owners are encouraged to contact the MMU and PJM IN ADVANCE so we can explore available options to try to minimize the negative impacts of gas procurement limitations either through actions gen owners can do now, through limited documented exceptions to parameters, or any other valid option Benefits to doing this are: 1) gen owners are proactive so we can be prepared and not surprised by their situations, and 2) gen owners get a consolidated response from PJM and MA of what would be considered an appropriate behavior See Manual 11, Section for details on PLS Exception Process PJM will file temporary waiver for Period and Persistent Exception deadline for Winter 2015 NEW! 80

81 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

82 Long Lead Commitments Overarching Principles for GO operators Ensure data in emkt is as accurate as possible Commitments will be made on this data! Utilize new emkt fields (Operating Restrictions, Dual Fuel) to communicate information to PJM Communicate expected fuel contract/procurement issues to MMU now to avoid concerns this winter PJM will run steam units in real time based on Long Lead/RAC/DA commitments provided See next slide NEW! 82

83 Generation Commitment Duration Steam Units committed in RAC or prior to DA clearing (long lead) Steam Units committed in DA Gas Units committed for greater of: Min Run Time Reliability-based run profile provided by Dispatch Non-Gas Units committed for at least Min Run Time Unit committed in RT for DA commitment or extended run beyond DA commitment as requested by Dispatch CT Units committed in Real Time Commitment for at least Min Run time or as needed in real time by Dispatch NEW! 83

84 Cold Weather Alert Long Lead Unit Commitment PJM will utilize the following to confirm if DA Market will clear sufficient generation to preserve reliability or if Long Lead generation is required to be called Load Forecast Interchange Forecast Increased resource unavailability Generator time to start PJM will utilize this procedure for generators whose Time to Start would prevent them from being committed in the DA market for the hour needed in Real Time I.e. if unit is needed by 0600 and has a Time To Start greater than 14 hours (1600 D-1 through 0600 in current day) Review 84

85 Cold Weather Alert Long Lead Unit Commitment Any discussions on unit commitment outside of the DA Market must be predicated on the unit parameters listed in emkt If data in emkt does not match what GO is telling PJM: PJM will instruct them to update applicable information in emkt to reflect status and availability of unit NEW! 85

86 Cold Weather Alert Long Lead Unit Commitment For Gas Generators: PJM will notify GO that the unit is required to be online and ready to follow PJM dispatch signal at a specified date and time Unit schedule parameters will be locked Unit is offer-capped PJM Dispatch will inform GO to run for the greater of: Unit s Min Run time Number of hours PJM requires the unit to run for reliability In this case PJM would provide a MW profile for the extended hours NEW! 86

87 Cold Weather Alert Long Lead Unit Commitment For Gas Generators: PJM will provide the unit, schedule and provided output profile to DA Market operator for inclusion in applicable DA Market PJM will log this information in Smart Logs Generators committed under this procedure will be run for the hours scheduled, be included in the DA Market and/or via an increased Day-Ahead Scheduling Reserve Requirement (more later) PJM will not cancel these units for economic reasons but may for reliability reasons NEW! Note: The PJM Tariff does not allow make whole payments to generators for stranded fuel for any reason Including forced outage, start failures or decommitted due to reliability reasons 87

88 Cold Weather Alert Long Lead Unit Commitment For Non-Gas Generators: 1. PJM will notify GO that the unit is required to be online and ready to follow PJM dispatch signal at a specified date and time Unit schedule parameters will be locked Unit is offer-capped 2. PJM Dispatch will not commit to run the unit longer than its Minimum Run time Unit will run in real-time based on economics NEW! 88

89 Cold Weather Alert Long Lead Unit Commitment For Non-Gas Generators: 3. PJM will provide the unit and schedule to DA Market operator for inclusion in applicable DA Market 4. PJM will log this information in Smart Logs 5. Generators committed under this procedure will be run for the hours scheduled, be included in the DA Market and/or via an increased Day-Ahead Scheduling Reserve Requirement (more later) Note: These non-gas units may also be cancelled at any time prior to coming online if system conditions change. Costs will be recoverable as indicated in PJM M-11: Energy and Ancillary Services Market Operations NEW! 89

90 Notification Time Notification Time is not a PLS parameter However, if MMU considers that participants are using notification time to avoid fulfilling their obligations they may take regulatory action Notification Times may be tie to gas nomination cycles if: GOs document and submit to PJM and MMU under which conditions they may need such notification times These discussions should be occurring now NEW! 90

91 Example 1 Normal Operations Friday 1800 Saturday 0001 Sunday 0001 Sunday 1600 Sunday 1800 Monday 0001 Monday 0500 Unit is not scheduled DA (Sunday) or in RAC run Unit has an Available schedule on Monday 0001 with the parameters below PJM commits unit on this schedule at 0001 on Monday and asks to come online at 0500 Schedule is locked Unit will be committed for at least Min Run time or longer if economic Unit online Review 91 Unit Parameters: Start Time = 4 hours Notification Time = 1 hour

92 Example 2 Gas Restrictions Friday 1800 Saturday 0001 Sunday 0001 Sunday 1600 Sunday 1800 Monday 0001 Monday 0500 Unit needs to be notified of intent to run on Monday by 0001 on Saturday Unit extends Notification Time to a value sufficient enough to allow for this advanced notification (i.e hours) Unit should reduce Notification Time as time goes by based on when it expects gas would be available Time To Start pushes unit out of DA Market window PJM would schedule unit if needed based on Long Lead language in M-13 Schedule would be locked at time of commitment Review Unit would be committed to greater of Min Run time or run profile needed for reliability Unit will run on this profile in real time (absent any reliability issues) 92 Unit online Unit Parameters: Start Time = 4 hours Notification Time = 24 hours

