PAH Examples with Regulation and Reserves

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1 PAH Examples with Regulation and Reserves Rebecca Stadelmeyer Market Service Operating Committee September 13, 2016

2 Unit MW levels using Regulation MW Unit ICAP and Economic Maximum Unit UCAP Regulation High Limit Regulation Set Point Regulation Low Limit Regulation Set Point Plus Assigned Regulation Regulation Set Point Minus Assigned Regulation 160 Economic Minimum 2

3 Regulation Biased Factor The regulation biased factor represents the increasing or decreasing output of a unit while regulating This factor is applied to the assigned regulation MWs then adjusts the original regulation set point Example Reg Setpt = 220 MW AREG = 30 MW Bias Factor = -0.2 Biased MW adjusted = -6 (30 MW * -0.2) (AREG * Bias Factor) Reg Setpt (biased) = 214 MW (220 MW 6) 3

4 Regulation Example 1 Unit ICAP = 300 MW Reg High = 250 MW Eco Max = 300 MW CP Commitment (UCAP) = 285 MW Unit UCAP = 285 MW Reg Low = 190 MW Eco Min = 160 MW Balancing Ratio = 1.0 AREG = 30 MW Reg Setpt = 220 MW Reg Setpt (biased) = 214 MW Resource assigned Regulation for Desired MWh (economic base point based on LMP) is 220 MW Resource submits a Power Meter value of 195 MW Calculations 1) Adjustment to Actual Performance to keep resource whole to the regulation signal Adjustment of 6 MW (difference between Desired MWh and Reg Setpt (biased)) 2) Performance Shortfall Expected Performance = 285 MW (285 MW * 1.0) (CP Commitment * BR) Shortfall 1 = 84 MW (285 (195+6)) (Expected Actual) 65 MW of the 84 MW Shortfall will be excused (PJM desired resource at 220 MW, not 201 MW) Shortfall 2 = 19 MW (84 65) (Shortfall 1 Excused) 4

5 Regulation Example 2 Unit ICAP = 300 MW Reg High = 250 MW Eco Max = 300 MW CP Commitment (UCAP) = 285 MW Unit UCAP = 285 MW Reg Low = 190 MW Eco Min = 160 MW Balancing Ratio = 1.0 AREG = 30 MW Reg Setpt = 220 MW Reg Setpt (biased) = 214 MW Resource assigned Regulation for Desired MWh (economic base point based on LMP) is 220 MW Resource submits a Power Meter value of 250 MW Calculations 1) Adjustment to Actual Performance to keep resource whole to the regulation signal No adjustment needed towards Actual since Power Meter is greater than Reg Setpt (biased) 2) Performance Shortfall Expected Performance = 285 MW (285 MW * 1.0) (CP Commitment * BR) Shortfall 1 = 35 MW ( ) (Expected Actual) 35 MW of the 35 MW Shortfall will be excused (PJM desired resource at 220 MW) Shortfall 2 = 0 MW (35 35) (Shortfall 1 Excused) 5

6 Regulation Example 3 Unit ICAP = 300 MW Reg High = 250 MW Eco Max = 300 MW CP Commitment (UCAP) = 285 MW Unit UCAP = 285 MW Reg Low = 190 MW Eco Min = 160 MW Balancing Ratio =?? AREG = 30 MW Reg Setpt = 220 MW Reg Setpt (biased) = 214 MW Expanding from Regulation Example 2 Desired MWh is 220 MW and Power Meter value of 250 MW Calculations 1) No adjustment needed towards Actual since Power Meter is greater than Reg Setpt (biased) 2) PAH Calculations Balancing Ratio Expected Performance 242 MW (285 * 0.85) 214 MW (285 * 0.75) Shortfall 0 MW ( = -8) 0 MW ( = -36) Bonus 0 MW ( , capped at dispatch 6 MW ( , capped at dispatch) 6

7 Reserve Example 1 Unit ICAP = 300 MW Eco Max = 300 MW CP Commitment (UCAP) = 285 MW Balancing Ratio = 1.0 Unit UCAP = 285 MW Eco Min = 160 MW Tier2 Assignment = 20 MW Synch Max = 300 MW Resource assigned Tier 2 reserves for Desired MWh (economic base point based on LMP) is 300 MW Resource submits a Power Meter value of 260 MW Calculations 1) Adjustment to Actual Performance for reserves Adjustment = 20 MW ( ) (Desired MWh (MIN(Synch Max,Desired MWh) Tier 2) 2) Performance Shortfall Expected Performance = 285 MW (285 MW * 1.0) (CP Commitment * BR) Shortfall 1 = 5 MW (285 (260+20)) (Expected Actual) 7

8 Reserve Example 2 Unit ICAP = 300 MW Eco Max = 300 MW CP Commitment (UCAP) = 285 MW Balancing Ratio = 1.0 Unit UCAP = 285 MW Eco Min = 160 MW Tier2 Assignment = 20 MW Synch Max = 275 MW Resource assigned Tier 2 reserves for Desired MWh (economic base point based on LMP) is 300 MW Resource submits a Power Meter value of 255 MW Calculations 1) Adjustment to Actual Performance for reserves Adjustment = 45 MW ( ) (Desired MWh (MIN(Synch Max,Desired MWh) Tier 2) 2) Performance Shortfall Expected Performance = 285 MW (285 MW * 1.0) (CP Commitment * BR) Shortfall 1 = -15 MW (285 (255+45)) (Expected Actual) Bonus MW = 15 MW ((255+45) 285) (Actual Expected) 8

9 Appendix 9

10 Performance Shortfall and Bonus Expected Performance (GEN) = MW Commitment (UCAP) * Balancing Ratio Actual Performance (GEN) = metered output plus resource s RT reserve or regulation assignment (if any) If Expected Performance is greater than Actual Performance, then resource has a Performance Shortfall and may be subject to a Non-Performance Charge Non-Performance Charge = Performance Shortfall MW * Non-Performance Charge Rate If Actual Performance is greater than Expected Performance, then the resource may have Bonus MW and may be eligible for bonus performance credit Actual Performance shall not exceed the MW level at which the resource was scheduled/dispatched by PJM during a PAH 10

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