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Overview Seams Coordination Process

Overview Seams Coordination Process. Introduction Midwest ISO. Non-profit organization that manages the reliable flow of electricity across much of the Midwestern United States Operational since December 15, 2001 Generation Capacity 127,000 MW (market) 156,000 MW (reliability)

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Overview Seams Coordination Process

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  1. Overview Seams Coordination Process

  2. IntroductionMidwest ISO • Non-profit organization that manages the reliable flow of electricity across much of the Midwestern United States • Operational since December 15, 2001 • Generation Capacity • 127,000 MW (market) • 156,000 MW (reliability) • Peak Load (set July 31st, 2006) • 109,157 MW (market) • 129,647 MW (reliability ) • Registered PA, TSP, MO, RC, Soon to be BA

  3. Why Seams Coordination ? • Ensuring reliability by managing congested path in a coordinated manner • Ensuring equitable treatment for all customers and Transmission Service Providers

  4. The Reliability Side Congestion Management has been a paradigm shift: • We look beyond our boundaries at external facilities • We quantify the impact of all of our flows (both tagged interchange schedules and internal dispatch) on these external facilities • We leverage our real-time systems – which use fresher and more accurate data • We redispatch our internal generators to protect these external facilities Congestion Management Process is a big part of Seams Coordination

  5. Congestion Management ProcessBackground • Loop Flows and Resulting Congestion exist today as part of interconnected operations • Each Control Area’s dispatch has an impact on other neighboring control areas’ facilities • One of the FERC appointed responsibilities of RTO’s was to improve the management of parallel flows

  6. Congestion Management ProcessBenefit • Reduces the overselling of firm transmission service • Provides a mechanism where market and non-market entities can control parallel flows in an economic manner that consistently ensures system reliability • Improves response time of markets when a curtailment is called Respecting Your Neighbors’ Systems

  7. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 2006 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q1 Q4 Q2 2007 2003 Q1 Q3 Q3 Q4 Participation Agreements MISO/PJM JOA MISO/SPP JOA MISO/MAPP SOA MISO/PJM /TVA JRCA PJM/CPL JOA MISO/MH SOA Implementations MISO/PJM Mkt – Non-Mkt MISO/PJM Mkt--Mkt TVA SPP BREC EKPC MAPP LGEE SPP Market Multi-Party CMP Meeting CMPC CMPWG CMPIT CPWG OCTF CMP Structure

  8. Participation Note: TVA agreement for CMP has been extended to include Big River Electric Cooperative, East Kentucky Power Cooperative, and Louisville Gas & Electric.

  9. The Equity Side There are multiple transmission providers in the area • Market Entities (such as PJM, MISO and SWPP) • Non-market Entities (such as MAPP and TVA) Each Entities have historical rights and allocations that need to be respected

  10. Three Scenarios • Non-Market to Non-Market • Coordinated AFC and Allocation Calculations • Congestion Management through NERC TLR process curtailing transactions based on priority • Market to Non-Market • Coordinated AFC and Allocation Calculations • Market Entities Redispatch for Congestion on an External Flowgate • Non Market Entities Congestion Management through NERC TLR process that curtail transactions • Market to Market • Coordinated External Dispatch to Address Flowgate Responsibilities • Example: MISO and PJM market-to-market dispatch

  11. Non-Market to Non-Market – Overview • Addresses a cause of many TLR’s – an oversubscribed transmission system • RESPECT each other’s flowgate limitations during the determination of AFC/ATC and the calculation of “firmness” • Flowgates identified upon which COORDINATION shall occur. • Reciprocal Entities implement a process for SHARING or transferring unused allocation. Coordination – Wide Area View

  12. Non-Market to Non-Market – Process • Reciprocal Entities conduct tests on flowgates to determine which flowgates will be coordinated. • Transmission service request evaluation: • Check for available AFC/ATC • Check for available Allocations • Request allocations from another Reciprocal Entity • Approve/deny request Coordination – Bridges the Seams

  13. Non-Market to Non-Market – Benefits • Reciprocal Entities consider available allocation as well as AFC on a flowgate when selling firm-transmission service. • Reduces over-selling firm transmission service. • Provides entities requesting firm service higher level of confidence approved transmission service will not be curtailed. Reduces the number of TLR events

  14. Non-Firm Market Flows Total Market Flow on Firm Market Flows From dispatch Flowgate Market to Non-Market – Overview • Processes define what portions of a BA’s dispatch should be considered FIRM or Non-Firm Note: Market flows equal generation to load flows in market areas.

  15. Market to Non-Market – Process Curtail Schedules Redispatch

  16. Market to Non-Market – Benefits A more reliable solution than TLR for addressing congestion • Greater granularity in the IDC • More granular calculation based on real-time telemetered data versus static model • More “surgical” solution • Redispatch is far faster than TLR • Does not require multiple requests for TLR when initial requests failed to resolve the constraint

  17. Market to Market – Purpose • Provides a mechanism whereby Market-Based Operating Entities can economically dispatch their systems, respecting transmission constraints in each other’s footprints. • Redispatch by each Market-Based Operating Entity is based on the most economic solution for the combined system. • Uses market flow calculations to proactively manage congestion. “M to M” Currently implemented between Midwest ISO and PJM. Process enables neighbors to help solve the other’s obligations

  18. Market to Market – Benefits • Builds on Market-to-Non-market Coordination and retains features for other Non-market Operating Entities. • More effective and economic interregional control of transmission congestion • Less reliance on individual transaction curtailments • Provides equity through preservation of entitlements on RCFs. • Maintains process for sharing or transferring of unused allocations • Provides consistent price signals and incentives for market behaviors that augments reliable system operations

  19. Impact of CMP – Market to Market Few Constraints: Big Benefits If we coordinate dispatch on the top 10 congested flowgates we may solve 75% of the problem

  20. Impact of CMP - TLRs MISO PJM

  21. Impact of CMP – Market to Market As market to market redispatch continues there has been a trend in the reduction of MWH that are being curtailed. Midwest ISO TLR Information

  22. Impact of CMP – Market to Market TLR Level 5 events have increased in some months, which were in part related to specific outage events. Midwest ISO TLR Information

  23. Summary The parties have implemented methodologies that have allowed each party to identify their respective flows on external parties and respond in a proactive and reliable manner to alleviate congestion and enhance reliability.

  24. Questions and Discussion

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