Briefing on western energy imbalance market Mark Rothleder Vice - PowerPoint PPT Presentation

Briefing on western energy imbalance market Mark Rothleder Vice President, Market Quality and Renewable Integration Board of Governors Meeting General Session August 31, 2016 – September 1, 2016 Page 1

EIM update • APS & PSE have completed integration and entered parallel operations. • APS & PSE have met all readiness criteria and certified ahead of schedule on Aug. 24 and Aug. 26 respectively. • Portland General Electric’s (PGE) Full Network Model ready for ISO integration. – Enters EIM October 1, 2017 • Idaho Power Company (IPC) implementation agreement filed and approved by FERC. – Enters EIM April 1, 2018 Page 2 Page 2

Gross economic benefits since start of EIM = $88.2M 2014 2015 2015 2015 2015 2016 2016 BAA Total 4 th Quarter 1 st Quarter 3 rd Quarter 4 th Quarter 1 st Quarter 2 nd Quarter 2nd Quarter CAISO $1.24 $1.44 $2.46 $3.48 $5.28 $6.35 $7.89 $28.14 NVE - - - - $.84 $1.70 $5.20 $7.74 PAC $4.73 $3.82 $7.72 $8.52 $6.17 $10.85 $10.51 $52.32 Total $5.79 $5.26 $10.18 $12 $12.29 $18.9 $23.59 $88.2 2016 – Q2 BAA April May June Total CAISO $2.56 $2.24 $3.09 $7.89 NVE $1.09 $1.34 $2.77 $5.2 PAC $4.63 $2.44 $3.44 $10.51 Total $8.27 $6.03 $9.30 $23.59 Page 3 Page 3

15-minute prices continue to be stable PAC West PAC East Pricing Waiver Pricing Waiver NVE Ended NVE Ended Go Live Go Live Page 4

Price discovery waiver ended March 23 Five-Minute Prices in PAC West Five-Minute Prices in PAC East Pricing Waiver Pricing Waiver NVE Ended NVE Ended Go Live Go Live Page 5

Prices in NVE reflective of system conditions Daily Average Price ($/MWh) $100 $120 $140 $160 -$40 -$20 $20 $40 $60 $80 $0 1-Dec 8-Dec 15-Dec 22-Dec 29-Dec 5-Jan 12-Jan 19-Jan 26-Jan 2-Feb 9-Feb 16-Feb 23-Feb Fifteen-minute 1-Mar 8-Mar 15-Mar 22-Mar 29-Mar 5-Apr 12-Apr 19-Apr 26-Apr Five-Minute 3-May 10-May 17-May 24-May 31-May 7-Jun 14-Jun 21-Jun 28-Jun 5-Jul 12-Jul 19-Jul 26-Jul 2-Aug Page 6 Page 6 9-Aug

Net transfers by area Page 7 Page 7

Transfer into ISO by supporting resource type Month Coal (%) Gas (%) Non-Emitting (%) Total 15-Aug 0.02% 86.48% 13.50% 100% 15-Sep 0.00% 92.27% 7.73% 100% 15-Oct 0.10% 99.90% 0.00% 100% 15-Nov 0.00% 25.25% 74.75% 100% 15-Dec 0.00% 15.79% 84.21% 100% 16-Jan 0.00% 28.97% 71.03% 100% 16-Feb 0.00% 22.21% 77.79% 100% 16-Mar 0.00% 12.72% 87.28% 100% 16-Apr 0.00% 46.26% 53.74% 100% 16-May 0.00% 51.63% 48.37% 100% 16-Jun 0.00% 67.89% 32.11% 100% 16-Jul 0.00% 82.42% 17.58% 100% Page 8 Page 8

Counter Factual Import Displacement: 2016 Preliminary CAISO Import and displacement (MWh) by fuel type 200,000 150,000 100,000 50,000 CISO CISO CISO CISO CISO CISO Mwh 0 External External External External External External EIM Area EIM Area EIM Area EIM Area EIM Area EIM Area -50,000 January February March April May June -100,000 -150,000 -200,000 COAL GAS WATR SOLR WIND IMP System OTHER CAISO import GHG emission by fuel type 100,000 80,000 60,000 40,000 Metric-Tons CO 2 20,000 CISO CISO CISO CISO CISO CISO 0 External External External External External External -20,000 EIM Area EIM Area EIM Area EIM Area EIM Area EIM Area January February March April May June -40,000 -60,000 Total -80,000 Difference -100,000 GHG COAL GAS IMP System (Default Rate) 7,529 -8,073 2,106 10,471 -19,571 -314 12,065 Difference Page 9 Page 9

Counter-Factual Export Displacement: 2016 Preliminary CAISO export and displacement (MWh) by fuel type 200,000 150,000 100,000 External External External External External External 50,000 EIM Area EIM Area EIM Area EIM Area EIM Area EIM Area Mwh 0 CISO CISO CISO CISO CISO CISO -50,000 January February March April May June -100,000 -150,000 -200,000 Axis Title COAL GAS WATR SOLR WIND IMP OTHER System CAISO export GHG emission by fuel type 60,000 40,000 20,000 External External External External External External EIM Area EIM Area EIM Area EIM Area EIM Area EIM Area Metric-Tons CO 2 0 CISO CISO CISO CISO CISO CISO -20,000 January February March April May June -40,000 -60,000 -80,000 Total -100,000 Difference COAL GAS IMP System (Default Rate) Series6 GHG -66,411 -36,289 -73,260 -60,564 -32,287 -294,105 -25,293 Difference EIM reduces GHG by total of 291,998 Mtons Page 10 Page 10

Conclusions • EIM dispatch reduces GHG emission by 291,998 MTons for the period January-June 2016. • The secondary dispatch GHG effects associated with EIM transfers to into the ISO to serve load are offset by the GHG reduction effects associated with transfer out of renewables resources displacing external emitting resources. Page 11 Page 11