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Pumped Storage Hydro 10 Year Requirement. NEPOOL Markets Committee September 8, 2009 Robert B. Burke – Principal Analyst, Market Development. Background. What is the requirement? Why was this requirement there? What has changed?
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Pumped Storage Hydro10 Year Requirement NEPOOL Markets Committee September 8, 2009 Robert B. Burke – Principal Analyst, Market Development
Background • What is the requirement? • Why was this requirement there? • What has changed? • What is the proposed language change to Manual M-20 Attachment D Supplement A
Pumped Storage Hydro Requirement • At the time of initial commercial operation and at least once every ten (10) years thereafter, a CCA demonstration should be conducted to verify the upper reservoir's total Energy content (MWh) and the station's hourly generating capability at decreasing heads. A similar CCA demonstration should be conducted to determine the time (hours) and Energy (MWh) required to restore the upper reservoir.
Why was this requirement there? • Prior to the wholesale markets, New England operated under an “own load” settlement with regional dispatch of all generation by NEPEX • For billing purposes, each utility performed an “own load” dispatch to meet their actual load • Own load was a paper dispatch of the utility’s resources performed after the fact to meet their actual load • Used a weekly cycle for pumped storage hydro • Own load needed to know the total energy that should be in the upper reservoir at the start of the weekly cycle • Own load needed to know how long it would take to refill the upper reservoir from empty
Why? (continued) • Pumped storage hydro facilities have a 10 year FERC licensing requirement to inspect all structure normally under water • Required dewatering of the upper reservoir to access power shaft • Coordinate both needs into one
What has changed? • Own load no longer used • Wholesale market design requires pumped storage hydro to provide energy remaining in the pond on daily basis • ISO doesn’t need to reconfirm total energy in a full upper reservoir • Now managed by lead market participant • ISO doesn’t need to reconfirm time to refill upper reservoir • Inspections are now performed using robotics • Don’t need to dewater the facility for inspection
Proposed Rule Change • Changes to Manual 20 Attachment D Supplement A • Remove 10 year requirement to conduct upper reservoir’s total energy content • Remove 10 year requirement to determine time to refill upper reservoir from minimum operating level • Redline/strike out version of affected pages of M-20 Attachment D Supplement A provided with this presentation