Defining Outage States to Include a Mothball Outage

Transcription

1 Defining Outage States to Include a Mothball Outage Emilie Nelson Director, Operations Josh Boles Manager ICAP Market Market Issues Working Group November 7, New York Independent System Operator, Inc. All Rights Reserved. DRAFT FOR DISCUSSION PURPOSES ONLY

2 Agenda Issues being Addressed Today Details Next Steps 2

3 Issues Addressed Today Inactive Reserves EFORd for Returning Units Returns to Service to Resolve a Reliability Issue Interconnection Rights for Retired Units 3

4 Inactive Reserves Units have reported to the NYISO that they are leaving the Energy market for short periods for economic or other non-equipment related reasons. These units are identified in the ICAP Manual as ineligible for ICAP (see The NYISO proposes to include this rule in the Tariff. ICAP ineligibility begins with the Inactive Reserve s start date. ICAP eligibility returns as of the first of the month following notice that the Inactive Reserves is ending. 4

5 Inactive Reserves Deficiency penalties under Section 5 of the Services Tariff may be applicable following the date Inactive Reserves begins, if UCAP has been sold from the unit for the month in which Inactive Reserves begins. Unit would be ineligible to certify its capacity for a subsequent month while in Inactive Reserves. Physical Withholding analysis will be performed as necessary, when Inactive Reserves begins. The NYISO will analyze the impact of a unit s Inactive Reserve status on the electric system in the same way it does for forced out units. See Outage Scheduling Manual

6 EFORd for Returning Units At the August 16, 2013 MIWG meeting, the NYISO proposed a revision in the manner in which it calculated the EFORd for units returning to the market from an Outage (including Inactive Reserves) when they do not have 17 months of operating or data with which to calculate a seasonal ICAP to UCAP derating factor. Previously, the NYISO had proposed using a unit s most recent seasonal ICAP to UCAP derating factors to fill-in for missing monthly operating or data. The six 12-month averages (17 months of data) could then be used to calculate the appropriate seasonal ICAP to UCAP derating factor for use when the unit returns. 6

7 EFORd for Returning Units (Continued) The NYISO proposes three modifications to its previous proposal. For the purposes of the derating factor calculation, the NYISO will utilize the most recent 17 months for which outage information is available, omitting periods in Inactive states or outages such as ICAP Ineligible Forced Outage, Inactive Reserve, and Mothball Outage. The derating factor will continue to be calculated in this manner until there are no Inactive state or ICAP ineligible outage months in the normal 17 month window for calculating a derating factor. The NYISO proposes a transition mechanism. The new EFORd calculation will be applied only for units whose Mothball Outage or ICAP Ineligible Forced Outage or whose Inactive Reserves begins after the new EFORd calculation methodology is adopted. Units in this transition will have the NERC class average used to fill in for missing data, as is currently done. Units returning to service after making modifications determined to be material by the NYISO and triggering the interconnection process will receive a NERC Class Average EFORd. Units returning to service using a new fuel, even without a material modification, will receive a NERC Class Average EFORd. 7

8 EFORd Example: Complete Data NYISO uses an average of six 12-month EFORd calculations to establish a Summer ICAP to UCAP derating factor (AEFORd summer ) For Capability Period beginning May month EFORd = 12 mo 12 month EFORd = 12 mo 12 month EFORd = 12 mo 12 month EFORd = 12 mo 12 month EFORd = 12 mo 12 month EFORd = 12 mo Avg. Used for Summer capability period Starting May 1 If month m is in the Summer Capability Period, its AEFORd = average of the GADs outage values for the 12 month periods ending in July, Aug, Sept, Oct, Nov, Dec that precede month m. If month m is in the Winter Capability Period, its AEFORd = average of the GADs outage values for the 12 months periods ending in Jan, Feb, Mar, Apr, May, June. 8

