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Resource Scheduling

Resource Scheduling. Winter 2013/14 Proposed Fixes. Problem Statement. ISO-NE’s current resource scheduling process can make it unnecessarily difficult for generators to manage fuels and purchase gas. Propose to address two issues: Next Day, RAA Schedules

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Resource Scheduling

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  1. Resource Scheduling Winter 2013/14 Proposed Fixes

  2. Problem Statement • ISO-NE’s current resource scheduling process can make it unnecessarily difficult for generators to manage fuels and purchase gas. • Propose to address two issues: • Next Day, RAA Schedules • ISO typically waits until the full RAA is issued, at 10 pm, before notifying anyone (except long lead units and those with DA commitments) that they will be dispatched. • Weekend schedules. • Gas is typically purchased on Fridays for weekend strips, for Saturday through Tuesday morning. This is inconsistent with electric commitments, which are made day to day, one day in advance.

  3. 1. Next-Day RAA Scheduling • 5-20% of daily electric supply is committed in the RAA, with higher end of the range during stressed winter conditions • Except for long-lead units, ISO tells everyone at the same time (10pm now, possibly 4pm or 5pm depending on the FERC Order) that they will be committed. • ISO’s operators probably know many, if not most of the units that will be committed in the RAA long before the full RAA is completed. • If ISO could tell those units that they will be committed earlier, that will provide additional time to secure gas or make other fuel arrangements

  4. 1. Next Day Scheduling Solution • Proposed Solution • Rather than wait until RAA is complete and notify everyone at the same time, notify gas units as soon as ISO operators know the commitment will be necessary. • This will allow up to 6 additional hours to find gas and arrange transportation. • Having that additional time during normal business hours could be particularly helpful.

  5. 1. Consistency with Review Criteria • Reliability Benefit • Additional time will significantly increase the ability of gas generators to find and schedule gas, reducing likelihood of forced outages • Payments • This solution requires no new or special payments. • Performance • There is no need to create a performance monitoring mechanism. It would simply increase efficiency. • Cost Allocation • There are no new costs to allocate. • Markets. • There would be no impact to market prices (LMPs or uplift). Actual units committed, and the price of those commitments, is unchanged.

  6. 2. Weekend Commitments • Weekend gas is purchased in packages that cover delivery Saturday through Tuesday at 10am. • Electric commitments are only issued the day before (or in some cases, same day). • This forces gas generators to forecast and estimate gas burns up to 3 days in advance, and purchase/nominate in accordance with those forecasts. • While next-day forecasts are usually pretty good, multiple days in advance introduces errors. • Those errors mean some gas generators have underprocured, while others may have overprocured

  7. 2. Weekend Gas Solution • When ISO foresees a potentially difficult weekend (e.g. Nemo-like storm), ISO can make early commitments to run certain key generators through the weekend. • ISO would declare a weekend “Fuel Event.” • ISO identifies critical units. • Commitment made based on offers submitted on Friday • Would allow those generators to take special action to ensure sufficient fuel is available. • From markets perspective, looks essentially like the unit min run time is extended through the point that ISO expects the reliability need to persist.

  8. 2. Consistency with Review Criteria • Reliability benefit • Generators able to secure and/or nominate sufficient fuel to meet the commitment, and weekend staffing is known. This will improve weekend reliability of those units. • Cost • There should be no additional cost to load. The proposal only provides earlier notice to generators ISO expects to need. • To the extent ISO mis-forecasts, it is no different (from today) than a commitment decision with a min-run time that extends into the next day. • While there would be NCPC involved, on balance it should be the same amount of NCPC as without the rule. • Markets • If ISO forecasts well, then the actual dispatch and LMP’s through the weekend should be unchanged. If ISO over-commits on Friday, then there would be additional NCPC over the weekend.

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