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

The Hysteria With Standards

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 – skerns@bpa.gov

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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