9 EFORd Example: Inactive Reserve NYISO uses an average of six 12-month EFORd calculations to establish a Summer ICAP to UCAP derating factor (AEFORd summer ) For Capability Period beginning May IR IR IR IR IR IR IR IR IR IR IR 6 m & IR IR IR IR IR IR IR 6 m 1 m & 6 m & 2 m & 6 m & 3 m & 6 m & 4 m & 6 m & 5 m 4 m 3 m 2 m 5 m & 6 m & 1 m Avg. Used for Summer Capability period Starting May 1 IR data is available for the month Inactive Reserve 9

10 EFORd Example: Forced Outage followed by Mothball Outage NYISO uses an average of six 12-month EFORd calculations to establish a Summer ICAP to UCAP derating factor (AEFORd summer ) For Capability Period beginning May MO FO FO MO MO M M M M M M M M M M M M 12 m 12 m 12 m 12 m 12 m 12 m Avg. Used for Summer Capability period Starting May 1 MO FO M data is available for the month Maintenance Outage Forced Outage Mothball 10

11 EFORd Example: Forced Outage followed by ICAP Ineligible Forced Outage NYISO uses an average of six 12-month EFORd calculations to establish a Summer ICAP to UCAP derating factor (AEFORd summer ) For Capability Period beginning May RS FO FO IIFO IIFO IIFO IIFO IIFO 11 m & 1 m 12 m 12 m 12 m 12 m 12 m Avg. Used for Summer Capability period Starting May 1 RS FO IIFO data is available for the month Reserve Shutdown Forced Outage ICAP Ineligible Forced Outage 11

12 Outage Modeling in Planning Studies The NYISO is not proposing any changes to unit outage or retirement modeling assumptions for the RNA or CARIS studies. Modeling assumptions for unit outages in the IRM are managed by the NYSRC. 12

13 Units Addressing Reliability Issues On October 8, the NYISO shared a Proposal to require Mothballed Units to return to service to resolve a local reliability issue. The Proposal has been revised to include units in an ICAP Ineligible Forced Outage Units that are Repairing and Units that are not Repairing For reliability issues on the Bulk Transmission System, the NYISO is proposing to evaluate a unit in a Mothball Outage or ICAP Ineligible Forced Outage for its potential to resolve a reliability need only in situations of an imminent threat to reliability. The following slides cover previously shared and new material 13

14 Requirements for Mothball Outage Prior to the start of a Mothball Outage, a Generator must provide an officer certification confirming that the Generator will be able to return to service with 180 days notice. Throughout the Mothball Outage, the Generator must promptly inform the NYISO of any changes that would impact this certification. Generators that fail to provide this certification would be deemed retired 14

15 Units Addressing a Non-Bulk Power Transmission Reliability Issue In the event of a reliability issue on a non-bulk Power Transmission Facility, a Transmission Owner can identify to the NYISO a mothballed unit or a unit in an ICAP Ineligible Forced Outage that addresses a local reliability issue: If a Transmission Owner identifies a unit to the NYISO, the NYISO will notify the Generator and the NYPSC/DPS that the Generator has been identified as addressing a reliability issue on a non-bulk Power Transmission Facility. Upon receipt of such notice from the NYISO, the Generator and the Transmission Owner shall commence discussions, with the participation of the NYPSC/DPS and/or other applicable regulatory agency, regarding appropriate compensation for the return to service of the Generator. 15

16 Units Addressing a Non-Bulk Power Transmission Reliability Issue Units in an ICAP Ineligible Forced Outage shall provide a good faith estimate of the date by which they could return to service. Discussions with a Generator may also consider compensation for initiating or accelerating its return to service if the Generator does not anticipate returning to service in time to address the reliability issue. If no agreement regarding compensation is reached within 90 days of notice to the Generator, the Generator and/or the Transmission Owner may file with the applicable regulatory agency an unexecuted rate schedule setting forth terms and conditions for compensation upon the Generator s return to service. 16

17 Units Addressing a Non-Bulk Power Transmission Reliability Issue If the Generator in a Mothball Outage or an ICAP Ineligible Forced Outage is identified as the resolution to the reliability issue, it will be required to return to service by, unless otherwise agreed to by the parties, the later of: i)180 days from (a) receipt of the NYISO s notice or (b) acceptance or approval of a rate schedule/agreement by the applicable regulatory agency, or ii) the return date provided in its good faith estimate. A Generator that fails to return under these circumstances and/or in this timeframe will be deemed to be Retired. 17