93 Example 3 Gas Restrictions Friday 1800 Saturday 0001 Sunday 0001 Sunday 1600 Sunday 1800 Monday 0001 Monday 0500 Unit needs to be buy gas on a rate-able take for Monday and needs to run all 24 hours Unit will extend Minimum Run Time to reflect the need to run for 24 hours at a minimum PLS temporary exception must be submitted first Must be based on a pipeline Operational Flow Order (OFO) - not an economic contract If PJM needs unit on Monday, they will honor the extended Min Run time Review 93 Unit online Unit Parameters: Start Time = 4 hours Notification Time = 1 hours

94 Example 4 Gas Restrictions Friday 1800 Saturday 0001 Sunday 0001 Sunday 1600 Sunday 1800 Monday 0001 Monday 0500 Saturday Gas schedule Monday Gas schedule Unit online Unit needs to be notified of intent to run on Monday by 1800 on Friday due to gas restrictions Unit can get gas for Saturday Unit uses emkt Schedule Name to denote which schedule represents which day Unit extends Notification Time on Monday Gas Schedule (available on Friday) to a value sufficient enough to allow for this advanced notification (i.e. 72 hours) Time To Start pushes unit out of DA Market window Unit represents shorter Notification Time on Saturday Gas Schedule PJM would see on Friday that they could schedule the unit for Saturday with a 1 hour Notification Time and for Monday with a 72 hour Notification Time PJM to develop new report to highlight these situations to operators NEW! Saturday Schedule Parameters: Start Time = 4 hours Notification Time = 1 hour 94 Monday Schedule Parameters: Start Time = 4 hours Notification Time = 72 hours

95 Example 5 Dual Fuel Unit Friday 1800 Saturday 0001 Sunday 0001 Sunday 1600 Sunday 1800 Monday 0001 Monday 0500 Monday Gas schedule Unit online Unit needs to be notified of intent to run on Monday by 1800 on Friday due to gas restrictions If gas is not available on Saturday or Sunday, schedules with shorter Notification Times would not be available Unit has oil schedule available with 2 hour notification Unit extends Notification Time on Monday Gas Schedule (available on Friday) to a value sufficient enough to allow for this advanced notification (i.e. 72 hours) Time To Start pushes unit out of DA Market window PJM would confirm with the GO that oil schedule available on Monday PJM would wait to see if unit was needed on Monday and commit on oil through DA market Review PJM has limited tools to perform economic evaluation beyond day ahead Oil Schedule Parameters: Start Time = 4 hours Notification Time = 2 hours Oil schedule Gas Schedule Parameters: Start Time = 4 hours Notification Time = 72 hours

96 Gas Unit Commitment Communication Examples PJM GO PJM schedules Unit G in the RAC commitment based on data in market systems PJM calls GO and provides date/time to be online ready to follow Dispatch If PJM wants unit online for longer than unit s Min Run time, PJM will provide unit with an expected release time and expected MW run profile Unit G confirms commitment No further action needed NEW! 96

97 Gas Unit Commitment Communication Examples PJM GO PJM schedules Unit L 3 days in advance due to expected reliability problems and 55 hour Notification Time PJM calls GO to verify startup/notification times and unit cost Unit L GO: Data is accurate PJM commits unit for greater of Min Run or expected run profile PJM informs DA Market operator of Unit L commitment profile for inclusion into the appropriate DA market NEW! 97

98 Gas Unit Commitment Communication Examples PJM GO PJM schedules Unit L 3 days in advance due to expected reliability problems and 55 hour Notification Time PJM calls GO to verify startup/notification times and unit cost Unit L GO: I am not able to get fuel to be online 3 days from now PJM: Put in a forced outage in edart and make unit unavailable in emkt PJM commits other units due to unavailability of Unit L NEW! 98

99 Gas Unit Commitment Communication Examples PJM GO PJM calls on CT Q online in real-time based on ITSCED results and short notification time CT Q GO: I don t have fuel available and can t come online PJM: Submit forced outage in edart and make unit unavailable in emkt NEW! 99

100 Gas Unit Commitment Communication Examples PJM GO PJM calls CT Q online in real-time based on ITSCED results CT Q GO: I can come on, but I must stay online for 4 hours due to my gas purchase arrangement PJM: Is this restriction reflected in the Unit s Min Run Time? If not (i.e. Min Run Time in emkt = 1 hour) PJM will commit unit and run for at least Min Run Time entered in the system at time of commitment If PJM releases unit prior to 4 hours, unit can self-schedule to stay on If Min Run Time = 4 hours in emkt PJM will honor 4 hour Min Run Time NEW! 100

101 Gas Unit Commitment Communication Examples PJM GO PJM calls CT Q online in real-time based on ITSCED results CT Q GO: I can come on, but I only have fuel to run for 4 hours and can not purchase more due to a pipeline OFO This should be reflected in emkt new Operational Restriction field PJM will decide when to bring unit online based on expected time of peak loads PJM may elect to request unit be placed into Max Emergency category If PJM needs the unit for more than 4 hours and unit must come offline due to lack a fuel, unit must submit an Forced Outage and make themselves unavailable in emkt until such time that they can purchase fuel NEW! 101

102 Gas Unit Commitment Communication Examples GO PJM GO calls PJM on Friday and states that if PJM wants them to run on Monday, they must tell them now so they can purchase gas PJM asks if this Notification Time is reflected in their available Monday schedule If yes, PJM will call them back for commitment if needed based on long lead analysis If no, PJM will ask GO to update Notification time in emkt for appropriate schedule (i.e. Monday schedule) to reflect this requirement Schedule can be updated prior to 1200 and during rebid period NEW! 102

