Demand Response Working Group

1. Demand Response Working Group AESO ‘As Is’ and Needs Assessment Jerry Mossing Director, Operations Planning Paul Barry Director, Market Services

2. Purpose • Provide information to the Demand Response Work Group (DRWG) that helps the group understand : • what operational situations that may require resources to manage, • What resources are currently available, • How these resources are used, and • Experience to date • Opportunity for the DRWG to ask questions and provide feedback.

3. AESO Operations Concern • There is a strong possibility that sometime in the next several years; • transmission constraints may increase, • Delays in north south, south west, etc. • supply shortfall events may be more frequent, • LTA metrics indicate decreasing supply margin however no trigger action at this time • wind’s fast down-ramps exceeding system ramp up capability. • MOF implementation underway. Approximately 11,000 MW in the queue. • Each of these operating situations: • will be managed using procedures that ultimately end in manual load curtailment procedures. (e.g. OPP 5xx, OPP 801, etc.) • contains a gap between the point where supply runs out and manual (involuntary) load curtailment is necessary. The gap is demand response.

4. AESO Operations • Price responsive loads acting independently have an impact to the energy market • Independent action by a significant amount of load in response to System Marginal Price (SMP) has a direct impact to AIES supply demand balance. • Regulating reserve volumes may mask some of the effect but most often a generator dispatch is required. • System Marginal Price changes with generator dispatch • The cycle may repeat, depending on many factors including volumes and prices in the merit order

5. Current Load Response Operating Situation ENMO & ASMO Procedures Last Resort Involuntary Curtailment VLCP Inter-ties PRL Supply Shortfall Fluff SUPL LSS DOS Transmission Constraint (Downstream or Load pocket) Involuntary Curtailment EOS Trigger DTS Involuntary Curtailment Wind Fast Ramp Down High Import ILRAS UFLS LSS Loss of One Generator SUPL Large Loss of Generation (Alberta or in WECC) UFLS Time

6. Current Load Response Operating Situation ENMO & ASMO Procedures Last Resort Involuntary Curtailment VLCP Inter-ties PRL Supply Shortfall Fluff SUPL LSS DOS Transmission Constraint (Downstream or Load pocket) Involuntary Curtailment • No requirement to be in the merit order • Independent action by load(s) has a direct impact to the supply/demand balance and will cause generator dispatch and SMP will change • E.g. An unintended consequence - 50 MW need for supply could result in 300 MW load response EOS Trigger DTS Involuntary Curtailment Wind Fast Ramp Down High Import ILRAS UFLS LSS Loss of One Generator SUPL Large Loss of Generation (Alberta or in WECC) UFLS Time

7. Current Load Response Operating Situation ENMO & ASMO Procedures Last Resort Involuntary Curtailment VLCP Inter-ties PRL Supply Shortfall Fluff SUPL LSS DOS Transmission Constraint (Downstream or Load pocket) Involuntary Curtailment • Manual processes involving phone calls and paper. • Doesn’t scale to large number of participants • No measurable response other in real time • The program exists but no MW (only kW) EOS Trigger DTS Involuntary Curtailment Wind Fast Ramp Down High Import ILRAS UFLS LSS Loss of One Generator SUPL Large Loss of Generation (Alberta or in WECC) UFLS Time

8. Current Load Response Operating Situation ENMO & ASMO Procedures Last Resort Involuntary Curtailment VLCP Inter-ties PRL Supply Shortfall Fluff SUPL LSS DOS Transmission Constraint (Downstream or Load pocket) Involuntary Curtailment • Inter-ties – emergency energy agreements • Many steps, not many MW • LSS, DOS are likely price responsive loads • 3% voltage reduction, pleas, non-essential loads = fluff EOS Trigger DTS Involuntary Curtailment Wind Fast Ramp Down High Import ILRAS UFLS LSS Loss of One Generator SUPL Large Loss of Generation (Alberta or in WECC) UFLS Time

