UCAP Calculation Comparison

Transcription

1 UCAP Calculation Comparison Dispatchable resources within PJM, NYISO, & MISO September 2017 Draft for Discussion

2 Overview map British Columbia Alberta Manitoba Newfoundland Labrador Ontario Quebec PEI Northwest Nova Scotia MISO-North New Brunswick Basin Desert Southwest Rockies SPP PJM SERC-East ERCOT SERC-Southeastern

3 Overview In general, each jurisdiction calculates a dispatchable unit s Unforced Capacity ( UCAP ) based on its capability, pro-rated for its historic availability. More specifically, the general formula is a unit specific capability rating multiplied by 1 minus an equivalent forced outage rate. Capability: Capability is generally measured as the net number of megawatts which can be delivered by an electric generating unit without restriction by the owner. Each region uses a slightly different verification test methodology and timing interval to calculate a unit s capability. In general, these differences are related to the varying forward and commitment periods for each jurisdictions capacity market. Interconnection Services are also taken into account when evaluating a unit s capability. In general, each jurisdiction rates a unit s capability at the lesser of its maximum net capability test, or the unit s Interconnection Service. Availability: All jurisdictions evaluated calculate a dispatchable unit s historic availability using the Effective Forced Outage Rate demand ( EFORD ) test. This calculation using historic production data to measure the probability that a unit will not meet its demand periods for generating requirements. In general, the EFORd is based on a full year s forced outage data from an operating unit.

4 UCAP Calculations Existing resources Market UCAP Methodology Capability Verification Test Timing PJM UCAP= ICAP* (1-EFORd) Seasonal Calc. Winter: Dec. 1 Feb. 28 Summer: June 1 Aug. 31 NYISO UCAP= DMNC* (1-EFORd) Capability Period Calc. Winter: Nov. 1 April 15 Summer: June 1 Sept.15 MISO UCAP= GVTC*(1-XEFORd) Annual Calc. 1-year prior to PRA Capability Verification Test: As noted, each region evaluates capability using a different name and verification test. In terms of the frequency of unit s capability calculation, each jurisdiction is slightly different. These differences are generally related to the varying forward and commitment periods of each jurisdictions capacity market. Equivalent Forced Outage Rate demand (EFORd): This calculation generally evaluates a unit s forced outage data over a year s span to establish its availability frequency. MISO incorporates Outside Management Control ( OMC ) events into the EFORd calculation. This is represented as XEFORd. These events include generator outages due to causes such as transmission system problems that force the unit offline even though it is physically available to run. Some of the specific events that cause OMC outages include (but are not limited to) ice storms, hurricanes, tornados, poor fuels, interruption of fuel supplies, etc Since the development of Performance Standards within the PJM marketplace, that region no longer takes into account OMC events within their EFORd calculation. Meanwhile, NYISO only omits OMC events related to transmission system problems, while MISO employs a forced outage calculation that incorporates a more robust list of OMC events.

5 UCAP Calculations New builds Market Capability Forced Outage PJM ICAP summer net dependable capacity Blend of class average and outage data NYISO DMNC - Seasonal Class average MISO GVTC min. 30-day of operating data Class average In each of the three jurisdictions reviewed, the same jurisdiction-specific UCAP formula is used for new and existing dispatchable resources. Capability is determined through the same testing procedures employed for existing resources (ICAP in PJM, DMNC in NYISO, and GVTC in MISO). An equivalent forced outage rate is determined based on class averages (NYISO and MISO) or a blend of class averages and actual operating history (PJM). The length of time that such proxy values are used for varies by jurisdiction and the varying forward and commitment periods. For capability, it is unclear how the timing lag between commissioning of a new facility and testing is resolved.