103 Gas Unit Commitment Communication Examples GO PJM GO calls PJM on Friday and states that if PJM wants them to run on Monday, they must run the unit through the weekend due to an OFO on pipeline PJM asks if the unit s Minimum Run Time is updated to reflect this restriction PJM will confirm that there is no way for the unit to run just for Monday NEW! If no way to run for Monday only, PJM will analyze if unit is needed Monday for reliability and should run through weekend GO needs to reflect this restriction in Min Run time This will need to be entered as a PLS exception 103

104 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

105 Unit Start Up Notification Alert The purpose of the Unit Startup Notification Alert is to alert members to place units in state of readiness so they can be brought online within 48 hours for an anticipated shortage of operating capacity, stability issues or constrained operations for future periods Implemented when a reliability assessment determines that long lead time generation is needed for future periods and can be issued for the RTO, specific Control Zone(s) or individual unit basis The Unit Startup Notification Alert is issued so that units can be ready to come online in 48 hours or less, based on the lesser of submitted notification time + startup time or 6 days Review M-13 Section 2.3 Unit Start Up Notification Alert 105

106 Unit Start Up Notification Alert PJM Actions After reaching the state of readiness, if a unit fails to come online within 48 hours when called by PJM, the unit will be considered as forced outage until it can be online or PJM cancels the unit PJM Actions: PJM dispatch notifies PJM management and members PJM dispatch issues the Alert to members, stating the Alert period(s) and the affected areas An Alert can be issued for the RTO, specific Control Zone(s) or individual unit basis on the projected location of transmission constraints and should be issued as soon as practicable (typically 6 days or less) prior to the anticipated need for long lead time generation to come online NOTE: If the Alert is issued for the RTO or a control zone, it will be issued via the All-Call system - Otherwise individual unit owners will be called Review 106

107 Unit Start Up Notification Alert PJM Actions (Cont.): PJM will schedule an amount of long lead time generation anticipated to be needed for the operating day(s) in economic order respecting unit operating parameters Once a generator is scheduled its offer price is locked for the operating day PJM dispatch will evaluate system conditions daily to determine whether to release units from the Alert, to keep the units in the state of readiness or to call the units online PJM dispatch cancels the Alert when appropriate Review 107

108 Unit Start Up Notification Alert Member Actions PJM Member Actions: Transmission / Generation dispatchers notify management of the Alert Transmission / Generation dispatchers advise all stations and key personnel Generation dispatchers orders unit(s) to be in the state of readiness (i.e. able to be online within 48 hours) in the lesser of (submitted notification time + startup time or 6 days) minus 48 hours Review

109 Start Up and Notification Time Process Review Peak Period Parameters Peak Period is defined as January, February, June, July, and August During the peak period, generators will offer startup and notification parameters within a bandwidth of a mutually agreed performance parameter MMU/PJM and generator owner will work together to define the mutually agreed initial individual unit performance parameter and bandwidth The bandwidth is the additional time to accommodate reasonable unit notification and startup variability during normal operation If the offered parameter is outside the bandwidth, explanation will be necessary either through emkt or directly to MMU The notification plus startup time must not exceed 6 days during the peak period. The unit will be forced outage until it can be within the 6-day limit Review 109

110 Off-Peak Periods Off-peak period months : March, April, May, September, October, November, December During off-peak periods units may offer extended notification times as long as those times accurately reflect the physical time to bring the unit to the beginning of the unit startup sequence This is required by NERC standards already (NERC TOP-002-2b R3) Start time should not be impacted, only notification time However, if PJM has a need to call the units with extended notification times, the units must respond to the call at the lesser of their submitted notification+startup time or 6 days Failure to do so will result in a forced outage If PJM subsequently does not need the unit to be online, there will be no forced outage Review 110

111 Issuing a Start-up Notification Alert When PJM issues a unit Notification/Startup alert: The alerted units must be in the state of readiness (i.e. able to be online within 48 hours) in the lesser of (submitted Notification+Startup time or 6 days) minus 48 hours After reaching the state of readiness, if PJM subsequently needs the unit to be online, the unit must be online within 48 hours Failure to do so will result in a forced outage PJM will evaluate the system conditions everyday to determine whether to release the units from the alert or to call the units online Review 111

112 Extended Cold Start Extended Cold parameters will only be used when a unit returns from an extended shutdown for the first time Review 112

113 Notification and Start-up Status Not Yet Implemented

114 Open Items- Future Implementation The Open items below will be tracked for future GUCC implementation (post 2014/2015 Winter Scope) Not Yet Implemented 114

115 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

116 DA Resource Commitment Changes Commit Long Lead resources scheduled for the next operating day in the DA market based on the schedule dictated by PJM Operations Gas units greater of Min Run time or run profile provided Non-gas units Min Run time Trigger: Long Lead resources have been scheduled and are still needed Daily checkpoint at 1000 to decide which long lead time resources are still needed Accurately models resources running and setting price in RT Will supplant other resources and eliminate overscheduling NEW! 116

117 Day Ahead Scheduling Reserve (DASR) Requirement Changes 2015 DASR Requirement = (5.88%)(RFC +EKPC Peak load forecast) + Dominion share of 431 MW This requirement is for daily requirement RFC Component Forced Outage Rate component = 3.75% Load Forecast Error component = 2.14% 5.88% of RFC + EKPC Peak Load Forecast Dominion Component 431 MW (2014) Review Total 431 MW (2014) 5.88% of RFC + EKPC Peak Load Forecast

118 Day Ahead Scheduling Reserve (DASR) Requirement Changes Why increase the DASR requirement on peak days? Ensure PJM schedules enough capacity to meet RT load and enough reserves to meet the average Load Forecast Error and Forced Outage Rate Ensures capturing of scheduled generation in DA LMP NEW! 118

