WECC WECC Market Interface Committee Market Interface Committee
UpdateUpdate
WSPP Spring 2008 MeetingApril 8, 2008
Robert D. SchwermannMIC Chair
TOPICS
• What has changed
• What is planned
• What is the future
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!
Why Do you Care
• Violating NERC reliability standards will cost you money
• Violating NAESB - FERC approved Business Practices will result in FERC punishment
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.
The Compliance Bears Will Eat You
Market Interface CommitteeMarket Interface Committee
Market Issues Subcommittee
Seams Issues Subcommittee
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.
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”
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
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.
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
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 6:00 a.m. Pacific Time.”
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
Day-Ahead Trading Timelines Guideline
TO DATE THIS HAS BEEN A FAILURETO 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
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
Merchant Communication Drafting Team
Team analyzing survey responsesDiscussing whether this should be a WECC
Regional Criteria or a GuidelineGoal is to have a process for use by 2008
Summer seasonQuestions
– contact Steve Kerns – [email protected]
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
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
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.
What’s 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
Join Us!!Join Us!!
The more people involved the more we can do – we need your help!
There are issues we need to address, but don’t have the manpower
Questions?
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