MAY 02, 2012 | HOLYOKE, MA

MAY 02, 2012 | HOLYOKE, MA

Matthew GdulaSENIOR BUSINESS ANALYST

MARKET OPERATIONS SUPPORT SERVICE

Compensation and Cost Allocation

Transitional Demand Response

Objectives

• At the completion of this training you will know:– How payments and charges are determined– Settlement changes related to the FCM Market– Cost allocation– Report Changes

3

Governing Documents

• Market Rule 1, Appendix E– Section III.E.9

• Market Rule 1, Section 13– III.13.7.2.5.3– III.13.7.2.5.4

4

TRANSITIONAL DEMAND RESPONSEPayments and Charges

Payments and Charges

• Day-Ahead– Paid for any MW cleared

• Real-Time– Paid or Charged dependent

on Real-Time Conditions

6

Calculate Asset Day-Ahead Payment

7

Day-Ahead Demand Reduction PaymentDay-Ahead Demand Reduction Payment

Day-Ahead Demand Reduction ObligationDay-Ahead Demand Reduction Obligation Day-Ahead LMPDay-Ahead LMPX

Cleared Demand Reduction OfferCleared Demand Reduction Offer X ( 1 + Average Avoided Peak

Distribution LossesAverage Avoided Peak

Distribution Losses )

• Note– Day-Ahead LMP applicable to the Load Zone the asset is located

Average Avoided Peak Distribution Losses

• Section III.E.10– The average avoided peak transmission and distribution losses used for the

associated Capacity Commitment Period in the FCMless

The percent average avoided peak transmission system losses

• Section III.13.7.1.5.1.– The percent average avoided peak transmission and distribution losses used by

the ISO in its calculations of the Installed Capacity Requirement (ICR) for the Forward Capacity Auction immediately preceding the Forward Capacity Auction

• The ICR report states the Transmission and Distribution Gross-up as 8%

• Average avoided peak transmission system losses– Calculated to be 1.5%

• Average Avoided Peak Distribution Losses– 8% - 1.5% = 6.5%

8

9

Asset Day-Ahead Offer ExampleDemand Reduction Offer - 123

MW 5

Price $30

Minimum interruption duration 1 hour

Curtailment Initiation Price $0

Demand Reduction Offer Cost $30

Demand Reduction Offer - 456MW 2

Price $50




Offer Price + [Curtailment Initiation Price/(Minimum interruption duration x bid amount)]:

$30 + [0/(1 x 5)] = $30

10

Asset Day-Ahead Offer ExampleDemand Reduction Offer - 123

MW 5

Price $30





Price $50




Offer Price + [Curtailment Initiation Price/(Minimum interruption duration x bid amount)]:

$50 + [400/(1 x 2)] = $250

11

Asset Day-Ahead Payment ExampleDemand Reduction Offer - 123

MW 5

Price $30




Demand Reduction Threshold Price $25

Average Distribution Losses 6.5%

Hour Asset Load Zone

DA Cleared (MWh)

DA Demand Reduction Obligation (MWh)

DA LMP ($/MWh)

DA Payment($)

16 123 ABC 5 5.325 320 1704.00


Price $50




5.325 x 320$320 ≥ $30

5 x (1 + 0.065)

12


MW 5

Price $30





DA Cleared (MWh)


DA LMP ($/MWh)

DA Payment($)

16 123 ABC 5 5.325 320 1704.00

16 456 XYZ 2 2.13 500 1065.00


Price $50




$500 ≥ $250

2 x (1 + 0.065)

2.13 x 500



13


MW 5

Price $30





DA Cleared (MWh)


DA LMP ($/MWh)

DA Payment($)

16 123 ABC 5 5.325 320 1704.00

16 456 XYZ 2 2.13 500 1065.00


Price $50






Asset Real-Time Payments and Charges

• An asset is eligible for Real-Time Payments and Charges when– The asset clears in Day-Ahead, or– The hourly provisional Real-Time LMP is greater than or equal to the

