building the energy markets of tomorrow... today new york state electricity markets federal energy...
Post on 22-Dec-2015
217 views
TRANSCRIPT
Building the Energy Markets of Tomorrow . . . Today
New York StateNew York StateElectricity MarketsElectricity Markets
Federal Energy Regulatory CommissionFederal Energy Regulatory CommissionMarket Design Technical ConferenceMarket Design Technical Conference
January 22, 2002
Charles A. King - Vice President, Market ServicesCharles A. King - Vice President, Market Services
Building the Energy Markets of Tomorrow . . . Today
2
Outline of Today’s PresentationI. Overview of New York’s Market Structure
II. Day-Ahead Market
III. Real-Time Market
IV. Transmission Service Markets
V. Financial Transmission Rights
VI. Ancillary Services Markets
VII. Long-Term Capacity Markets
VIII. Market Monitoring and Mitigation
Appendix – Statistics and Examples
Building the Energy Markets of Tomorrow . . . Today
3
New York ISONew York ISO"Hub of the Northeast"
* = Peak Load in Megawatts
IMO23,857 MW*
Hydro Quebec19,410 MW*
ISO - New England25,158 MW*
New York ISO30,983 MW*
PJM54,176 MW*
I. NYISO Overview
Building the Energy Markets of Tomorrow . . . Today
4
I. NYISO OverviewNew York Electric Industry Restructuring
New York Transmission Owners entered into settlement agreements with New York Public Service Commission in mid 1990s which required divesture of generating units
Established phased schedule for retail access
Wholesale markets launched and NYISO began operation on December 1, 1999
Building the Energy Markets of Tomorrow . . . Today
5
I. NYISO OverviewNYISO Governance
O PERATING CO M M ITTEE5 Sectors
58% Vote to Pass
BUSINESS ISSUES CO M M ITTEE5 Sectors
58% Vote to Pass
M ANAG EM ENT CO M M ITTEE5 Sectors
58% Vote to Pass
BO ARD O F DIRECTO RS10 M em ber Unaffiliated
6 Votes to Pass
Building the Energy Markets of Tomorrow . . . Today
6
I. NYISO OverviewUnique System Characteristics
Transmission prone to thermal, voltage and stability limitations which can bifurcate NYISO system (east vs. west)
Much higher degree of transmission congestion
FERC 12/19/01 Electric Transmission Constraint Study
High degree of generation divestiture
Investor-owned utility divesture currently at 91 percent
Building the Energy Markets of Tomorrow . . . Today
7
Legend:
KintighNiagara
Oswego
OakdaleFraser
Marcy
Massena
MosesChateauguay
Plattsburgh
Gilboa Leeds
NewScotland
Clay
Lafayette
Watercure
Stolle Rd.Edic
Porter Rotterdam
PleasantValley
Coopers Corners
Rock Tavern
Roseton
Bowline
RamapoSprainbrookDunwoodie765 kV
345 kV230 kV Farragut
Goethals
Complex
Homer City
Shore Rd.E.Garden City
Dunkirk
Pannell
Sta.80
New York Independent System OperatorHigh Voltage Transmission System - 230 kV and above Transmission
I. NYISO Overview
Building the Energy Markets of Tomorrow . . . Today
8
I. NYISO OverviewMarkets
Bid-Based Markets Energy Regulation Spinning and Non-Spinning Reserves Three-part bids Self-scheduling
Other Markets Installed Capacity Transmission Congestion Contracts
Two Settlement System Day-Ahead Market Real-Time Market
Building the Energy Markets of Tomorrow . . . Today
9
I. NYISO OverviewMarkets (continued)
Locational Based Marginal Pricing Nodal congestion management pricing system Marginal losses
Financial Hedging Instruments Transmission Congestion Contracts Contract For Differences Virtual Trading
Demand Response Program Day-Ahead Emergency
Building the Energy Markets of Tomorrow . . . Today
10
I. NYISO OverviewMarkets (continued)
Flexible market structure accommodates: Bilateral Transactions
Existing Transmission Agreements
Scheduling of Energy Limited Resources
Municipal Customers
Power Marketers
Price responsive load customers
Building the Energy Markets of Tomorrow . . . Today
11
Day-AheadMarket
(HourlyProcess)
Gen
Real-TimeMarket
SCUC
ForwardContracts
BME
SCD
Bids by 5 a.m.Day before
Schedules
RealConditions
Bids by 90 minbefore hour
