Structured / Unstructured Market Trials

1. Structured / Unstructured Market Trials COP True-Up Presentation July 26, 2013

2. True-Up: Reasons and Impacts • New RTBM (though similar to the EIS Market) has several items that need to be thoroughly tested by both SPP &MPs: • Operating Reserves aspect • New deployments: • Contingency and Regulation Reserve • Control Modes coming from ICCP • SPP Calculating and tracking its ACE, etc. • To test functionality, SPP needs to operate with the same ICCP and SCADA that matches Resources’: • real output of the units • same net schedules • same net actual interchange • dispatchability of the Resources (must be similar) • If a Resource is not in the Current Operating Plan as committed, it is not dispatchable by the Marketplace RTBM. Jarrett Friddle

3. True-Up Reasons and Impacts • Without the COP True-up and NSI True-up to try and match Real-time, the results of RTBM would be inadequate • Results would not provide useful information or confidence in the RTBM solutions • With 5-minute dispatch, the threshold for net deviations from real initial conditions is relatively small: • Without True-up there is increased risk of ramp rate violations, reserve shortage conditions and breached constraints. • Other Risk factors SPP can’t control: • Resources not following dispatch • Resources often operating outside their submitted Max and Min ranges for Marketplace • 0% Ramp sharing Jarrett Friddle

4. COP True-up • Allows the RTBM to dispatch resources based on real-time (EIS) operating conditions • If Resources are online in EIS and not in the COP, they are unable to be dispatched economically by RTBM • Output will be echoed • Not eligible to clear reserves • After the DA RUC run, SPP checks the EIS Resource Plan statuses for the OD to identify Resources with conflicting status with the COP. • SPP uses the ID-RUC to commit or decommit resources that have a conflicting EIS status with the COP. • If the resource has a  EIS status of “Unavailable”  and is committed in the COP, it will be decomitted by ID-RUC. • Process repeats at least 2 hrsa day from 8A-4P during supported ODs. • During unsupported days, the COP True-Up runs once a day. Jarrett Friddle

5. Other Adjustments for RTBM: NSI True-up • Utilized to make sure the Target MW for RTBM is not too far to reach given the available Resources on-line • SPP ports over the interchange schedules from the EIS Market (no internal schedules) in order to serve as a “NSI True-Up” • EIS schedules are used to calculate SPP NSI used by RTBM and the SPP NSI used by RTGEN which is managing ACE. • Process is being used until RTOSS with new Web Mirroring feature is integrated with MOS Jarrett Friddle

6. Other Adjustments for RTBM • When RTOSS is integrated, adjustment schedules will be created to continue this “NSI True-Up” function • SPP expects MPs to start submitting test schedules via RTOSS • SPP expects MPS will want to see impacts through Settlements. • SPP does not think MPs will have the Resources to dual submit schedules to the EIS Market and to Marketplace for SMT. • Web Mirror feature (RTOSS): will allow all schedules submitted to the EIS to also be submitted as tagged “RTBM Only” schedules into the Marketplace RTOSS. • After the DA Market Clears, SPP will determine the net deviation in schedules for each hour the next day Jarrett Friddle

7. Adjustments for RTOSS during SMT cont’d • When RTOSS is integrated, adjustment schedules will be created to continue this “NSI True-Up” function • After DA Market Clears, SPP will determine net deviation in schedules for each hour the next day for the AC system & each DC Tie • This deviation will include DA Dispatchable, Up to TUC and DA Fixed that were and cleared. • will also include any RTBM Only Fixed schedules submitted as Test schedules into the Marketplace RTOSS by 4pm day prior • A schedule will be submitted for the next day with an external area in the AC system as well as one for each DC Tie. • Profiles will be equal and opposite the deviation calculated at 4 pm • Schedules will look like Emergency Schedules for the SPP BA and will not be settled to any Asset Owner. Jarrett Friddle

8. DA Market and DA RUC results • MP concern about the volumes of changes in the commitments from DA Market vs. DA RUC vs. changes made in the COP True-up • SPP acknowledges that by separating the RTBM process away from the commitments in RUC that DA Market/RTBM Market comparisons can be challenging • To this point in SMT, there are several factors that could contribute to deviations between DA Market / DA RUC results and EIS Market Commitments (beyond Centralized Unit Commitment) Jarrett Friddle

9. DA Market and DA RUC results • SPP has identified ways to improve results as well as factors that MPs can consider while performing analysis: • DA Market is dependent on COP commitments, and DA RUC is directly impacted by DA Market clearing. • COP True-Up influences the DA Market initial conditions calculations (min run, min down, max run, etc.) • Compounding the problem, unsupported weekend days have had DA Market and DA RUC run on Fridays and not in normal order. • Initial conditions for the Sunday and Monday have nothing in the COP which is contributing to “strange” commitments/decommitments by DA Market • SPP plans to start running DA Market/DA RUC process on the weekends to correct this issue. Jarrett Friddle

10. DA Market and DA RUC results • Factors to Consider: • Not sure how consistent MPs offering between their EIS and Marketplace. • Varying participation on unsupported days (especially in the DA Market) • Do not have Wind Forecast application integrated • Wind output is using test data • Several MPs not updating Wind Resource Offers from test levels • Just started using outages in DA Market and DA RUC last week • 5 of the supported ODs in July for specific test day scenarios that do not reflect the real-time forecasts Jarrett Friddle

11. DA Market and DA RUC results • Factors to Consider: • DA Market and RUC still not including SFT constraints • May be local constraints committed for by MPs in EIS that are not being captured without including SFT unless the Resources are self-committed. • Market UI and API start/stop defects still exist so “reason” code cannot be relied on for accuracy • Still seeing some unit physical parameters that are preventing commitment (Max Energy and Min/Max runtimes) • SPP hopes to see more consistency in DA Market and DA RUC after fixing weekend problems and improving systems integrations after this week • Reference this COP True-Up Presentation on spp.org • spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Reference Documents Jarrett Friddle