market interface committee recent regulatory activities philip tice october 14, 2011
TRANSCRIPT
Market Interface Committee Recent Regulatory Activities
Philip Tice
October 14, 2011
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Ancillary Services Firm Exchanges Severe Weather Inquiry
Topics for this Report
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FERC Ancillary Services NOI
RM11-24-000 June 16, 2011
Third-Party Provision of Ancillary Services
Accounting and Financial Reporting for New Electric Storage Technologies
Frequency Regulation NOPR
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FERC NOI
Comment period ended August 22, 2011 Comments from 50+ entities. Support for adjustments to expand
Ancillary Service markets. Broad range of approaches suggested.
No issuance by FERC yet.
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FERC Locational Exchange NOI
• EL10-71- Petition for Declaratory Order
• Locational exchanges are not transmission transactions that must be conducted under authority of an OATT, but rather are wholesale power sales transactions.
• NOI - RM11-9-000 – February 2011– Comments due by April 25, 2011– About 20 commenters’.
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FERC NOI
• Comments generally supportive.
• Suggest NOI be used to provide guidance for use of exchanges.
• No issuance by FERC yet
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Southwest Cold Weather Event
• February 1-5, 2011• Widespread electricity outages and natural
gas curtailments in Texas and other Western states.
• Approximately 4.4 million electric customers in ERCOT and WECC affected.
• Service curtailed to over 50,000 gas customers in New Mexico, Arizona and Texas.
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Southwest Cold Weather Event
• FERC, NERC and State Commission inquiries.
• FERC & NERC joint inquiry and report.– AD11-09-000
• Identify the causes of the disruptions and identify any appropriate actions for preventing their recurrence.
• Report issued August 16, 2011.
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Cold Weather Event
• Longest sustained cold spell in 25 years.
• Temperatures at least 15 F below normal.
• Extreme in terms of temperature, wind and duration of event.
• Storm extreme not without precedent.
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Cold Weather Event
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Electric System Issues
• Loss or unavailability of generation.– 67% attributable to weather.– 12% indirectly weather related.– Winterization.
• Over 250 unit outages in ERCOT, WECC and SPP.
• 1.2 million MWh of energy unavailable.• Some transmission limitations.
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Electric System IssuesSouthwest - Number of Units Tripped, Derated, and Failed to
Start - Feb. 1 - 5, 2011
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Gas System Issues
• Production declines.– Freeze-offs.– Icy roads.– Rolling blackouts. – Winterization.
• Processing plant impacted by wellhead problems and volumes.
• Time consuming chore of manually shedding some customers.
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Gas System Issues
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Gas System Issues
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Key Findings & Recommendations Electric• Entities should consider preparation for
winter season as critical as summer peak season.
• Take steps to assure black start units can be utilized during severe weather events.
• Real output capability forecast should consider severe weather forecasts.– TOP-002-2 R15
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Key Findings & Recommendations Electric• States should consider rules requiring
winterization plans.
• Communication processes should be improved between reliability and market participants during severe weather events.
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Key Findings & Recommendations Electric
• NERC has committed to submit a Standards Action Request to require generators to develop, maintain and implement plans for winterization of their units.
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Key Findings & Recommendations Gas• States should consider whether adoption
of weatherization standards is warranted for the gas industry.
• States should be approached concerning exemption critical gas production and processing facilities from rolling blackouts.
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Cold Weather Event Report Resources
• Materials and graphics in presentation from The Report on Outages and Curtailments During the Southwest Cold Weather Event on February 1-5, 2011.
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Links to FERC-NERC Report
• http://www.ferc.gov/EventCalendar/Files/20110915110000-A-4-presentation.pdf
• http://www.ferc.gov/legal/staff-reports/08-16-11-report.pdf
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FERC Meeting Agenda October 2011
• RM11-7-000/AD10-11-000 - Frequency Regulation Compensation in the Organized Wholesale Power Markets.