DAM = Day-Ahead MarketSCUC = Security Constrained Unit CommitmentBME = Balancing Market EvaluationRT = Real-Time MarketSCD = Security Constrained Dispatch
BasepointsSupplementalResourceEvaluation
I. NYISO OverviewNew York's Two-Settlement Process
Building the Energy Markets of Tomorrow . . . Today
12
II. Day-Ahead MarketHighlights
Bids submitted by 5:00 am previous day Suppliers submit MW quantity and price bids for each
hour including any ancillary services bids Loads submit MW requirement bids for each hour
including any price cap load bids Includes bids for virtual supply and virtual load
Security Constrained Unit Commitment (SCUC) scheduling software simultaneously cooptimizes energy and ancillary services for least cost solution
Building the Energy Markets of Tomorrow . . . Today
13
II. Day-Ahead MarketHighlights (continued)
Locational Based Marginal Prices (LBMP) posted by 11:00 am previous day
Accommodates bilateral transaction scheduling concurrently with supply and load bids
Any deviations in supply or demand settled in Real-Time Market
Building the Energy Markets of Tomorrow . . . Today
14
II. Day-Ahead MarketBenefits
Provides price certainty while avoiding volatility of Real-Time Market
Simultaneous co-optimization process maximizes the use of the existing transmission system and provides for appropriate cost allocation
Highly automated system manages complex operating processes
Building the Energy Markets of Tomorrow . . . Today
15
II. Day-Ahead MarketBenefits (continued)
Multi-pass Security Constrained Unit Commitment (SCUC) process accommodates Reliability requirements Market mitigation Cost assignment of uplift
Building the Energy Markets of Tomorrow . . . Today
16
II. Day-Ahead MarketUnique Characteristics
Day-Ahead prices include effect of reliability commitments and all scheduled external transactions
Incorporates automated mitigation (in-city and automated mitigation procedures (AMP))
Ancillary Services secured and priced Fully unbundled Simultaneous co-optimization of individual availability bids
Building the Energy Markets of Tomorrow . . . Today
17
III. Real-Time MarketHighlights
Balances system supply and demand every five minutes
Bids may be adjusted to address in-day operating conditions
Accommodates additional bilateral transactions and changes to fixed output generator schedules
Security Constrained Dispatch (SCD) software re-optimizes energy and ancillary service markets onsystem-wide basis
Provides for commitment of “quick start” resources Locational Based Marginal Prices (LBMP) posted every
five minutes
Building the Energy Markets of Tomorrow . . . Today
18
III. Real-Time MarketBenefits
Simultaneous co-optimization process maximizes the use of the existing transmission system while maintaining reliability
Provides for least cost dispatch of Real-Time resources
Provides Real-Time price transparency
Building the Energy Markets of Tomorrow . . . Today
19
III. Real-Time MarketUnique Characteristics
Ex-ante pricing based upon “scheduled” generator basepoint vs. ex-post pricing based upon generator actual output
NYISO uses unit-specific MW signal instead of dollar zonal price signal
Minimum energy bid is -$1000 vs. $0 in PJM. NYISO practice allows market to resolve min-gen scenarios instead of dumping energy
Building the Energy Markets of Tomorrow . . . Today
20
III. Real-Time MarketUnique Characteristics (continued)
Variations on criteria used to determine which units are eligible to set Locational Marginal Pricing (LMP)
PJM only allows units that respond to $ zonal price signal to set LMP
NYISO used hybrid pricing method to allow inflexible units to set LMP. PJM does not allow inflexible units to set price
Building the Energy Markets of Tomorrow . . . Today
21
IV. Transmission Service MarketsHighlights
Firm transmission service available to users willing to pay congestion costs Continuous redispatch to support firm transactions
