Energy Imbalance Market (EIM) /Security Constrained Economic Dispatch (SCED)

January 27th, 2015

WHAT• EIM Overview

– Programmatic 5 minute regional redispatch; matches the most economic supply with the current load;  based upon price based bids and subject to feasibility of delivery (transmission system)

• SCED is essentially the same tool with a different name.– Run by a Market Operator which would be hired by a new jointly owned corporation formed for this 

purpose. • What it is not:

– Balancing Area. Each BA retains it’s WECC reliability functions (including Transmission) – Transmission Provider. EIM energy flows across the existing TPs facilities as governed by their 

individual Open Access Tariffs (no common tariff). Congestion Management is handled by today’s TPs– EIM does not impact : 1) bilateral Day Ahead or Hour Ahead trading, 2)  Mid‐C Hydraulic coordination 

function (Purchasers shares may be bid in to EIM if desired). • Associated issues:

– Regional Tools. The EIM MC effort is creating a power flow forecasting tools to help manage congestion prospectively. 

– Resource Sufficiency. This program is designed to ensure that all BA’s in the region have sufficient generation capacity available to meet the next days peak load. 

– NWPP Governance. Some in the EIM MC effort have questioned whether we have too many regional organizations (Columbia Grid, NWPP, NTTG, EIM MO)

• Timeline– An EIM/SCED could be operational in 2016 (CAISO) or 2017 (NWPP MC SCED)

• Load Serving Entities submit and update forecasts (through their BA)• Generators submit bids (or self schedule) and respond to accepted awards (through their BA)• The Market Operator runs the software that selects economic redisptach bids, issues dispatch

instructions to generators and performs settlement on all transactions executed in the market. • Balancing Areas continue to operate their systems• Transmission Providers continue to operate their systems

Timelines

2015 20172016

Pre SCED funding decision (MAR)

SCED “Go/ No Go” decision

Market Operator selection

File FERC Petition (MAR)

Begin SCED Operations

(Q3)

Regional Tool Development(year long)

SCED Development(year long)

• June, 2014 : FERC approves both the CAISO and PAC tariff changes required to implement the EIM

– FERC’s approval largely accepted the filings as proposed with certain items to be modified in a compliance filing

• Market simulation July – Sept 2014• November 1, 2014 PacifiCorp Go live

– NV Energy expected to go live in Oct 2015– PSE ????

CAISO PAC EIM

NWPP SCED

Resource SufficiencyNWPP* SCED  CAISO‐PAC EIM

Objective Adequate unit commitment Installed generating capacity

Centralized Capacity Market

No. RS standard could promote bilateral daily trading

No. Long term bilateral, driven by CPUC LTPP

Year Ahead Integrated Resource Plans Resource Adequacy (CPUC)

Day Ahead/Realtime Ex‐Ante Resource Sufficiency Showing

Residual Unit Commitment (CAISO)

Standard Resources = Firm Obligations

115% of Load

Enforcement ???? RA Penalties; exposure to RUC price, load shedding

* Resource Sufficiency could move forward in PNW w/o a SCED

Element NWPP SCED CAISO‐PAC EIM

Capacity  • Will short term (daily or hourly) price signals create a capacity market or attract new entrants?

• Could this be accomplished through NWPP RSG?

Long term capacity price and bilateral capacity market driven by CPUC RA / LTPP

Cost Proposed NWPP pricing for SCED looks low compared to other ISOs(~$1mm )

CAISO pricing is fixed, known.(~$200k, no exit fee)

Expansion Capability The need to create new software is both expensive and disruptive

Relatively easy to add new functions, but rules are proscribed by existing software

Timeline 2017 2015

Governance PNW. FERC???How much can our market design differ from SPP software?

CA w/ input from outside CA; FERC approval. Rules are already coded into ISO systems; how much governance could be exercised?

