April 22, 2015

NV EnergyEnergy Imbalance Market (EIM)

Presentation to ISAS

EIM Footprint

• Existing Market in CAISO

• PacifiCorp joined in Fall 2014

• NV Energy to join in Fall 2015

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Energy Imbalance Market Update

• November 2013: Announced plan to join CAISO EIM

• August 2014: Received PUCN Approval• Amendment to Transmission Tariff to participate

in EIM– August 2014 – January 2015: Stakeholder workshops and tariff comments– February 2015: Finalize tariff revisions and FERC pre-filing meetings– March 2015: File tariff revisions with the FERC– July – September: Stakeholder Training– Biweekly meetings with PUCN and BCP staff through implementation

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Energy Imbalance Market Update Con’t.

• Technical Milestones– September 2014 - February 2015: Model NV Energy system into the CAISO

system model, designate “Participating Resources”, and develop applications and test plans

– April - June 2015: Testing, early connectivity, and early market simulation– June – July 2015: Training Sessions – if you or your colleagues wish to

receive email notices, please send contact information to:• NVE-EIM-Stakeholder@nvenergy.com

– September 2015: Parallel non-binding operation– OCTOBER 2015: MARKET OPERATION GO-LIVE

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EIM Advantages• Increased Reliability – more tools and modeling to

provide operational awareness across a larger (EIM) footprint increasing reliability

• Improved Renewable Integration – Helps integrate renewable resources by capturing the benefits of longitudinal / geographic diversity.

• Cost Savings – Energy Imbalances served from a much larger pool of least cost resources. Re-dispatched every five minutes.

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Variable Generation penetration in the West

• VERs are a growing portion of generation portfolios• Increasing due to:

– State renewable requirements– No fuel costs– Environmental impacts– Publicly accepted– System/load geography

• Rooftop solar

• Tax credits

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Variable GenerationIntegration Solar/Wind

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Terminology• Market Operator

– Operates the market model, produces dispatches

• EIM Entity– BAA that allows EIM to operate in

their footprint

• Participating Resource– Generator that bids energy into

the market

• Non-Participating Resources– Resources within the BA not

submitting bids

• Scheduling Coordinator– Interfaces with Market

Operator (EESC and PRSC)

• Data– Schedules and forecasts– System model– Outages– Dispatch instructions– RTM: Real-Time Market– RTD: Real-Time Dispatch– RTUC (RTPD): Real-Time Pre-

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EIM Process Overview

EIM15-Minute

Market

Generation ForecastInterchange Forecast

Load Forecast

Outages

Economic Bids

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EIM Process Overview

EIM15-Minute

Market

Awarded 15-Minute Schedule

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EIM Process Overview

EIM5-Minute Market

Updates toGeneration ForecastInterchange Forecast

Load Forecast

Outages

Economic Bids

State Estimator

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Operational Overview• Expansion of CAISO’s current 5 minute market• Security Constrained Economic Dispatch (SCED)• Congestion management• Network model visibility and increased outage

accuracy in CAISO as well as NV Energy systems• Increased modeling and outage details for modeling

purposes lead to increased situational awareness

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Base Schedule data flow

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Responsibilities: Other Load Serving Entities (LSEs) – Non-NV Energy

• Forecast / Resources• Base Schedules

Note that currently all participating resources are NV Energy units –additional participating units are welcome. If interested please email NVE-EIM-Stakeholder@nvenergy.com for more information.

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Base Schedule BackgroundWhat

• A forward energy schedule• Includes hourly forecasts of load, generation schedules, and Inter-tie schedules

Why• It communicates the hourly planned operation for participating resources, non-

participating resources, imports, exports, and load• Represents a financially binding starting point in the real-time market

When• Day-ahead is prior to 10:00 am ppt the day before the operating hour• Real-time - 75 minutes prior to the start of the operating hour

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Base Schedules• Entity must come to the market balanced• Base Schedule (G + I = L) (feasibility check)

– Forecast of Generation– Forecast of Interchange– Forecast of Load

• Submitted by all customers to EIM Entity• Data aggregated and validated by NV Energy• Entity (NV Energy) retains all BAA responsibilities

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Base Schedule Details

• An EIM base schedule is a forward looking energy schedule. It includes hourly forecasts of load, hourly generation schedules, and hourly inter-tie schedules

• Base schedules are used to balance load and generation in our Balancing Authority (BA)

• Base Schedules are also used as a baseline for settlements

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Base Schedule Details, Con’t.• Day Ahead Market opens 7 days before the

Operating Day• Day Ahead Market closes at 10:00 pm ppt before the

Operating Day, and used as baseline for real-time market

• Base schedules must be submitted for both Participating and non-participating resources

• Can be modified by 75 minutes before the operating hour. EIM entity then has 2 opportunities for adjustment.

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Base Schedules, Load and Bid Range

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Redispatch

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Timeline leading up to Operating Hour

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Security Events and Outages• Currently made public on OASIS• Under EIM, outage forms will be completed in NV

Energy’s outage management system in real-time• Outages will be posted on OASIS and communicated

to CAISO within 30 minutes• Outages will be reflected in market results for

congestion, EIM dispatches, and settlements

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Settlements Overview

• Three settlement processes with the EIM

1) CAISO to EIM Participating Resource/Participating Intertie Settlement

2) CAISO to EIM Entity (BA) Settlement which includes all load and nonparticipating resources and interties

3) BA settling with all entities within their region

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• CAISO

• NV Energy – EIM Entity Scheduling Coordinator

Settlements & Invoicing Timeline

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Recalculation Settlement

Statement – T+12B

Recalculation Settlement Statement

T+55B

Every Wednesday

Trading days Monday - Sunday

plus recalcs

Daily Settlement Statement

T+3B

Recalculation Settlement Statement

T+12B

Recalculation Settlement Statement

T+55B

Invoices EESC

Payment advices to PR

Invoice Transmission Customers

OATT Section 7.1 amended to enable billing more frequently than once per

month

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Dispute Timeline

Statement Publication Settlement DisputeDeadline

Settlement DisputeData

T+12B T+26B All but ESQMD

T+55B T+77B All

T+9M (T+194B) T+10M (T+216B) Incremental ChangesOnly

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Note that Section 7.1 of OATT provides for the flexibility to expedite billing of EIM settlements to better match CAISO’s dispute resolution timeline.

Questions

For notification of EIM related postings on OASIS, please email your contact information to NVE-EIM-Stakeholder@nvenergy.com

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