Regulatory Must-Take Generation Scheduling Priority

Transcription

1 Regulatory Must-Take Generation Scheduling Priority Cynthia Hinman Lead Client Trainer September 7, 2012

2 By the end of this training participants will be able to Understand proposed changes Complete registration Participate in market simulation Page 2

3 Important dates Tariff filing September Market simulation September Production activation December 11 Page 3

4 By the end of this training participants will be able to Understand proposed changes Complete registration Participate in market simulation Page 4

5 A little background Historically, regulatory musttake resources have received scheduling priority in the ISO market and been exempted from tariff provisions. Many of these old contracts have expired or will soon expire Included Qualifying Facilities (QFs) under PURPA rules In 2011 CPUC adopted new standard PPAs that require resources to comply with the ISO tariff Page 5

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7 Regulatory Must-Take Generation new definition Generation from the following resources that the relevant Scheduling Coordinator schedules directly with the CAISO as Regulatory Must-Take Generation (1) Generation from Generating Units subject to (a) an Existing QF Contract or an Amended QF Contract, or (b) a QF power purchase agreement for a QF 20 MW or smaller pursuant to a mandatory purchase obligation as defined by federal law; (2) Generation delivered from a CHP Resource needed to serve its host thermal requirements up to RMTmax in any hour; and (3) Generation from nuclear units.

8 What is an RMTmax? Here s our proposed definition... the minimum operating level at which the Generating Unit can safely and reliably meet host requirements, as established under section including the production of electricity from heat produced as a consequence of the industrial host s operations. Page 8

9 Proposal should provide more dispatch flexibility from existing combined heat and power resources. 10 MW is dispatchable Pmax = 50 MW RMTmax = 40 MW 40 MW for host facility 40 MW will have the scheduling priority

10 The scheduling priority is only used up to actual host s hourly industrial requirement for each hour. Pmax = 50 MW 20 MW is dispatchable RMTmax = 40 MW Additional 10 MW available for dispatch 30 MW for host facility 30 MW will have the scheduling priority

11 Scheduling priority protects host industrial process from curtailment when participating in the ISO market. Economic Bids Economic bids provide flexibility to meet changing grid conditions Self Schedule Only if economic bids are insufficient would self schedules be curtailed RMTG Scheduling Priority Only if economic bids and self schedules are insufficient would scheduling priority be curtailed Page 11

12 ISO proposes to provide limited scheduling priority to combined heat and power resources. Limited to capacity dedicated to serving industrial host requirements Not to exceed predetermined limit (RMTmax) Not to interfere with any bilateral contractual agreements Not to exceed on an hourly basis actual industrial requirement Remaining capacity will be able to participate in the ISO market Self schedules Economic bids Page 12

13 By the end of this training participants will be able to Understand proposed changes Complete registration Participate in market simulation Page 13

14 Requirements for regulatory must-take status 1. CHP resources must have a participating generator agreement (PGA) or a net-scheduled participating generator agreement (net-scheduled PGA) with the ISO 2. An RMT value may be established by agreement between the CHP resource and its SC if the SC is a counterparty to a power purchase agreement, or a third party engineer 3. The ISO completes the generator resources data template (GRDT) which can be viewed by the SC Page 14

15 Net scheduled PGA Unit A resource known as a net scheduled PGA unit is a single resource that has an energy bid or self-schedule with the ISO that is the net value of the aggregate electrical output of the generating unit and the selfprovided load A CHP resource may enter into a net scheduled PGA - an agreement between the ISO and the generating unit Previously known as a QF PGA pro forma version tariff appendix B.3 A CHP resource may enter into a PGA or a netscheduled PGA Page 15

16 Establishing regulatory must-take capacity By agreement Between CHP and counterparty on the PPA Between CHP and ISO if there is no PPA If parties cannot agree, use a independent engineer On-peak value required/ off-peak value (optional) RMTmax value expires one year after start date and must be renewed Page 16

17 Regulatory must-take implementation Once RMTmax is established the ISO will complete a generator resource data template (GRDT) The master file will be updated SC can view the GRDT through the market participant portal using the master file link RMTmax value Expiration date Only the SC has visibility, but can authorize anyone they want to have access to the GRDT for a specific SCID Page 17

18 In order to get RMT scheduling priority at go live (December 11, 2012) By November 9, 2012 ISO receives letter from CHP and contractual counterparty of agreed upon RMTmax value CHP has previously provided sufficient evidence of RMTmax value and the ISO agrees (where there is no PPA) ISO receives independent third party engineering analysis in the event the If SC and CHP disagree or if the ISO and CHP do not agree Page 18

19 Letter templates can be found on the ISO website Two locations Caiso.com>Participate>Scheduling Coordinator>Letter Templates Caiso.com>Participate>Generation>Options for participating generators>rmtmax value submission The templates will be posted by September 14, 2012 Send submissions and questions to Page 19

20 By the end of this training participants will be able to Understand proposed changes Complete registration Participate in market simulation Page 20

21 There are changes to SIBR for CHP resources Change validation rules to only allow RMT selfscheduling priority up to the resources RMTmax value for on-peak and off-peak hours (instead of to Pmax) To participate in the market sim RMTmax information should have been submitted by August 27 In the market simulation, participants will be able input schedules at various MW amounts to test the RMTmax value

22 Final Questions? Thank you for attending and submit any further requests to

23 Acronyms related to this initiative Acronym BRS CHP DAM GRDT IFM MF PGA PURPA RMT RMTG Stands for Business requirements specification Combined heat and power Day-ahead market Generator resource data template Integrated forward market Master file Participating generator agreement Public Utilities Regulatory Policy Act Regulatory must-take Regulatory must-take generation Slide 23

24 Acronyms related to this initiative Acronym RMTmax RTM SC SIBR Stands for Regulatory must-take maximum Real-time market Scheduling coordinator Scheduling infrastructure business rules Slide 24