Transmission Congestion Contracts (TCCs) provide financial hedge against congestion costs
Non-firm transmission service curtailed when congestion exists
Cost of transmission marginal losses included in clearing price
Building the Energy Markets of Tomorrow . . . Today
22
IV. Transmission Service MarketsHighlights
Long-term prescheduling and ramp management will enhance ability to acquire explicit long-term transmission service across control area boundaries
Facilitation of “counter-flow” transactions in hourly scheduling process avoids need to curtail day-ahead transactions for transmission system security
Implementation of Open Scheduling System (OSS) for “One Stop Shopping”
Building the Energy Markets of Tomorrow . . . Today
23
IV. Transmission Service MarketsBenefits
Loads pay non-pancaked license plate Transmission Service Charge
All parties pay the same rate at the same location
All parties have equal access to the transmission system, no physical reservations / rights to hoard
Day-Ahead transaction certainty enhanced through presence and utilization of counter-flow transactions
Building the Energy Markets of Tomorrow . . . Today
24
IV. Transmission Service MarketsUnique Characteristics
NYISO utilizes an implicit bid-based transmission reservation scheduling process
NYISO planned implementation of explicit transmission pre-scheduling process provides physical long-term reservation and schedule at NYISO boundaries
Utilization of “counter-flow” transaction avoids curtailment of Day-ahead schedules
Open Scheduling System (OSS) facilitates transaction scheduling
Building the Energy Markets of Tomorrow . . . Today
25
IV. Transmission Service MarketsUnique Characteristics
Blended (flow-based) export transmission service charge rate
Generation minimum interconnection criteria is “access-based” with no deliverability requirement
Special protection schemes fully addressed
Building the Energy Markets of Tomorrow . . . Today
26
V. Financial Transmission RightsHighlights
Transmission Congestion Contracts (TCCs) sold through auction - serves as a congestion hedge, or as financial instrument available to the market
Auctions held on a semi-annual basis for TCCs for variable time periods (half-year to 5 years)
Monthly “Re-configuration Auctions” conducted
Auction results posted
TCCs settled in Day-Ahead market
May be specified between generators, zones, external proxy buses, NYISO reference bus
Building the Energy Markets of Tomorrow . . . Today
27
V. Financial Transmission RightsBenefits
All Transmission Congestion Contracts (TCCs) auctioned except those associated with Grandfathered Transmission Wheeling Agreements
Fully funded TCCs provide hedging certainty
Multiple round auction enhances price discovery
Building the Energy Markets of Tomorrow . . . Today
28
V. Financial Transmission RightsBenefits (continued)
“Alternating Current (AC) Power flow” solution provides for improved accuracy
Simultaneous feasibility is assured to avoid “over selling” of Transmission Congestion Contracts (TCCs)
TCCs are “unbundled” - for more liquid market
Moving towards a simultaneous, multi-period TCC auction process by Summer 2003
Building the Energy Markets of Tomorrow . . . Today
29
V. Financial Transmission RightsUnique Characteristics
NYISO fully funds TCCs and balances over/under collection with Transmission Owners PJM passes revenue shortfalls to FTR holder and
over-collection is refunded to loads
High degree of capability offered for sale in the auction
TCCs may be purchased up to 5 years vs. monthly in PJM
Building the Energy Markets of Tomorrow . . . Today
30
VI. Ancillary Services MarketHighlights
Market-Based Services Regulation
Spinning Reserve
10-Minute Non-Spinning Reserve
30-Minute Non-Spinning Reserve
Simultaneously co-optimized with energy markets both Day-Ahead and Real-Time
Incorporates locational reserve requirements
Cost-Based Services Scheduling, Control and Dispatch
