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Self-Supply: Next Steps

Carol Opatrny, for CECDNIPPC Board Meeting - 21 June 2010

Portland, Oregon

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Self-Supply: Objective• Separately account for and provide Generation Imbalance

Service using non-federal resources for specific resources (Iberdrola Renewables) located in the BPA Balancing Authority Area.– Meet 1-minute; 30-minute; and, 60-minute operating

parameters that change monthly or more often.– Demonstrate that this arrangement does not “lean” on the

federal system (cross zero requirement and timers).– Demonstrate adequate infrastructure, e.g., secure transmission

rights, respect specified ramp rates; coordinate AGC; transfer information (ICCP); tag and update tags; satisfy reliability requirements (e.g., RAS, DSO 216); handle energy accounting.

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Balancing Resources: Dynamic• Dynamic Transfer Capability– Most flexible and responsive– Quantity (MW)– Ramp rate (50 MW/minute)

• BPA’s DTC Methodology• AGC system compatibility

– 4 second signals– After-the-fact energy tag adjustment– Infrastructure

• ICCP data exchange• AGC/EMS/Build specific logic for this arrangement• Energy Accounting

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Balancing Resources: Static

• Fixed, hourly transactions• Mid-hour transactions– Intra-hour schedule– On-Demand Rights

• Firm Transmission Rights– No energy tag adjustment– Limited Infrastructure requirements• System modification by BPA to recognize ODR

transactions among non-federal entities.

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Balancing Resource Arrangements• Commercial terms between Buyer (IBR) and Seller

– One-off Contracts/Terms Sheets• INCs• DECs

– Versify Bid/Offer interface (available June 2010)– IBR Dispatch Model (drive dispatch priorities)– CECD (effects transactions; manages self-supply operations)

• Transmission– Fixed (Intra-hour transactions; On-Demand Rights)– Dynamic Transfers

• Infrastructure– Efforts underway to streamline the infrastructure requirements– Exploring how best to expand those involved

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Balancing Transactions

Accepted Transaction

Multiple Tranches

Trade Detail

Offer Expiration

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Bid/OfferIndex + AdderIndex Based Offer

Fixed Price Offer Energy Price

Multiple Products

Multiple Sources

Multiple Resources

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Summary ReportsSummary By Hour Back Office Support

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Detail ReportsTransaction Level Detail

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Email Notification

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Next Steps

• Self-supply Expansion– Enable more sellers to participate• Immediate option

– Expand to enable more buyers • Coordinate with Iberdrola

• Leverage infrastructure for other purposes– PNW “Energy Imbalance Market”– Transition to WECC EIM concept

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CECD Contact Information

• JT Thompson, CECD Managing Director– 713.332.2901– jt.thompson@constellation.com

• Carol Opatrny, Consultant to CECD– 360.666.8510– ccopat@e-z.net