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BAL-002-WECC-1 Contingency Reserves David Lemmons BAL-002 Drafting Team Chair March 6, 2008 Albuquerque, NM.

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Presentation on theme: "BAL-002-WECC-1 Contingency Reserves David Lemmons BAL-002 Drafting Team Chair March 6, 2008 Albuquerque, NM."— Presentation transcript:

1 BAL-002-WECC-1 Contingency Reserves David Lemmons BAL-002 Drafting Team Chair March 6, 2008 Albuquerque, NM

2 Acronyms ACE – Area Control Error ACE – Area Control Error BA – Balancing Authority BA – Balancing Authority CR – Contingency Reserves CR – Contingency Reserves CRR Contingency Reserve Requirement CRR Contingency Reserve Requirement DCS – Disturbance Control Standard DCS – Disturbance Control Standard LR – Load Responsibility LR – Load Responsibility MSSC – Most Severe Single Contingency MSSC – Most Severe Single Contingency RSG – Reserve Sharing Group RSG – Reserve Sharing Group

3 Overview of Presentation What is and is not covered What is and is not covered Discuss Existing Rules for CR Discuss Existing Rules for CR Contrast Proposed Rules for CR Contrast Proposed Rules for CR Provide Reasoning behind Drafting Team Recommendations Provide Reasoning behind Drafting Team Recommendations

4 Proposed BAL-002: Is a permanent replacement for the existing, FERC- approved WECC-regional standard, BAL-002- WECC-0 (Operating Reserves) Is a permanent replacement for the existing, FERC- approved WECC-regional standard, BAL-002- WECC-0 (Operating Reserves) Responds to FERC and NERC request for re- write Responds to FERC and NERC request for re- write Addresses comments provided to FERC and NERC by WECC entities during approval process of BAL-002-WECC-0 Addresses comments provided to FERC and NERC by WECC entities during approval process of BAL-002-WECC-0 Maintains level of CR similar to existing standard Maintains level of CR similar to existing standard

5 What is/is not in the Standard Deals with: Deals with: minimum level of Contingency Reserves minimum level of Contingency Reserves what qualifies as Contingency Reserves what qualifies as Contingency Reserves Does not deal with: Does not deal with: Who activates reserves Who activates reserves Why activate reserves Why activate reserves When to activate reserves When to activate reserves How to activate reserves How to activate reserves

6 Current WECC CR Requirements (BAL-STD DCS) Requires a Minimum Level of CR equal to MSSC for BA/RSG Requires a Minimum Level of CR equal to MSSC for BA/RSG If MSSC is less than 5% of LR served by Hydro plus 7% of LR served by Thermal, required to carry this amount of reserves If MSSC is less than 5% of LR served by Hydro plus 7% of LR served by Thermal, required to carry this amount of reserves Additional Reserves for Certain Market Transactions Additional Reserves for Certain Market Transactions Restore Reserves within 60 Minutes after Event Restore Reserves within 60 Minutes after Event

7 Proposed Contingency Reserves BAL-002-WECC-1 Changes CR requirement to greater of MSSC or 3% Load plus 3% Generation Changes CR requirement to greater of MSSC or 3% Load plus 3% Generation Specifies rules for reserve transactions Specifies rules for reserve transactions Reserve requirements are not increased or decreased due to energy transactions. Reserve requirements are not increased or decreased due to energy transactions. Requires CR to be deliverable to count as meeting requirement Requires CR to be deliverable to count as meeting requirement Aligns reserve restoration period with NERC at 105 minutes from event Aligns reserve restoration period with NERC at 105 minutes from event

8 Reasoning Behind Changes FERC Order approving Tier 1 standards require WECC to address issues raised in some way. FERC Order approving Tier 1 standards require WECC to address issues raised in some way. Drafting Team discussed multiple options including no changes to the standard. Drafting Team discussed multiple options including no changes to the standard. When issues were discussed by the drafting team, proposed solutions were adopted into the standard. When issues were discussed by the drafting team, proposed solutions were adopted into the standard.