Voltage Support
Black Start
Building the Energy Markets of Tomorrow . . . Today
31
VI. Ancillary Services MarketBenefits
Separate but simultaneously co-optimized markets provide an efficient mechanism for obtaining the least-cost solution
Lost opportunity cost payments ensure availability of sufficient resources
Markets can satisfy locational needs
Allows for a more precise ability to control and dispatch resources to maximize use of the transmission system
Building the Energy Markets of Tomorrow . . . Today
32
VI. Ancillary Services MarketUnique Characteristics
Fully unbundled regulation and reserve services
Four markets vs. single regulation market in PJM
Explicit availability bids for each Ancillary Service Market
Specific locational requirements met
Ancillary services are fully scheduled in the Day-Ahead Market, with in-day adjustments made through hourly and supplemental processes
Energy and ancillary services simultaneously co-optimized
Building the Energy Markets of Tomorrow . . . Today
33
VII. Long Term Capacity MarketsHighlights
Installed Capacity (ICAP) requirements for Load Serving Entities (LSE’s) based on annual peak load
Long-term ICAP requirement
Monthly ICAP auctions accommodate load-shifting and latest generator performance
Supply can be via Bilateral Transaction, self supply, or auction
Building the Energy Markets of Tomorrow . . . Today
34
VII. Long Term Capacity MarketsHighlights (continued)
Locational requirements apply (in-city and Long Island)
Deficiency charges applied to Load Serving Entities (LSEs), if requirements are not met
Market power mitigation measures apply in New York City
Building the Energy Markets of Tomorrow . . . Today
35
VII. Long Term Capacity MarketsBenefits
NYISO market similar to neighbors for product consistency
Ensures resource adequacy to meet reliability requirements
Installed Capacity (ICAP) reflects experienced availability: Unforced Capacity (UCAP)
Intermittent resources (windmills, etc…) eligible
Demand-side resources allowed to participate
Building the Energy Markets of Tomorrow . . . Today
36
VII. Long Term Capacity MarketsUnique Characteristics
4 hour qualification test vs. 2 hour test in PJM
Full credit for ICAP / UCAP for interruptible loads and intermittent generators
Monthly certification
Deficiency penalty applied monthly
Building the Energy Markets of Tomorrow . . . Today
37
VIII. Market Monitoring & MitigationHighlights
NYISO market monitoring procedures …
foster transition to a fully competitive market
seek to maintain a competitive supply demand relationship under all conditions
minimize unnecessary market intervention
insure delivery of market based products from suppliers
Mitigation based upon Conduct and Impact standard
Multiple mitigation needs addressed through variable thresholds, margins, and reference offers/bids
Building the Energy Markets of Tomorrow . . . Today
38
VIII. Market Monitoring & MitigationHighlights
Market Monitoring accountable to NYISO Board of Directors
Independent Market Advisor provides oversight
NYISO applying comprehensive mitigation approach to address all mitigation needs based upon conduct / impact standard
Day-Ahead Market (DAM) In-City with structural component
Real-Time (RT) In-City with structural component
Statewide Automated DAM
Building the Energy Markets of Tomorrow . . . Today
39
VIII. Market Monitoring & MitigationHighlights
Market monitoring of: Physical Withholding / physical audits Economic Withholding Uneconomic production Submission of false information Failure to follow dispatch instruction Under-scheduling load Transmission congestion contracts Transmission service / transactions Installed Capacity Markets Market participant financial positions against collateral
Building the Energy Markets of Tomorrow . . . Today
40
VIII. Market Monitoring & MitigationBenefits
Mitigation parameters (triggers, thresholds, reference prices, etc) may be tailored to address specific needs
