View
50
Download
1
Category
Tags:
Preview:
DESCRIPTION
Forming the Northeast RTO “History and Market Evolution”. Gordon van Welie President and Chief Executive Officer ISO New England Inc. March 15, 2002. Regional Transmission Organization (RTO)- History. January RTO Filings - PowerPoint PPT Presentation
Citation preview
Forming the Northeast RTO“History and Market Evolution”
Gordon van WeliePresident and Chief Executive Officer
ISO New England Inc.
March 15, 2002
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
Regional Transmission Organization (RTO)- History January RTO Filings
ISO - New England, New York ISO, PJM all filed for RTO status
July 12, 2001 FERC Order Conveyed a new vision for larger regional
markets: the four RTO model Mediation Process
Largely a forum for individual interests State and Congressional Involvement
Weighed in on FERC’s July 12, 2001 Order Northeast RTO Discussions
Three Boards unable to reach common vision for NERTO despite good faith efforts, ISO-NE, NYISO forge ahead with common market design
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
A formal alliance is made between ISO New England and NYISO
On January 28, 2002, the Boards of ISO-NE and NYISO signed an agreement to develop a common electricity market and evaluate the development of a Northeast RTO.
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
NYISO and ISO-NE committed to: Developing a common NY and NE energy market
consisting of: Single Day Ahead and Real Time Markets A New England-based “Standard Market Design” and best
practices (incorporating changes required by FERC Market Design rulemaking)
Evaluating the economic benefits and system reliability implications of a NYISO & ISO-NE RTO.
Submitting a filing to FERC by June 30th. Preparing a comprehensive integration plan.
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
Benefits to the Northeast Holds the promise of operational and economic benefits for
stakeholders across the Northeast, including:
Builds on the longstanding relationship between ISO-NE and NYISO to rapidly bring the benefits of an open market to the Northeast.
Improved market efficiencies; Efficiency gained from combining the two grids under
one operator; Improved long-term planning and investment in
transmission capacity; and, Formally integrates an already “natural” electric market, both
from a physical assets perspective and from a market policy perspective.
Facilitates the formation of an RTO under FERC Order 2000.
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
RTO Stakeholder CollaborationRegulator Review
Economic &Security
EvaluationRTO Filing
IntegrationPlan
Three Key Objectives
FERC Filing June 30, 2002
Ongoing Integration Effort
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
Val
ue C
reat
ion
NY
PJM
NEPOOL
Stage 0 - Current State Markets
Stage 1 - NE Implements SMD 1.0
NYISO ISO-NE
PJM
NY
PJM
SMD 1.0
NYISO ISO-NE
SMD 1.0
ISO-NENYISO
Stage 2 - NY Implements SMD 2.0
Stage 3 – Consolidated MarketSTANDARDIZE MARKET DESIGN
CONSOLIDATE MARKETS
NYISOISO-NE
Possible Northeast Market Evolution (including Canada)
SMD2.0
PJM
SMD2.X
Timing
IMO
SMD2.0 ?
MACC
NPCC
MACC
MACC
MACC
NPCC
NPCC
NPCC
IMOIMOIMO
IMOIMOIMO
IMO
IMO
IMO
IMOIMO
PJM
IMO
Month 12 Month 24 Month 36
Note: The extent of standardization within the Canadian market is still to be addressed. Theintent is to create seamless markets, however,the Canadian entities require flexibility on thedegree of convergence with U.S. markets.
Forming the Northeast RTO“RTO Planning”
William J. MuselerPresident and Chief Executive Officer
New York Independent System Operator
March 15, 2002
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
Driving Principles for Planning Efforts ENSURE STAKEHOLDER INPUT Maximize reuse - take maximum
advantage of existing resources, infrastructure, systems andintellectual property of the two ISOs.
Incorporate an orderly, risk-managed transition to the RTO vision.
Maintain integrity of current markets and system reliability.
Adhere to baseline principles in the Mediation Report.
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
June 30th Filing Early June: Complete presentation of the RTO Plan to New York
and New England regulators and stakeholders. The ISOs hope that the Transmission Owners will also join in the
filing. June 30th: RTO Plan Filed with the Commission
The filing will include: Market implementation plan. Functions and characteristics set forth in
the Commission’s Order 2000. Shortcomings identified by the
Commission in the ISOs’previous RTO applications.
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
Operations&
Facilities
Market Design &
SystemImplementation
Market Monitoring &
Mitigation
Economic &ReliabilityEvaluation
TransmissionPlanning, ITCs
& Tariffs
Stakeholder Working Groups
TransmissionGenerators End Users
Public PowerSupplierSectorsStakeholderParticipation
ISOs
NY MANAGEMENT COMMITTEE NEPOOL PARTICIPANTS COMMITTEE
TO/ISOAgreement
Issues
Regulators - State Commissions
Governance(RTO Board &Stakeholders)
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
Web site established to facilitate document/data sharing
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
Canadian Prospects are Encouraging The RTO will enhance already
considerable trading among New York, New England and adjacent Canadian regions.
The IMO and TransEnergie have accepted the ISOs’ invitation to participate in task force meetings. New Brunswick is also interested.
The ISOs are exploring with the IMO the benefits of increased coordination and collaboration in transmission planning, coordinated congestion management and certain identical market rules
Northeast Control Area Northeast Control Area InterconnectionsInterconnections
Ontario
Quebec
New York
NewEngland
Maritime Area
PJM
2500 MW
2400 MW
1000 MW 15
00 M
W
1600 MW
1925 MW
700 M
W
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
Northeastern North American Power Markets - Summer Capacity (MW)
200136,25034,27727,12626,8463,2282,157
NY
NEONT
HQ
NBNS
201040,82934,95631,76628,939
2,7632,201
Source: EIA-411
Forecast
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
HQ
NY
Source: NPCC Summer 2001 Multi-Area Probabilistic Reliability Assessment
ECAR
PJM
NE
MT
ON
S 1,450W 1,750
S 1,500 W 1,600
1,000
1,500
S 2,350 W 2,400
0
1,100
2,150
S 640W 735
400
S 1,950W 2,050
2,000
1,000
225
S 1,400W 1,700
2,550
700
550
450 1,330
1,000
600
80 78
690
Summer 2001 Estimated Transfer Limits
Massachusetts Electric Restructuring RoundtableMarch 15, 2002
In Summary Both parties are engaged,
committed and building momentum toward forming the NERTO;
The NERTO promises significant benefits for consumers in both New York and New England and embraces FERC’s long-range vision for regional electricity markets;
If you understand and agree with the NERTO vision, we encourage you to actively support it.
Recommended