119 Day Ahead Scheduling Reserve (DASR) Requirement Changes Increase the DASR requirement on Peak days by: Not before 2/1/15 Any additional reserves scheduled specifically to address operational uncertainty PLUS Hourly difference in forecasted RT load and adjusted Fixed Demand Adjusted Fixed Demand = hourly Fixed Demand scaled up by the average % of additional demand that comes from the net of price sensitive demand, incs and decs during peak hours (conditional demand factor) Conditional demand factor is used to scale up fixed demand for all 24 hours of the day Separate conditional demand factors will be calculated for winter and summer seasons Estimated to be 2-5% Trigger: Hot/Cold Weather Alerts or higher emergency procedures NEW! 119

120 Day Ahead Scheduling Reserve (DASR) Example PJM is in a Cold Weather Alert RFC + EKPC Peak Load Forecast = 130,000 MW DASR = (130,000)(.0588) MW (Dominion) = 7, = 8,075 MW PJM schedules additional 4,000 MW of generation due to Operational Uncertainty Conditional Demand Factor (Winter) = 3.1% (example only) PJM Peak Load Forecast = 140,000 MW (Hour 2000) Fixed Demand = 130,000 MW (Hour 2000) What is the new DASR Requirement for Hour 2000? NEW! 120

121 Day Ahead Scheduling Reserve (DASR) Example Not before 2/1/15 RFC + EKPC Peak Load Forecast = 130,000 MW DASR = (130,000)(.0588) MW (Dominion) = 7, = 8,075 MW PJM schedules additional 4,000 MW of generation due to Operational Uncertainty Conditional Demand Factor (Winter) = 3.1% (example only) PJM Peak Load Forecast = 140,000 MW (Hour 2000) Fixed Demand = 130,000 MW (Hour 2000) What is the new DASR Requirement for Hour 2000? Original Requirement = 8, 075 Additional Generation = 4, , (130,000) = 5,970 18,045 MW NEW! 121

122 DASR Requirement Changes - Impact More units scheduled in Day-ahead Market Allow units more notice to acquire gas Most, if not all, units will be committed in DA Market RAC Run should clear less generation No changes to commitment practices in Real Time Steam units should come on per DA schedule Notify PJM 20 minutes prior to coming online CTs with greater than 2 hour time to start should prepare to come on per DA schedule, but call PJM 20 minutes prior for verification prior to coming online CTs with less than 2 hour time to start will be committed as needed by PJM in Real-time NEW! 122

123 Other DASR Changes Clear DASR MW up to resources Economic Max limit rather than Emergency Max limit Adjust capability considered from offline units to recognize Startup and Notification Times These changes will more accurately reflect the dispatch capability of resources if needed in Real Time These changes will apply all the time, not just during peak conditions NEW! 123

124 DASR Cost Allocation DASR Charges will be allocated in two buckets Base requirement and additional reserves committed for operational uncertainty Allocated to real-time load Additional DASR requirement resulting from differences in DA demand and RT load Allocated to differences in DA demand and RT load when participant is a net purchaser that underbid their Demand DA DA Demand is the sum of Fixed Demand + Price Sensitive Demand + Decs Incs This is a tariff change targeted for 2/1/15 RT Load RT DA NEW! 124

125 Existing Reserve Requirements Review 125

126 Increased Synchronized and Primary Reserve Requirements Trigger Hot/Cold Weather Alert or more severe AND PJM has committed additional reserves after the close of the DA market and RAC run Additional reserves committed prior to close of DA or RAC would be included in the DASR adjustment Increase existing Synchronized* Reserve and Primary Reserve Requirements by: Sum of any additional MW brought online for that hour by PJM Dispatch to account for operational uncertainty after the RAC run (1800) * Synchronized Reserves would not be updated until FERC approval of 2-step Demand Curve not before 2/1/15 NEW! 126

127 Increased Synchronized and Primary Reserve Requirements If reserve deliverability issues are expected, then the requirements for the sub-zones in which the additional resources are located will be extended Example: Additional resources are scheduled in the MAD Subzone in anticipation of transmission constraints inhibiting delivery of reserves into that region MAD Subzone and RTO Reserve Zone requirements would be increased Requirements will return to their original values upon exit from the emergency procedures OR when the additional resources have been released by PJM Dispatch NEW! 127

128 Increased Synchronized and Primary Reserve Requirements Increased Reserve Requirements will be placed into ASO as the new reserve requirements Similar process to when we double Synch Reserve Requirement for a double nuclear unit outage PJM Dispatch will continue to initiate Emergency Procedures based on the original reserve requirements as defined in M-13 NEW! 128

129 Increased Synchronized and Primary Reserve Requirements Notifications Timing Notification of the potential for increased reserve requirements will be issued day ahead Notification of increased requirements will be made as soon as it is determined Includes MW amount and hour(s) to which increased requirements will apply Typically occur 1-2 hours in advance of operating hour Method Special notification message in Emergency Procedure application Message in emkt upon log in NEW! 129

130 Increased Synchronized and Primary Reserve Requirements Notifications Shortage Pricing Shortage Pricing will be implemented based on shortages of these extended reserve requirements Second step of demand curve created based on these extended requirements Lower step at $300 Requires tariff change (2/1/15) Extended Reserve Req. Actual reserves below extended requirement Original Reserve Req. Actual reserves below original requirements $300 penalty factor $550 penalty factor ($850 after 6/1/15) NEW! 130

131 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

132 Net Interchange Cap The Problem July 18, 2013 Review 132

133 Net Interchange Cap The Problem January 7, 2014 Review 133

134 Interchange by Type January 7, 2014 Review 134

135 Net Interchange Cap Implement an hourly net interchange cap for the forecasted peak hour(s) and surrounding hours during emergency conditions Defined in Manual M-11, Section 7.1 Conditions for implementation Hot/Cold Weather Alert or higher Emergency Procedure in effect PJM operators have made firm resource commitments (i.e. DR, CTs) Anticipated interchange and expected generation is sufficient to meet projected load Implemented 1-2 hours prior to the operating hour When firm commitments (i.e. DR) have been called Net Interchange NEW! 135

