CAPACITY LIMITED RESOURCES (CLR) / ENERGY LIMITED RESOURCES (ELR)

Transcription

1 CAPACITY LIMITED RESOURCES (CLR) / ENERGY LIMITED RESOURCES (ELR) 1

2 INTRODUCTION A new bidding mechanism is available for qualified generators which allows them to offer generation in the New York market which is either limited in availability or difficult to obtain at the top of its operating range. Being registered as a CLR and, if appropriate, an ELR offers generators special balancing energy and ICAP consideration while making energy and/or capacity available to the markets. The information contained in this presentation was primarily obtained from Technical Bulletin #76, which has been developed in conjunction with the implementation process associated with the activation of the CLR/ELR provisions scheduled for implementation in September, Additional information was obtained from the cover letter associated with the FERC filing on CLR/ELR dated June 29, 2001 and prepared by Ted Murphy of Hutton & Williams as well as review by the NYISO Customer Relations Department. 2

3 INTRODUCTION (Cont.) This presentation is accompanied by a narration; it is important to view the slides in the context of the provided dialogue. A print copy of the presentation is available from the same web site as this presentation. 3

4 Definition of CLR- Capacity Limited Resource Generation unable to readily provide energy at the top of the unit s operating range for operational or plant configuration reasons, except for emergency situations Examples of generation possibly qualifying: Steam units Combined Cycle units Gas Turbines Run-of-River Hydro To begin this presentation it is necessary for us to understand what CLRs and ELRs are. CLR is the acronym for Capacity Limited Resource and represents capacity at the top of a generator which for some defined reason is not readily available as energy. Examples of generation which may qualify as Capacity Limited Resources include: Steam units which may require such actions as removal of auxiliary equipment or limited as a result of cooling water temperatures. Combined Cycle and GT s for limits resulting from ambient air temperature and for run of river hydro, water availability. 4

5 Definition of ELR- Energy Limited Resources Generation with limiting factors affecting their ability to operate continuously on a daily basis Limitation on total amount of energy produced over a period of time Has ability to operate for a minimum of 4 consecutive hours each day Subset of CLR classification An ELR or Energy Limited Resource is generation which has a limiting variable which prevents the unit from operating continuously on a daily basis but IS able to operate for at least four consecutive hours each day. An ELR is a subset of a CLR with unique settlement and operations rules. 5

6 Definition of ELR (cont.) Limiting Factors include: environmental restrictions (NOx/SOx Averaging) cyclical requirements (need to recharge or refill) other non-economic reasons Units which may qualify as ELR: Hydro with storage capability (pondage) to include pump storage facilities I PURPA units wishing to qualify may not be able to retain their PURPA status facilities impacted by 24-hour NOx/SOx Averaging The limiting factors affecting an Energy Limited Resource may include environmental restrictions, specifically, generation affected by NOx or SOx averaging. Cyclical requirements such as refilling a water reservoir and other non-economic reasons. The best examples of units possibly qualifying as ELRs are Hydro facilities with storage capability and the generation affected by NOx or SOx averaging. PURPA units should be aware that in qualifying as an ELR, they may be placing their status as a qualifying PURPA unit in jeopardy. 6

7 PURPOSE To allow CLR/ELRs to submit bids that accurately reflect their ability and willingness to generate above their Upper Operating Limit To better accommodate generation units with limitations on their ability to operate for: sustained periods of time a portion of their upper operating range Enable generation the ability to offer ICAP capacity (including emergency capacity) in an economically rational manner There are several reasons why the NYISO has implemented CLR/ELR bidding provisions. The market now better accommodates and reflects the limitations which are common to much generation. It provides ICAP suppliers with a realistic means of bidding their generation into the Day-Ahead market and allows generators to offer their full available capacity into the Day-Ahead Market 7

8 PURPOSE (Cont.) Provides ISO Operations with an accurate expectation of generation actually available increase supply available during emergencies and tight supply enhance efficiency of scheduling and dispatching decisions Enhancement of the NY energy market It provides NYISO operations with a good idea of our true generation resources available during periods of tight capacity. And CLR/ELR is intended to permanently correct bidding protocol problems experienced in the past It enables suppliers to submit bids that are indicative of their increased operating and maintenance cost in this region. 8

