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Impact Calculation – BPS Issues

This document discusses the current implementation of the PFV tool for impact calculation in the context of BPS Issues. It explores the use of GLDF within BA and native/transfer methods for markets with multiple LBAs, and highlights the need for a clear prioritization methodology to ensure comparable treatment between entities. The document also addresses the differences in impact results between the standard GTL GLDF and native/transfer calculations, and recommends the BPS to review and recommend the impact calculation for the Permanent Solution.

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Impact Calculation – BPS Issues

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  1. Impact Calculation – BPS Issues NAESB BPS Mtg October 11, 2011

  2. Background • The current implementation of the PFV tool includes the ability to perform the GTL impact calculation based upon; • 1) GLDF within BA • 2) native/transfer for markets/BAs with multiple Local Balancing Authorities (LBAs) • These two methods were included because they are utilized today with the current congestion management (e.g. CMP)

  3. Issues • Depending upon the final prioritization methodology implemented, having multiple ways to calculate impacts will likely create non-comparable treatment between entities • The need for the native/transfer implementation is unclear, depending upon the final Permanent Solution. The impact results between the standard GTL GLDF and native/transfer will be different based upon current IDC/TLR calculations. • Therefore, the curtailment responsibility assignments will be different depending upon the calculation type.

  4. 1 2000 4800 Non-CMP Market BA Figure 1-a Non-CMP Market Generation-to-Load (GTL) 2 800 3 2000

  5. Transfer component from Group 3 to Group 2 MN IN 2 3 5000 3000 7500 5000 4500 6000 IA Figure 2-a CMP Market GTL (Market Operation) 1

  6. Recommendations • The BPS (or sub-team with OATI participating) should review and recommend the “impact calculation” once the Permanent Solution is being finalized as it has equity impacts depending upon how it is implemented. • The BPS should determine whether multiple impact calculations should be developed (or allowed), if a common prioritization method is ultimately approved. • If there are multiple impact calculation methods implemented, and selectable by entities, the BPS should set rules that outline ability to utilize the different methods.

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