Multi-Stage Generation Resource Overview

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1 Multi-Stage Generation Resource Overview May 23, 2014 Cynthia Hinman, Lead Client Trainer Li Zhou, Manager, Power Systems Technical Development Jim Price, Senior Advisor, Market Development and Analysis The information contained in these materials is provided for general information only and does not constitute legal or regulatory advice. The ultimate responsibility for complying with the ISO FERC Tariff and other applicable laws, rules or regulations lies with you. In no event shall the ISO or its employees be liable to you or anyone else for any decision made or action taken in reliance on the information in these materials.

2 Agenda Defining Multi-Stage Generation Registering MSG Resources Example of Operation for Coal Resource Real-Time Market Results Wrap Up 2

3 Defining Multi-Stage Generators

4 What is a Multi-Stage Generation Resource (MSG)? It is a resource that can be operated in various configurations, such that only one such configuration can be operated in any given dispatch interval Example combined cycle resource, (except for one-by-one combined cycles that can operate in a single operating mode May have more than one forbidden region May have different operating ranges, each of which has different ancillary service capabilities; or May have a hold time before or after a transition through a forbidden region 4

5 Config 1 Config 3 Config 2 Config 4 Crossing Ranges Forbidden Region and Overlapping Regions MW Forbidden Region Overlapping Region TIME 5

6 What are configurations? Operating parameters for a resource when it is running within a particular operating range Each configuration has: An operating Pmin and Pmax Start up costs and minimum load costs Minimum up and minimum down times Ramp rates Transition notification time, transition time, and associated costs to move between operating configurations 6

7 What are transitions? Physical resource parameters to move from one configuration to another configuration Provides information to the ISO on what the resource needs to move between configurations One transition per direction Single value for transition notification time (minutes) Single value for transition time (minutes) Single value for transition cost (dollars) 7

8 MSG resources versus Non-MSG resources MSG resources may have between 2 and 10 distinct configurations Each configuration has transition information to get to and from one or more other configurations No configuration may be stranded Each configuration has start up and shut down information to enter or leave the configuration, but does not have to be startup-able from a cold start 8

9 Registering MSG Resources

10 Required information for resource registration MSG Registration Form MSG Resource Data Template Transition Cost Validation Spreadsheet Multi-Stage Generator (MSG) Configuration Group Registration Request (optional) 10

11 Time needed to process registrations differ for fundamental vs. non-fundamental changes Fundamental changes require a minimum of 16 business days and include: Registering a new MSG Resource Adding or removing a configuration Adding or removing a registered transition Changing configuration Startup or Shutdown flags Changing the physical units within a configuration Changing transition times to less than half of, or more than double its value. Changing configuration ramp rates less than half of, or more than double its value. A non-fundamental change will take 5 11 business days to process 11

12 MSG Registration Form Requested effective date (at least 16 business days from submission of request) Configuration IDs Child resource IDs and corresponding generation distribution factors (for aggregated resources only) Transition matrix (all feasible transitions between configurations) 12

13 MSG Registration Form Registration requires Registration Form and MSG Resource Data Template Requested effective date: Allow 16 business days for processing 13

14 MSG Registration Form Aggregate resources requires child resources and type of engine for each child resource For interchangeable child resources, note the default member 14

15 MSG Registration Form Where the child resources are not interchangeable, list the specific physical child resource for each configuration 15

16 Resource Data Template information Template allows participant to identify specific information for all market resources Information is used in master file and provides resource configurations and operational characteristics Resource configurations are used to validate bids and schedules in the market Participants must register all MSG resources with configuration level details prior to participating as MSG resource 16

17 MSG Resource Data Template (RDT Tab Name: MSG_CONFIG) Configuration name and Configuration ID Configuration-specific information including Pmin/Pmax Min On/Off Min Load Cost Startup Ramp Time Time it takes to physically ramp unit from offline to pmin Must be less than or equal to the minimum startup time in resource s startup curve Startup Heat Input Adder Amount Comments 17

18 Page 18

19 MSG Resource Data Template (RDT Tab Name: TRANSITION) Resource ID Configuration ID Config From / Config To Transition Cost Cost of moving from one config ID to another config ID Transition Ramp Time (minutes) How long it takes to physically ramp between one operating configuration and another operating configuration Must be less than or equal to Notification Time 19

20 MSG Resource Data Template (RDT Tab Name: TRANSITION) Notification Time (minutes) Time it takes for deployment time includes Transition Time Resource remains in previous configuration until the resource has completely transitioned into the new configuration (including transition times) Transition cost adjusted for daily gas price (mmbtu) Amount of fuel use expected to move between configurations 20