9 Registration for CLR/ELR To qualify as a CLR and/or ELR, registration must be requested in writing through NYISO Customer Relations. Submission of two Operating Curves Normal Upper Operating Limit with significantly impacting variable (e.g., ambient air temperature) Maximum Upper Operating Limit with significantly impacting variable A few generators may qualify to be registered as BOTH a CLR & ELR daily settlement will be either as a CLR OR ELR Details available in Tech Bulletin #75 Generator wishing to qualify as a CLR or ELR must first submit a request in writing to the NYSIO Customer Relations. The registration will include two Operating Curves; one showing the Normal Upper Operating Limit of the unit as the significantly impacting variable (e.g., ambient temperature) changes. The second, showing the MAXIMUM Upper Operating Limit as the same variable changes. Generators qualifying as ELRs also qualify as CLRs but, in any given day, receive special treatment rules under only one of the classifications. For more details on the Registration process, review Tech Bulletin #75 9

10 Normal Upper Operating Limit (UOL) Registered upper limit for regular and continuous operation Limit above which lies the CLR/ELR capacity May vary hourly, daily, seasonally, in response to a significantly limiting variable Air/WaterTemperature Pondage River flow Normal UOL represents the upper operating limit that a generator desires not to exceed for one of a variety of variables affecting the units generation send-out. Capacity/Energy above the Normal UOL represents the generators capacity or energy limited resource. A generators Normal UOL may vary as frequently as each hour due to a significantly limiting variable such as ambient air/water temperature, water pondage or river flow. 10

11 CLR Normal UOL Upper limit for regular and continuous operation Limit above which lies the CLR capacity Normal UOL Curve recognizes and defines the impact of a significantly limiting variable on a unit s Normal UOL Day-Ahead Bid UOL is to be based on reasonable forecast of limiting variable and Normal UOL curve A Capacity Limited Resource s Upper Operating Limit represents the unit s upper limit for regular and continuous operation or, the limit above which lies the CLR capacity. CLR classification recognizes that the Normal UOL may fluctuate due to a significantly limiting variable which is what the Normal UOL Curve should reflect as accurately as possible. When a CLR unit is bid in the Day-Ahead Market, the Bid UOL should be based on a reasonable forecast of the limiting variable and its impact on the Upper Operating Limit. 11

12 ELR Registration Requires a description of the unit s physical energy limiting characteristics Magnitude of the feasible energy output Bidding ELR Normal Upper Operating Limit For special treatment of energy imbalance, sum of hourly bid UOL s should not exceed the unit s feasible energy output for the day An Energy Limited Resource is a subset of CLR with some unique settlement and operations rules. An ELR application includes a description of the unit s physical energy limiting characteristics, as well as the magnitude of the feasible energy output of the unit. Bidding an Energy Limited Resource will require careful management of a daily schedule. This will be expanded upon later in this presentation. 12

13 Normal UOL Curve Submitted as part of CLR registration Accurately reflects the effect of the significantly impacting variable has on the Normal UOL Curve is to be applied when populating the Upper Operating Limit field of the Generator Bid for each hour- Bid UOL use a reasonable forecast of significant variable Normal UOL Registration Curve See slide #16 M W Temp It is expected that a generator will use the Normal UOL curve provided for registration, and a reasonable forecast of the significant variable for the energy hour being bid, to arrive at a Normal UOL bid for each hour in the DAM. The Normal UOL is entered in the Upper Operating Limit field of the generator bid is referred to as the Bid UOL The diagram on Slide #16 shows where this value is placed. 13

14 Maximum UOL Upper Operating Limit The absolute maximum amount of energy that a CLRis capable of producing limited periods of time may require plant configuration changes May fluctuate hourly in response to significantly impacting variables The Maximum UOL represents the absolute maximum energy that a CLR is capable of producing and like the Normal UOL, may also vary hour to hour due to a significantly impacting variable 14

