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February 14, 2013 Reliability Committee Meeting. Steve Weaver. System Operations. In-Day Reserves & Supplemental Procurement. Background.
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February 14, 2013 Reliability Committee Meeting Steve Weaver System Operations In-Day Reserves & Supplemental Procurement
Background • In accordance with OP-8, ISO maintains in real-time a total Ten Minute Reserves (TMR) at least equal to 100% of the largest single source contingency in New England and Thirty Minute Operating Reserves (TMOR) equal to 50% of the second largest contingency • ISO adjusts the allocation of TMR to compensate for generator non-performance • In accordance with OP-8, the ISO can also increase the TMOR requirement for an incremental amount of replacement reserves based upon system conditions • ISO has not carried a real-time replacement reserves since June 1, 2006
Background • Operating the system to only meet minimum operating reserve requirements requires emergency actions on peak to account for uncertainties in – • Instantaneous peak load • Load forecast error • Generator contingencies and reductions • Gas resource unavailability due to fuel limitations • ISO operations commits supplemental capacity in the RAA when necessary to preclude excessive reliance on emergency actions to maintain system reliability
Proposal: Replacement Reserves • Starting with the Winter of 2013/2014, the ISO will operate the system to meet an incremental replacement reserve requirement (as part of total operating reserve requirement) • Replacement reserves can be met by resources providing ten or thirty minute capability • The incremental replacement reserve requirement would be included in the Forward Reserve Market, Day-Ahead Market, RAA/SCRA and in real-time with a discrete RCPF • Having an increased reserve requirement will reduce the need to use supplemental commitments under normal operating conditions • The system will be committed to meet load plus the reserve requirements • Resources in real-time will be redispatched to meet the total operating reserve requirement ensuring capability is available to manage uncertainties that may materialize within the operating day
Proposal: Replacement Reserves (cont.) • Operations would not take emergency actions to maintain replacement reserves; rather only using these actions to maintain the minimum operating reserve requirement • Operations will continue to commit supplement capacity in addition to replacement reserves in order to maintain system reliability
Operating Reserve Requirement • In many hours the system has available reserves in excess of the total operating reserve requirement
Operating Reserve Requirement and Replacement Reserves • Including replacement reserves in the total operating reserve requirement will not necessarily result in additional commitment • The commitment process results in available reserves being in excess of the total operating reserve requirement in many hours
Shortage of Replacement Reserves • When there is a shortage of the replacement reserves (but not the minimum operating reserve requirement), emergency actions are not taken to meet the replacement reserves
Shortage of Minimum Operating Reserve Requirement • When there is a shortage of available reserves against the minimum operating reserve requirement, the ISO will take emergency actions under OP4 • The ISO will not use emergency actions to explicitly restore replacement reserves
Immediate Next Steps • The ISO is evaluating the expected amount of replacement reserves under normal system conditions • This will be discussed further at a future Reliability Committee (March/April) meetings • The ISO is planning to perform a high-level cost impact analysis of the increase in the operating reserve requirement in the Forward Reserve Market and Day-Ahead and Real-Time markets for discussion at a future Markets Committee (April/May) • The ISO is evaluating the TMOR Reserve Constraint Penalty Factor (RCPF) in the context of the use of replacement reserves to determine if a tiered RCPF (i.e., TMOR demand curve) is appropriate • This will be discussed at the March Markets Committee meeting
Immediate Next Steps (cont.) • The ISO is proposing changes to the Forward Reserve Market penalties to ensure appropriate incentives for resources to be available and respond when dispatched • This was discussed at the February Markets Committee meeting and will be discussed at future Markets Committee meetings
Longer-term Actions • The ISO is evaluating the development of additional reserve product(s) • The additional reserve product(s) will not be available for Winter-2013/14 • The ISO is evaluating the stakeholder and implementation schedule