ENERGY IMBALANCE MARKETS IN THE NORTHWEST

Transcription

1 CONFERENCE ENERGY IMBALANCE MARKETS IN THE NORTHWEST March 27-28, 2013 Portland, OR Dinner Workshop Examination of Potential Operational and Market Tools Wednesday, March 27, 2013 Post-Conference Workshop Detailed Breakdown of EIM/EMT Analytical Approach Friday, March 29, 2013 Montana Public Service Commission BPA Chelan County Public Utility District PacifiCorp Pacific Power Portland General Electric Seattle City Light Public Power Council Powerex NaturEner Presentations from: Wright & Talisman PC Renewable NW Project Northern Tier Transmission Group (NTTG) Alstom Grid Columbia Grid NWPP MC Initiative OATI Northwest Power & Conservation Council Balancing Authority of Northern California (BANC) is authorized by IACET to offer 1.4 CEUs for the conference, 0.3 CEUs for the dinner workshop, and 0.4 CEUs for the post-conference workshop. Sponsors 1

2 Overview Balancing authorities and other power organizations in the Western Interconnection are exploring multiple options to improve their ability to reduce the need for reserves set aside for balancing, improve the efficient usage of generation as well as transmission assets, and better integrate intermittent or variable renewable energy resources. Many western utilities and power organizations, with their longstanding tradition of independence and collaboration, are straining to keep pace with heightened demands on transmission services, generation ramping capacity, public policy requirements, and threats to system reliability. These conditions are especially relevant in the service area encompassing the Northwest Power Pool (NWPP). Could some form of a structured energy balancing market simple or more encompassing resolve many of these issues? If so, would it do so in a cost-and asset-efficient manner? And given sub-regional or geographic dissimilarities in terms of intermittent resource availability and integration options within the Western Interconnection, would an approach that takes into consideration regional variation be a reasonable prospect? Or would a west-wide approach spanning the entire coverage be a better solution? This conference and related workshops present a comprehensive, in-depth forum that gives voice to the multiple perspectives under consideration and will examine these elements: Current study efforts in the NWPP to most effectively address these challenges Prior studies, analyses and concepts and how those needed to be supplemented with additional review criteria What an EIM market design is, and whether an NWPP-specific EIM is a feasible mechanism A detailed breakdown of the NWPP MC analytical approach Overview of potential operational and market tools Implementation considerations of an EIM, such as resource sufficiency, transmission, governance, technical design, market operations and administration What s next after this round of evaluations Learning Outcomes Attendees will gain practical insights on how the NWPP is conducting its analyses to: Assess the impacts of the Avista restrictions (market power) doctrine and NOPR on the availability of balancing resources in the NWPP Discuss how the implementation of Order 764 to implement variable energy resources (VERs) will affect balancing requirements in the NWPP Evaluate prior study efforts that examined centralized alternatives to bilateral contracting to determine how they inform NWPPspecific balancing requirements Identify current balancing program study efforts other than the NWPP Assessment and Coordination (MC) Initiative Define what the criteria and assumptions are for the three model analysis cases that the NWPP is conducting Discuss what the Emerging Market Tools (EMT) working group components are and how they might affect the need to implement an EIM Examine the five major evaluation elements of a NWPP-specific EIM Discuss four key considerations in determining what s ahead in coming to a balancing solution 2

