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Dan Woodfin Senior Director, System Operations ERCOT May 1, 2019

Reliability Requirements for Outage Approval Withdrawal. Dan Woodfin Senior Director, System Operations ERCOT May 1, 2019 . Outline. Reliability requirements become increasingly specific closer to real time

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Dan Woodfin Senior Director, System Operations ERCOT May 1, 2019

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  1. Reliability Requirements for Outage Approval Withdrawal Dan Woodfin Senior Director, System Operations ERCOT May 1, 2019

  2. Outline • Reliability requirements become increasingly specific closer to real time • Actions must be taken prior to day-ahead and real-time in order to prepare to meet these requirements • If appropriate preparations are not made in advance, it will be impossible to meet the real-time requirements • Presentation will walk through some key requirements, and how ERCOT meets them, backing up from real-time TAC Outage Withdrawal Requirements 5/1/2019

  3. Real-time Requirements • BAL-002-3 R2. Each Responsible Entity shall develop, review and maintain annually, and implement an Operating Process as part of its Operating Plan to determine its Most Severe Single Contingency and make preparations to have Contingency Reserve equal to, or greater than the Responsible Entity’s Most Severe Single Contingency available for maintaining system reliability. • For ERCOT, Contingency Reserve sufficiency in RT is measured by PRC. • If a Balancing Authority is not able to serve its load and maintain its Contingency Reserve, the Reliability Coordinator should declare an EEA3 per EOP-11-1 Attachment 1. • ERCOT calls EEA 3 for PRC <1375MW TAC Outage Withdrawal Requirements 5/1/2019

  4. Related Protocols 6.5.9.1 Emergency and Short Supply Operation (1) ERCOT, as the single CAO (control area operator), is responsible for maintaining reliability in normal and Emergency Conditions. The Operating Guides are intended to ensure that minimum standards for reliability are maintained. Minimum standards for reliability are defined by the Operating Guides and the NERC Reliability Standards and include, but are not limited to: (a) Minimum operating reserve levels; (b)… TAC Outage Withdrawal Requirements 5/1/2019

  5. Day Ahead Requirements • TOP-002-4 R4. Each Balancing Authority shall have an Operating Plan(s) for the next-day that addresses: • Expected generation resource commitment and dispatch • Interchange scheduling • Demand patterns • Capacity and energy reserve requirements, including deliverability capability • RUC process used to meet this requirement • Ensures sufficient capacity available to cover Load using HASL of Resources (thus ensuring A/S procured in DAM is available) - meets requirement to address capacity and energy reserve requirements TAC Outage Withdrawal Requirements 5/1/2019

  6. Related Protocols 5.5.2 Reliability Unit Commitment (RUC) Process • The RUC process recommends commitment of Generation Resources, to match ERCOT’s forecasted Load including Direct Current Tie (DC Tie) Schedules, subject to all transmission constraints and Resource performance characteristics… (8) The RUC process must treat all Resource capacity providing Ancillary Service as unavailable for the RUC Study Period … TAC Outage Withdrawal Requirements 5/1/2019

  7. Ancillary Services (A/S) Requirements • ERCOT procures A/S in the DAM in order to have sufficient operating reserves in RT • From A/S Methodology: • Reg-Up quantities are based on maintaining frequency for net load variability within the five-minute dispatch interval • RRS quantities are intended to provide sufficient unloaded capacity to protect against underfrequency loadshed for the contingency of any two generating units • Non-Spin quantities are intended to provide sufficient capacity available within 30 minutes to cover 3-hour ahead forecast errors and ramps of net Load • RUC is then used to procure sufficient Resources to serve Load while preserving A/S to use for the purposes it was procured TAC Outage Withdrawal Requirements 5/1/2019

  8. Week-ahead Assessment • ERCOT would not be able to meet its day-ahead and real-time requirements if it did not prepare in advance to do so • There are many activities that are performed in advance to ensure reliable operations in real-time • Particularly, on the issue of operational resource sufficiency, ERCOT generally looks up to one week into the future • Weather forecast models become sufficiently accurate 7 days out • Load, wind and solar forecasts are produced for the next 168 hours • COPs from non-IRR resources are “incomplete” more than one day into future; resource availability assessment beyond one day is based on seasonal HSLs minus outaged capacity • This assessment typically does not result in action TAC Outage Withdrawal Requirements 5/1/2019

  9. Addressing Uncertainty • In general, the uncertainty around any forecast is higher the further in advance a forecast is created • Market response is preferable • Any actions would be made as late as possible in order to allow market to respond on its own • Any such action would be infrequent/exceptional • Operators must have flexibility to take advance actions to prepare to meet their day-ahead and real-time NERC and Protocol requirements TAC Outage Withdrawal Requirements 5/1/2019

  10. NERC Reliability Coordinator Definition • The entity that is the highest level of authority who is responsible for the Reliable Operation of the Bulk Electric System, has the Wide Area view of the Bulk Electric System, and has the operating tools, processes and procedures, including the authority to prevent or mitigate emergency operating situations in both next-day analysis and real-time operations. The Reliability Coordinator has the purview that is broad enough to enable the calculation of Interconnection Reliability Operating Limits, which may be based on the operating parameters of transmission systems beyond any Transmission Operator’s vision. TAC Outage Withdrawal Requirements 5/1/2019

  11. Weekly Outage Assessment • In most cases, this uncertainty is not sufficient to result in any advance action by ERCOT. However, ERCOT may consider additional actions if there are: • Significant upcoming weather conditions that may result in higher than normal uncertainty; or, • Significant number of outages that would reduce resource availability during already tight conditions • The specifics of this consideration are dependent on the unique facts of the situation. The following examples, and combinations thereof, would lead to different overall levels of risk: • Hot conditions vs. cold conditions – more risk for cold weather • First extreme cold of year versus fifth – more winterization risk • Wet cold front versus dry cold front – more icing risk • Severity of cold and wind - more winterization risk • Extent of cold across ERCOT – risks on more facilities • Severity of conditions in other Regions – risk of import unavailability TAC Outage Withdrawal Requirements 5/1/2019

  12. Advance Action Notice (AAN) • It would not be possible to quantify each combination of potential risks that could occur in every situation more than a week in advance • ERCOT has suggested in NPRR 934 that it will communicate its assessment of the risks that are relevant to a particular upcoming event with as much advance notice that is practical TAC Outage Withdrawal Requirements 5/1/2019

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