Parallel Flow Visualization Overview

1. Parallel Flow VisualizationOverview February 27, 2013 BY NARINDER K SAINI Ed Skiba Bps-Co-chairs

2. OVERVIEW • Parallel Flow Visualization (PFV) Status • Background • Objectives • NAESB Responsibility • IDC Input • Recommendation Scope • Proposed Solution • Additional Documents • Next Steps

3. Background: IRO-006 IRO-006 Transmission Loading Relief Each Reliability Coordinator and Balancing Authority that receives a request pursuant to an Interconnection-wide transmission loading relief procedure (such as Eastern Interconnection TLR, WECC Unscheduled Flow Mitigation, or congestion management procedures from the ERCOT Protocols) from any Reliability Coordinator, Balancing Authority, or Transmission Operator in another Interconnection to curtail an Interchange Transaction that crosses an Interconnection boundary shall comply with the request, unless it provides a reliability reason to the requestor why it cannot comply with the request.

4. Background: Interconnections IRO-006-EAST Transmission Loading Relief Procedures for the Eastern Interconnection WEQ-008 Transmission Loading Relief (TLR) – Eastern Interconnection Tools – (IDC)Interchange Distribution Calculator (SDX )System Data eXchange IRO-006-WECC Qualified Transfer Path Unscheduled Flow Relief (WECC) IRO-006-TRE IROL & SOL Mitigation in the ERCOT Region

5. Background: Primary Players IDC SDX

6. Objectives • Generation to load (GTL) impacts reported to the IDC on a real-time basis • More accurate assignment of relief obligations to entities causing congestion • Near real-time data using generator output provided by RC • Include impacts of intra-BA generation-to-load and point-to-point transactions • Differentiate between intra-BA firm and non-firm transmission service • IDC has better data to perform calculations for TLR Levels 3 and 5

7. NAESB RESPONSIBILITY NAESB will establish methodology for assigning the generation to load flows into the appropriate buckets.

8. IDC Input Inter-BA Network Interchange Current IDC Inter-BA Point-to-Point Interchange Current IDC Intra-BA Network NAESBParallel Flow Visualization Intra-BA Point-to-Point NERCS‐ Ref 10132* * http://www.nerc.com/docs/standards/sar/All_Directives_Report_2012-04-05.pdf

9. Recommendation Scope • Draft Standards Address Annual Plan Items: • 1.a Parallel Flow Visualization/Mitigation for Reliability Coordinators in the Eastern Interconnection – Permanent Solution • 1.b Perform consistency review of WEQ-008 Transmission Loading Relief Business Practice Standards and develop recommendation • 1.d Revise TLR level 5 to be treated similarly to TLR Level 3 in terms of treating the next hour allocation separately from that of current hour. (R11020)

10. Proposed Solution • Draft Standards include: • Transmission Loading Relief Process (WEQ-008) • OASIS Postings • Definitions (WEQ-000 and conforming changes)

11. TLR Business Practice Standards • Transmission Loading Relief – WEQ-008 • Two Methods* • Tag Secondary Network Transmission Service, or • Generator Prioritization • Coordination Arrangements • Two-Tier Firm Curtailment • Credit for Redispatch • Dynamic Schedules/Pseudo-Ties • Sub-priorities • Deletions *Assumes that all point-to-point transactions are tagged under NERC standards

12. Methods for Intra-BA Transactions • Tag Secondary Network Transmission Service Method • A method used to submit to the IDC Transmission Service curtailment priority of the Secondary Network Transmission Service using e-Tags. • Generator Prioritization Method • A method used to submit to the IDC Transmission Service curtailment priority of the generator output. • Difference between what is reported and the real-time generator output is firm

13. Methods for Intra-BA Transactions (cont.) • Balancing Authority to choose either one but not both Methods • Balancing Authority can switch • Six month notice • LSE (or entity acting on their behalf) enters • Tags for Tag Secondary Network Transmission Service Method • Generator Priority Schedules for Generator Prioritization Method • Transactions or generation-to-load impacting 5% or greater considered for assigning relief obligations

14. Coordination Arrangements • Coordination Arrangements Types • Coordination Agreements • An agreement between two or more Transmission Service Providers for coordination of: a) granting Transmission Service by honoring a set of Flowgate limits and b) managing real-time congestion through congestion management process. • Unilateral Declarations allowed if Transmission Service Providers cannot agree • Reciprocity • A commitment by two Transmission Service Providers to provide Last-to-Curtail treatment of parallel flows on one another’s system without having a direct Coordination Agreement. • Two-Tier Firm Curtailments – encourages Coordination Arrangements

15. Two-Tier Firm Curtailment • Two-Tier Firm Curtailment • First-to-Curtail • The Firm Transmission Service curtailment priority assigned by the IDC to parallel flows due to a lack of Coordination Agreement, Reciprocity, or unilateral declaration. • Last-to-Curtail • The Firm Transmission Service curtailment priority assigned by the IDC to: a) on-path flows and b) parallel flows when a Coordination Agreement, Reciprocity, or unilateral declaration exists between the Transmission Service Provider experiencing congestion and (at least one of) the Transmission Service Provider(s) on the path of the transaction whose Transmission Service is contributing to the congestion.

