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August 27, 2013 | MRWG. Ronald Coutu. Manager, Business and Technology Solutions. Presentation to the Meter Reader Working Group. Getting Price and Quantity “right” for Settlement on the ISO New England System. What are we trying to accomplish?.

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August 27 2013 mrwg

August 27, 2013 | MRWG

Ronald Coutu

Manager, Business and Technology Solutions

Presentation to the Meter Reader Working Group

Getting Price and Quantity “right” for Settlement on the ISO New England System


What are we trying to accomplish
What are we trying to accomplish?

  • Two phases to getting the payments/charges correct

  • One is getting the price “right”

  • One is getting the quantities “right”

  • In a perfect world we would calculate both price and quantity at the same physical location in system

    • That location being the connecting point between the Pool Transmission System (PTF) and the non-Pool Transmission System (distribution system)


In a perfect world
In a perfect world….

Non-PTF

PTF

Load would be measured at the boundary between the PTF and non-PTF (everywhere in the system where the system “steps down” from the PTF to the non-PTF system)


In that same perfect world
In that same perfect world….

$

Non-PTF

PTF

Locational Marginal Prices (LMPs) reflecting the cost of delivery of the energy to that location (including congestion and losses) would be calculated at the same location


But sometime the world is not perfect
But sometime the world is not perfect

$

Non-PTF

PTF

EMS Modeled location

Prices can only be calculated at “public” nodes, sometimes due to EMS network model needs the load is modeled below the boundary, inside the Non-PTF sections of the system. Therefore the price as the system would calculate it would include delivery to a point inside the Non-PTF (including the impact of non-PTF losses to that point on the price)


But sometime the world is not perfect cont
But sometime the world is not perfect (cont.)…

$

Non-PTF

PTF

Most of the load is not metered at the boundary between PTF and non-PTF but rather at the boundary of the Host Participant. This means the quantity at the meter includes some of the physical losses on the PTF system that are already paid for by the loss component of the LMP.


How does iso correct price
How does ISO correct Price?

  • Price Issue (Currently)

    • Mapping Table

      • Map loss component of the “closest” PTF location to the non-PTF location

      • Manually maintained table that was decided during the initial implementation of SMD (2003)

      • Not necessarily an accurate correct, best estimation method at the time

    • Mapping only done in Vermont and Maine


How does iso correct these issues
How does ISO correct these issues?

$

Non-PTF

PTF

EMS Modeled location

Price calculated at the non-PTF is currently corrected only for specific locations.


How does iso correct price1
How does ISO correct Price?

  • Price Issue (Future starting in October 2013)

    • For pricing purposes all non-PTF elements in the network model will change to a resistance of 0

    • This will remove the loss impact only of the non-PTF elements

    • This is a very accurate method of calculating price

    • This will impact the whole system since any non-PTF elements will be adjusted


Price correction after change
Price Correction after change….

$

Non-PTF

PTF

Set Resistance to 0 on these segments

EMS Modeled location

Prices will be calculated at the EMS Modeled location, but losses on non-PTF segments will be set to 0. This will be accurate and done for all locations.


How does iso correct quantity
How does ISO correct quantity?

  • Back in the beginning of markets an analysis was done of cost of putting in Revenue Quality Meters at ever substation

  • Cost was prohibitive at the time

  • Decision was to use “boundary” metering in place at that time

    • Created “Tie Line” assets to reflect these meters

  • Physical losses that occur on the PTF system that will inflate the load amounts above “perfect”


How does iso adjust quantity
How does ISO adjust quantity?

ISO has State Estimator data that can be used to approximate the physical losses on the lines

ISO assumes that RQM for settlement “tie lines” is being done at the boundaries of the system and all PTF is being incorrectly measured (except 345 kV).

ISO creates a report on this amount for each Host Participant for each hour of the day. This amount is included as a non-billed load in the settlement model

No “audit” has been done on the match between where the ISO assumes RQM reflects and actual RQM points


So what do we need from you
So what do we need from you?

  • We will distribute the list of lines from the State Estimator solution that are included in this “unbilled” load

  • Need to know if any flow on those lines is not impacting the RQM of a tie line asset

  • We will be doing this one Meter Reader at a time

    • Volunteers first!


What should be included
What should be included?

Non-PTF

PTF

All of these PTF elements should be included in this example


What should be included cont
What should be included? (Cont.)

Non-PTF

PTF

Only Red PTF element

should be included in this example


Is this a one time analysis
Is this a one time analysis?

  • The ISO will be developing a process to determine when changes to this mapping will be necessary

  • Those changes could be precipitated by one of two events:

    • Updates to the EMS Network Model (Add, Delete or Updates)

      • This will prompt the ISO to communicate these changes to the Host Participant to determine if this should change the mapping

    • Updates to the RQM by the Host Participant

      • This will be the responsibility of the Host to communicate if the RQM changes to change the mapping