Real-Time Dispatch and Commitment “Look Ahead SCED” Concepts

1. Real-Time Dispatch and Commitment“Look Ahead SCED”Concepts John Dumas Director Wholesale Market Operations

2. Outline of Presentation • Current Real-Time SCED Limitations • Real-Time Commitment and Dispatch - Overview • Real-Time Commitment Application • Real-Time Dispatch Application

3. Current Real-Time SCED Limitations Current implementation of single interval optimization in SCED has the following limitations: • Cannot serve load during steep load ramps due to Generation Resource ramp rate limitations. • Does not efficiently commit and dispatch QSGRs. • Cannot handle Load Resources with Minimum Deploy Time and Energy Storage Resources with limited energy. • Does not consider future topology changes e.g. Outages. • Does not accommodate Real-Time Co-Optimzation of Energy and Ancillary Services. • Does not provide non-binding short term forward prices.

4. Real-Time Commitment and Dispatch - Overview • The Real-Time (RT) Commitment and Dispatch – “Look Ahead SCED” will be comprised of two NEW modules in MMS that will replace the existing MMS SCED module. The two modules are: • Real-Time Commitment Application • Real-Time Dispatch Application • The Real-Time Commitment Application executes every 15 minutes with a rolling two hour window study period that is comprised of 8 time intervals of 15 minutes each. • The Real-Time Dispatch Application executes every 5 minutes with a rolling one hour window study period that is comprised of 12 time intervals of 5 minutes each. • Simultaneous optimization is performed for ALL intervals in the study period (as in DAM).

5. Real-Time Commitment and Dispatch - Overview • The new suite of RT applications will co-optimize energy and ancillary services, taking into account ramping characteristics of Resources, changes in system topology (outages), transmission constraints, and commit Resources while honoring temporal constraints (e.g. start times of generators, minimum deployment time for Load Resources etc). • RT Commitment will respect Load Forecast and AS Requirements. • RT Dispatch will respect Load Forecast, 15 minute AS awards and commitment instructions (binding and advisory) from the most recent Real-Time Commitment Application. • The current SCED input data set will be expanded for the study period expanded to include data for demand response, Resource data from COP, individual WGR production forecast, system 5-minute Load Forecast, and ramping characteristics and ramp sharing (between LFC and SCED, as specified by the operator).

6. Real-Time Commitment and Dispatch - Overview • The new suite of RT applications output the following for each interval within a study period: • Real-Time Commitment Application: (15 minute intervals in the rolling two hour window) • Commitment Instructions for Generation, Load and Energy Storage Resources. • AS Awards and MCPC. • Real-Time Dispatch Application: (5 minute intervals in the rolling one hour window) • Energy dispatch (MW Base points) instructions for Generation, Load and Energy Storage Resources. • LMP at all Settlement Points and Electrical Buses. • The pricing (LMP/MCPC), energy dispatch, and AS capacity procurement will be binding in the first time interval of the study period and will be advisory for the subsequent intervals. • All issued Resource commitment instructions will be binding.

7. Real-Time Commitment Application • The output of the Real-Time Commitment Application are: • “Commitment” Dispatch Instructions committing Generation, Load and Energy Storage Resources consistent with ramping and temporal constraints (e.g. startup time for Generation Resources, minimum deployment time for Load Resources, storage capacities for Energy Storage Resources, etc); and • 15‑minute AS Awards along with the associated AS MCPC. • Similar to existing RUC make-whole provision, there will be make-whole provisions for Generation, Load and Energy Storage Resource commitments. • The Commitment Instructions are binding for 15-minute time intervals that cannot be re-optimized in subsequent 15-minute look-ahead RT Commitment runs.

8. Real-Time Dispatch Application • The outputs of the Real-Time Dispatch Application are • The 5-minute dispatch (Base Points) and energy prices (LMP) for each interval in the study period. • The energy prices and dispatch for the first 5 minute interval will be binding and will be published before the start of the binding 5 minute interval. • The prices and dispatches for the subsequent intervals are advisory. These will be used as non-binding price projections. • The Real Time Settlement Interval will continue to be 15 minutes for both energy and AS.