Parking Lot Item 19. BPS Bert Bressers 10/31/2011 Firm rights of resources that have a Firm priority...

Parking Lot Item 19. BPS

Bert Bressers 10/31/2011

Firm rights of resources that have a Firm priority to what load (Sink area granularity)

Parking Lot Item 19. BPS• Flowgate Allocation option and Hybrid option: Is there an expectation that the Firm GTL

impacts of Non-Markets and Firm Market impacts of Markets as calculated by IDC Software applying new BPS rules, will match (within acceptable range) the Firm GTL impacts of non-markets and Firm impacts of markets as calculated, “granted” and used by Tariff calculations. If not why not. If there is an expectation, how do we accomplish that?

• Status: Open• “Impact of NITS on Parallel Flow Visualization – If a resource has firm rights does it automatically ha

ve firm rights for the entire/whole load of TSP Load?” In the meeting the issue was framed as “The granularity of transmission service granted under the OATT will be at the same granularity in the parallel flow visualization calculation in the IDC.” In the April 28-29, 2011, meeting, the subcommittee was asked if anyone wanted to make a motion to include this concept into the Options under consideration. There was no motion to include the concept in the Options. See the April 28-29, 2011 Meeting Minutes, Item 4.

• • The subcommittee decided to discuss this issue in the FTC/LTC Subgroup. The co-chairs have the

expectation that this issue will be developed and some proposal will be brought to the full subcommittee at the next BPS meeting. If no proposal is presented/developed, the issue may be dropped from consideration under the Parallel Flow project scope. (9/13/11)

• This item was discussed during the April 11-13, 2011, meeting under the discussion topic

http://www.naesb.org/pdf4/weq_bps041111a4.doc

http://www.naesb.org/pdf4/weq_bps041111a4.doc

http://www.naesb.org/pdf4/weq_bps042811fm.doc

Overview of the current practices how we

calculate Firm priority of GTL impacts of Markets

and Non-Marketsfor curtailment purposes


Explanation Slide 6• Slide 6 shows 3 Entities:

– Entity A Market A existing of multiple BA Areas– Entity B Market B existing of a single BA Area,

(note: historical BA Areas are still modeled separate in the IDC Model and Market Flow Calculator models)

– Entity C Non Market C, single BA

• On left lower corner the impact of Entity A on the flow gate is indicated, split up by priority Firm (= Red) and Non Firm (=purple).

• The arrows within Entity A indicate the flows on the system that cause the Firm impacts (Red: Firm GTL and Firm transfer flows) and the flows that cause the Non Firm impacts (Purple: Non Firm transfer flows)

BA BA

BA

Historical BA

BA

Historical BA

Historical BA

Market footprint multiple BA’s (A)

Market footprint single BA (B)

Non Marketsingle BA (C)

Current situation MarketsHow Firm impacts of Markets are established

LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm

Non Firm

Flow gate impact in MW by resource A of Market A

resource A

Firm (Limit set by JOA/CMP for all the impact of the Market A)

Non-Firm (part of the transfer flow between BA’s of Market is Non-Firm)

A

Transfer F

Transfer NFGTL F

Current situation Markets• Note: • The current CMP/JOA process that MISO, PJM, SPP have in place, calculates a Firm flow (impact)

entitlement and an NN6 flow entitlement for all RCF flow gates for the SPP Market, MISO Market and PJM Market.

• Markets calculate their total market impact on flow gates and use the Firm flow entitlement and NN6 flow entitlement to assign Firm, NN6 and NH2 priority to the Market impacts on flow gates for the purpose of reporting the market impacts by priority to NERC IDC for curtailment purposes.

• In slide 6 it is presented as if part of the transfer flow between BA’s of the Market is Firm and part of the transfer flow is Non Firm and the GTL is all Firm.This assumes that the GTL within BA’s of Market is Firm and part of the transfer flow between BA’s of Market is Firm up to the level of the Firm flow entitlement. (impact GTL Firm + impact transfer flow Firm = Firm flow entitlement)The remainder of the impact of the transfer flow between BA’s of Market in excess of the Firm flow entitlement is Non Firm. The Non Firm transfer flow represents the Market flow impact that has a priority NN6 and NH2.

BA BA

BA

Historical BA

BA

Historical BA

Historical BA




Current situation MarketsHow Firm impacts of Markets are established.

LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm

Non Firm

Flow gate impact in MW by resource A of Market B

resource A

Firm (Limit set by JOA/CMP for all the impact of the Market B)

Non-Firm (Part of the transfer flowBetween historical BA’s is Non Firm)

B

GTL FTransfer F

Transfer NF

BA BA

BA

Historical BA

BA

Historical BA

Historical BA




Current situation Non-MarketsHow Firm impacts of Non-Markets are established

LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm

Flow gate impact in MW by resource A of Non-Market C

resource A

All impact of resource A serving load of Non Market BA C considered Firm by IDC

C

GTL FGTL F

LSE

GTL F



Review of 3 possible options of the BPS giving direction to the NERC IDC WG.