3 Who Should Attend Power industry personnel, especially within the Western Interconnection, responsible for maintaining reliability and resource adequacy on the systems in which they operate Power industry personnel who need to have a better understanding of what balancing and ancillary services are, how they are competitively procured, how they are scheduled, and how and when they are called upon Power plant and systems operations engineers, especially within the Western Interconnection, who would like to understand the impact of energy balancing and ancillary services on their plant profitability Transmission engineers and planners, especially within the Western Interconnection, who would like to understand the impact of energy balancing and ancillary services on their system reliability Renewable energy, generation, and transmission project developers, who must respond to changing conditions and requirements established by BAAs to improve reliability on their system Genco and DR executives, especially within the Western Interconnection, who need a good understanding of the potential impacts and opportunities of energy balancing and ancillary-service markets on their operations Portfolio managers and traders, especially within the Western Interconnection, responsible for formulating bidding strategies for energy and ancillary services Service providers, attorneys, and regulators who need to understand the function of reserve balancing, ancillary services, cooptimization measures, and reliability implications in the western interconnection Power marketing professionals, especially within the Western Interconnection, responsible for optimizing their fleet utilization and profitability Demand response and aggregation services, especially within the Western Interconnection, that would benefit from marketing into additional energy balancing and reserve markets a great job of assembling a broad, diverse range of talent and managed the meeting to keep everyone on point and on time. Director of Strategic Alliance, CAISO 3

4 Agenda WEDNESDAY, MARCH 27, :30 8:00 a.m. Registration and Continental Breakfast 8:00 8:15 a.m. Welcome and Overview 8:15 9:00 a.m. I. The Basis for an NWPP-specific Evaluation of Coordinated Balancing Options This keynote discussion will lay out the mission of the NWPP s Market Assessment Committee: Develop a decision-quality assessment of options to address the challenges identified and improve the efficiency and maintain the reliability of regional power system operations, with recommendations for moving forward. - Patrick Reiten, President and CEO, Pacific Power - Bill Drummond, Administrator, BPA 9:00 10:15 a.m. II. Defining and Assessing the Problem Specific to the Northwest Power Pool Area - John Apperson, Director of Trading, PacifiCorp - Scott Corwin, Executive Director, Public Power Council - Mike Goodenough, Spot Trading & Optimization Manager, Powerex - Chris Hodge, Director - Commercial Operations, NaturEner - Bart McManus, Transmission Technical Operations, BPA - Wayne L. Morter, Director of Power Management, Seattle City Light 10:15 10:30 a.m. Morning Break Great conference! Senior Consultant, Ecofys Consultancy REGISTER 4601 TODAY! DTC Blvd., CALL Suite OR VISIT 4

5 Agenda (continued) WEDNESDAY, MARCH 27, :30 a.m. 12:15 p.m. III. To What Extent Can the Current Bilateral Market Regime Solve These Problems? A. Regulatory impediments and context 1. Impacts of the Avista restrictions (market power) doctrine and NOPR - Arnie Podgorsky, Managing Shareholder, Wright & Talisman PC I was more impressed than I expected! CEO, WindLogics 2. Implementation of Order 764 to implement variable energy resources a) Tariffs b) Pricing c) Cost recovery - Dan Williams, Analyst Merchant Transmission and Resource Integration, Portland General Electric 3. Periodic curtailments DSO 216, etc. - Russ Mantifel, Transmission Policy Analyst, BPA - Cameron Yourkowski, Senior Policy Manager, Renewable NW Project 12:15 1:30 p.m Group Luncheon On a topic that is quite polarized, the conference did a good job of balancing and offering new perspectives. Attorney & Policy Analyst, Western Interstate Energy Board 1:30 2:30 p.m III. What Challenges Do Solutions to These Problems Face in the Current Bilateral Market Regime? (Continued) 4. Relevance of transmission conditions to NWPP balancing needs a) What does transmission build look like in the next 5 10 years? b) Will there be enough transmission to serve load and harvest diversity among balancing authorities? c) Access sufficiency and liquidity of intra-hour markets d) Impact of priority access to transmission, FERC docket AD Rich Bayless, Director of Technical Services, Northern Tier Transmission Group (NTTG) - Nancy Baker, Senior Policy Analyst, Public Power Council 5. 9/12/11 Outage blowback re: Situational Awareness a) Adjustments to the WECC governance model (bifurcation) b) Action items proposed to NERC to address incident deficiencies c) Regulation reserve-sharing standards BAL-003, -012, -002 d) Enhanced curtailment calculator - Eric Jensen, Senior Engineer, Alstom Grid 5

