ICAP Load Forecast Process Improvements

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ICAP Load Forecast Process Improvements
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ICAP Load Forecast Process Improvements

• The Current Process
• How it works
• Problems experienced
• Ways to Improve It
• Suggestions What to do
• Schedule When to do it
• Resources Who will do it
• Next Meeting

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ICAP Load Forecast Process Improvements

• Current Process How it works, the current
  schedule

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ICAP Load Forecast Process Improvements

• Current Process How it worked, 2002
• Economy.com meeting October 10
• US, NYS and SMA economic overview
• Forecast provides basis for evaluating RLGFs
• LFWG Meeting November 6
• Preliminary NYCA W/N Peak
• 2001 LF Process
• Guideline for TO data submissions
• Criteria for RLGF evaluation
• TO Economic Variables
• Data Request
• LFWG Meeting of November 19
• NYCA 2002 W/N Peak of 31,000 MW
• Status reports on data request, development of
  evaluation criteria

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ICAP Load Forecast Process Improvements

• Current Process How it worked, 2002 (contd)
• LFWG Meeting December 19
• Status reports on data request, development of
  evaluation criteria, NYISO forecasting models
• LFWG Meeting of January 8
• Presentation of RLGF evaluation criteria
• January 27 - NYCA 2003 ICAP Preliminary Load
  Forecast Released
• February 21 NYCA 2003 TD ICAP Requirements
  Released

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ICAP Load Forecast Process Improvements

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ICAP Load Forecast Process Improvements

• Conclusions
• If weather-normalization is performed
  consistently
• If losses are fully accounted for
• Then
• Diversity will return and TD IRM will be less
  than NYCA IRM

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ICAP Load Forecast Process Improvements

• What to do

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ICAP Load Forecast Process Improvements

• What to do (contd)

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ICAP Load Forecast Process Improvements

• ISO Staff to obtain TO, etc. loads by quarter
• Staff requested 11/02 3/03 load last month and
  will verify vs. billing system loads ISO Staff
  TOs
• ISO and TO present weather normalization
  methodologies
• At October LFWG meeting ISO Staff TOs
• TOs present ICAP forecast methodologies
• At December LFWG meeting ISO Staff TOs
• Presentation of preliminary EDRP/SCR Results
• At September LFWG meeting ISO Staff
• Presentation of final EDRP/SCR Results
• At October LFWG meeting ISO Staff

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ICAP Load Forecast Process Improvements (contd)

• FERC NOPR for multiyear load forecast and
  capacity market
• Summer / Fall 03 project with October 31
  completion
• Strawman today
• ISO Staff, MPs, Eventually ISO Governance
• Alternative ICAP load forecasting methodology
• Summer / Fall 03 project with October 31
  completion
• Strawman today
• ISO Staff, MPs, Eventually ISO Governance
• Redefine LF / ICAP requirements border
• Jan Feb 04 ISO Staff
• EDRP/SCR/EOP/TO Agency load reduction program
  inventory
• June Sept project
• ISO Staff, TOs, Agencies

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ICAP Load Forecast Process Improvements (contd)

• PLEASE Tell me ASAP if you have other suggestions
  for ICAP LF Improvements

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ICAP Load Forecast Process Improvements (contd)

• 1, 2, 3, 4, 5 and 8 accounted for
• 6, 7, 9 TBD

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ICAP Load Forecast Process Improvements Acctd
For
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ICAP Load Forecast Process Improvements Acctd
For
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ICAP Load Forecast Process Improvements New
Methodology Strawman
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ICAP Load Forecast Process Improvements New
Methodology Strawman

• Can use highest non-EDRP/SCR day instead of
  AAPL day
• Use TO peak growth rates applied to TO load at
  time of NYCA peak
• TO load
• Matched to billing system load
• EOPs, EDRP/SCR added back in
• Weather-normalized

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ICAP Load Forecast Process Improvements New
Methodology Strawman
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ICAP Load Forecast Process Improvements New
Methodology Strawman

• Advantages
• All load accounted for
• Weather-normalization applied to same day
• Disadvantages
• (May) Require Tariff Change

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ICAP Load Forecast Process Improvements

• Conclusions
• If weather-normalization is performed
  consistently
• If losses are fully accounted for
• Then
• Diversity will return and TD IRM will be less
  than NYCA IRM

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ICAP Load Forecast Process Improvements FERC
NOPR

• Reasons
• Resource Adequacy must be assessed at the
  regional level
• Resource requirement is necessary because energy
  markets dont give adequate signals and
  reliability is a common good

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ICAP Load Forecast Process Improvements FERC
NOPR

• Basic Features
• ITP required to do annual forecast (can use
  bottom up method, as done currently) for the
  time period needed to add new supply
• ITP assesses adequacy of collective resource
  plans of LSEs (done via IRM study)
• ITP assures that all LSEs share regional needs
• ITP audits resource plans to avoid double
  counting

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ICAP Load Forecast Process Improvements FERC
NOPR

• Proposed design
• Common design for NYISO, PJM, ISO-NE
• Implement for 2005 Capability Year (forecast
  2005, 06 07)
• 3 year forecast, but design not fixed
• Frozen once produced
• To freeze capacity market for 3 years
• In year T, forecast only for year T 3 (in 2006,
  forecast only 08)
• Annual adjustments to forecast, e.g.
• Similar to current process
• Only adjust starting point
• Only adjust for special circumstances
• Begin work on process in Fall/Winter 03