21 Key Concepts Registering MSG Resource Transitions Minimum Up/Down Time at configuration level will be modeled Minimum up time does not include the transition time during transition MSG is considered to be in the FROM configuration until transition is complete Software takes into account the Transition Notification time and the Transition Ramping Time when issuing market awards and schedules 21

22 MSG Resource Data Template (RDT Tab Name: TRANSITION) Max Daily Transitions Max number of times the transition can be performed each day Max number can vary based on direction of transitions Example: Config 1 to Config 2 = 3 Max Daily Transitions Config 2 to Config 3 = 4 Max Daily Transitions Config 2 to Config 1 = 10 Max Daily Transitions Field cannot be null 22

23 MSG Resource Data Template (RDT Tab Name: TRANSITION) Page 23

24 MSG Resource Data Template Config Tabs CONFIG_RAMP Includes config ID and operating level CONFIG_HEAT Include heat rates CONFIG_STRT Start up information is provided by market participants and contained in Master File MSG resources may have the following per configuration: Up to 3 segments of startup time Up to 3 segments of startup costs 24

25 MSG Resource Data Template (RDT Tab Name: CONFIG_RAMP) Page 25

26 MSG Resource Data Template (RDT Tab Name: CONFIG_HEAT) Page 26

27 MSG Resource Data Template (RDT Tab Name: CONFIG_STRT) Page 27

28 Transition Cost Validation Rule 1 Constrains the transition costs along each feasible path from offline to each configuration such that their sum is between 100% and 125% of the cost (plus 10%) associated with starting up directly to that configuration. Example: Page 28

29 Transition Cost Validation - Rule 2 Limits transition costs between configurations such that the sum of nested transition costs is between 100% and 125% of the direct transition. Example: Page 29

30 Transition Cost Validation Worksheet

31 Transition Cost Validation Worksheet

32 Transition Cost Validation Worksheet

33 Registering Group Configurations A group is a set of configurations that may transit freely between configurations but cannot move to different configuration until the minimum up time or minimum down time has passed To register a group configuration complete the Multi- Stage Generator (MSG) Configuration Group Registration Request form 33

34 MSG Group Registration form 34

35 Mid-Interval Rounding for Transition Times in the Real- Time Market for the Real-Time Economic Dispatch (RTED) Process In Real-Time, Transition Times are rounded up or down based on where the transition time falls within the 5 minute interval. Example: 82 minute transition time would take 16 5-minute intervals plus 2 additional minutes into the next interval. RTED Interval = 5 Minutes Interval Mid-Point 35

36 Mid-Interval Rounding for Transition Times in the Real- Time Market for the RTUC Process In Real-Time, Transition Times are rounded up or down based on where the transition time falls within the 15 minute interval. Example: 39 minute transition time would take 2 15-minute intervals (30 minutes) plus 9 additional minutes into the next interval. RTUC Interval = 15 Minutes 0 Minutes 15 Minutes 30 Minutes 45 Minutes 60 Minutes 37.5 Minutes Interval Mid-Point 36

37 Key Concepts Registering MSG Resource Transitions rounding for intervals Transition Time FMM 29 Minutes 30 Minutes (2 Intervals) 32 Minutes 30 Minutes (2 Intervals) 40 Minutes 45 Minutes (3 Intervals) 48 Minutes 45 Minutes (3 Intervals) 97 Minutes 90 Minutes (6 Intervals) RTD 30 Minutes (6 Intervals) 30 Minutes (6 Intervals) 40 Minutes (8 Intervals) 50 Minutes (10 Intervals) 95 Minutes (19 Intervals) 37

38 MSGs and Base Schedules

39 Resource Type will be MSG State column will be included Drop down box with all MSG resources Base Schedule Aggregation Portal (BSAP)

40 Example of Operation for a Coal Resource

41 Simple example illustrates biddable parameters All 10 possible configurations can be bid in real-time, identified by resource ID and configuration ID MSG start up rules must be observed Startup notification time and cost curve can have up to three segments per configuration. (Example shows only one segment) Startup ramp time is a single value per configuration Not every configuration is startup-able or shutdown-able A transition matrix must be defined There should never be an idle configuration that we can not startup and shutdown through defined sequences Notification and transition times, and cost, are all single segment Resource owners must report what each configuration can do when outages, re-rates, or de-rates occur. Page 41