16. PFV: First-to Curtail/Last-to-Curtail TSP with Coordination Arrangements

17. Credit for Redispatch • Under TLR level 3 and higher a BA may redispatch its system to meet the target GTL flow, which is the difference between the net GTL flow (net of the forward and reverse impacts) and the IDC calculated relief obligation. • Meeting the target GTL flow may be accomplished by redispatching any generation that may either reduce forward flows or increase reverse flows. • The IDC will determine if a Credit for the Redispatch was accomplished from the start of the redispatch time. If so, the Credit for Redispatch will be applied to the next hour relief obligation calculation by the IDC and will not result in a double counting of non-firm impacts.

18. Dynamic Schedules and Pseudo-Ties • If a transaction is identified as a Dynamic Schedule or a Pseudo-Tie: • During TLR level 3 or higher the impact of this transaction will be determined on a pro-rata basis along with all other transactions and based on the transmission service priorities. • The impact will be assigned as relief obligations to the Sink BA in lieu of curtailing the transaction. • This transaction will not be subject to holding on any TLR level.

19. Sub-priorities • Sub-priorities extended to TLR Level 5a • S1 - GTL shortfall assigned to S4 will reduce the S1 amount in the same or higher curtailment categories, not to be reduced below zero. For S1, the GTL exceedance assigned to S4 will increase the S1 amount in higher curtailment categories, not to exceed their original amount prior to redispatch steps taken by the BA. • S2 – Addresses Intra-BA Transactions, excluding GTL Flows • S3 – GTL flows are set to zero • S4 - GTL shortfalls or exceedancesfrom relief obligations two hours prior shall be assigned to S4. A shortfall will be assigned to S4 of the same curtailment category that received the relief obligation. An exceedancewill be assigned to S4 of the lowest curtailment category.

20. Deletions in WEQ-008 • WEQ-008-1.1 and WEQ-008-1.2 (inconsistent with IRO-006-EAST and potential conflict) • WEQ-008-1.3 (PFV eliminates need for special requirements for markets) • WEQ-008-1.5 (double jeopardy with NERC Standards) • WEQ-008-3.11 (PFV eliminates need for section) • Appendix B (related to WEQ-008-3.11) • Appendix C (appropriate to be moved to IDC Users Manual)

21. OASIS Postings • OASIS Changes • ScheduleDetail template modified to identify firm tagged curtailments as First-to-Curtail or Last-to-Curtail. (CURTAILMENT_ORDER data element in WEQ-002, -003, and -013) • Posting of Unilateral Declarations - WEQ-001-13.1.5 • If the BA declares the Generator Prioritization Method, the Transmission Service Provider (s) within the BAA shall specify the methodology for establishing the Transmission Service firmness of Generator Priority Schedules in its Business Practices that are posted in accordance with Business Practice Standard WEQ-001-13.1.4.

22. Definitions • New • Intra-BA Transaction • Generator Prioritization Method and Tag Secondary Network Transmission Service Method • Generator Priority Schedules • Coordination Agreement and Reciprocity • First-to-Curtail and Last-to-Curtail • Credit for Redispatch • Transmission Loading Relief Transaction Deadline • Remove • Curtailment

23. Additional Documentation • NERC Support Document • Interchange Scheduling and Coordination (INT) • Interconnection Reliability Operations and Coordination (IRO) • IDC Related Documents • IDC Users Manual • System Data eXchange (SDX) Users Manual

24. Next Steps • Informal Comment Period (February 18 – March 18) • Recommendation (WEQ-000, 001, 002, 003, 008, 013) • IDC User’s Manual (forwarded to IDC Working Group) • SDX User’s Manual (forwarded to IDC Working Group) • NERC supporting document • Address informal comments (March – June) • Post for formal comments by end of second quarter

25. Next Steps Meetings March 20-21 – Little Rock, AR (hosted by SPP) April 24-25 – Carmel, IN (hosted by MISO) May 22-23 – Valley Forge, PA (hosted by PJM) June 19-20 – Minneapolis, MN (hosted by OATI)

26. QUESTIONS ?