WECC Market Interface Committee Update

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WECC Market Interface Committee Update

• WSPP Spring 2008 Meeting
• April 8, 2008
• Robert D. Schwermann
• MIC Chair

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TOPICS

• What has changed
• What is planned
• What is the future

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Impact to WSPP Membership

• What has changed since last year?
• Sanctions for violating Reliability Standards
• You must comply with Reliability Standards if you
  are a Registered Entity
• Includes Purchase-Selling Entity, Generator
  Owner, Generator Operator, Load Serving Entity,
  and many more!

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Why Do you Care

• Violating NERC reliability standards will cost
  you money
• Violating NAESB - FERC approved Business
  Practices will result in FERC punishment

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The Hysteria With Standards
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Impact to WSPP Membership
WECC Market Interface Committee and its
Subcommittees are YOUR opportunity to help shape
the standards, criteria, policies and guidelines
of the future including revisions to existing
requirements. Membership in WECC is not required
to fully participate in many of these activities.
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The Compliance Bears Will Eat You
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Market Interface Committee
Market Issues Subcommittee
Seams Issues Subcommittee
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Market Issues Subcommittee

• 2008 MIS Goals
• Support the WECC ATC standard drafting team
• Evaluate effects of prescheduling timelines
• Increase and strengthen the communication of
  NAESB activities
• Monitor and evaluate market implications of a
  possible Frequency Responsive Reserve standard.
• Support developing a WECC-wide merchant
  reliability communications methodology.
• Support the MIC objective of providing the
  interface between the merchant and reliability
  communities.

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Seams Issues Subcommittee

• 2008 SIS Goals
• Congestion Management Unscheduled Flow Standard
  and Procedures
• Transmission Product is not part of the
  curtailment priority (no difference Firm vs.
  Non-Firm)
• Disparity between pre-existing and new schedules
• Plan only applies to 7 of about 70 Rated Paths
• System model for webSAS is static the
  West-Wide System Model could enable dynamic

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Activities and Issues

• Operating Reserves Standard for WECC
• Day-Ahead Trading Timelines Guideline
• Merchant Communications Emergencies
• Prescheduling Evaluation Task Force
• Energy Product Codes for e-Tags in the WECC
• Congestion Management
• FERC Monitor Facilitator
• NAESB Monitor and Communicate

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BAL-002-WECC-1 Standard

• Changes to the current Contingency/Operating
  Reserves Regional Standard
• Removes routine transactions from altering the
  reserve requirement
• Replaces 5-7 of Load Responsibility sections
  with 3 of load plus 3 of generation (or the
  MSSC whichever is greater).
• Allow for transactions specifically identified as
  reserve transactions.
• Removes the requirement to restore reserves
  within 60 minutes of activation.

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BAL-002-WECC-1 Standard

• MIC approved in March 2008
• Operating Committee approved in March 2008
• Next Steps
• -- Approval at WECC Board of Directors
• -- Approval at NERC and then FERC

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Day-Ahead Trading Timelines Guideline

• MIC Adopted at meeting in March 2008
• A Guideline is VOLUNTARY
• The Guideline states, The trading of day-ahead
  energy transactions in the Western
  Interconnection should begin no earlier than 600
  a.m. Pacific Time.

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Day-Ahead Trading Timelines Guideline

• What was behind this
• Attempt to re-establish informal agreement in
  place years ago
• West Coast traders and analysts either come in at
  unreasonable time or miss out on much of the
  market liquidity
• Industry survey and outreach revealed significant
  support
• Success depends on voluntary participation
• TO DATE THIS HAS BEEN A FAILURE

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Day-Ahead Trading Timelines Guideline

• TO DATE THIS HAS BEEN A FAILURE
• Next Steps
• Will discuss at the next Market Issues
  Subcommittee meeting April 29 30
• Possible submittal for a NAESB regional Standard

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Merchant Communication Drafting Team

• Provide a mechanism for merchants to broadly
  communicate when they are in need of resources to
  avoid an Energy Emergency
• Leverage work of the NWPP MC Task Force
• Sent out Surveys
• Goal is for a process identified for the Summer
  2008 season

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Merchant Communication Drafting Team

• Team analyzing survey responses
• Discussing whether this should be a WECC Regional
  Criteria or a Guideline
• Goal is to have a process for use by 2008 Summer
  season
• Questions
• contact Steve Kerns
• skerns_at_bpa.gov

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Prescheduling Evaluation Task Force

• Findings May Affect the Way Energy is Scheduled
  in the WECC
• A comprehensive and objective evaluation of the
  potential effects of prescheduling business
  practices on reliability and markets in the
  Western Interconnection.
• PETF expects to issue a report of findings for
  review of the MIC in June 2008

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Energy Product Codes

• Approved Business Practice WECC Energy Product
  Codes
• Energy Codes intent to create enough categories
  to identify scheduling attributes
• Adopted by the NERC IS and are now in the
  Registry

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Cal ISO MRTU Seams Evaluation

• Seams Issues Subcommittee
• The Seams Issues Subcommittee (SIS) finds no
  specific seams issues that are created by MRTU or
  existing seams issues that are substantially
  worsened by MRTU implementation. Seams issues
  exist today, particularly between organized
  markets such as the CISO and bilateral physical
  markets that dominate the Western
  Interconnection. The SIS will continue to
  monitor, evaluate and propose solutions to all
  regional seams issues.

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Whats up at the MIC andWhy you Care

• Changes in the way reserves are calculated and
  held may affect your bottom line
• Changes in the way that energy product codes are
  used affect your scheduling practices and enables
  markets
• Trading timelines will affect when your people go
  to work
• Mitigating seams issues makes for more effective
  trading opportunities and scheduling practices

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Join Us!!

• The more people involved the more we can do we
  need your help!
• There are issues we need to address, but dont
  have the manpower

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Questions?
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