6 Appendix

7 PJM - Reliability Price Model (RPM) Market UCAP Methodology Capability Verification Test Timing PJM UCAP= ICAP* (1-EFORd) Seasonal Calc. Winter: Dec. 1 Feb. 28 Summer: June 1 Aug. 31 Within PJM s Reliability Pricing Model ( RPM ), the Base Residual Auction ( BRA ) is the market s primary auction, procuring capacity on a 3-years forward basis for a 1-year period. A resource s Unforced Capacity ( UCAP ) is the value of the unit s Installed Capacity ( ICAP ) rated at summer conditions, and its historic availability ( EFORd ). The ICAP calculation is a MW value based on the summer net dependable capability of a unit and within the Capacity Interconnection Right ( CIR ) limits of the bus to which it is connected. To be eligible for the capacity auction an internal existing dispatchable capacity resource must, among other criteria, perform winter (December-January-February) and summer (June-July-August) testing to verify the net capability of each unit The summer test must meet or exceed the winter test. The ICAP of a generating unit cannot be greater that the generating unit s CIR. PJM s definition of CIRs, are a Generation Capacity Resource rights to input generation into the Transmission System at the Point of Interconnection where the generating facilities connect to the Transmission System.

8 NYISO - Installed Capacity Market (ICAP) Market UCAP Methodology Capability Verification Test Timing NYISO UCAP= DMNC* (1-EFORd) Capability Period Calc. Winter: Nov. 1 April 15 Summer: June 1 Sept.15 The primary auction within the NYISO s Installed Capacity market ( ICAP ) is the Capability Period Auction, where LSEs procure capacity for 6-month commitment period on a 1-month forward basis. The Summer Capability Period is between May-October, while the Winter Period is between November-April. The NYISO employs the Dependable Maximum Net Capability ( DMNC ) as a test mechanism to determine a resource s maximum capability. The DMNC test must be done for every Capability period (seasonal summer vs. winter) and the test is applied to the next like Capability period. For a dispatchable resource, the DMNC test is the integrated hourly average of the sustained maximum net output of a facility for 4-consecutive hours (top-of-hour to top-of-hour). The NYISO also evaluates a unit s Deliverability Limit when establishing its Capability, by assessing the Capacity Resource Interconnection Service (CRIS). The CRIS enables a resource to participate in the NYISO Installed Capacity market to the extent of its deliverable capacity. Class Year Deliverability Studies are conducted to determine the amount of capacity resources can deliver to any point in its Capacity Region. The NYISO s EFORd calculation is the same as PJM and requires a year s worth of forced outage data. The only difference between the NYISO s EFORd calculation relative to PJM s is that the NYISO allows for OMC events in relation to transmission system problems (code 9300) to be excused from the calculation of a unit s Derating Factor.

9 MISO Resource Adequacy Requirement Market UCAP Methodology Capability Verification Test Timing MISO UCAP= GVTC*(1-XEFORd) Annual Calc. 1-year prior to PRA The majority of MISO s forward capacity is procured through its Planning Resource Auction (PRA). The PRA is an annual capacity auction for each of the 10 load zones within the MISO footprint. To qualify in MISO s Planning Resource Auction ( PRA ) as a dispatchable generator, a unit s UCAP is determined based on the Generator Verification Test ( GVTC ), the amount and type of Interconnection Service, and the facility s forced outage rate ( XEFORd ). The GVTC is a real time power test to determine the maximum Energy output (MW) that a Generation Resource can sustain over the specified period of time. The GVTC is performed between September 1 st and August 31 st of the prior Planning Year and involves monitoring a dispatchable resource s performance over one to two hour time period (pending on the type of unit). MISO also takes into account a resource s Interconnection Service when evaluating its Capability. The Total Interconnection Installed Capacity ( ICAP ) is the lesser of its GVTC, or its total volume of Interconnection Service, granted either through MISO s Generation Interconnection Procedures or through a market transition deliverability test. MISO omits OMC events within its Forced Outage rating (XEFORd). These events cover generator outages due to causes such as transmission system problems that force the unit offline even though it is physically available to run. Some of the events that cause OMC outages include (but are not limited to) ice storms, hurricanes, tornados, poor fuels, interruption of fuel supplies, etc.