Department of Market Monitoring Update Eric Hildebrandt Director, - PowerPoint PPT Presentation

Department of Market Monitoring Update Eric Hildebrandt Director, Department of Market Monitoring EIM Governing Body Meeting General Session February 1, 2017

Prices in new EIM areas tracking closely with other adjacent EIM areas $40 PacifiCorp East Arizona Public Service PacifiCorp West Puget Sound Energy NV Energy Average monthly price ($/MWh) $30 $20 $10 $0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 Slide 2

Prices in APS area tracking closely with SCE area prices and net load $70 SCE $60 NV Energy Average hourly price ($/MWh) Arizona Public Service $50 $40 $30 $20 $10 $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 15-minute prices (October – December) Slide 3

Average prices in PSE area lower than PG&E area due to congestion and GHG costs $70 PG&E $60 PacifiCorp West Average hourly price ($/MWh) Puget Sound Energy $50 $40 $30 $20 $10 $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 15-minute prices (October – December) Slide 4

Growth in EIM transfer capacity significantly increases market competiveness Total average transfer capacity (Oct 2016 – Jan 2017)* Puget 300 MW 300 MW 179 MW PacifiCorp West 0 MW* PacifiCorp 153 MW East 109 MW 503 MW NV 857 MW Energy 708 MW CAISO 896 MW 566 MW 400 MW 3,600 MW APS 2,400 MW Slide 5

EIM transfers usually out of APS into CAISO, while PSE transfers into and out of PacifiCorp West Average final EIM transfers (Oct 2016 – Jan 2017)* Puget 47 MW (50%) 42 MW (49%) PacifiCorp 39 MW (43%) West PacifiCorp 92 MW 37 MW East 197 MW (67%) (31%) (75%) 127 MW NV (52%) Energy 14 MW (9%) 41 MW CAISO 84 MW 115 MW * Percentages (28%) (32%) (51%) show intervals with transfer in 262 MW (80%) APS each direction. 21 MW (15%) Slide 6

Congestion into EIM areas continues to be infrequent Frequency of 15-minute congestion in (Oct 2016 – Jan 2017)* Puget 5% (70 MW) 2% (187 MW) PacifiCorp 8% (63 MW) West 47% (0 MW) PacifiCorp 5% 18% 7% (212 MW) East (157 MW ) (443 MW) 1% NV (106 MW) Energy 2% (148 MW) 10% CAISO 13% 1% MW (81 MW) (54 MW) ( 409 MW) * Average transfer MW during 9% (186 MW) APS congested intervals in parentheses. 3% (187 MW) Slide 7

EIM areas rarely separated from CAISO by congestion Frequency of congestion in 15-minute market (Oct 2016 – Jan 2017)* Puget PacifiCorp 8% (63 MW) West 47% (0 MW) PacifiCorp 5% (212 MW) East NV Energy 2% (148 MW) 10% CAISO 1% MW (81MW) ( 409 MW) * Average transfer MW during APS congested intervals 3% (187 MW) in parentheses. Slide 8

EIM area prices separated from CAISO by congestion only a small percentage of intervals EIM transfers and congestion (October – January) Import congestion Net exporter Net importer from ISO* Average Average EIM area Frequency Frequency 15-minute 5-minute MW MW California ISO 19% 494 81% -531 PacifiCorp East 83% 399 17% -191 1% 1% PacifiCorp West 58% 123 42% -121 5% 7% NV Energy 30% 145 70% -260 1% 0% Puget Sound 49% 107 50% -95 1% 2% Energy Arizona Public 76% 257 24% -134 1% 0% Service Slide 9