Addition of Partial Participation Option for Dispatchable Demand Resource

Transcription

1 Addition of Partial Participation Option for Dispatchable Demand Resource Jim Price Lead Engineering Specialist, Market & Product Development Demand Response Working Group Dec. 12, 2008

2 Past Working Group and Stakeholder Process Has Produced Two DR Models to Add to MRTU MRTU Release 1 places Participating Load in Custom LAP for DA energy scheduling, and pseudo-generator to bid non-spinning reserve. Dispatchable Demand Resource (DDR) adds to MRTU PL: RT as well as DA energy, co-optimization of energy & AS, market functionality for spinning reserve & regulation, and recognition of operating characteristics (min. and max. durations of load adjustments, start-up times, minimum curtailment, min. & max. energy limits, etc.) Advantages: (1) locational price for load adjustments, (2) co-optimization, and (3) recognizing some operational characteristics that PDR cannot. Proxy Demand Resource (PDR) simplifies administration of Custom LAPs in initial DR integration into MRTU and migration of small loads. Schedule load at Default LAP and dispatch Proxy Generators at local levels, Settlement done as adjustment to Default LAP load. Advantages: simpler administration of end-use customer participation, and less required coordination of Custom LAP with separate Curtailment Service Provider (CSP) from Load Serving Entity (LSE). Slide 2

3 Stakeholder Advocacy Has a Range of Opinions about MRTU s Use of Custom LAPs The use of Custom LAPs for Participating Load in MRTU Release 1 resulted from strong advocacy by the only existing Participating Load, which is CDWR. FERC ordered CAISO to schedule and settle all Participating Load at nodal location. Recent concern is that some Participating Loads will face excessive costs by needing to schedule all of their load using a Custom LAP. Concern: Load may not receive more as savings for DR than will be charged for losses. Also, uncertainty about the success of CRRs for hedging congestion costs. Slide 3

4 To Resolve New Concerns, CAISO is Considering Partial Participation Option in DDR Partial Participation option in DDR design would allow customers to designate the amount of their total load that is Participating Load. Only the designated portion of aggregated load would be placed in the Custom LAP, with separate Resource ID, and the remainder would be scheduled at the Default LAP. Energy and AS bids would be eligible as Participating Load only up to the designated amount. Participant could declare that all of its load is Participating Load (full participation), or just a fraction of its load. SC would be responsible for separating the metered demand between the Participating Load and its Default LAP. Because load in partial participation is a designated amount, uninstructed energy (final metered demand, minus DA schedule and RT dispatch) would be non-participating, settled at Default LAP price. If non-participating portion drops to zero, uninstructed deviation would be assigned to Participating Load. Similar option not needed for PDR, since load already settles at DLAP. Slide 4

5 CAISO Seeks Input on Details of Partial Participation Should Participating Load portion of total load be designated as MW amount or percentage? MW amount seems easier for managing Custom LAP, scheduling, and reporting energy usage for settlement. How often should participation level be updated? Master file updates are less frequent than daily. CAISO suggests monthly updates. A maximum percentage limit may be needed on the Partial Participation portion of the participating customers total load (maybe 50%) to avoid gaming in settlements. If the resource is not 100% Participating Load, hourly variations in load could cause positive and negative uninstructed deviations to vary strategically between Default LAP and Custom LAP prices. (Until non-participating portion reaches zero, uninstructed energy settles at Default LAP. When non-participating portion reaches zero, uninstructed energy settles at Custom LAP.) Slide 5