Summary of the possible Options to address Parking Lot issue 19.

1. No specification in the BPS practices to what load (sink area) a resource that has a Firm priority will get Firm rights on a flow gate.

2. Include specification in the BPS practices that the Firm rights of a resource that has a Firm priority will be calculated by IDC consistent with how the Firm rights were evaluated and granted by Tariff studies. Applying same granularity as the Tariff study for the Source and Sink.

3. Include specification in the BPS practices that the Firm rights of a resource that has a Firm priority will be calculated by IDC consistent with how the Firm rights were evaluated and granted by Tariff studies and/or how Firm rights were established by FERC filed Seams agreementspreference

No specification in the BPS practices to what load (sink area) a resource that has a Firm priority will get Firm rights

on a flow gate.1

Option 1.

Impact Option 1.

• IDC WG has no business practice and no direction how to design the PFV with respect to calculating the impact of the resources that have Firm priority.

• It is to the discretion of IDCWG to choose from following options:– Firm priority is to the load of the Market.– Firm priority is to the load of the historical BA of the Market. (and not to all of the

Market load)– Firm priority is to the load of the BA only.– Firm priority is to the load of the LSE only.

• IDC WG (without guidelines or business practices) has to make a decision how to design the PFV logic and that decision has a major impact on the ultimate results of the flow gate impacts that have Firm priority.

• IDC WG will most likely ask ORS for direction and ORS will most likely ask BPS to give direction.

• If IDCWG doesn’t ask for direction and design the PFV logic assuming Firm priority of market resources is Firm to all of the market load, part of Industry might not support this option, which will most likely result in a possible delay of implementation of the PFV.

Option 1.: No specification in the BPS practices to what load (sink area) a resource that has a Firm priority will get Firm rights on a flow gate

BA BA

BA

Historical BA

BA

Historical BA

Historical BA




New situation Markets Option 1.

LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm

Flow gate impact in MW by resource A and B of Market A

Resource AFirm priority

Firm (resource A: All GTL to the BA and the impact of transfer flow to other BA’s of the Market from resource A is Firm)

Non-Firm (resource B)

Resource BNon-Firm priority

A

AB

C

Transfer NF

Transfer F

Transfer FGTL F

GTL NF

All transfer flow from Firm resource is Firm

BA BA

BA

Historical BA

BA

Historical BA

Historical BA




New situation MarketsOption 1.

LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm

Flow gate impact in MW by resource A and B of Market B


Firm (resource A) All GTL to the historical BA and the impact of transfer flow to other historical BA’s of the Market from resource A is Firm)



B

Transfer NF

Transfer F

Transfer F

GTL F

All transfer flow fromFirm resource is Firm

BA BA

BA

Historical BA

BA

Historical BA

Historical BA




New situation Non-MarketsOption 1.

LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm

Flow gate impact in MW by resource A and B of Non-Market C



Firm (resource A)


C

GTL NF

GTL NF

LSE

GTL FGTL F

GTL F

Include specification in the BPS practices that the Firm rights of a resource that has a Firm

priority will be calculated by IDC consistent with how the Firm rights were evaluated and granted

by Tariff studies..

2

Option 2.

Impact Option 2.

• IDC WG will have a business practice and a direction how to design the PFV with respect to how to calculate the impact of the resource that has Firm priority.

• IDCWG will most likely implement following options, for entities to choose from on a resource by resource basis, based on the supporting Tariff study:– Firm priority is to the load of the Market.– Firm priority is to the load of the historical BA of the Market.– Firm priority is to the Load of the BA.– Firm priority is to the load of the LSE only.

• Markets that had the Firm priority of resources set through DNR process, prior to consolidation to a single BA and/or implementation of the Market, might get Firm rights to a historical BA of the Market only without getting Firm rights for transfer flow from that Firm resource between historical BA’s of the Market. This is assuming that the reference to the Tariff studies will be interpreted as a DNR has only Firm rights to the BA it originally was located in when the study was performed.

• Energy imbalance markets that include Firm scheduled flow (based on Firm PtP) between BA’s of the Market in their Market flow, will not get Firm rights for that transfer between the BA’s of the Market. This assuming that the reference to the Tariff studies will be interpreted as a DNR has only Firm rights to the BA it originally was located in when the study was performed

Option 2.: Include specification in the BPS practices that the Firm rights of a resource that has a Firm priority will be calculated by IDC consistent with how the Firm rights of the resources were evaluated and granted by Tariff studies..