18 Units Addressing a Non-Bulk Power Transmission Reliability Issue This is all New A Transmission Owner may identify temporary use of the interconnection point of a repairing Generator in an ICAP Ineligible Forced Outage, whose repairs will not be completed in time, as necessary for a temporary solution to the reliability issue. Such unit shall not be required to pay any costs of interconnection should it return to service before its Outage expires. 18

19 Units Addressing a Non-Bulk Power Transmission Reliability Issue This is all New Generators in an ICAP Ineligible Forced Outage that are neither actively repairing, nor negotiating/initiating repair as described earlier, may be identified to the NYISO by the Transmission Owner if use of the Generator s interconnection point is required by the solution to the identified reliability issue. Upon notification by the Transmission Owner, the NYISO shall advise the Generator. Negotiations over compensation for permanent use of the interconnection point would proceed. If the interconnection point is finally identified as necessary to resolve the reliability issue, it shall be made available when the compensation mechanism is in place. A Generator who has been compensated for the use of its interconnection point to resolve the reliability issue shall be required to pay any identified upgrade costs should it return to service before its ICAP Ineligible Forced Outage expires. 19

20 Units Addressing a Bulk Reliability Issue If there is an imminent threat to the reliability of the New York power system, and the NYISO Board, after consultation with the NYDPS, has requested the appropriate Transmission Owner(s) to propose a Gap Solution, the NYISO will also evaluate whether any Generator in a Mothball Outage or an ICAP Ineligible Forced Outage would resolve the reliability issue by returning to service, provided the reliability issue arises during the period of the appropriate Outage. The NYISO will report the results of its evaluation to the Generator, the NYDPS and or other appropriate governmental agency(ies) for consideration in their review of the Gap Solution proposals. Attachment Y describes choosing and compensating the Gap solution. 20

21 Interconnection Rights for Retired Units Retired Generator with LGIA Form Agreement The interconnection rights of the generator will terminate when the generator enters Retirement, provided that termination will only be effective on the filing with FERC of a Notice of Termination of the interconnection agreement (if required), which notice and proposed effective date have been accepted by FERC. The NYISO will file a Notice of Termination (if required) as soon as practicable after a generator enters Retirement. Once termination of the IA is effective, access to the Point of Interconnection will be available for proposed projects on a non-discriminatory basis through the generally applicable interconnection/transmission Expansion processes, subject to then-current standards and requirements. Retired Generator with Pre-LGIA, Two-party Agreement Addressing Interconnection The termination of the interconnection rights of the generator as a result of entering Retirement will be subject to the terms of the individual agreement addressing interconnection. Any termination of such rights will be effective on the filing with FERC of a Notice of Termination, which notice and proposed effective date have been accepted by FERC. The Transmission Owner will file the notice of termination, as appropriate. If and when termination of the applicable agreement is effective, access to the Point of Interconnection will be available for proposed projects on a non-discriminatory basis through the generally applicable interconnection/transmission Expansion processes, subject to then-current standards and requirements. 21

22 Overview NYISO Approach to Outages FORCED OUTAGE ICAP INELIGIBLE FORCED OUTAGE MOTHBALL OUTAGE RETIRED DEFINED As defined today in the ICAP Manual (page K-1) and elsewhere: An unplanned failure that requires a unit to be removed from service, or the Load on the unit to be reduced before the end of the nearest following Weekend. Units that have been in a Forced Outage for six months that have not Commenced Repair, or units that Commenced Repair but ceased repairing without returning to the market. Units may elect an early entry after forced out for 60 days An Operational unit that has provided a PSC Notice of intent to Mothball and has reported the start of its outage. Units that have provided a PSC Notice of intent to retire and have retired. Retired will include units whose ICAP Ineligible Forced Outages and Mothball Outages have expired. Retired units are deemed to have permanently ceased operating. DURATION Maximum of six months unless unit qualifies for extension. Units in an extension that cease repairing are removed to an ICAP Ineligible Forced Outage Earlier of CRIS Rights expiration, transfer or three years Earlier of CRIS Rights expiration, transfer or three years N/A Extension Available? Yes. Criteria To be reported on at the November 12, MIWG No No N/A ICAP ELIGIBLE Yes No No No PSC Notice See: Order Case 05-E-0889, 12/20/2005 See: Order Case 05-E- 0889, 12/20/2005 See: Order Case 05- E-0889, 12/20/2005 See: Order Case 05-E-0889, 12/20/

