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LOAD RESPONSE SUMMER 2001 AND BEYOND

LOAD RESPONSE SUMMER 2001 AND BEYOND. Robert B. Burke NEPOOL Markets Committee January 9, 2001. WINTER 2001 PILOT. Involves Internet based communication Distribution of 5 minute prices Response to interruption request from ISO Fixed payment. BEYOND THE PILOT.

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LOAD RESPONSE SUMMER 2001 AND BEYOND

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  1. LOAD RESPONSE SUMMER 2001 AND BEYOND Robert B. Burke NEPOOL Markets Committee January 9, 2001

  2. WINTER 2001 PILOT • Involves Internet based communication • Distribution of 5 minute prices • Response to interruption request from ISO • Fixed payment

  3. BEYOND THE PILOT • Load response for June 2001 and beyond • Involves Internet based communication • Must start signing-up program participants May 1 • Includes interruptible load and distributed generation

  4. TIMELINE • Interruptions available by June 1 • Commence signing up participants May 1 • Receive FERC approval by May 1 • File at FERC by March 1 • NPC approval prior to February 15 • MRP changes recommend to NPC by January 31

  5. WHAT KIND OF LOAD RESPONSE? • Price responsive load • Click and respond to ISO request for interruption within <30 minutes • Curtail consumption based upon Energy Clearing Price

  6. WHAT KIND OF PAYMENTS? • Reserve payment for those that can and will respond in <30 minutes • Energy payment for reductions

  7. BASIS OF PAYMENTS • Performance based • Make reserve payments at the TMNSR or TMOR clearing price (as appropriate) • Make interruption payments at the ECP

  8. WHO IS ELIGIBLE? • Any customer in New England capable of at least 100 kW/hour interruption • Customer must have interval metering • For reserve type must be capable of interruption within 30 minutes of request • Can be generation brought on-line or load reduction • Customer must be connected to Internet and use an approved provider vendor

  9. WHO CAN SIGN AN INTERRUPTIBLE CONTRACT • Any NEPOOL Participant can sign-up a customer • Contract must run at least 3 months and terminate at the end of the month • NEPOOL Participant is responsible for insuring compliance with state regulations

  10. Asset Id # 1701 Standard Offer Load Present System Model Initial Conditions: Hour 1400 50 % 20% 30 % Participant A Participant C Participant B

  11. Asset Id # 1701 Standard Offer Load Present Model1,000 MW Load Before Interruption: Hour 1400 Load for Asset 1701 1000 Mwh -1000 Mwh 50 % 20% 30 % Participant A Participant C Participant B -200 Mwh -500 Mwh -300 Mwh

  12. Asset Id # 1701 Standard Offer Load Present Model100 MW Interruption Before Interruption: Hour 1400 ECP = $80 Load for Asset 1701 1000 Mwh Part. B signs upLoad for interruption 100 Mw @ ECP > $75 Part. C signs upLoad for interruption 100 Mw@ ECP > $100 -900 Mwh 50 % 20% 30 % Participant A Participant C Participant B -180 Mwh -450 Mwh -270 Mwh Incorrect Treatment

  13. Asset # 1706 Asset # 1705 Interrupt Load C Interrupt Load B Asset Id # 1701 Standard Offer Load Proposed Changes - Step 1 Before Interruption: Hour 1400 ECP = $80 Load for Asset 1701 1000 Mwh Part. B signs upLoad for interruption 100 Mw @ ECP > $75 Part. C signs upLoad for interruption 100 Mw@ ECP > $100 +100 Mwh -900 Mwh 50 % 20% +0 Mwh 30 % Participant A Participant C Participant B -180 Mwh -450 Mwh -270 Mwh

  14. Asset # 1706 Asset # 1705 Interrupt Load C Interrupt Load B Asset Id # 1701 Standard Offer Load Proposed Changes - Step 2 Before Interruption: Hour 1400 ECP = $80 Load for Asset 1701 1000 Mwh Part. B signs upLoad for interruption 100 Mw @ ECP > $75 Part. C signs upLoad for interruption 100 Mw@ ECP > $100 1705& 1706 +100 Mwh -100 Mwh -900 Mwh +0 Mwh 50 % 20% 30 % Participant A Participant C Participant B -300 Mwh (1701) +100 Mwh (1705) -200 Mwh Participant B -200 Mwh -500 Mwh -300 Mwh Meter Reader involvement in data incorporation of 1705 & 1706

  15. New type of interruptible load Internet directed using approved vendor No telemetry requirement besides Internet connection to meter Energy credit for interruption, ICAP credit, Reserve credit (10 minute non-spin, 30 minute operating reserve) Payment and cost allocation mechanisms MRP and OP CHANGES

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