6 Agenda (continued) WEDNESDAY, MARCH 27, :30 2:45 p.m. Afternoon Break 2:45 5:00 p.m. IV. Shift from Western-wide to Northwest Power Pool Focus A. Prior study efforts that examined centralized alternatives to bilateral contracting 1. Brief recap 2. What useful guidance did they provide? 3. Where different assumptions/more work are necessary - Patrick Damiano, Vice President, Columbia Grid - Sarah Dennison-Leonard, Facilitator, NWPP MC Initiative B. Current program efforts other than NWPP MC 1. PUCEIM / NREL 2. Southwest Variable Energy Resource Initiative (SVERI) 3. Front Range Joint Energy Dispatch Sharing Initiative - Hon. Travis Kuvala, Commissioner, Montana Public Service Commission - Stephen Beuning, Director of Transmission, Xcel Energy (invited) What a great range of expertise in the speakers couldn t have asked for better. Manager- Transmission Access, Xcel Energy C. Focus on NWPP market assessment and coordination (MC) initiative and mission 1. Enhanced market/operational tools & security-constrained economic dispatch (SCED) EIM a) EIM i. What is an EIM and what is it not? ii. How an NWPP-specific EIM may differ from other concepts iii. NWPP-specific EIM design elements in evaluation iv. Model analysis cases b) Emerging market tools (EMT) working group components i. Other methods to achieve the same goals ii. Methods being discussed iii. Estimating benefits and costs 2. How do the EIM and the EMT relate to/replace each other? - Patrick Damiano, Vice President, Columbia Grid - Elliot Mainzer, Executive Vice President - Corporate Strategy, BPA 5:00 6:00 p.m. Networking Reception REGISTER 4601 TODAY! DTC Blvd., CALL Suite OR VISIT 6

7 Agenda (continued) THURSDAY, MARCH 28, :00 8:30 a.m. Continental Breakfast 8:30 10:15 a.m. V. Evaluation of an EIM A. Resource sufficiency considerations 1. Relationship to reliability 2. Relationship to resource sufficiency and adequacy 3. Energy 4. Capacity a. Flexible reserves - John Apperson, Director of Trading, PacifiCorp - Eric Jensen, Senior Engineer, Alstom - Hugh Owen, Senior Power Resource Engineer, Chelan County PUD - Dan Williams, Analyst Merchant Transmission and Resource Integration, Portland General Electric - Mark Symonds, Policy Analyst Corporate Strategy, BPA B. Transmission 1. Relationship to solution 2. Usage within the EIM - Mike Goodenough, Spot Trading & Optimization Manager, Powerex - Farrokh Rahimi, Vice President, OATI 10:15 10:30 a.m. Morning Break 10:30 a.m. 12:00 p.m. V. Evaluation of an EIM (Continued) C. Governance 1. Self-determination 2. Cost controls 3. FERC jurisdiction 4. Administration 5. Relationship to NWPP governance 6. Market participant and other stakeholder involvement - Scott Corwin, Executive Director, Public Power Council - Elliot Mainzer, Executive Vice President - Corporate Strategy, BPA - Arnie Podgorsky, Managing Shareholder, Wright & Talisman PC - Bill Gaines, Director and CEO, Tacoma Power D. Technical design considerations - Eric Jensen, Senior Engineer, Alstom Grid 12:00 1:15 p.m Group Luncheon 7

8 Agenda (continued) THURSDAY, MARCH 28, :15 2:45 p.m V. Evaluation of an EIM (Continued) E. Market operator evaluations 1. Types a) Self-build/standalone NW EIM b) Third-party provider c) Fee-based from third-party provider 2. Costs a) Market-based charges b) Member/participant system overhead charges c) Member/participant organization-specific implementation expenses - John Apperson, Director of Trading, PacifiCorp - Gregg Carrington, Managing Director Energy Resources, Chelan County PUD - Rachel Dibble, Market Design Program Manager, BPA 2:45 3:00 p.m Afternoon Break 3:00 5:00 p.m VI. Coming to a Balancing Solution A. What s ahead? 1. Identifying and defining a decision-making process 2. Identifying and defining the decision points and timeline(s) 3. Identifying the engagement process 4. Identifying the participation scenario(s) - Moderator - Charlie Black, Director of Power Planning, Northwest Power & Conservation Council - Stefan Bird, Senior Vice President, PacifiCorp - Jim Feider, General Manager, Balancing Authority of Northern California (BANC) - Hon. Travis Kavulla, Commissioner, Montana Public Service Commission - Elliot Mainzer Executive Vice President - Corporate Strategy, BPA - Wayne L. Morter, Director of Power Management, Seattle City Light - Jeff Atkinson, Vice President Origination, EDF Trading North America and Chairman, WSPP 5:00 p.m. Conference Adjourns 8