9 Reasoning Behind Changes (cont) Remove market issues from the reliability standard Remove market issues from the reliability standard 1. WECC should focus on the interpretation of reliability criteria. It should not define energy market products. (WECC Board of Directors Approved Definition of Load Responsibility) Change to NERC format Change to NERC format Only include Requirements, not philosophy Only include Requirements, not philosophy Not a training document Not a training document No duplication of other standards No duplication of other standards

10 Load Responsibility Discussion Points Discussion Points It has been documented that there is no technical basis for the current 5/7 requirement. It has been documented that there is no technical basis for the current 5/7 requirement. Definition of LR is impacting efficient market operations in the Western Interconnection. Definition of LR is impacting efficient market operations in the Western Interconnection. Reliability entities and market entities may not be on the same page when discussing LR and Firm Products. Reliability entities and market entities may not be on the same page when discussing LR and Firm Products. The WECC Board determined that WECC should not be defining market products in its LR interpretation. The WECC Board determined that WECC should not be defining market products in its LR interpretation. Unclear treatment of non-hydro, non-thermal generation Unclear treatment of non-hydro, non-thermal generation

11 Drafting Team Recommendation Remove LR from Reserve Requirement without significantly reducing the reserves required in the WECC. Remove LR from Reserve Requirement without significantly reducing the reserves required in the WECC. Since Contingencies happen due to generation and transmission, the drafting team voted to support the proposed requirement that is calculated based on a split of load and generation for each BA/RSG. Since Contingencies happen due to generation and transmission, the drafting team voted to support the proposed requirement that is calculated based on a split of load and generation for each BA/RSG.

12 Reasons for Decision Proposal ensures there is not a significant reduction in existing WECC total requirement Proposal ensures there is not a significant reduction in existing WECC total requirement Proposal does not cause a significant shift of responsibility based on data available Proposal does not cause a significant shift of responsibility based on data available i.e. reserves in each RSG stayed basically the same i.e. reserves in each RSG stayed basically the same COMPROMISE! COMPROMISE! Required to meet the time line given to the drafting teams Required to meet the time line given to the drafting teams

13 Impacts to the CR Levels The next few slides show the impact of the proposal to the WECC as a whole and each responsible entity. The next few slides show the impact of the proposal to the WECC as a whole and each responsible entity. Summer Peak Load Data is from July 24, Summer Peak Load Data is from July 24, 2006.

14 Total Reserves Required in WECC

15 Reduction to CRR – Summer Peak Load

16 Reserve Requirement by Entity

17 Reserve Transactions Specific tag codes (INT-BPS-018-0) must be used so all parties to the transaction are aware of expectations/requirements. Specific tag codes (INT-BPS-018-0) must be used so all parties to the transaction are aware of expectations/requirements. Requirement R1.2 dictates that if a transaction is utilized by the source BA as part of its non- spinning reserve, the sink must increase the amount of reserve it carries equal to the transaction. Requirement R1.2 dictates that if a transaction is utilized by the source BA as part of its non- spinning reserve, the sink must increase the amount of reserve it carries equal to the transaction. This replaces the old language referring to interruptible transactions This replaces the old language referring to interruptible transactions

18 Reserve Transactions (cont.) Requirement R1.3 requires that the source BA increase its reserve requirement by an amount equal to transactions in which it will respond to an event in the sink BA. The delivery must be on Firm Priority 7 Transmission Service. Requirement R1.3 requires that the source BA increase its reserve requirement by an amount equal to transactions in which it will respond to an event in the sink BA. The delivery must be on Firm Priority 7 Transmission Service. This is comparable to the language related to on-demand obligations This is comparable to the language related to on-demand obligations It should be noted that this does not impact how RSGs operate. It should be noted that this does not impact how RSGs operate.

19 Spinning Reserve At least one-half of the Contingency Reserve must be Spinning Reserve At least one-half of the Contingency Reserve must be Spinning Reserve To qualify, it must be automatically responsive to frequency deviations To qualify, it must be automatically responsive to frequency deviations

20 Types of Reserves Requirement R3 sets out what qualifies as meeting the reserve requirements Requirement R3 sets out what qualifies as meeting the reserve requirements Limits have been put on when Load (other than Interruptible Loads) can be used to meet the Requirement Limits have been put on when Load (other than Interruptible Loads) can be used to meet the Requirement Reliability Coordinator must have issued an EEA for the BA Reliability Coordinator must have issued an EEA for the BA

21 Other Changes to Standard Removed language requiring other NERC standards be met since it is duplicative Removed language requiring other NERC standards be met since it is duplicative Adopted NERC required violation and time horizon items since the WECC has agreed to abide by NERC Standards requirement Adopted NERC required violation and time horizon items since the WECC has agreed to abide by NERC Standards requirement Changed Reserve Restoration Period to match NERC requirement since WECC PWG study shows no impact to reliability Changed Reserve Restoration Period to match NERC requirement since WECC PWG study shows no impact to reliability

22 Questions?


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