42 Resource data must observe MSG startup rules Miracle_1_Plant Configuration definitions: Minimum On Time exceeds EIM look-ahead horizon, so EIM Participating Resource must determine initial start-up commitment decisions. To reduce the size of this time series, this example uses 30-minute intervals. EIM uses 15-minute unit commitment intervals and 5-minute dispatch intervals. Configuration Min Gen (MW) Max Gen (MW) Minimum On Time (minutes) Minimum Load Cost ($) Ramp Rate (MW/minute) Bid Price ($/MWh) General ,000 MIRCL_1_C , MIRCL_1_C , MIRCL_1_C , MIRCL_1_C , Slide 42

43 A transition matrix must be defined Miracle_1_Plant Transition definitions: From Configuration To Configuration Transition Cost ($) Transition Ramp Time (minutes) Notification Time (minutes) Max Daily Transitions Off-line MIRCL_1_C MIRCL_1_C1 MIRCL_1_C MIRCL_1_C2 MIRCL_1_C MIRCL_1_C3 MIRCL_1_C MIRCL_1_C4 MIRCL_1_C MIRCL_1_C3 MIRCL_1_C MIRCL_1_C2 MIRCL_1_C Slide 43

44 Principles for real-time market operational results (RTPD/RTD) Target times for Dispatch Operating Target (DOT) are mid-interval. Ramping is symmetric between DOTs. Commitment costs for transitions are evaluated for and allocated to the To Configuration and its commitment period, to determine if commitment is economic. For transition through overlapping regions, DOTs equal the mid-point of the overlapping region. The transition profile is flat during transition intervals. For transition through non-overlapping (forbidden) regions, the transition profile for external DOTs remains in the From Configuration until the end of transition, while internal imbalance calculations assume ramping. Page 44

45 Illustration Transition up through overlapping region Slide 45

46 Simple illustrative dispatch sequence (1 of 2) End of interval Configuration LMP ($/MWh) Bid ($/MWh) Dispatch (MW) Net Revenue ($) Comments 5/19/ :30 Off-line Monday 5/19/ :00 Off-line Min Load cost = $16/7/MWh 5/19/ :30 MIRCL_1_C Margin over bid cost during operating period > startup cost 5/19/ :00 MIRCL_1_C Ramp limited 5/19/ :30 MIRCL_1_C Ramping reaches max capacity for C1 5/19/ :00 MIRCL_1_C Limited by minimum time in C1 5/19/ :30 MIRCL_1_C /19/ :00 Transition Net revenue over bid justifies transition 5/19/ :30 MIRCL_1_C Ramp limited Slide 46

47 Simple illustrative dispatch sequence (2 of 2) End of interval Configuration LMP ($/MWh) Bid ($/MWh) Dispatch (MW) Net Revenue ($) Comments 5/19/ :00 MIRCL_1_C Ramping reaches midpoint of overlap 5/19/ :30 Transition Net revenue over bid justifies transition 5/19/ :00 MIRCL_1_C Ramp limited 5/19/ :30 MIRCL_1_C Ramping reaches midpoint of overlap 5/19/ :00 Transition Net revenue over bid justifies transition 5/19/ :30 MIRCL_1_C Ramp limited 5/19/ :00 MIRCL_1_C Ramping reaches max capacity for C4 5/19/ :30 MIRCL_1_C /19/ :00 MIRCL_1_C /19/ :30 MIRCL_1_C Slide 47

48 Real-time market results

49 Real-time dispatch information Manual dispatches may be verbal or non-verbal Non-verbal instructions will come through ADS or market published schedules and will provide Resource configuration level information Verbal instructions are instructions received outside ADS or market published schedules and will include configuration level information ADS Screens include configuration information ADS Instruction Screen has the From and To configurations 49

50 ADS Real-Time Dispatch Screen MIRCL_PLNT_1_C2 50

51 ADS Instruction Screen MIRCL_PLNT_1_C2 MIRCL_PLNT_1_C1 51

52 Bringing it all together

53 Summary Participants must submit Registration Form and Resource Data Template to complete MSG registration Fundamental changes require 16-day wait period from effective date of last change No fundamental changes may be made through the Master File GUI 53

54 Summary Participants may register between 2 and 10 configurations May submit real-time bids for up to 10 configurations Transition costs are included in the bid cost recovery process In general, financial settlements do not differ from other resources. 54

55 Questions?

56 Disclaimer All values used in this presentation are for illustrative purposes only and do not represent actual values used for establishing the bids, schedules, awards, LMPs or any financial incentive or charge. Actual LMPs will be based on actual bids from Scheduling Coordinators and will be determined by the Market Software. 56

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