Presentation on theme: "BAL-002-WECC-1 Contingency Reserves"— Presentation transcript:
1 BAL-002-WECC-1 Contingency Reserves David LemmonsBAL-002 Drafting Team ChairMarch 6, 2008Albuquerque, NM
2 Acronyms ACE – Area Control Error BA – Balancing Authority CR – Contingency ReservesCRR Contingency Reserve RequirementDCS – Disturbance Control StandardLR – Load ResponsibilityMSSC – Most Severe Single ContingencyRSG – Reserve Sharing Group
3 Overview of Presentation What is and is not coveredDiscuss Existing Rules for CRContrast Proposed Rules for CRProvide Reasoning behind Drafting Team Recommendations
4 Proposed BAL-002: Responds to FERC and NERC request for re-write 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-writeAddresses comments provided to FERC and NERC by WECC entities during approval process of BAL-002-WECC-0Maintains level of CR similar to existing standard
5 What is/is not in the Standard Deals with:minimum level of Contingency Reserveswhat qualifies as Contingency ReservesDoes not deal with:Who activates reservesWhy activate reservesWhen to activate reservesHow to activate reservesDiscussion Points: Doesn’t deal with activation because that is directed by the NERC standard.
6 Current WECC CR Requirements (BAL-STD-002-0 DCS) Requires a Minimum Level of CR equal to MSSC for BA/RSGIf MSSC is less than 5% of LR served by Hydro plus 7% of LR served by Thermal, required to carry this amount of reservesAdditional Reserves for Certain Market TransactionsRestore 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% GenerationSpecifies rules for reserve transactionsReserve requirements are not increased or decreased due to energy transactions.Requires CR to be deliverable to count as meeting requirementAligns reserve restoration period with NERC at 105 minutes from eventDiscussion Items: Relax restoration period due to PWG study showing no real impact to reliability.
8 Reasoning Behind Changes 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.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 standard1. 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 formatOnly include Requirements, not philosophyNot a training documentNo duplication of other standards
10 Load Responsibility Discussion Points 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.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.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.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 DecisionProposal ensures there is not a significant reduction in existing WECC total requirementProposal does not cause a significant shift of responsibility based on data availablei.e. reserves in each RSG stayed basically the sameCOMPROMISE!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.Summer Peak Load Data is from July 24, 2006.
17 Reserve TransactionsSpecific 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.This replaces the old language referring to “interruptible transactions”NERC BAL-002 R2.6 Requires that the same capacity not be used to meet two or more entities’ reserve requirements.
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.This is comparable to the language related to “on-demand obligations”It should be noted that this does not impact how RSGs operate.NERC BAL-002 R2.6 Requires that the same capacity not be used to meet two or more entities’ reserve requirements.
19 Spinning ReserveAt least one-half of the Contingency Reserve must be Spinning ReserveTo qualify, it must be automatically responsive to frequency deviations
20 Types of ReservesRequirement R3 sets out what qualifies as meeting the reserve requirementsLimits have been put on when Load (other than Interruptible Loads) can be used to meet the RequirementReliability 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 duplicativeAdopted NERC required violation and time horizon items since the WECC has agreed to abide by NERC Standards requirementChanged Reserve Restoration Period to match NERC requirement since WECC PWG study shows no impact to reliability