9 Dinner Workshop Examination of Potential Operational and Market Tools Wednesday, March 27, 2013 Registration: 5:30 6:00 p.m. Workshop Timing: 6:00 9:00 p.m. Overview This workshop will dive into the details of what tools and market alternatives are being evaluated in the Enhanced Market/ Operational Tools (EMT) analysis efforts. It will examine other methods that have been identified to achieve the same goals through such mechanisms as bilateral methods/markets as opposed to a centralized structure; automation of scheduling, trading, tagging and contracting; and pooling. Learning Outcomes Attendees will gain practical insights on how the NWPP is conducting its analyses to evaluate how potential operational and market tools may supplement or replace an EIM as they: Assess the potential benefit of additional regulation/intra-hour following reserves assistance Discuss the complexities of implementing intra-hour bilateral trading tools Examine how shifts in the use of ancillary services and regulatory elements may affect balancing dynamics in the NWPP Consider the implementation of flexible capacity products in the NWPP Evaluate how the NWPP can leverage existing tools AGENDA Regulation/intra-hour following reserves assistance Intra-hour bilateral trading tools Ancillary services and regulatory elements Flexible capacity products Leveraging existing tools PRESENTERS Patrick Damiano, Vice President, Columbia Grid Farrokh Rahimi, Vice President, OATI Other members of the committee 9

10 Post-Conference Workshop Detailed Breakdown of EIM/EMT Analytical Approach Sponsored by: Energy Exemplar Friday, March 29, 2013 Registration and Continental Breakfast: 7:30 8:00 a.m. Overview Members of the EIM/EMT analysis team (EEA) will provide updates on analyses conducted to date that aim to better quantify benefits associated with an NW-specific EIM. The workshop will examine how the current study effort builds on prior work, makes improvements to the TEPPS 2020 PCM Case, and rigorously conducts three EIM model analysis cases test, core and sensitivity. It will provide the technical details of the work effort as well as emerging results of the studies. Learning Outcomes Attendees will gain important insights on the ways in which the NWPP is conducting its analyses to evaluate how more rigorous and NWPP-specific assumptions can influence decisions relating to the value of an EIM as they: Compare the modeling of business-as-usual cases between prior studies and current studies which reflect adjustments Compare the modeling of flexible reserves cases between prior studies and current studies which reflect adjustments to improve the applicability of the modeling Evaluate the additional benefit to the NWPP of including hydro modeling in assessing the prospective value of an EIM Compare the accuracy of modeling results to real-world operations Assess optimization opportunities such as comparing the implementation of a full energy market vs. an EIM in the NWPP AGENDA A. Modeling business-as-usual 1. Prior studies 2. Adjustments B. Flexible reserves 1. Prior studies 2. Adjustments C. Hydro modeling D. Multi-stage stochastic optimization forecasting 1. Day-ahead unit commitment 2. Intra-day volatility E.. Accuracy of model to real-world operations F. Optimization opportunities 1. Full energy market vs. EIM G. Other significant issues PRESENTERS John Apperson, Director of Trading, PacifiCorp Rich Bayless, Director of Technical Services, Northern Tier Transmission Group Teyent Gossa, Senior Analyst, Portland General Electric Tao Guo, Manager Technical Consulting, Energy Exemplar Mark Symonds, Policy Analyst - Corporate Strategy, BPA Dan Williams, Analyst Merchant Transmission and Resource Integration, Portland General Electric 10

