Capacity Accreditation and External Resource Zones 06/30/2016

Transcription

1 Capacity Accreditation and External Resource Zones 06/30/2016

2 Overview MISO requested guidance on areas that require additional discussion and resolution in the seasonal / locational proposal In the last meeting, we reviewed this feedback and set a schedule to discuss the topics of concern Today, we will continue that discussion, focusing on Capacity accreditation External Resource Zones 2

3 3 Capacity Accreditation

4 Capacity Accreditation A number of stakeholder comments were submitted regarding the capacity accreditation proposal, including Support or opposition for the general proposal Definition of critical hours Planned outage exclusions Winter accreditation and GVTC values During the last meeting, we excluded maximum generation alerts from consideration Today, we would like to focus on Treatment of outages during peak hours One-time planned plant upgrades 4

5 One-Time Outages Several stakeholders stated that one-time plant outages should be excluded from any outage rate calculation The key consideration is the treatment of these resources in the Planning Resource Auction Units with planned outages may clear in the auction Exclusion from planned outage rates should align with the auction 5

6 Planned Outages During Peak Conditions Several stakeholders submitted comments stating that some planned outages are appropriate during peak times, including Unit upgrades Outages during mild peak hours Outages on non-cleared resources Already scheduled peak outages Considerations Planning Reserve Margin does not include any planned or maintenance outages during peak times Real time data shows that planned and maintenance outages do occur 6

7 Planned Outages During Peak Conditions Solution Options to Ensure Reliability Increase Planning Reserve Margin Similar to treatment of Outside Management Control events Simpler process to implement Resource owners without planned outages would be impacted Represent risk in individual capacity accreditation Amount of resource available (ACAP) to meet PRMR is less Flexibility for resource owners to avoid taking outages during defined peak periods Resource owners who don t have planned and maintenance outages during defined peak period would overall see a possible benefit Resource accreditation could be more volatile 7

8 8 External Resource Zones

9 Locational LOLE Signals In summer 2015, MISO published straw proposals to address Resource Adequacy issues including treatment of external resources Inequitable treatment of External Resources when compared to MISO resources outside of a particular zone Currently, External Resources reduce Local Clearing Requirements through increasing base imports and also clear against this lower Local Clearing Requirements The purpose of today s discussion is to review drivers for changes and key characteristics to treat External Resources as local resources 9

10 Stakeholder feedback summary For today s discussion MISO should more fully define locational problems and further analyze possible solutions What are the key parameters for external resources to be treated like internal resources? For future discussion MISO should provide more information on the methodology for establishing clearing prices How would the formation of external zones impact the last auction clearing 10

11 Why External Resource Zones? Locational Requirements Order 1 Address transmission constraints limiting aggregate deliverability Ensure sufficient capacity is available in import-restricted zones to satisfy the planning reserve margin Transmission Service impact 2 The Commission rejected MISO s proposal to exempt certain LSEs from Zonal Deliverability Charges to the extent these LSEs possess firm transmission service from their resources to their load since such an exemption would mute the locational price signal. 1 Refer to docket ER Refer to docket ER

12 Local Resources Key consideration for local resources include: Physical location of the resource Operational control and coordination of the unit Within the MISO footprint Resources get locational credit based on their physical location For boundary external resources Resources have no transmission separating them from the MISO footprint and must-offer requirements For Coordinating Owners MISO has a high level of operation control over the system through Reliability Coordination services Major transmission interconnections lead solely to the Local Resource Zone where the resource is given local credit 12

13 Next Steps 13

14 Timeline and Next Steps Loss of Load Expectation Study* Capacity Accreditation External Resource Zones Auction Example Updated Design Document Posted June July August September Discussions will continue in LOLEWG * Includes quantification of seasonal data, as requested at the June RASC 14

15 Conclusion MISO requested guidance on areas that require additional discussion and resolution In the last meeting, we reviewed this feedback and set a schedule to discuss the topics of concern Today s discussion focused on capacity accreditation and External Resource Zones Please send any feedback to Radequacy@misoenergy.org by July 15 th Requested focus on how the risk of planned outages should be considered in the PRM and PRA 15