BA BA

BA

Historical BA

BA

Historical BA

Historical BA




New situation Markets Option 2. (all transfer flow Non Firm)

LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm

Non Firm



Firm (resource A)Only the GTL of the BA’s of the marketwill get Firm rights, not the transfer to other BA’s)

Non-Firm (resource B and A)


A

Transfer NF

Transfer NF

Transfer NFGTL NFGTL F

BA BA

BA

Historical BA

BA

Historical BA

Historical BA




New situation MarketsOption 2.(all transfer flow Non Firm)

LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm

Non Firm



Firm (resource A)Only the GTL of the historical BA’s of the marketwill get Firm rights, not the transfer to other historical BA’s)

Non-Firm (resource B and A)


BTransfer NF

Transfer NFTransfer NF

GTL F

BA BA

BA

Historical BA

BA

Historical BA

Historical BA





LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm




Firm (resource A)


C

GTL NF

LSE

GTL FGTL F

GTL F

GTL NF

Include specification in the BPS practices that the Firm rights of a resource that has a Firm priority will be

calculated by IDC consistent with how the Firm rights were evaluated and granted by Tariff studies and/or how

Firm rights were established by FERC filed Seams agreements

3

Option 3.

Impact Option 3.

• IDC WG will have a business practice and a direction how to design the PFV with respect to how to calculate the impact of the resource that has Firm priority.

• IDCWG will most likely implement following options, for entities to choose from on a resource by resource basis, based on the supporting Tariff study or a FERC filed Seams agreement:– Firm priority is to the load of the Market– Firm priority is to load of the historical BA.– Firm priority is to the load of the BA.– Firm priority is to the load of the Market however only part of the transfer flow across

boundaries of the historical BA or across boundaries of the BA’s of the Market will be Firm limited by Seams agreements.

– Firm priority is to the load of the LSE only.

• Firm impacts of Markets on flow gates will stay pretty much same if the current JOA/CMP Seams agreements will continue to exist..

Option 3.: Include specification in the BPS practices that the Firm rights of a resource that has a Firm priority will be calculated by IDC consistent with how the Firm rights were evaluated and granted by Tariff studies and/or how Firm rights were established by FERC filed Seams agreements

BA BA

BA

Historical BA

BA

Historical BA

Historical BA




New situation Markets Option 3.

LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm



Firm (resource A) All GTL to the BA and part of the impact of transfer flow to other BA’s of the Market from resource A is Firm.

Non-Firm (resource B and part ofTransfer of resource A)


A

Transfer NF

Transfer NFTransfer F

(part of the transfer flow from Firm resource is Firm)

BA BA

BA

Historical BA

BA

Historical BA

Historical BA




New situation MarketsOption 3.

LSE

LSE

LSE

LSELSE

LSEFlow gate

Firm



Firm (resource A) All GTL to the historical BA and part of the impact of transfer flow to other historical BA’s of the Market from resource A is Firm)

Non-Firm (resource B and part of theTransfer flow of resource A)


B

Transfer NF

Transfer NF

Transfer F

GTL F

(part of the transfer flow from Firm resource is Firm)

BA BA

BA

Historical BA

BA

Historical BA

Historical BA





LSE

LSE

LSE

LSELSE

LSE

Flow gate

Firm




Firm (resource A)Gen-to-Load from A to BA C


C

GTL NF

LSE

GTL FGTL F

GTL FGTL NF



Recommendation

Recommendation to address Parking Lot Item 19.

NAESB PFV Practices will include guidelines and requirements for NERC IDC WG for the design of PFV that will: Allow for continuation of existing Seams agreements Allow for establishing new Seams agreements Allow for implementing calculation of Firm priority in

accordance with existing Tariff Studies.

Some details of what the recommendation should accomplish

• NAESB PFV Practices will include sufficient guidelines and requirements for NERC IDC WG specifying how to design the PFV logic that calculates the Firm impact on flow gates of resources that have a Firm priority.

• The guidelines will specify different options that need to be implemented by NERC IDC WG that allow entities to choose how PFV logic will calculate the Firm impact of resources that have Firm priority in their specific situation.

• The options will include:– Defining the Sink granularity for a resource that has Firm priority. Options to choose from:

LSE area, historical BA Area, BA Area, TSP Area or Market Area. The resource that has Firm priority will only have Firm impact calculated on a flow gate for the transfer flow from the resource to the specified sink area.

– Limiting the amount of Firm impacts on a flow gate for an Entity to a specified agreed upon value. This will allow for continuation of existing Seams agreements and implementation of new Seams agreements that limit the Firm rights of Entities on flow gates.

• The PFV Practices will include guidelines and practices for Entities how to determine which option they are entitled to use and select. The guidelines and practices will be based on complying with Tariffs and Seams agreements filed with FERC.

Parking Lot Item 19. BPS Bert Bressers 10/31/2011 Firm rights of resources that have a Firm priority...

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