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Resolving RTO Seams Issues in the West

Resolving RTO Seams Issues in the West. Wally Gibson, NW Power Planning Council CREPC Scottsdale, Arizona April 18, 2001. Overview of Process. RTO Seams work group of Western Market Interface Committee WMIC: Joint WSCC and RTA committee, including CREPC

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Resolving RTO Seams Issues in the West

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  1. Resolving RTO Seams Issues in the West Wally Gibson, NW Power Planning Council CREPC Scottsdale, Arizona April 18, 2001

  2. Overview of Process • RTO Seams work group of Western Market Interface Committee • WMIC: Joint WSCC and RTA committee, including CREPC • Work group: representatives of the three Western RTOs (Cal ISO, Desert STAR, RTO West), CREPC and marketers • Work group formed in response to CREPC request that WMIC take up FERC’s required interregional coordination function (#8) • Charge: identify and flesh out problems, facilitate communication, propose solutions if appropriate, but not negotiate solutions • Asked RTOs to select their representatives to ensure liaison authority back to ongoing intra-RTO discussions • Long-term goal: Market “as if” one RTO in the West

  3. Geography

  4. Seams Issues Identified - 1 • Scheduling and timeline coordination • Comparison of timelines and processes for three RTOs • Aim: make process transparent to transactions across the West • Potential for this group to suggest solutions to three RTOs • Price reciprocity and rate pancaking across the seams • Problem: Load-based access fees internally, unequal balance of trade among RTOs (California is Western sink) • Alternatives to export/through transaction-based charges: • Transfer payments based on “typical” transaction volume • Reliance on Firm Transmission Rights (FTR) auction revenue to offset fixed costs

  5. Seams Issues Identified - 2 • Compatibility of congestion management and FTR definitions • RTOW and DSTAR: Congestion management via physical flow path rights traded in forward markets - limited RTO role • CISO: Mixed physical/financial rights traded in forward market - active ISO redispatch role using generation adjustment bids. • RTOW: Flow-based rights and dispatch • DSTAR: Contract path-based rights and dispatch (but largely linear system) • CISO: Flow-based internally, contract path at seams (proposal currently on hold) • Who manages across seams?

  6. Seams Issues Identified - 3 • Coordinated operation of phase shifters • Currently used primarily to control excess loop flow around major Western loop under existing WSCC procedures • Potential to use to resolve flow-based vs. contract path discrepancies at seams • Potential to bring phase shifter operation into market-based congestion management scheme • Transmission outage coordination • Currently different procedures and time frames • Market rules alignment - issues being defined and sent to subgroups • Ancillary services markets - subgroup recently formed

  7. Progress To Date • Scheduling timelines: • Recommended changes to RTOW day-ahead timelines • Hourly markets still pose problems • Price reciprocity: Bilateral discussions initiated between RTOs • Congestion management: • Focus on analysis of phase-shifter operations • Awaiting further elaboration of RTOW proposal before going on with other work • Other issues being fleshed out by sub-groups as they are identified • Addressing NERC inquiries on RTO seams efforts • Web site: www.wrta.net/seamsindex.htm

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