wyoming infrastructure authority’s - wyia.org · peak rc update on activities peak/pjm connext...
TRANSCRIPT
Wyoming Infrastructure Authority’s
Energy Trends
Marie Jordan, President & CEO
Peak Reliability
Laramie, WY
April 5, 2018
The West – A Complex Machine
• ~260 Remedial Action Schemes (RAS)
• 110,129 miles of transmission
• 2,157 miles of 500kV or higher
• 1,000 miles between operations centers
• 1.6 million sq. miles of service territory
• 74 million people
• 38 Balancing Authority Areas (BAA)
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• Reliability in the Coordination in the West will be
delivered by multiple RCs
– Cost is a key driver
The Landscape has Evolved
Fee-based Reliability Services
Interconnection Provided Services
Core RC Function
•Hosted Advanced Applications
•CIP 14 Service
•Enhanced Curtailment Calculator
•WECC Interchange Tool
•Reliability Messaging Tool
•Compliance with NERC Standards
Core RC Function and Reliability
Support tools included annual
contract with Funding Members
Cost billed directly to entity receiving
additional services
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• Restructuring cost and services
• Transition to providing cost effective, sustainable core RC function
and enhanced Reliability Services
• Fundamental change in how services are structured and priced
• RC function
• Compliant with NERC standards
• Basic level Reliability Coordination service
• Fee-based Services based on value and market demand
• Existing: Hosted Advanced Applications (HAA), WECC
Interchange Tool (WIT), Reliability Messaging Tool (RMT),
Enhanced Curtailment Calculator (ECC)
Peak’s Strategy
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• Critical wide area reliability tools retained
– West-wide System Model
– RAS coordination, models, and simulation
– Advanced apps – reliability and economic value
• Continue to provide coordinated reliability
improvements
– What’s important for the Interconnection?
– RCs work together to drive reliability in the West
Peak’s Reliability Coordination Vision
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Restructuring Peak’s Costs and Services
Fee Based Reliability Services
Support Tools
Core RC Services
•Hosted Advanced Applications
•CIP 14 Service
•Enhanced Curtailment Calculator
•WECC Interchange Tool
•Reliability Messaging Tool
•Compliance with NERC Standards Core RC Services included annual
fee to Funders
Cost billed directly to entity receiving
additional services
Potential shared costs coordinated
with other RCs in the Western
Interconnection
Fee-based Reliability Services
Interconnection Provided Services
Core RC Function
•Hosted Advanced Applications
•CIP 14 Service
•Enhanced Curtailment Calculator
•WECC Interchange Tool
•Reliability Messaging Tool
•Compliance with NERC Standards
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• Responsive and flexible governance – by and for the West
• Brings together the combined knowledge, relationships
and capabilities of PJM and Peak
• Ability to promptly deliver the market stakeholders want
• Track record of timely and effective delivery
• Cost effective and value conscious
• Multi-state, public policy balance
Peak/PJM Connext Value Proposition
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The Case for Markets
• Drives reliable operations
• Unlock value of diversity – geography, weather, fleet
attributes, timing
• More efficient use of overall transmission system
• Markets offer signals for investment and retirement,
basis for trade and new construction/upgrades
• Provide new economic opportunities for participants
and savings for customers
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Market Design Philosophy • Market prices should reflect actual
operating conditions and encourage the
right behaviors
• Participants are partners with the grid
operator in maintaining reliability through
price signals
• The bulk of trading activity will rightly take
place in the forward markets, but this
requires reliable underlying reference
pricing
• Proper hedging mechanism (FTRs) to
provide financial assurance to Firm
Transmission customers when
transmission constraints exist
Market Operations
• Energy
• Ancillary Services
•Capacity
Reliability
•Grid Operations
•Supply/Demand Balance
•Transmission Monitoring
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Business Case Fundamentals
• Currently – PJM and Peak have completed their business case and are sharing
the results with the interested entities in the West
• The framework of the business case, its assumptions and the resultant model
provides:
‒ Peak and PJM Connext assurance that a viable reliability and market entity, customer set and
geography exists for sustainable operations
‒ Sets expectations for what will be included within the Day 1 RC and Market, the respective
audiences (stakeholders, buyers, sellers, regulators, etc.)
‒ Perspective to market participants as to the necessary costs to implement and operate the new
entity and that value is attainable
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Current Case – Markets Day 1Based on current feedback – Peak & PJM Connext Core Services
• Reliability Coordination services (participants may select RC, Market or RC + Market services)
• Day-ahead (DA) energy market that supports Bilateral contracts, Self Supply, Interchange scheduling and
Virtual transactions
• Financial Transmission Rights Allocation and optional reconfiguration Auctions
• Full credit monitoring & administration and Centralized Counterparty Settlements
• Balancing Authority services i) Voluntary consolidation and ii) Voluntary transfer of BA responsibilities to
Peak/PJM Connext
‒ Available Real-time (RT) energy market with Co-optimized Ancillary Services and Interchange scheduling under
consolidated circumstances
• Fundamental Market Monitoring Unit
• Formal pre-launch instruction, education, testing and market simulation
• Sustainable self-governance model for market rules (Rules Committee by and for market participants)
• Roadmap of the “Pathway to a RTO” on the timing and terms of Western participants
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Service Features NOT included on Day 1
Based on current stakeholder feedback, Core Services on Day 1 will not include:
‒ A Capacity/Resource Adequacy Market Construct
‒ Consolidation of Transmission Open Access Transmission Tariffs (OATT), or
• Collection and disbursement of transmission revenue requirements
• Transmission Service Provider (TSP) functions
‒ Regional or sub-regional system planning for;
• reliability,
• operational performance,
• public policy,
• market efficiency, or
• Interconnection
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Our Focus:
• Governance – Market Rules by and for western participants
• Reliability Coordination foundation for Day 1 Energy Market Launch
• A Roadmap for the “Pathway to a RTO”
• A long-term, sustainable view that properly values each asset in the supply chain
What’s Next?
• Share details of completed business plan with market participant principals
• Non-binding MOUs with interested entities
Recap/Wrap up
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To stay informed, please subscribe to the Peak/PJM Connext webpage
at https://www.peakrc.com/whatwedo/PeakPJM/Pages/default.aspx
• Announcements
• Calendar of webinars
• Webinar recordings and material
• Documents including Q&A
• Discussion Board
• FAQs
Staying Informed
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