Evaluation of Historical EECP and Alert Pricing. True North Associates. Perspective. Enhance System Security Mitigate Total Cost Increases to the Greatest Possible Extent Appropriate and Equitable Sharing of Risk. Issues With Proposed Compromise Solution.
True North Associates
Examine BES database and select representative Events between Jan and May 31, 2007 including both Alert and EECP intervals
Consideration of Events in 2006 deferred due to presence of discontinued NE CMZ
Identify characteristic Market MCPE and MW conditions during Events
Determine change in Event costs during Alert and EECP intervals
Examination of Five (5) Events shows a loose Correlation between MCPE and MW deployed, with MCPE values roughly between $50 and $100/MWh and UBES ranging up to 3,000 MW. Higher MCPE values are occurring more frequently in recent Events.
MW i * 0.25 Hour/Interval * MCPE, $/MWh i or $Compromise Plan/MWh
MECP UBES & DBES MW Net MW Cost @ MECP Compromise Cost
Stage 2 Alert
Stage 3 EECP
Stage 1 Advisory
Effect of Adding Capacity
“Too Much Reliability”
The Convergence of Market Designs for Adequate Generating Capacity
Cramton and Stoft, 2006