Energy Imbalance Market for...
Transcript of Energy Imbalance Market for...
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Energy Imbalance Market for California? CMUA Annual Conference, Silverado Resort, Napa
April 3, 2014
Jonathan M. Weisgall Vice President, Legislative and Regulatory Affairs
MidAmerican Energy Holdings Company
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MidAmerican Energy Holdings Company
• $70.1 billion of assets
• $12.6 billion of revenue
• 8.4 million electric and
natural gas customers
worldwide
• 24,852 miles of electric
transmission and 516
substations
• 19,700 employees
• More than 33,000 MW
of owned and
contracted generation
capacity
• 25% of this generation
capacity is renewable
or noncarbon
United Kingdom
Philippines
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MidAmerican Owned Wind Resources
(Regulated)
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Regional Transmission Organizations
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Western Interconnection Balancing Authorities
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CAISO-PacifiCorp EIM Basics
• Balances electricity supply and demand every five
minutes by choosing least-cost resource to respond to
energy imbalance in real-time during times of under- or
over-generation
• Leverages geographical diversity to optimize available
regional resources
• Automation more efficiently dispatches resources
across balancing authorities that rely on manual
dispatch and extra reserves to maintain reliability
• Takes advantage of unused capacity on transmission
lines
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What EIM Is Not
• EIM is not a Regional Transmission Organization (RTO)
– All participating balancing authorities maintain control of their
assets and associated reliability compliance obligations
• EIM participation is not mandatory
– Voluntary
– No exit fees; participants can terminate participation at any time
• Will not affect PacifiCorp’s contingency reserve
obligations or reserve sharing agreements
• Does not require that parties consolidate balancing
authority areas
• Does not change PacifiCorp’s balancing responsibilities
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Projected EIM Benefits
• Cost savings for customers:
– Demand will be met with least-cost available resources in real-time, drawn
from a larger pool
– Help assure existing assets are used as efficiently as possible
– Annual benefits to PacifiCorp/CAISO customers: $21-$129 million
• Improved renewable integration:
– Helps integrate renewable resources by capturing the benefits of geographical
diversity of load and resources
– Optimizes the use of renewable energy
• Increased reliability:
– Increases visibility, situational awareness and coordination across larger
portions of the Western grid
– Leveraging ISO’s existing systems will create added system redundancy and
back-up capabilities
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EIM Costs vs. Benefits
• Curtailment of renewables reduced at times of
over-generation
• Modest start-up costs
• Manageable ongoing costs
• Opportunity to send more appropriate pricing
signals for provision of imbalance service
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• Began separate process 4/13 to discuss EIM with
customers and to develop OATT revisions
• Fully transparent process – Webinars
– Written comments
– Workshops
– Individual meetings/conference calls
• Provided numerous opportunities for customer and
stakeholder feedback
• Prepared FERC filing to incorporate feedback
PacifiCorp Stakeholder Process
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EIM Implementation Timetable
• Feb. 28, 2014: CAISO submitted to FERC its EIM amendments
to its Open Access Transmission Tariff
• Mar. 25, 2014: PacifiCorp filed with FERC proposed revisions to
its OATT to participate in the EIM as first EIM entity
• April 2014: NV Energy will file for state approval
• May 2014: CAISO board will seat Transitional Committee being
formed to recommend long-term governance structure
• July-Sept. 2014: PacifiCorp-CAISO conduct market simulation
• October 1, 2014: EIM goes live
• March 2015: NV Energy files tariff amendment with FERC
• Oct. 1, 2015: NV Energy joins EIM
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