136 Net Interchange Cap What type of interchange transaction is impacted? Limits Spot Imports and hourly Non-firm point-to-point transactions once interchange cap is hit Schedules with firm or network designated transmission service will NOT be limited Spot Imports and hourly Non-firm Point-to-point transactions submitted prior to the implementation of the cap will NOT be limited Cap is on net interchange Not with a specific interface Network Designated Hourly Non-Firm PJM Spot Import Firm NEW! 136

137 Net Interchange Cap Value Interchange cap calculated based on: Operator expectation of interchange for time T at the time the cap is calculated Additional Margin Set at half of the largest unit on the system (700 MW) Allows T-20 interchange to contribute to economically backfilling the loss of a unit or deviation between actual load and forecasted load The cap will be bounded by the max sustainable interchange from reliability studies Provided by the RE on a Day ahead basis NEW! 137

138 Net Interchange Cap - Notification Timing Notification of the potential for an interchange cap will be issued day ahead Notification of cap implementation will be made as soon as the cap is determined Includes the MW amount of the cap and the hour(s) to which the cap applies Will typically occur one to two hours in advance of the operating hour Communication Method ExSchedule banner notification Special Notification message in Emergency Procedures Emergency Procedure message will create an Alert in edata Same notification methods will be used when the cap is lifted NEW! 138

139 Net Interchange Cap - Implementation Winter 2015 Automated denial of transactions violating interchange cap at time of submission through ExSchedules Expected to be implemented 1/1/15 NEW! 139

140 Agenda Polar Vortex Review Generation Resource Operational Exercise Winter Unit Readiness Checklist Generation Outage Reporting New emkt Data Fields Cold Weather Alert Changes Long Lead unit commitment / Gas Unit Commitment Communications Startup and Notification Time Process Review Increased Reserve Requirements during Cold Weather Interchange Cap Intra-day Cost Schedule Changing

141 Intra-Day Cost Schedule Changing Purpose Allow generators to more accurately reflect true cost of generation Recognizing potential volatility of gas prices during extreme conditions Improve availability of generation during extreme weather Ensure LMP is being set as accurately as possible Process will be available 365 days, not just during Cold or Hot Weather Alerts NEW! 141

142 Intraday Cost Changing Eligibility DA Commitment RAC Commitment No Commitment CT Steam Cost Switching allowed after the end of last DA committed Hour Cost Switching allowed after the end of last DA committed Hour N/A Cost Schedules may change hourly Fixed on Schedule when committed Cost Switching allowed after the end of last RAC committed Hour Cost Schedules may change hourly Fixed on Schedule when committed NEW! 142

143 Use Cost Schedule in Real Time Flag Use Cost Schedule in Real Time Flag (New Schedule Availability Update Tab) Must be selected between :00 Day Prior Yes No No Price Schedules will be available in Real-Time (except DA commitments) Option to make cost Schedules Available/Unavailable intraday (1 available cost schedule per fuel type, per hour) Unit is not able to change Cost Schedule Availability in Real Time 1 Price Schedule is available 1 Cost Schedule (per fuel type) is available Cheapest Normal Offer Capping is applied Status Quo to today NEW! 143

144 New emkt Schedule Availability Update Screen NEW! 144

145 Use Cost Schedule in Real Time Flag 3) Select flag 2) Select Change Date 1) Change date to desired day (tomorrow) 4) Select Submit Selection must be made between day prior NEW!

146 Cost Switching Process Timeline DAY AHEAD OPERATING DAY DA Offers submitted for next day No schedule changes for next day Rebid Period* Can change schedule availability for next day if eligible and checkbox checked * Only for units not scheduled DA RAC Awards Note 1: If flag is checked at 2100 and no schedule is made available after midnight, PJM will utilize cheapest available schedule as of 1800 day prior Note 2: If schedule availability for next day is changed between 1800 and 2100, but flag is not checked at 2100, PJM will utilize schedules available at 1800 DA Awards posted on emkt Can change Use Cost Schedule in Real Time Flag for next day Use Cost Schedule in Real Time Flag locked for next day NEW! 146

147 Intra-Day Cost Schedule Changing Process 1. Generators utilize the current 79 Cost-based schedules to reflect possible costs of generation (Schedules 1-69, 80-89) a) Schedules are cost-based and must conform to PJM M-15 Cost Development Guidelines b) Cost-based Schedules values will be locked at 1800 prior day (following rebid period) i. Following values can be changed hourly through Unit Hourly Update: Emerg Min/Max; Economic Min/Max, Commit Status, Fixed Gen and Notification Time ii. Cost-schedule Availability will be able to be changed on an hourly basis under certain cases 2. Selecting Use Cost Schedule in Real-Time flag will make Price schedule unavailable for operating day selected a) Unit would be a cost-based unit for the next day if this decision is made b) This is done by selecting Yes to the Use Cost Schedule in Real Time Flag on the Schedule Availability Update tab of emkt for the appropriate day NEW! 147

148 Intra-Day Cost Schedule Changing Process 3. Schedules for uncommitted generators can be made available or unavailable hourly to more accurately reflect the resources cost a) Sliding lock out i. Can only change schedule availability three plus hours in advance of operating hour 4. Committed resources are unable to change Cost Schedule availability for Day-ahead or RAC Committed hours a) Units may change cost schedule availability for hours after the last DA/RAC committed hour b) For RAC committed units, PJM Dispatch will provide a run profile 5. Units committed in Real Time are unable to change Cost Schedules until released Schedules can be changed in emkt, but PJM will run unit on committed schedule until released Only exception would be if unit must switch fuels (i.e. gas oil) after initial commitment and/or min run time met due to lack of fuel and still required by PJM 6. Only 1 Cost Schedule (per fuel type) can be made available each hour NEW! 148