23 Overview NYISO Approach to Outages FORCED OUTAGE ICAP INELIGIBLE FORCED OUTAGE MOTHBALL OUTAGE RETIRED Periodic Reports Required Every 30 days. Repair Plan due at Day 120 Yes As necessary N/A NYISO notice of outage to the PSC The NYISO will provide data, as necessary, to the PSC. No tariff amendments contemplated. The NYISO will provide data, as necessary, to the PSC. No tariff amendments contemplated. Unit has provided notice. Unit has provided notice. When is Absence Evaluated for Reliability Issues (planning) As today, the NYISO assesses the post-contingency conditions for thermal, voltage, or stability violations. If the NYISO determines that the reliability criteria will be violated as a result of the outage, the NYISO will take appropriate actions to correct the problem. The NYISO also Informs the appropriate TO. Outage Scheduling Manual As at the outset of the Forced Outage, the NYISO will determine whether the reliability criteria will be violated as a result of the continued outage and, if so, appropriate actions will be taken to correct the problem. The NYISO also Informs the appropriate TO. Outage Scheduling Manual When notice to the PSC is provided When PSC Notice provided unless the unit was previously in the Mothball Outage 23

24 NYISO Approach to Outages FORCED OUTAGE ICAP INELIGIBLE FORCED OUTAGE MOTHBALL OUTAGE RETIRED Physical Withholding Determination For Units in Capacity Mitigated Zones No This issue will be presented November 12, 2013 Units foreseeing a Mothball Outage should seek a physical withholding evaluation at least 60 days before leaving the ICAP Market. Units found to have physically withheld energy or capacity will be subject to appropriate, existing penalties. Units foreseeing Retirement should seek a physical withholding evaluation at least 60 days before leaving the ICAP Market. Units found to have physically withheld energy or capacity will be subject to appropriate, existing penalties. How is unit modeled in Interconnection Studies under the MIS or studies under the Transmission Expansion process Units will be modeled as existing Units will be modeled as existing The unit will be modeled as existing The unit will be modeled as retired 24

25 NYISO Approach to Outages FORCED OUTAGE ICAP INELIGIBLE FORCED OUTAGE MOTHBALL OUTAGE RETIRED Is the unit s CRIS modeled in Deliverability Studies for the Class Year Yes, unless the CRIS expires prior to the completion of the applicable Class Year study; or transfer cannot occur prior to CRIS expiration. Yes, unless the CRIS expires prior to the completion of the applicable Class Year study; or transfer cannot occur prior to CRIS expiration. Yes, unless the CRIS expires prior to the completion of the applicable Class Year study; or transfer cannot occur prior to CRIS expiration. Yes, unless the CRIS expires prior to the completion of the applicable Class Year study or transfer cannot occur prior to CRIS expiration. 25

26 NYISO Approach to Outages FORCED OUTAGE ICAP INELIGIBLE FORCED OUTAGE MOTHBALL OUTAGE RETIRED Interconnection Review prior to expiration of the outage upon return to market? Generators returning to service are not required to submit a new Interconnection Request, unless the generator/ interconnection changes in a manner that otherwise triggers the need to submit an Interconnection Request. Certain Generators may require this review. See separate slide Generators returning to service are not required to submit a new Interconnection Request, unless the generator/ interconnection changes in a manner that otherwise triggers the need to submit an Interconnection Request. Any Retired generator that seeks to return to service must submit a new Interconnection Request, provided the interconnection is otherwise subject to NYISO interconnection procedures, whether or not the interconnection agreement has been terminated. 26

27 Next Steps Review Remaining Issues Provide tariff language for material presented 27

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