Energy Imbalance Information Session · • Basin Electric Power Cooperative • Wyoming Municipal...

Energy Imbalance Information Session

John PaulsenEnergy Management and Marketing Manager

March 25, 2020

1Energy Imbalance Information Session

Agenda

• Background information

• Current Activities

• Next Steps

• Questions

Energy Imbalance Information Session 2

Markets Are Here

Energy Imbalance Information Session 3

Bi-Lateral vs Organized Markets

• Independent buyers and sellers of energy products get together and transact with each other. Price and terms are agreed to by the two parties.

• An organized market is the mechanism through which energy products are bought and sold. Either a full market (energy, capacity, and ancillary services) or an energy imbalance market.

Energy Imbalance Information Session 4

WAPA’s Position on Markets

Energy Imbalance Information Session 5

• No ‘one size fits all’ solution

• Stay strategic, proactive and aligned with our mission

• Goal: Create the best possible outcome for our customers and our organization

Energy Imbalance & Energy Imbalance Markets

Energy Imbalance Actual Production or

Usage

ScheduledProduction or

Usage

Today: WAPA handles imbalance for its balancing authorities• We use either hydro or bilateral agreements to handle EI• EI calculated and priced hourly• Region settles and bills each customer

Future: Market Operator handles imbalance• Market Operator optimizes market resources to supply EI • EI calculated and Locational Marginal priced sub-hourly• Market Operator does some or all settlement and billing

Energy Imbalance Information Session 6

Energy Imbalance Options

• California Independent System Operator (CAISO) Energy Imbalance Market (EIM)

• Southwest Power Pool (SPP) Western Energy Imbalance Service (WEIS)

Energy Imbalance Information Session 7

Why is WAPA interested in EIM/EIS?

Ensure reliable delivery of our hydropower while adjusting to a changing energy mix• Respond to customer feedback requesting WAPA to lead

organized market discussions• Address WAPA balancing authority limitations• Facilitate integration of variable resources• Enable participants who want to optimize their resources

Energy Imbalance Information Session 8

CAISO EIM• In operation since

2014 • WAPA’s Sierra Nevada

Region to join in 2021

Energy Imbalance Information Session 9

SPP WEIS

EI webinar March 2020 | 10Energy Imbalance Information Session 10

WEIS

• Go live scheduled for February 2021• WAPA’s Rocky Mountain and a portion of Upper

Great Plains Regions along with the Colorado River Storage Project facilities to join at that time

• Also joining• Tri-State Generation and Transmission Association• Basin Electric Power Cooperative• Wyoming Municipal Power Agency• Municipal Energy Agency of Nebraska

Energy Imbalance Information Session 11

DSW Activities

• Review transmission capability of connections to WEIS footprint

• Benefits Study being conducted by E3 to compare relative market results between CAISO EIM and WEIS

• Gap Analysis being conducted by Utilicast to provide understanding of cost and requirements to participate in either market

Energy Imbalance Information Session 12

Benefit Study Participants2019 Peak Demand from Each Entity’s

Perspective

1 AEPCO Arizona Electric Power Cooperative

649 MW

2 CAWCD Central Arizona Water Conservation District

446 MW

3 SPPA Southwest Public Power Agency

866 MW

4 WAPA DSW

Western Area Power Administration Desert Southwest Region

1,688 MW

Energy Imbalance Information Session 13

SW Region + WACM Zonal Representation

Energy Imbalance Information Session 14

CAWCD

MEAD

PNM

EPETEP

PV

SRP

APS

WALC

AEPCO

SPPA

PACE

TEP

SRP

SCE

SDGE

SCE

LADWP

PACE

AEPCO

IIDSCE

VEA

SRP

PV

PV

PV

SCE

LADWP

CAWCD

SPPA

AEPCO

PV

WACM

PNM

APS

NVP

LADWP

WACM

NWE

WALC

PSCO

Gap Analysis • Current state operations vs WEIS or CAISO EIM

operations• Systems • Resources• Training

Energy Imbalance Information Session 15

Next Steps• Data gathering for benefits study and gap analysis• Results expected this summer• Continued customer engagement• Utilize WAPA’s Decision Framework• Your thoughts and suggestions are welcome• DSW web page

Energy Imbalance Information Session 16

Energy Imbalance Information Session 17

John Paulsen(602) 605-2557Paulsen@wapa.gov

Jim Kendrick(602) 605-2555Kendrick@wapa.gov

Stacy Russ602-605-2885Russ@wapa.gov

Contacts

Questions?

Energy Imbalance Information Session 18