149 Proposed Design- Unit Schedule Availability Only 1 schedule per fuel type can be made available each hour. An error message would be displayed if more than 1 schedule per fuel type is made available Fuel Schedule Hr. Ending 01 Hr. Ending 02 Hr. Ending 03 Hr. Ending 04 Hr. Ending 05 Oil $72 Unavailable Unavailable Unavailable AVAILABLE AVAILABLE Oil $71 AVAILABLE AVAILABLE AVAILABLE Unavailable Unavailable Gas $70 Unavailable AVAILABLE AVAILABLE Unavailable Unavailable Gas $69 AVAILABLE Unavailable Unavailable Unavailable Unavailable Gas $68 Unavailable Unavailable Unavailable Unavailable Unavailable Gas $67 Unavailable Unavailable Unavailable Unavailable Unavailable Proposed Design NEW! 1 Gas and 1 Oil Schedule is Available 1 Gas and 1 Oil Schedule is Available Gas and 1 Oil Schedule is Available Only 1 Oil schedule Available Only 1 Oil schedule Available

150 Sliding 4 Hour Window Current time HE 02 HE 03 HE 04 HE 05 HE 06 Schedule Availability cannot be updated Availability Can be updated Availability in current hour and next 3 full hours cannot be changed Example assumes unit is not currently running or current commitment ends at 0400 NEW! 150

151 Schedule Setup Gas Generators should have discussions with MMU now concerning fuel policies in use for Winter 2015 Generators should use Cost-based Schedules to reflect range of possible costs Include sufficient granularity to adequately approximate costs Select schedule which best represents true costs Define sufficient granularity between schedules to reflect expected cost Schedule granularity subject to MMU review Recommendation is to use Schedule Name to describe Schedule parameters and day available (discussed earlier) Example Schedule Names: Monday $40 Gas Schedule ; Saturday $50 Oil Schedule ; Everyday $30 Gas Schedule ; Everyday Nuclear Schedule Monday $40 Gas Schedule NEW! 151

152 Intraday Unit Schedule Availability Update 3) Submit 2) Make at most one cost schedule per fuel type available 1) Select Date/Hour NEW! 152

153 Notification Time Priority Notification Time changes on this display have priority over Notification Times on Unit Hourly Update and Schedule Detail pages NEW!

154 Schedule Availability Carries Forward to End of Day Unless Changed Gas 20 x x x x x Gas 22 x x x x x x x x x x x x x x x x x x x x x x x x Gas 24 X X X X X X X X X X X X X X Gas 26 Schedule Availability Carries Forward Until Updated Note 1: If no schedule is made available for HE 1, PJM will utilize cheapest available cost schedule as of 1800 day prior for unit commitment Note 2: Once a schedule is marked Available, all other schedules (for that fuel type) will be marked Unavailable NEW! 154

155 Example 1: IT SCED or Real Time Committed Resources 2 Hour Look Ahead 13:00 14:00 $68 $69 Unit released Unit Committed on $68 schedule until released Unit Committed on $69 schedule until released NEW! 155

156 Example 2: CT or Steam with DA or RAC Commitment and Extended in Real Time 12:00 13:00 14:00 15:00 $69 $45 (Schedule committed DA) $68 Unit released Unit schedule availability locked Unit schedule availability can change hourly but locked once extended DA or RAC Commitment on $45 Cost/Price Schedule until end of DA/RAC Commitment Real Time Extended Commitment on $68 Cost Schedule until released NEW! 156

157 M11: Energy & Ancillary Services Market Operations Under M11: Section Market Sellers When a generation resource is not scheduled in the Day-Ahead Energy Market or the Reserve Adequacy Commitment (RAC) by PJM, the Market Seller may update the cost-based schedules availability hourly three hours prior to the operating hour. The costbased schedule made available must follow the Generation Owner s fuel cost policy as defined in PJM Manual 15: Cost Development Guidelines. A generation resource may not change schedule availability once it has been committed by PJM for the hours in which it is committed. In order to update cost-based schedule availability, the Generation Owner must select the Use Cost Schedule in Real Time flag in emkt (New Schedule Availability Update Tab) between the day prior to the operating day. Selecting this flag will make the price-based schedule unavailable for the operating day selected Generation resources that are committed by PJM in advance of the Day-Ahead Energy Market will be offer capped and committed on the available schedule at the time of the commitment. The cost-based schedule made available must follow the Generation Owner s fuel cost policy as defined in PJM Manual 15: Cost Development Guidelines Market Sellers may use exceptions to reflect physical operational limitations (e.g., operational flow orders) on natural gas pipelines and local natural gas distribution companies (LDC) that require generators to consume the same amount of fuel for every hour (hourly ratable take) for a predefined number of hours. These exceptions will be reviewed and approved by PJM and the MMU NEW! 157

158 M11, Attachment C; Procedure for Cost Reimbursement Market Sellers may report differences between cost-based offers and actually incurred costs for resettlement Eligibility NEW! May result in a credit adjustment (up or down) depending on direction of over/under estimation Generation Resource must have a fuel cost policy that has been submitted to MMU as described in M-15 Fuel cost policy specified the conditions under which the resource cannot accurately estimate intraday costs and therefore will be allowed to be compensated using this procedure i.e. No publicly traded commodity or index to reflect fuel cost 158

159 M11, Attachment C; Procedure for Cost Reimbursement Eligible generators have until 12:00 noon on the business day following the operating day to submit an to with: NEW! Unit name Date of operation Applicable time of operation Contact information (name of sender, phone, ) Date and time of PJM Dispatch contact to generator Invoice with action fuel cost Fuel cost in $/unit volume and heat content in MMBTU/volume Actual fuel consumed Revised cost-based schedule using actual fuel costs and consumption Can not include 10% adder in revised cost-based schedule