Reference prices reflect historical accepted competitive offers whenever possible
Process provides for consultation with market participants prior to mitigation
Procedures automated to prevent “lost day”
Mitigation parameters can be reviewed and adjusted over time, allows Market Participants to “build out “ of a congested pocket
Building the Energy Markets of Tomorrow . . . Today
41
VIII. Market Monitoring & MitigationUnique Characteristics
NYISO relies on a conduct / impact standard to determine exercise of market power (except for New York City pocket mitigation; plan under development to add conduct / impact plus structural component)
PJM assumes market is un-competitive when transmission congestion exists (except for East/Central/West voltage constraints)
NYISO mitigates to a competitively set reference bid
PJM mitigates via cost-capping (cost + 10 percent)
Building the Energy Markets of Tomorrow . . . Today
42
GeneratorReference
Prices
TRIGGERS
VIII. Market Monitoring & Mitigation
THRESHOLD
MARGINS
CONSULTATION
MARKET IMPACT TEST
CONDUCT TEST
Historical 90 day Competitive
Negotiated
Default
Universal Market Mitigation Framework
Mitigation Occurs Only During Non-competitive Times
Building the Energy Markets of Tomorrow . . . Today
43
APPENDIX
Statistics and Examples
Building the Energy Markets of Tomorrow . . . Today
44
II. Day-Ahead MarketPerformance Statistics
High degree of price certainty Load zones A, G, and J used as trading
indices by power marketers 95% of New York’s energy transactions
settled Day-Ahead Includes both Day-Ahead Market and Bilateral
Transactions
All Transmission Congestion Contracts (TCCs) settled Day-Ahead
Building the Energy Markets of Tomorrow . . . Today
45
Bilaterals50%
RealTime <5%
NYISODay-Ahead
Market45 – 50%
Bilateral Contracts outside the NYISO 50%NYISO Day-Ahead Market 45 - 50%NYISO Real-Time Market <5%
100%
II. Day-Ahead MarketNew York Market Share
Building the Energy Markets of Tomorrow . . . Today
46
III. Real-Time MarketPerformance Statistics
Represents less than 5 percent of New York energy market transactions
Less than .05 percent of price intervals corrected in 2001
Improved NERC control performance
Building the Energy Markets of Tomorrow . . . Today
47
III. Real-Time MarketPerformance Statistics
NYCA Daily Control PerformanceDecember 2001
708090
100110120130140150160170180190200210
DayCPS1 for Dec.=179.67 % Compliance Threshold=100%
CPS1 measures how well a Control Area meets its demand requirement
CP
S%
CPS1 CPS1 Target
Building the Energy Markets of Tomorrow . . . Today
48
IV. Transmission Service MarketsOpen Scheduling System (OSS)
What is OSS? OSS is comprised of an industry leading set of tools
for Market Participants and Scheduling Coordinators to interact, trade and communicate within and across control areas
Initially, OSS will provide the ability to: Enter bilateral transaction bids across Scheduling
Coordinator borders with a single data entry interface View status from each Scheduling Coordinator View schedules from each Scheduling Coordinator Request transmission and ramp reservations
Building the Energy Markets of Tomorrow . . . Today
49
IV. Transmission Service MarketsOpen Scheduling System (OSS)
What is OSS? OSS is comprised of an industry leading set of tools
for Market Participants and Scheduling Coordinators to interact, trade and communicate within and across control areas
Initially, OSS will provide the ability to: Enter bilateral transaction bids across Scheduling
Coordinator borders with a single data entry interface View status from each Scheduling Coordinator View schedules from each Scheduling Coordinator Request transmission and ramp reservations
Building the Energy Markets of Tomorrow . . . Today
50
IV. Transmission Service MarketsOpen Scheduling System (OSS)
Building the Energy Markets of Tomorrow . . . Today
51
IV. Transmission Service MarketsOpen Scheduling System (OSS)