11 Requirements for Successful Completion of Program Participants must sign in/out each day, be in attendance for the entirety of the conference, and complete the conference exam with a score of 70% or higher to be eligible for continuing education credit. Instructional Methods Case studies and PowerPoint presentations will be used in the program. iacet Credit PROCeEDINGS has been approved as an Authorized Provider by the International Association for Continuing Education and Training (IACET), 1760 Old Meadow Road, Suite 500, McLean, VA In obtaining this approval, has demonstrated that it complies with the ANSI/IACET Standards, which are widely recognized as standards of good practice internationally. As a result of its Authorized Provider membership status, is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standards. is authorized by IACET to offer 1.4 CEUs for the conference, 0.3 CEUs for the dinner workshop, and 0.4 CEUs for the post-conference workshop. A copy of the conference proceedings will be distributed to attendees at the event. If you are unable to attend or would like to purchase additional copies, flash drives are available two weeks after the conference is complete. The cost per flash drive is US $495 (add US $50 for international shipments). Flash drives include visual presentations only. Upon receipt of order and payment, the flash drive will be shipped to you via regular USPS mail. NOTE: All presentation flash drive sales are final and are nonrefundable. EVENT LOCATION A room block has been reserved at the Hotel Monaco, 506 Southwest Washington Street, Portland, OR 97204, for the nights of March 26 28, Room rates are $145, plus applicable tax. Call (503) for reservations and mention the course to get the group rate. The cutoff date to receive the group rate is March 4, 2013, but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early. Hotel Monaco Portland is located in the center of downtown Portland, near the Pearl District, Powell s Books, Pioneer Square, and the Willamette Riverfront. This boutique luxury hotel is as Portland as it gets. REGISTER 4601 TODAY! DTC Blvd., CALL Suite OR VISIT 11

12 REGISTRATION INFORMATION Mail Directly To: Electric Utility Consultants, Inc. () 4601 DTC Blvd., Ste. 800 PLEASE REGISTER THE FOLLOWING Discounted registration for attending the conference and both workshops March 27-29, 2013 : US $2295 Early bird on or before March 15, 2013: US $2095 ENERG ZE WEEKLY Discounted registration for attending the conference and One workshop March 27-29, 2013 : US $1895 Early bird on or before March : US $1695 Conference Plus Dinner Workshop Conference Plus Post-conference workshop ENERGY IMBALANCE MARKETS IN THE NORTHWESTconference Only March 27-28, 2013 : US $1495 Early bird on or before March 15, 2013: US $1295 registration for attending workshops only March 27-29, 2013 : US $595 each Early bird on or before March 15, 2013: US $495 each Dinner Workshop Post-conference workshop I'M SORRY I CANNOT ATTEND, BUT PLEASE SEND ME THE CONFERENCE PROCEEDINGS FOR US $495. (PLEASE ADD $50 FOR INTERNATIONAL SHIPPING.) s Energize Weekly newsletter compiles and reports on the latest news and trends in the energy industry. Newsletter recipients also receive a different, complimentary conference presentation every week on a relevant industry topic. The presentations are selected from a massive library of more than 1,000 current presentations that has gathered during its 26 years organizing conferences. Sign me up for Energize Weekly. How did you hear about this event? (direct , colleague, speaker(s), etc.) Print Name Job Title Company What name do you prefer on your name badge? Address City State/Province Zip/Postal Code Country Telephone List any dietary or accessibility needs here CREDIT CARD Name on Card Account Number Billing Address Billing City Billing State Billing Zip Code/Postal Code Exp. Date Security Code (last 3 digits on the back of Visa and MC or 4 digits on front of AmEx) OR Enclosed is a check for $ to cover registrations. All cancellations received on or before February 22, 2013, will be subject to a US $195 processing fee. Written cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other event or publication. This credit will be good for six months. In case of event cancellation, Electric Utility Consultants liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at reserves the right to alter this program without prior notice. 12