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Energy Flow on the 1385 Cable November 18, 2003 ISO-NE Markets Committee Dave LaPlante

Energy Flow on the 1385 Cable November 18, 2003 ISO-NE Markets Committee Dave LaPlante. Background. 1385 Cable is needed to support reliability in Southwest Connecticut, especially during construction of new transmission lines in the next 3 to 5 years.

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Energy Flow on the 1385 Cable November 18, 2003 ISO-NE Markets Committee Dave LaPlante

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  1. Energy Flow on the 1385 Cable November 18, 2003ISO-NE Markets CommitteeDave LaPlante

  2. Background • 1385 Cable is needed to support reliability in Southwest Connecticut, especially during construction of new transmission lines in the next 3 to 5 years. • Connecticut DEP has requested NU/LIPA submittal of plans for Replacement or Removal 1385 Cable by December 31, 2003. • Development of interim and end-state plans for ensuring efficient utilization of 1385 Cable is a key element in LIPA decision on Replacement/Removal of 1385 Cable. • Presentation describes proposal to more effectively use the 1385 cable and solicit market participant comment on the proposal

  3. Status of Scheduling on 1385 Cable • Current:1385 flow is zero unless emergency energy needed • End-State:Objective is a separate External Node for 1385 cable allowing Market Participant transactions. End state not likely to be completed until 2005. • To help support continued operation of the cable, an interim solution that flows energy over the cable has been developed • Proposed Interim solution: ISOs will control flow on 1385 in Real-Time to mitigate congestion in one ISO, so long as flow does not incur congestion or reliability concerns in the other ISO

  4. End State Objective • NYISO and ISO-NE support end state solution of a separate External Node representing the 1385 Cable • Separate External Node: • Allows Market Participants to request schedules specifically over this facility • Allows accurate pricing of energy over the facility • Would create a total of three NY/NE interfaces (CSC, 1385, NYN)

  5. End State Objective • Operational issues regarding interaction of the three interfaces and corresponding transfer limits must still be resolved • Level of effort has been evaluated by the ISOs • NYISO level of effort is significant; priorities indicate mid-late 2005 implementation • ISO-NE level of effort is medium; planning will occur to match NYISO implementation date

  6. Benefits of an Interim Solution • Uses the 1385 cable more efficiently • Provides benefits similar to a separate scheduling node prior to implementation of such a node. • Flow over cable will not increase costs in sending area but will improve reliability and economics of receiving area.

  7. Interim Solution Details • 1385 flow may not be requested or scheduled by Participants • 1385 flow only allowed under defined system conditions • Net Interchange over NYISO/ISO-NE interface will not be affected • 1385 flow will be a subset of the total NYISO/ISO-NE flow currently determined by the markets • NYNE A/C ties will automatically adjust based on 1385 flow

  8. Conditions for 1385 Flow • Potential flow on 1385 when all the following occur: • Constraints exist in the ‘receiving’ Control Area that could be alleviated via flow on 1385 • There is currently no active constraint in the ‘sending’ Control Area that is affected by flow on the 1385 • Shifting flow onto the 1385 will not create a new constraint in the ‘sending’ Control Area • Shifting flow onto the 1385 cable will not violate sub-area reliability criteria (voltage/stability)

  9. Process for Setting Flow • ISOs normally evaluate 1385 flow on an hourly basis • No flow will occur if there is no congestion at the ISOs • If future hour forecasts no congestion, ISOs will shift flow back to zero MW • Flow will not be allowed to impact Market Participant transactions on New York / New England interfaces • When all conditions are met, sending ISO will determine MW flow on 1385 and communicate to all required parties

  10. Interruption of Flow • If ‘sending’ area incurs a binding constraint due to 1385 flow, the 1385 flow will be adjusted to zero • In response to a contingency that creates a binding constraint: • If adjusting 1385 relieves the constraint, that adjustment will be requested • If adjusting 1385 has no impact on the constraint, adjustments requests made upon operator discretion

  11. Schedule for Implementation • Joint Operating Agreement between NYISO and ISO-NE under final review • Operations Protocols are under final review • Implementation expected early 2004 • Implementation will be transparent to both NYISO and ISO-NE markets

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