APRIL 17 2012 | Reliability Committee Meeting

1. APRIL 17 2012 | Reliability Committee Meeting Marianne Perben Supervisor, Resource Analysis & Qualification FCM Qualification Overlapping Interconnection Impacts Standard

2. Background & Agenda • Discussions held at the February and March Reliability Committee (RC) included: • The description of the overlapping interconnection impacts standard for generating resources as it is outlined in Planning Procedure 10 – Planning Procedure to Support the Forward Capacity Market (PP-10) • Included examples of various qualification outcomes • Included numerical examples regarding the application of the standard to generating resources • FCA # 6 qualification statistics • Topics to be covered today include: • Additional details regarding the numerical examples presented in March • The description of the overlapping interconnection impacts standard for Demand Resources (DR) as it is outlined in PP-10 • Next steps

3. March RC Meeting – Example of Pre-Project System PP-10 Section 5.7.1 3% DFAX Circle: Harmer generators with DFAX ≥ 3% are turned on up to their CNRC (on-line generators are colored pink) C A 87% D 84 MVA 100% 150 MVA B E Application of the stress stops when a monitored transmission element reaches a loading of 100% Direction of the stress 98.5% 116 MVA F Most impacting Helper to the stress is turned off Load Zone B Load Zone A

4. March RC Meeting – Example of Post-Project System PP-10 Section 5.7.1 Lines [AB], [CD] and [EF] overload as a result of the addition of the Project. The Project has more than 3% DFAX (or impact) on lines [AB] and [CD], but not [EF]. The Project Sponsor will be responsible for upgrading lines [AB] and [CD] but not [EF]. New Project Generator C A 105% D B 120% 84 MVA 150 MVA E Direction of the stress 101% 116 MVA F Load Zone B Load Zone A

5. March RC Meeting – Example Rationale • If the New Project Generator is 100 MW, then: • Assuming the New Project Generator’s DFAX on line [AB] is 30%; the incremental loading (in %) on line [AB] caused by the addition of the New Project Generator can be estimated by: • Gen MW * DFAXAB / Line [AB]’s Rating = 100 * 30% / 150 = 20% • Assuming the New Project Generator’s DFAX on line [CD] is 15.1%; the incremental loading (in %) on line [CD] caused by the addition of the New Project Generator can be estimated by: • Gen MW * DFAXCD / Line [CD]’s Rating = 100 * 15.1% / 84 = 18% • Assuming the New Project Generator’s DFAX on line [EF] is 2.9%; the incremental loading (in %) on line [EF] caused by the addition of the New Project Generator can be estimated by: • Gen MW * DFAXEF / Line [EF]’s Rating = 100 * 2.9% / 116 = 2.5% • The size of the New Project Generator, the rating of the transmission element and the electrical distance between the New Project Generator and the transmission element are key factors in determining the incremental loading (in %) on the transmission element caused by the addition of the New Project Generator

6. Application of the Overlapping Interconnection Impacts Standard to Demand Resources • A DR overlapping interconnection impacts standard is • A way of establishing the incremental usefulness of the capacity offered by DR • A planning analysis to review the effects of adding a DR project on the reliability of the transmission system • If a new DR project is rejected in FCM qualification for overlapping interconnection impacts • It does not mean that load cannot ever be reduced at that location • It means that the usefulness of the measure is not “deliverable” to the broader system or in other words, the reduction in load is not incrementally useful within the Load Zone

7. Demand Resource Dispatch Zones • The New England Control Area is divided into 19 Dispatch Zones • Dispatch Zones are used to establish the geographic location and real-time dispatch of active Demand Resources • Real-Time Demand Response Resources • Real-Time Emergency Generation Resources

8. Description of the Overlapping Interconnection Impacts Standard for Demand Resources • Only active Demand Resources (Real-Time Emergency Generation and Real Time Demand Response) are analyzed for overlapping impacts • Passive Demand Resources (On-Peak Demand Resources and Seasonal Peak Demand Resources) are not reviewed for overlapping interconnection impacts • The standard makes use of the Dispatch Zone locational of active Demand Resources • The location of passive Demand Resources is known at the Load Zone level only • In those Dispatch Zones where incremental new resources are not deliverable to the rest of the Load Zone, then no new active Demand Resource proposed within that Dispatch Zone will qualify for the FCA

9. Analysis at the Dispatch Zone Level • To the extent that the new active Demand Resource could, without the inclusion of any other new resources submitted for qualification in that Dispatch Zone, deliver any portion of its capacity from the Dispatch Zone to which it is interconnecting to the Load Zone to which it is interconnecting, then the full proposed amount of the new active Demand Resource shall qualify for the FCA • Practically, the analysis is performed by individually testing each node within the Dispatch Zone

10. Analysis at the Nodal Level • When the nodal location of the proposed Demand Resource is provided, then the analysis can be performed at a nodal level • Nodal location is required from each Demand Resource project with a single facility which rating is greater than or equal to 5 MW • To the extent that the new active Demand Resource could, without the inclusion of any other new resources submitted for qualification at that nodal location, deliver any portion of its capacity from the nodal location to which it is interconnecting to the Load Zone to which it is interconnecting, then the full proposed amount of the new active Demand Resource shall qualify for the FCA

11. Overlapping Interconnection Impacts Analysis of New Demand Resources • Overlapping interconnection impacts review of new Demand Resources is run separate from and independent of the concurrent analysis of new generation in a given FCA qualification period • The test performed at each node is run in a similar manner as it would be for a generator • Uses the same assumptions, settings and software functionality

12. Demand Resource Overlapping Interconnection Impacts – Example • If the transmission element is constrained (i.e., running at its limit), then an incremental reduction in load on the Harmer side will cause the need for a reduction in generation on the Harmer side; otherwise the transmission element would become overloaded • The amount of capacity that can be delivered to the rest of the zone is limited by the transfer limit of the constraint Zone Constraint (Overlapping Impact) Transmission Interface or Element New DR Helper Generation & DR Harmer Generation & DR

13. Demand Resource Overlapping Interconnection Impacts – Example, cont. Bus I 100MW Bus E 200MW Base Case This new generator would be rejected due to overlapping interconnection impacts This new DR has the same impact on the system as the new generator above and would be rejected too 100MW limit 100MW LOAD LOAD 200MW 100MW 100MW Bus I Bus E 200MW 100MW limit 5MW New Gen Proposed 100MW LOAD LOAD 200MW 100MW Bus I Bus E 100MW 200MW 100MW limit 5MW New DR Proposed 100MW LOAD LOAD 200MW 100MW

14. Demand Resource Overlapping Interconnection Impacts – Example, cont. PP-10 Section 5.7.1 3% DFAX Circle Due to the constraint [AB], none of the resources located in Dispatch Zone D are deliverable to the rest of the Load Zone A, therefore no new active Demand Resource proposed within that Dispatch Zone will qualify. New DR Project C A 87% D 84 MVA 100% 150 MVA B Dispatch Zone D E 98.5% Direction of the stress 116 MVA F Most impacting Helper to the stress is turned off Load Zone B Load Zone A

15. Next Steps • May RC • Summarize and discuss feedback received in prior RC meetings • Review potential changes or clarifications to the overlapping interconnection impacts standard for generating or demand resources to be implemented for FCA #7 qualification reviews • Presenting draft redlines of PP-10 (if time permits) • June RC • Further discuss PP-10 redlines and potential vote