Demand Reduction Offer price

14

Calculate Asset Real-Time Payments or Charges

Asset clears Day-Ahead

15

Real-Time Payments or Charges


Real-Time Demand Reduction Obligation

Real-Time Demand Reduction Obligation Final Real-Time LMPFinal Real-Time LMPX

Real-Time demand reduction adjusted for net supply

Real-Time demand reduction adjusted for net supplyMIN ( ,

Demand Reduction Offer

Demand Reduction Offer X 2) X( 1+ Average Avoided Peak



Day-Ahead Demand Reduction ObligationDay-Ahead Demand Reduction Obligation-( )

• Note– Real-Time LMP applicable to the Load Zone the asset is located

• Exception– Real-Time Demand Reduction Obligation is capped to the Day-Ahead

Demand Reduction Obligation when the provisional Real-Time LMP < Demand Response Threshold Price

16



Real-Time Demand Reduction Obligation

Real-Time Demand Reduction Obligation Final Real-Time LMPFinal Real-Time LMPX

Calculate Asset Real-Time Payments or Charges

Asset does not clear Day-Ahead

Real-Time demand reduction adjusted for net supply

Real-Time demand reduction adjusted for net supplyMIN ( ,

Demand Reduction Offer

Demand Reduction Offer X 2) X( 1+ Average Avoided Peak



• Note– Real-Time LMP applicable to the Load Zone the asset is located

• Exception– Will not be charged if Real-Time demand reduction adjusted for net

supply is negative

17

Asset Real-Time Payment or Charges ExampleDemand Reduction Offer - 123

MW 5

Price $30





Price $50




18

Asset Real-Time Payment or Charges Example

HE Asset Load Zone

DA Demand Reduction Obligation

(MWh)

DA Payment

($)

Real-Time Demand

Reduction(MWh)

Real-Time Demand

Reduction Obligation

(MWh)

Real-Time LMP >

Offer Price

Real-Time LMP > DRTP

RT LMP($/MWh)

RT Payment

($)

16 123 ABC 5.325 1704 8 8.52 N N 20 0


Price $30


Price $50



8 x (1 + 0.065)8.52 – 5.325 is set to 0

19


HE Asset Load Zone


(MWh)

DA Payment

($)

Real-Time Demand

Reduction(MWh)

Real-Time Demand


(MWh)

Real-Time LMP >

Offer Price


RT LMP($/MWh)

RT Payment

($)

16 123 ABC 5.325 1704 8 8.52 N N 20 0

16 456 XYZ 2.13 1065 -3.00 -3.195 N N 24 -127.8


Price $30


Price $50



-3 x (1 + 0.065)(-3.195 – 2.13) x 24

20


HE Asset Load Zone


(MWh)

DA Payment

($)

Real-Time Demand

Reduction(MWh)

Real-Time Demand


(MWh)

Real-Time LMP >

Offer Price


RT LMP($/MWh)

RT Payment

($)

16 123 ABC 5.325 1704 8 8.52 N N 20 0

16 456 XYZ 2.13 1065 -3.00 -3.195 N N 24 -127.8

17 123 ABC 0 0 12 10.65 Y Y 35 372.75


Price $30


Price $50



MIN (12, 5 x 2) x (1 +0.065) 10.65 x 35

21


HE Asset Load Zone


(MWh)

DA Payment

($)

Real-Time Demand

Reduction(MWh)

Real-Time Demand


(MWh)

Real-Time LMP >

Offer Price


RT LMP($/MWh)

RT Payment

($)

16 123 ABC 5.325 1704 8 8.52 N N 20 0

16 456 XYZ 2.13 1065 -3.00 -3.195 N N 24 -127.8

17 123 ABC 0 0 12 10.65 Y Y 35 372.75

17 456 XYZ 0 0 -1.5 0 Y Y 55 0


Price $30


Price $50



Set to 0 due to DA being 0 0 x 55

22


HE Asset Load Zone


(MWh)