Building the Energy Markets of Tomorrow . . . Today
52
IV. Transmission Service MarketsOpen Scheduling System (OSS)
Kickoff Phase 1
Test Start
Phase 2 and beyond
Internal and external bilateral transactions (hourly)
Pre-scheduling
Integration with PJM
Ability to review and manage schedule status
Ability to edit NERC tags
Bid entry up to 18 months in future
Support EST only
Integration with e-Tag agents
Integration w/ WebCoordinate
Consistent with ESC and OASIS II
Automated Checkout
Inter-regional congestion commitments
Integration with more scheduling coordinators
Support of sub-hourly transactions
User defined time zone
2/11/02
Agreement on OSS end-vision
Validation of pilot concepts
Open nodal architecture
Design/Development
6/05/01 8/27/01
Phase 1
Live
3/11/02
OSS Project Timeline
Building the Energy Markets of Tomorrow . . . Today
53
IV. Transmission Service MarketsOpen Scheduling System (OSS)
OSS Summary Open, platform independent design that is
consistent with Order 2000 OSS is an application that can be easily
adopted by other Scheduling Coordinators with minimal change to existing systems
Addresses critical Inter-Control Area transaction seams issues with minimal impact on current MP processes
Building the Energy Markets of Tomorrow . . . Today
54
IV. Transmission Service MarketsOpen Scheduling System (OSS)
Based on requirements gathered from MPs with input from Scheduling Coordinators
Defines a communication protocol between Scheduling Coordinators
The OSS application will be deployed in phases with the first scheduled for Q1 2002
OSS Summary
Building the Energy Markets of Tomorrow . . . Today
55
V. Financial Transmission RightsPerformance Statistics
Net Revenues to Transmission Owners- Year 2000: ~ $260 million
- Year 2001: ~ $65 million
Outstanding Transmission Congestion Contracts (TCCs)- Grandfathered: ~ 40 percent (~ 11,800 MW)
- NYISO Auction: ~ 60 percent (~ 18,800 MW)
Building the Energy Markets of Tomorrow . . . Today
56
V. Financial Transmission RightsPerformance Statistics
Alleviating Contract Path Confusion Parties do not need to optimally pair their
supply and load up as bilateral transactions to minimize transmission charges
TUC paid by aggregator does not depend on how it bids its supply and load
TUC is point-to-point Does not depend on contract path
An Example
Source Sink
Building the Energy Markets of Tomorrow . . . Today
57
V. Financial Transmission RightsExample – Configuration A
Sink
FraserChat East
LeedsNiagara 345
SprainbrookRamapo
Goethals
Source
Building the Energy Markets of Tomorrow . . . Today
58
Example 6.1.1: Billing for Aggregation
Delivered EnergyPoint of
Injection LBMP
Point of Withdrawal
LBMP for Load Zone Total TUC*
(MWh) ($/MWh) ($/MWh) ($)
RAMAPO SPRBROOK 200 34.88 37.00 424.00 GOETHALS SPRBROOK 200 35.59 37.00 282.47 CHATEAST LEEDS 3 200 22.44 38.19 3,150.49 NIAG 345 FRASER 200 15.70 29.88 2,835.01
Total TUC Charge 6,691.97
Aggregator TUC for Bilateral Set 1
Point of Withdrawal Bus
Point of Injection Bus
Configuration A - Billing
V. Financial Transmission RightsExample – Configuration A
Building the Energy Markets of Tomorrow . . . Today
59
V. Financial Transmission RightsExample – Configuration B
FraserChat East
LeedsNiagara 345
SprainbrookRamapo
Goethals
Source Sink
Config BConfig A
Building the Energy Markets of Tomorrow . . . Today
60
V. Financial Transmission RightsExample – Configuration B
Configuration B - Billing
Building the Energy Markets of Tomorrow . . . Today
61
V. Financial Transmission RightsExample
The Aggregator Net Charge
Building the Energy Markets of Tomorrow . . . Today
62
VI. Ancillary Services MarketExample: Summer 2001
29435
30509
30665
30983
29568
28500
29000
29500
30000
30500
31000
MW
Mon Tues Wed Thurs Fri
NYISO Loads Peak Week August 6 - 10, 2001Daily Peak Loads (MW)
Building the Energy Markets of Tomorrow . . . Today
63
VI. Ancillary Services Market Example: Summer 2001