15 Maximum UOL Curve Submitted as part of CLR registration Accurately reflects the effect that the significantly impacting variable has on the Maximum UOL Curve should be applied when populating the last point in the bid curve of the Generator Bid each hour- Bid Maximum Max UOL Registration Curve UOL See next slide M W Temp Registration information also requires a curve of the Maximum UOL value versus the significantly impacting variable. When entering the Maximum UOL in the generator bid the value selected should accurately reflect the Maximum UOL curve submitted. The next slide demonstrates where the Bid Maximum UOL is placed on the bid form. 15

16 Normal UOL Registration Curve Max UOL Registration Curve M 490 W Temp M 515 W Temp BID UOL BID MAX UOL The Normal UOL is entered in the Upper Operating Limit field of the generator bid is referred to as the Bid UOL You enter the Maximum UOL in the generator bid as the last point on the bid curve. This final value entered in the generator bid curve is referred to as the Bid Maximum UOL 16

17 Bidding ICAP Under ELR/CLR ICAP providers are required to bid at least their contracted ICAP in the Day-Ahead Market Bid Maximum UOL may be less than the ICAP contract must accurately reflect the Max UOL curve using a reasonable forecast of the impacting variable subject to review for possible ICAP deficiency As a registered CLR or ELR unit, a generator may not be required to enter a Maximum Upper Operating Limit equal to its ICAP contract. The bid Maximum UOL may be less than the contracted ICAP of a unit provided it accurately reflects the registered Maximum UOL curve with a reasonable forecast of the impacting variable. If the Bid Max UOL does not accurately reflect the curve submitted, the generator may be found to be deficient in fulfilling its ICAP obligation. 17

18 CLR/ELR schedule SCUC may schedule energy and/or reserves up to Bid Maximum UOL for up to all hours of day if economic BME may schedule energy and/or reserves up to the BME Bid UOL Generators will not be scheduled above the BME Bid UOL in the Hour-Ahead or Real-Time Markets The bid UOL passed to BME will be the greater of the DAM Bid UOL or the DAM schedule. 18

19 CLR/ELR Scheduled in the DAM Units scheduled at or below Bid UOL in the DAM will have a BME UOL that is equal to the DAM Bid UOL. Units scheduled above the DAM Bid UOL will have a BME Bid UOL that is equal to the DAM schedule. In other words, if a unit is not scheduled above it s bid UOL in the Day-Ahead market, the upper operating limit fed to the Balancing Market Evaluation and Real-Time SCD is the Bid UOL as submitted by the bidder. If after the close of the DAM, SCUC schedules generation ABOVE the units Bid UOL, then that Day-Ahead schedule becomes the BME Bid UOL. The software will not schedule the generator above that point in the Hour-Ahead Market and will not be dispatched in Real-Time above that level as well. 19

20 CLR Derate Generator Operator may request a CLR derate operation above DAM Bid UOL non-attainable specify hours of requested CLR derate request must be made the later of 2 p.m.,dayahead, or three hours following SCUC post time CLR derate granted by ISO upon request CLR derate limited to DAM Bid UOL level derates in below the DAM Bid UOL will be treated as a normal derate (without special settlement treatment for imbalance) If a CLR generator receives a Day-Ahead schedule above its Bid UOL, and the generator s operator determines that the schedule is not attainable, he will have a minimum of three hours to notify the ISO through their Transmission Operator. He must specify the hours he is requesting the CLR derate and, to obtain special treatment, the request must be specifically identified as a CLR DERATE. The request for the derate will be granted by the ISO. However, requested derates below the DAM Bid UOL will not receive special treatment for the settlement of Real-Time imbalances. 20

21 CLR Derate (cont.) Results of Derate BME Bid UOL set to CLR Derate/ used in R-T Energy, Regulation & Reserve imbalances will be balanced at the DAM clearing prices I limited to Bid UOL MWs I derates in excess of the Bid UOL settled at Real-Time clearing prices DAM Bid UOL reviewed by the Market Monitoring Unit DAM Bid UOL subject to adjustment for billing purposes, if found inconsistent from Normal UOL Curve As a result of a CLR derate, the BME Bid UOL of the unit will be set to the derated value and the unit will not be scheduled above this point in the Hour-Ahead Market or dispatched in Real-Time above the derate. Energy, Regulation and Reserves scheduled Day-Ahead but not provided due to the CLR derate will be balanced at the Day-Ahead clearing prices which means the unit will neither be rewarded nor penalized for the derate. CLR derates will be reviewed by Market Monitoring. If the DAM Bid UOL is not considered to be indicative of a reasonable estimate derived from the supplied Normal UOL curve, the generator will have its DAM Bid UOL adjusted to a reasonable value from the Normal UOL curve for billing purposes. 21