9. Current Load Response Operating Situation ENMO & ASMO Procedures Last Resort Involuntary Curtailment VLCP Inter-ties PRL Supply Shortfall Fluff SUPL LSS DOS Transmission Constraint (Downstream or Load pocket) Involuntary Curtailment • AESO directs DFO curtailment volume as a percentage of load. • DFO procedures identify load breakers to trip. TFOs carry out the procedures as they have 24/7 control. SCADA required to be effective in 10 minutes. Load curtailments may be rotated between breakers during longer duration events. • The breakers used in these procedures must be coordinated with UFLS (so as to preserve load in some of the UFLS blocks) • This is typically when the terms rotating outages or brown outs are used, even for short duration events. EOS Trigger DTS Involuntary Curtailment Wind Fast Ramp Down High Import ILRAS UFLS LSS Loss of One Generator SUPL Large Loss of Generation (Alberta or in WECC) UFLS Time

10. Current Load Response • Under frequency event caused by BC tie line trip during high BC import • Also used when Alberta is islanded • Automatic action, load breakers are tripped by relay (either UF or tie trip) • Allows operating criteria to be met while enabling high BC imports though preventing firm load loss for N-1. • LSS loads may be price responsive. Operating Situation ENMO & ASMO Procedures Last Resort Involuntary Curtailment VLCP Inter-ties PRL Supply Shortfall Fluff SUPL LSS DOS Transmission Constraint (Downstream or Load pocket) Involuntary Curtailment EOS Trigger DTS Involuntary Curtailment Wind Fast Ramp Down High Import ILRAS UFLS LSS Loss of One Generator SUPL Large Loss of Generation (Alberta or in WECC) UFLS Time

11. Current Load Response • Safety net for extremely large loss of generation • This is the last automatic action to keep the system up before generators trip to protect their equipment. • WECC requirement • The breakers used in these procedures must be coordinated with manual load shed procedures (so as to preserve some load in the manual load shed blocks) Operating Situation ENMO & ASMO Procedures Last Resort Involuntary Curtailment VLCP Inter-ties PRL Supply Shortfall Fluff SUPL LSS DOS Transmission Constraint (Downstream or Load pocket) Involuntary Curtailment EOS Trigger DTS Involuntary Curtailment Wind Fast Ramp Down High Import ILRAS UFLS LSS Loss of One Generator SUPL Large Loss of Generation (Alberta or in WECC) UFLS Time

12. Current Load Response • Contingency Reserves • WECC requirement • No concurrent use • Technical requirements well defined, including performance requirement Operating Situation ENMO & ASMO Procedures Last Resort Involuntary Curtailment VLCP Inter-ties PRL Supply Shortfall Fluff SUPL LSS DOS Transmission Constraint (Downstream or Load pocket) Involuntary Curtailment EOS Trigger DTS Involuntary Curtailment Wind Fast Ramp Down High Import ILRAS UFLS LSS Loss of One Generator SUPL Large Loss of Generation (Alberta or in WECC) UFLS Time

13. Current Load Response Operating Situation ENMO & ASMO Procedures Last Resort Involuntary Curtailment VLCP Inter-ties PRL Supply Shortfall Fluff SUPL LSS DOS Transmission Constraint (Downstream or Load pocket) Involuntary Curtailment EOS Trigger DTS Involuntary Curtailment Wind Fast Ramp Down High Import ILRAS UFLS LSS • The possibility exists that in the next few years supply shortfall, transmission constraints and wind power ramps will result in more frequent involuntary curtailment. • No reasonable mechanism or program exists to fills this gap. • Demand response programs that establish loads who can voluntarily curtail load prior to involuntary curtailments seems a reasonable approach to preserve reliability and FEOC? • Can a comprehensive demand response program be implemented in time? When exactly is the need? Whose job is it? Loss of One Generator SUPL Large Loss of Generation (Alberta or in WECC) UFLS Time

14. Demand Response Commercial Experience

15. AESO Commercial Experiences • Load Participation • 20MW for supplemental reserves • 120MW for under frequency mitigation • An incremental 100MW expressed interest recently in providing an under frequency mitigation service • Majority of dealings with pulp and paper related customers • AESO yet to contract with a Demand Aggregator • Up to 240MW for ILRAS during supply shortfall events • * VLCP – created by way of EUB Negotiated Settlement in 2000 to balance supply/demand – no longer used • * DOS – alleviates abnormal conditions (* not AESO Commercial dealings)

16. Questions/Commentson Implementation

17. Thank you!