Overview of Northeast Peak
Load Situation on Aug. 9 - New NYISO Peak Load - 30,983 MW
(Hour Beginning:14:00, August 9)
New Peaks in Neighboring Control Areas IMO - 25,269 MW ISO-NE - 25,158 MW PJM - 54,176 MW
Building the Energy Markets of Tomorrow . . . Today
64
VI. Ancillary Services Market Example: Summer 2001
Situations Observed – NYISO Operating at Reserve Requirements Neighboring Control Areas Operating at
Margins NYISO Able to Maintain Energy Exports Depressed Voltage Levels Observed in PJM
and New York
Building the Energy Markets of Tomorrow . . . Today
65
VI. Ancillary Services Market Example: Summer 2001
Load Relief Measures Total - 1,580 MW
EDRP & SCR - 580 MW Voltage Reduction - 350 MW Public Appeals - 270 MW NYS Government - 220 MW TO Programs - 130 MW
Building the Energy Markets of Tomorrow . . . Today
66
VI. Ancillary Services Market Example: Summer 2001
System Performance Equipment Performance
Market Information System was reliable The Transmission System was secure and reliable Generation performed consistently Load was served throughout the period
Building the Energy Markets of Tomorrow . . . Today
67
VI. Ancillary Services Market Example: Summer 2001
System Performance Impact of Transactions on Voltages
NYISO exports and wheels to PJM PJM experienced severe voltage problems in the East NYISO experienced depressed SENY voltages Some transactions cut by NYISO to increase voltages PJM requested NYISO voltage reduction to avoid
system voltage collapse NYISO implemented 5 percent voltage reduction to
assist PJM
Building the Energy Markets of Tomorrow . . . Today
68
VI. Ancillary Services Market Example: Summer 2001
NYISO Reserve RequirementOperating Reserve
August 9, 2001
0
500
1000
1500
2000
2500
3000
3500
4000
4500
11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00
Time
MW
s
30 Min Act 30 Min Req Reserve + ICAP Sales
Counting ICAP Sales towards reserve
Level of Exports Maintained during Peak Day
NYISO Reserve RequirementOperating Reserve
August 9, 2001
Building the Energy Markets of Tomorrow . . . Today
69
VI. Ancillary Services Market Example: Summer 2001
Benefits of NYISO “Best Practices” August 9, 2001
Best Practice: Simultaneous co-optimization of energy and ancillary service markets;
Best Practice: Hourly evaluation (Balancing Market Evaluation – BME) which optimizes in-day resource adjustments;
Best Practice: Emergency Demand Response Program
Building the Energy Markets of Tomorrow . . . Today
70
VI. Ancillary Services Market Example: Summer 2001
Benefits of NYISO “Best Practices” August 9, 2001 (continued)
NYISO Best Practices provided the ability to track and augment system energy and reserves in real time despite adverse conditions.
NYISO Best Practices provided the ability to make full utilization of limited transmission capability in real-time to maintain reliability in NY and support neighboring control areas.
NYISO able to maintain exports critical to neighboring areas during peak load periods due to flexibility afforded by NYISO Best Practices.
Building the Energy Markets of Tomorrow . . . Today
71
VI. Ancillary Services MarketPerformance Statistics
NYISO Monthly Average Ancillary Service PricesDay Ahead Market 2001
$0
$5
$10
$15
$20
$25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
10 Min Spin Res Avg - 2001 10 Min Non-Synch Avg - 2001 30 Min Op Res Avg - 2001 Regulation Average - 200110 Min Spin Res Avg East - 2001 10 Min Non-Synch Avg East - 2001 30 Min Op Res Avg East - 2001 Regulation Average East - 200110 Min Spin Res Avg West - 2001 10 Min Non-Synch Avg West - 2001 30 Min Op Res Avg West - 2001 Regulation Average West - 200110 Min Spin Res Avg - 2000 10 Min Non-Synch Avg - 2000 30 Min Op Res Avg - 2000 Regulation Average - 2000
East West
East West
EastEast
West
Building the Energy Markets of Tomorrow . . . Today
72
*10 minute reserves includes only capability in Eastern New York due to locational reserve requirements.