160 Example: Cost Switching Scenario Generators has a DA commitment on price based schedule ($50) for hours and Generator selects YES to the Next Day Cost Switch flag by 2100 the day prior What is the first hour that the unit can swap to a Cost schedule? Answer: Hour This is the first hour after the last DA committed hour If PJM wants to run the unit through for hours , what schedule would be used? Answer: The $50 price schedule or the cheapest available cost schedule (that was available for the DA market) if the unit needs to be offer-capped Price schedule would be used for offer-capping if it is cheaper than cost schedule If PJM wants to extend the operation beyond 1900, what schedule would be used? Answer: Whatever cost schedule was made available by GO for that hour; PJM to log schedule If unit can t run between or extend beyond 1900 due to fuel limitations, how should they reflect this to PJM? Make unit Unavailable in emkt Hourly Updates for these hours Enter Operational Restriction in emkt for fuel limitation showing number of hours of fuel available NEW! 160

161 Example: Cost Switching Scenario Generators has no DA or RAC commitment Generator selects YES to the Next Day Cost Switch flag by 2100 the day prior If PJM calls the unit on at 0500, what schedule would be used? Answer: Whatever cost schedule is made available for that hour (selection made 3+ hours ahead) Unit s Price schedule becomes unavailable when selecting YES to the Next Day Cost Switch flag Unit can change cost schedule availability hourly (until committed) to most accurately reflect the true cost of the unit based on expected fuel prices If the unit sees gas prices rising, can they change the cost schedule at 1000? Answer: No the unit will stay on the schedule that it was committed on (at 0500, in this example) until released by PJM When will PJM release the unit? PJM would run the unit for at least it s Minimum Run Time and at most it s Maximum Run Time before releasing Actual commitment would be based on system economics NEW! 161

162 Example: Cost Switching Scenario Generators has a RAC commitment for Tuesday on price based schedule ($80) for hours Generator selects NO to the Next Day Cost Switch flag by 2100 on Monday What is the first hour on Tuesday that the unit can swap to a Cost schedule? Answer: Generator can t swap schedule availability in RT since flag was set to NO If PJM wants to extend the run of the unit beyond hour 1900, what schedule would be used? Answer: The $80 price schedule will continue to be used since the flag was set to NO When is the next opportunity for the unit to change its offer? Answer: The unit s offer will change at 0001 Wednesday based on: the offers submitted into the DA market (by 1200) on Tuesday if the unit has a DA commitment for Wednesday the offers submitted into the rebid period ( ) on Tuesday if no DA commitment for Wednesday if unit has a RAC commitment OR Next Day Cost Switch flag is set to NO by 2100 on Tuesday the cost schedule made available for HE 0100 if the Next Day Cost Switch flag is set to YES by 2100 on Tuesday AND the unit has no DA or RAC commitment NEW! 162

163 Summary DASR, Synch Reserve and Primary Reserve requirements may increase during Hot/Cold weather alerts Cap on net Interchange may be imposed if commitments are made (DR, units) to prevent prices from significantly dropping Units committed long lead or in RAC will be run in Real time based on run profiles provided Long lead units committed will be run in appropriate DA market Clear communications to units Units need to have accurate data in PJM systems (emkt, edart) Commitments will utilize this data NEW! 163

164 Appendix Cold Weather Checklist Details Notification and Startup Time Procedure Items Not Yet Implemented 164

165 Checklist Sections Safety Training Pre-winter Season Items Personnel Preparation Staffing Equipment Preparation Fuel and Environmental Preparation Action when cold weather is forecasted Actions during cold weather Actions following cold weather 165

166 Safety and Training Safety remains a priority Coordinate annual training in winter specific and plant specific awareness and maintenance May include response to: Freeze protection panel alarms, trouble shooting and repair of freeze protection circuitry, identification of plant areas affected by winter conditions, review of special inspections implemented during severe weather, fuel switching procedures, knowledge of ambient temperature for which freeze protection is designed, lessons learned or NERC Lessons Learned program 166

167 Pre-Winter Season Items Personnel Preparation Annual winter readiness meetings Assign, prioritize, and schedule tasks Act on lessons learned from prior cold weather operations Communications and back-up communications (satellite phones) Prepare and review emergency operating plans Include plant systems, equipment or protection systems that have changed or degraded over time Develop a list of critical instruments and transmitters needing additional surveillance 167

168 Pre-Winter Season Items Staffing Consider enhanced staffing (24x7) during severe winter weather events Arrange for lodging and meals as needed Arrange for transportation as needed Arrange for support and appropriate staffing from responsible entity for plant switchyard to ensure minimal substation equipment and line outages Employ a buddy system during severe winter weather to promote personnel safety 168

169 Pre-Winter Season Items Equipment Preparation Perform walk down of plant to correct and identify structural deficiencies: Damaged/Degraded windows, doors, lagging on exterior piping, heat tracing equipment, air lines, locations of standing water Consider pre-warming, operating at full speed no load, early start-up, and/or putting on turning gear scheduled units prior to a forecasted severe winter weather event Prepare units for start-up that have been off line for lengthy periods Cycle cooling tower fans to minimize forming of icicles 169

170 Pre-Winter Season Items Equipment Preparation Arrange for adequate supplies of demineralized water and other plant consumables for extended operations on either primary or secondary fuels Arrange for portable space heaters/fuel supply Arrange for adequate hydrogen supply considering additional losses due to hydrogen seal contraction during cold temperatures Determine duration plant can maintain systems above freezing when plant is offline and have contingency plans when these timeframes are exceeded Check heat tracing on critical lines and pipes Erect secondary wind barriers for protection of critical components 170