DA Payment

($)

Real-Time Demand

Reduction(MWh)

Real-Time Demand


(MWh)

Real-Time LMP >

Offer Price


RT LMP($/MWh)

RT Payment

($)

16 123 ABC 5.325 1704 8 8.52 N N 20 0

16 456 XYZ 2.13 1065 -3.00 -3.195 N N 24 -127.8

17 123 ABC 0 0 12 10.65 Y Y 35 372.75

17 456 XYZ 0 0 -1.5 0 Y Y 55 0


Price $30


Price $50



Demand Reductions of 5 MW and Above

23

• Assets intending to reduce ≥ 5 MW of load during a 60 minute period must contact the Control Room between 15 to 60 minutes prior to initiating the reduction

• When a request to interrupt is denied by the control room– If the asset cleared Day-Ahead, the asset will not be charged for the

difference between its Real-Time Demand Reduction Obligation and Day-Ahead Demand Reduction

– If the asset did not clear Day-Ahead, the asset will not be paid

TRANSITIONAL DEMAND RESPONSEFCM Conforming Changes

FCM Conforming Changes

• Energy Compensation at the Final Real-Time LMP for– Real-Time Demand Response (“RTDR”) resource with a Capacity

Supply Obligation – Real-Time Emergency Generation (“RTEG”) resource with a Capacity

Supply Obligation

• Energy Compensation at the Final Real-Time LMP during– ISO Dispatch for OP4– ISO Dispatch for an Audit

25

Calculate Asset Energy Payments or Charges - FCM Event RTDR Asset that cleared Day-Ahead

2626

Real-Time Payments or Charges – FCM Event


Final Real-Time LMPFinal Real-Time LMPXReal-Time demand reduction adjusted

for net supply

Real-Time demand reduction adjusted

for net supplyX(1+

Average Avoided Peak Distribution

Losses


Losses) Day-Ahead Demand

Reduction ObligationDay-Ahead Demand Reduction Obligation-( )

• Note– No cap on Real-Time demand reduction adjusted for net supply– Final Real-Time LMP applicable to the Load Zone the asset is located– Average Distribution Losses has been estimated to be 6.5%

Calculate Asset Energy Payments or Charges - FCM Event RTDR and RTEG Assets - Real-Time only

2727



Final Real-Time LMPFinal Real-Time LMPXReal-Time demand reduction adjusted

for net supply

Real-Time demand reduction adjusted

for net supplyX(1+


Losses


Losses)

• Note– No cap on Real-Time demand reduction adjusted for net supply– Final Real-Time LMP applicable to the Load Zone the asset is located– Average Distribution Losses has been estimated to be 6.5%

Demand Response Performance in FCM Events

• When Interrupted MW are calculated for the FCM Settlement only intervals that are part of the FCM Event in the hour are used

• When Demand Reduction MWh are calculated for the Energy Settlement all intervals in the hour are used

28

Demand Response Performance in FCM Events

29

Interval FCM Event MW

16:00 N 0

16:05 N 0

16:10 N 0

16:15 N 0

16:20 N 0

16:25 N 0

16:30 N 0

16:35 N 0

16:40 N 0

16:45 Y 10

16:50 Y 10

16:55 Y 10

• Performance for FCM Settlement 10 MW

• Performance for Energy Settlement 2.5 MWh

30

Asset Energy Payments or Charges - FCM Event

HE Asset Load Zone


(MWh)

DA Payment

($)

Real-Time Demand

Reduction(MWh)

Real-Time Demand


(MWh)

FCM Event RT LMP($/MWh)

RT Payment

($)

16 123 ABC 5.325 1704 15 15.975 Y 500 5325

16 789 ABC N/A N/A -0.5 -0.5325 Y 500 -266.25

Demand Reduction Offer - 123Asset Type RTDR

MW 5

Price $30

Asset 789Asset Type RTEG



(15.975 – 5.325) x 500No Cap:

15 x (1 + 0.065)

31


HE Asset Load Zone


(MWh)

DA Payment

($)

Real-Time Demand

Reduction(MWh)

Real-Time Demand


(MWh)


RT Payment

($)

16 123 ABC 5.325 1704 15 15.975 Y 500 5325

16 789 ABC N/A N/A -0.5 -0.5325 Y 500 -266.25


MW 5

Price $30




-0.5325 x 500

32


HE Asset Load Zone


(MWh)

DA Payment

($)

Real-Time Demand

Reduction(MWh)

Real-Time Demand


(MWh)


RT Payment

($)

16 123 ABC 5.325 1704 15 15.975 Y 500 5325

16 789 ABC N/A N/A -0.5 -0.5325 Y 500 -266.25


MW 5

Price $30




TRANSITIONAL DEMAND RESPONSECost Allocation

Cost Allocation

• Payments and charges will be allocated proportionally on an hourly basis to system-wide Real-Time Load Obligation (RTLO), excluding RTLO at external nodes and RTLO incurred by Dispatchable Asset Related Demand Postured by the ISO.

34

Monthly Demand Reduction Cost Allocation

Monthly Demand Reduction Cost Allocation

Hourly Pool PaymentHourly Pool Payment Pool Real-Time Load Obligation

Pool Real-Time Load ObligationX ( Customer Real-Time

Load ObligationCustomer Real-Time

Load Obligation / )SUM [ ]

TRANSITIONAL DEMAND RESPONSEReports and Billing

New Reports

• Demand Response Settlement Detail Report– SD_DRSTLDETAIL – Hourly values for Real-Time Demand Response Assets and Real-Time

Emergency Generation Assets for the specified month.– RTDR Asset Tab:

36

New Reports

• Demand Response Settlement Detail Report– SD_DRSTLDETAIL – Hourly values for Real-Time Demand Response Assets and Real-Time

Emergency Generation Assets for the specified month.– RTEG Asset Tab:

37

New Reports

• Demand Response Settlement Charges Report– SD_DRCHGDETAIL – Hourly cost allocation of the Demand Response settlement for the

specified month.– Hourly Tab:

38

New Reports

• Demand Response Settlement Summary Report– SR_DRSTLSUM– Hourly summary of Pool and Customer payments of the Demand

Response settlement for the specified month. – Monthly summary of Pool payments and Customer payments and

charges of the Demand Response settlement for the specified month.– Hourly Tab:

39

New Reports

• Demand Response Settlement Summary Report– SR_DRSTLSUM– Hourly summary of Pool and Customer payments of the Demand

Response settlement for the specified month. – Monthly summary of Pool payments and Customer payments and

charges of the Demand Response settlement for the specified month.– Monthly Tab:

40

Updated Reports

• Daily Financial Position Report – BL_DAILYPOSITION – Transitional Demand Response line item added.

• FERC Electric Quarterly Reporting – Transitional Demand Response line item added.

• Load Cost Report – Transitional Demand Response column added

41

Billing

• New Line Item– Transitional Demand Response

• Two Line Items on July 16, 2012 Bill– Current Demand Response Programs are allocated to Regional

Network Load which causes a month lag (May 2012)– Transitional Demand Response Cost allocated to Real-Time Load

Obligation (June 2012)

• Data Reconciliation Process (DRP) resettlement billing will not have the same overlap as the July 2012 bill– May 2012 DRP will be included in bill issued on October 15, 2012– June 2012 DRP will be included in bill issued on November 13, 2012

42

TRANSITIONAL DEMAND RESPONSEAppendix

Possible Clearing Scenarios

45

*Capped = 200% Enforced

MAY 02, 2012 | HOLYOKE, MA

Documents

Transcript of MAY 02, 2012 | HOLYOKE, MA