VI. Ancillary Services MarketPerformance Statistics
Ancillary Services Capability and Offers
0
500
1000
1500
2000
2500
Exc
l.P
UR
PA
All
Un
its
Exc
l.P
UR
PA
All
Un
its
Exc
l.P
UR
PA
All
Un
its
Exc
l.P
UR
PA
All
Un
its
10 Min Spin* 10 Min Nspin* Regulation 30 Min Reserves
Reg
ula
tion
an
d 1
0 M
inu
te R
eser
ves
(MW
)
0
3000
6000
9000
12000
15000
30 M
inu
te R
eser
ves
(MW
)
AverageCapability
AverageOffer
ApproximateDemand
Building the Energy Markets of Tomorrow . . . Today
73
VII. Long Term Capacity MarketsPerformance Statistics
Installed Capacity (ICAP) Requirements Statewide: 36,132 MW Locational:
New York City:8,428 MW Long Island: 4,639 MW
Procurement 75 percent Bilateral Transactions 25 percent NYISO Auctions
Building the Energy Markets of Tomorrow . . . Today
74
VII. Long Term Capacity MarketsPerformance Statistics
Statistics on ICAP prices Winter - UCAP
Strip Auction
– $9.40/kW/month NYC (3970 MW)
– $2.00/kW/month Rest of State (ROS) (2290 MW)
Monthly – thorough 1/2002
– $7.30/kW/month NYC (550 MW)
– $0.20/kW/month ROS (550 MW)
Building the Energy Markets of Tomorrow . . . Today
75
VIII. Market Monitoring & MitigationFundamentals of Operation
Market Power Mitigation: Two Criteria Conduct inconsistent with workable competition Actions have a substantial impact on LBMPs or other
revenues
Building the Energy Markets of Tomorrow . . . Today
76
VIII. Market Monitoring & MitigationFundamentals of Operation
Conduct inconsistent with workable competition Economic Withholding of an Electric Facility Physical Withholding by an Electric Facility Uneconomic Over-production from an Electric Facility
Building the Energy Markets of Tomorrow . . . Today
77
VIII. Market Monitoring & MitigationFundamentals of Operation
Actions have a substantial impact on LBMPs or other Revenues
Criterion The lower of a tripling of prices or $100 in an energy or
ancillary services market A tripling of guarantee payments to a market
participant
Building the Energy Markets of Tomorrow . . . Today
78
VIII. Market Monitoring & MitigationFundamentals of Operation
Does Conduct Exceed Thresholds? Thresholds for Economic Withholding
The lower of a quadrupling of prices or $100 / MW in the energy markets and for most reserves.
The lower of a quadrupling of prices or $50 / MW for real-time 10-minute spinning reserves.
A tripling of startup cost offer prices
Reference concept Accepted, unmitigated offers during periods of workable
competition
Building the Energy Markets of Tomorrow . . . Today
79
VIII. Market Monitoring & MitigationFundamentals of Operation
Does Conduct Exceed Thresholds? Thresholds for Physical Withholding: Day-
Ahead The lower of 10% or 100 MW of a unit’s capability. The lower of 5% or 200 MW of an organization’s capability
Thresholds for Physical Withholding: Real-Time Operation of a unit at less than 90% of the NYISO’s dispatch
rate
Building the Energy Markets of Tomorrow . . . Today
80
VIII. Market Monitoring & MitigationFundamentals of Operation
Does Conduct Exceed Thresholds?
Thresholds for Uneconomic Over-production Schedule and production of energy at an LBMP less than 20% of a
unit’s reference price.
Real-time output exceeding 110% of the NYISO’s dispatch level.
The conduct must cause or contribute to congestion
Building the Energy Markets of Tomorrow . . . Today
81
VIII. Market Monitoring & MitigationFundamentals of Operation
Screening Reports “5 AM” Generator, Startup, and Zone Reports “11AM” Generator and Energy Exception Reports
Identify DAM conduct through reports and data screens
Identify impact through SCUC and offer-curve analysis
Conduct and impact together trigger prospective mitigation