171 Pre-Winter Season Items Equipment Preparation Ensure adequate quantities of winter weather and personal protection equipment Review process for monitoring instruments for dew point Develop plans for removal of debris at intakes given potential for freezing conditions Determine if start-up times are longer than currently modeled Provide accurate ambient temperature design operating limits Consider slowed valve and damper operation Consider maintaining of water temperatures and accelerated heat loss due to wind 171

172 Pre-Winter Season Items Equipment Preparation Evaluate piping insulation Place thermometers in rooms containing sensitive equipment / Pre-position heaters Evaluate sufficient electrical circuits to operate portable heaters / Perform preventive maintenance on portable heaters Drain non-critical service water lines 172

173 Pre-Winter Season Items Equipment Preparation Ensure SF6 gas in breakers is at correct pressure and temperature to operate during cold weather Maintain transformers by checking heaters in control cabinets, verify main tank oil levels are appropriate for actual oil temperature, check bushing oil levels and nitrogen pressure Determine the ambient temperature to which equipment including fire suppression systems is protected 173

174 Pre-Winter Season Items Fuel / Environmental Prep Review fuel quality and quantity Tune combustion and environmental controls for winter weather conditions Test fuel switching equipment and capabilities Time required to switch fuel Amount of unit reduction for fuel switch Unit capacity on alternate fuel Operator training and experience Fuel switching equipment problems Availability of alternate fuel supply Natural Gas Oil 174

175 Pre-Winter Season Items Fuel / Environmental Prep Inform PJM of limitation of operating hours due to environment permits / extended operations on alternate fuels Inform PJM of fuel type being used daily and ensure up-to-date alternate fuel schedules are entered and available in emkt Review environmental permits to determine if there is the potential of requesting discretionary enforcement in support of reliability Consider need to contact appropriate government agencies to approve waivers to allow fuel delivery truck drivers to work extended hours Consider mitigating alternate fuel start-up problems by scheduling enough primary fuel for start-up 175

176 Actions for Forecasted Cold Weather Prepare for PJM Cold Weather Alert / Review PJM Manual M-13 Report fuel and environmental limitations and defer maintenance activities Review plant special operations procedures (just prior to or during event) Run emergency generators immediately prior to severe winter weather events to ensure availability Consider availability and reliability of black start units 176

177 Actions for Forecasted Cold Weather Place in service critical equipment such as intake screen wash systems, cooling towers, auxiliary boilers and fuel handling equipment where freezing weather could adversely impact operations or forced outage recovery Institute operator rounds utilizing cold weather checklists to verify protection of critical equipment: Pumps running, heaters operating, igniters tested, barriers in place, temperature gauges checked, monitor room temperatures, instrumentation and equipment in enclosed spaces such as pump rooms that can freeze 177

178 Actions During Cold Weather Implement PJM Emergency Procedures as directed Review PJM Manual M-13 Emergency Operations Follow step outlined Reporting of fuel or environmental limitations Deferring Maintenance Activities Keep PJM up-to-date on all operational limitations that may or will affect plant output 178

179 Actions Following Cold Weather Review Lessons Learned after each winter event / season What went well vs needs improvement Suggestions from on-duty staff Documentation Review prior to next cold weather season Suggestions for additions / improvements to this guideline and checklist 179

180 Appendix Cold Weather Checklist Details Notification and Startup Time Procedure Items Not Yet Implemented 180

181 Notification & Startup Parameter Change Process MMU/PJM and Generation owners will agree on the notification and startup parameters and the unit-specific bandwidth prior to implementation of these changes Unit offer parameters will never be limited through emkt Permanent change: provide the necessary information to MMU/PJM for permanent/long-term parameter change approval Temporary change: If the entered parameter exceeds the agreed-upon parameter plus bandwidth, emkt will provide two new fields (Reason and Expected Duration) for the generation owner to explain the change PJM/MMU may follow-up with the generator owner on the nature or the duration of the temporary change Not Yet Implemented 181

182 Notification & Startup Parameter Change Process (cont.) Proposed parameter change approval process: Participant submits the change to PJM and PJM sends on to the MMU MMU approves/denies the change If MMU and the participant cannot come to agreement, PJM will make a determination after discussing the change with the participant and MMU If the participant and PJM cannot come to agreement, the participant has the option to go through the PJM dispute resolution process Not Yet Implemented 182

183 Economic Indicator MMU proposed publishing an economic indicator that would indicate to generation owners on whether MMU anticipates the unit will be economic or uneconomic Determination will be based on forward fuel and emissions forward curves from Platts and the generator s cost curve MMU will present their proposed methodology of computing this Economic Indicator at CDS and allow market participants to provide their feedback If via this economic indicator MMU determines that the unit would have been economic yet an extended notification time was submitted, MMU will discuss the concern with the generator owner and may subsequently refer the behavior to FERC Not Yet Implemented 183

184 Safe Harbor status (for steam-type units only) Safe Harbor status is for steam-type units which do not need to be evaluated by the notification/startup process because their Notification+Startup time do not affect how PJM would schedule them even with the proposed changes Notification+Startup time offer less than 12 hours (i.e. within the scheduling timeframe of PJM Day-Ahead Market) No CT-type units will have Safe Harbor status Not Yet Implemented 184

185 Schedule Applicability Notification and startup times ought to be the same across cost and price schedules absent fuel differences The idea is to provide additional flexibility to cost schedule so that the cost of shortening Notification/Startup time can be included in the cost-based startup cost It is not intended to add new restrictions to the existing price schedule construct Generation owner can request unit-specific exception through MMU Cost issues will be referred to the Cost Development Subcommittee for resolution Generation owners will provide examples of such costs Not Yet Implemented 185