Compare and Contrast / Evaluation Considerations 

Other Observations• Grant system is too small to benefit from internal re‐

optimization.• Mid‐C optimization probably easiest outside of SCED.• 15 minute (vs 5min) optimization may be good enough 

– Need to fix PAC intertie bidding– Intertie bidding is truly voluntary participation"

• CAISO has known issues; NWPP SCED is too early in development to fully evaluate.• CAISO is more scalable; also more certain.

Grant Options

• Do Nothing / BAU• Join CAISO EIM• Join NWPP SCED

– Issues: 1) incomplete solution creates uncertainty, 2) cost risk, 3) benefits are lacking

• Join Neither/ Participate in both

Copyright ©2013 Grant County Public Utility District. CONFIDENTIAL AND PROPRIETARY

Safety ReportEnd of Year 2014

Total number of Recordable Injuries 33

21

16

0

5

10

15

20

25

30

35

201220132014

End of Year 2014 2

Number of cases:

14

3

9

34

6

0

2

4

6

8

10

12

14

16

Days Away Transfer / Restricted

201220132014

End of Year 2014 3

Days Away & Transfer or Restricted:

600553

389327

166

259

0

100

200

300

400

500

600

700

Days Away Transfer / Restricted

201220132014

End of Year 2014 4

Days Away

0

100

200

300

400

500

600

In 2014 - 1 injury had 147 days

600

389

166

201220132014

End of Year 2014 5

Year by Year Incident Comparison

End of Year 2014 6

Cause of Injury 2012 2013 2014

Electrical Contact 2 1 0

Exposure 1 4 5

Lifting/Body Positioning 38 21 26Line of Fire 19 13 8Slips/Trips/Falls 26 19 21

Struck By 2 7 12

Hearing Loss  7 1 3 

Total 95 65 77

Hearing Loss Claims:

7

3 3

0

1

2

3

4

5

6

7

8

201220132014

End of Year 2014 7

Safety Meetings & Training:

• 156 Safety Meetings covering 12 different departments• 50+ Safety Inspections (Internal)• LNI – 3 Inspections

– 1 Inspection with 3 Serious Violations, Electrical shock in Mattawa – 1 Inspection Vacated– 1 No Violation Inspection

• 40+ Safety Training Topics– Boat Safety & Rescue, Helicopter Safety, Metering Hazards,

Hearing Conservation, Winter Driving, Protective Grounding, Job Briefing, Bucket Truck and Vault Rescue, Office Ergonomics, Security, etc.

End of Year 2014 8

LNI Retro ProgramEntered the LNI Retro Program for 2015 to reduce our industrial insurance costs.

– Benefits of being a retro employer:» Offers tools and services to make workplace safer» Can turn our good safety performance into a refund by

preventing injuries and controlling losses» Great timing since we will be paying on claim costs from 2011,

2012, and 2013 (ex mod factor rating increased to .8371 from .66).

– Entered in an Individual Program and not as a group.– The Individual Program offered:

» No membership or group fees based on refunds or premiums.» The most control for plan type, minimum and maximum loss

ratios, and single loss limits and » The refund is based entirely on our own performance.

End of Year 2014 9

Safety Coin Recipients:

Matt Roduner – recognized that battery charging table was a hazard as it emits gases and there was a possibility of explosions. The charging table was relocated.

Chuck Hansen – Chuck asked for a temporary guardrail be constructed on the end of the bracket arms to protect workers from a fall hazard. The guardrail will be used various times throughout disassembly and on future upgrades of the remaining units.

Karen Mus – recognized a need for yellow shelving bumpers to prevent shelving from sliding or potential collapse due to being struck by forklifts, vehicles and carts.

End of Year 2014 10

Goals for 2015• Support departments in increasing internal inspections• Continuation of policy rewrites/compliance reviews• Meet training requirements• Continue relationship building with LNI for maintaining compliance

with changing regulations• Develop and present Foreman Training• Conduct Hearing Tests In-house (hearing conservation)• Creatively look for methods of retention when administering and

implementing training• Continue to investigate accidents to recommend changes when

necessary• Network with other utilities regarding workplace safety

End of Year 2014 11

grantpud.org

Thank you.

GCPUD Safety Department