22 ELR Scheduling If an ELR s DAM schedule exceeds its energy limitation Gen operator must manage hourly schedules via CLR derates to re-schedule within the unit s energy limitation Derate can be no greater than DAM bid UOL for receipt of special balancing treatment I Bid UOL for ELR should reflect the lowest value unit may need to take a CLR derate in any hour Value of DAM bid UOL is important If an Energy Limited Resource s Day-Ahead schedule over a day exceeds its energy limitation, then the scheduling and settlement rules for CLR s will apply. When an ELR qualified unit requests schedule relief by means of one or more CLR derates, the value of the Bid UOL becomes very important. In order to receive the benefits of the special settlement rules, the unit can not be derated below the DAM Bid UOL 22

23 NYISO INITIATED ELR SCHEDULE CHANGES ISO determines schedule changes Generator operator notified via their TO Used to prevent/address a system emergency May schedule operation above DAM bid UOL for up to 4 continuous hours CLR derates lifted for affected hours Raise BME and RT limits to the altered DAM schedule NYISO changes will not subject unit to financial harm from the obligation to cover energy balancing charges. The NYISO may notify the ELR generator operator that the NYISO requires operation above the DAM Bid UOL for a maximum of 4 consecutive hours of the ISO s choosing. Notification may be by and/or through the BME schedule posting. Any existing CLR derates are lifted for the selected hours, and the BME Bid Limit and/or Real-Time limit are raised to the ISO altered DAM schedule. The intent of the ELR rules is to ensure that a unit whose schedule is modified by the ISO will not be subjected to any financial harm from the obligation to cover energy balancing charges. 23

24 NYISO ELR SCHEDULE CHANGES (Cont.) For hours when modified schedule is LESS than original schedule: unit derated for ELR purposes BME and RT schedules set to ELR derated UOL For hours when modified schedule is GREATER than original schedule: generator is set Out-of-Merit BME and RT schedules set to modified schedule MWs When the ISO reduces an hour s schedule, the unit will be derated for ELR purposes and both the BME and R-T schedules will be set at the ELR derated UOL When the ISO increases an hour s schedule, the unit will be set Out of Merit and both the BME and R-T schedules will be set at the modified schedule 24

25 Balancing Rule for ELR Derates Special balancing rules apply whenever an ELR derate occurs ELR generators are held financially harmless for the day if their total margin for energy, regulation and reserves with the modified schedule is less than their anticipated day-ahead margin I the margin is defined as the difference between the generator s accepted bid and LBMP For any day in which there is one or more hours of ELR derate, Special balancing rules apply. The cost of imbalance, in excess of the DAM Bid UOL MW value will be capped in order to preserve the unit s anticipated Day-Ahead Margin over all 24 hours of the day. 25

26 Emergency Operating Procedures NYISO anticipated capacity shortage in coming hours announcement of pending shortage posted on website All Bid UOLs raised to BME Bid Maximum UOL for Hour-Ahead scheduling and Real-Time dispatch Real-Time Capacity shortage announcement of shortage posted on website All Generator UOLs moved to their Maximum UOLs for Real-Time dispatch Generation not scheduled above its Bid UOL in the DAM, will not be scheduled above that point in the HAM or R/T. However, with a capacity shortage, NYISO Operators may implement Emergency Operating Procedures and intervene by manually raising these limits. If the NYISO anticipates an upcoming shortage, NYISO operations will post an announcement informing MPs of the pending capacity shortage and alert generators that their Bid UOL will be raised to their BME Bid Maximum UOL. When a capacity shortage occurs in R/T, an announcement will go out to the market and all generators UOLs will be raised to their Maximum UOL for R/T dispatch 26

27 Market Participants are encouraged to reference Tech Bulletin #75 for information regarding Registration for CLR/ELR Tech Bulletin #76 may be referenced for the details and scheduling rules covered in this presentation 27