Energy Product CodesEnergy Product Codes

WSPP & WECC Reserves WorkshopWSPP & WECC Reserves WorkshopPhilip TicePhilip Tice

June 5June 5--6, 20086, 2008

Where did we get these Codes?Where did we get these Codes?

Why do we have EWhy do we have E--Tags? Tags?

FERC Order 888 & 889.FERC Order 888 & 889. Deregulation of the wholesale electricity Deregulation of the wholesale electricity

market.market. Rapid increase in energy transactions.Rapid increase in energy transactions. Laws of physics, not economics.Laws of physics, not economics. Off path flows and operational problems.Off path flows and operational problems.

Where did EWhere did E--Tag Come From? Tag Come From? NERC in 1997.NERC in 1997. Transaction Information System.Transaction Information System. Exchange transaction information between Exchange transaction information between

merchant and reliability entities.merchant and reliability entities. Electronic Tagging. Electronic Tagging. Transaction Path.Transaction Path. NERC & WECC energy product codes.NERC & WECC energy product codes.

EE--Tag ExampleTag Example

Do we need Energy Product Codes?Do we need Energy Product Codes?

Reserve determination.Reserve determination. Transaction confirmation.Transaction confirmation. Energy contingencies.Energy contingencies. Interchange risk assessment.Interchange risk assessment. IPP validation.IPP validation. Reserve products.Reserve products.

Energy Product CodesEnergy Product Codes

NERCNERC Two codes Two codes –– GG--F & GF & G--NFNF

WECCWECC Energy Product Codes Energy Product Codes –– Four unique codes GFour unique codes G--FC, FC,

GG--FP, GFP, G--F1 & GF1 & G--EX, plus NERC codes.EX, plus NERC codes. Reserve Product Codes Reserve Product Codes –– CC--SP, CSP, C--NS & CNS & C--RE.RE. Always had codes providing more granularity.Always had codes providing more granularity.

WECC Energy Product CodesWECC Energy Product Codes

Business Practice INTBusiness Practice INT--BPSBPS--018018--0 approved by 0 approved by WECC Board in December 2007.WECC Board in December 2007.

Effective March 1, 2008.Effective March 1, 2008. Purpose: Identify and define energy product Purpose: Identify and define energy product

codes for use in the WECC. codes for use in the WECC. Codes include NERC codes as well as codes Codes include NERC codes as well as codes

specific to the WECC. specific to the WECC.

WECC Energy Product CodesWECC Energy Product Codes

Energy product codes identify Energy product codes identify categoriescategories of of energy products with common characteristics, energy products with common characteristics, not specific energy products.not specific energy products.

Energy product codes do not address Energy product codes do not address Contingency Reserve obligations.Contingency Reserve obligations.

Energy product codes do not address Energy product codes do not address Contingency Reserve activation.Contingency Reserve activation.

Business Practice INTBusiness Practice INT--BPSBPS--018018--00 WR1. Source and sink Balancing Authorities WR1. Source and sink Balancing Authorities

within the Western Interconnection, the ewithin the Western Interconnection, the e--Tag Tag Author will utilize the energy product codes in Author will utilize the energy product codes in INTINT--BPSBPS--018018--0. 0.

WR2. The energy product code utilized on the WR2. The energy product code utilized on the ee--Tag will accurately represent the characteristics Tag will accurately represent the characteristics of the energy transaction. of the energy transaction.

Business Practice INTBusiness Practice INT--BPSBPS--018018--00 WR3. NERC product codes for WR3. NERC product codes for energyenergy

transactionstransactions are identified and defined below: are identified and defined below: GG--F: Firm Energy. This product may be curtailed F: Firm Energy. This product may be curtailed

only in the event of a reliability condition or to meet only in the event of a reliability condition or to meet SellerSeller’’s public utility or statutory obligations for s public utility or statutory obligations for reliability of service to native load. A Greliability of service to native load. A G--F product F product cannot be interrupted for economic reasons. cannot be interrupted for economic reasons.

GG--NF: NonNF: Non--firm energy. This product may be firm energy. This product may be interrupted for any reason or no reason, without interrupted for any reason or no reason, without liability on the part of either the buyer or seller.liability on the part of either the buyer or seller.

Business Practice INTBusiness Practice INT--BPSBPS--018018--00 WR4. WECC product codes for WR4. WECC product codes for energy transactionsenergy transactions are are

identified and defined below:identified and defined below: GG--FC: Firm Contingent. The energy is from a designated FC: Firm Contingent. The energy is from a designated

generating unit or source. This product may be interrupted generating unit or source. This product may be interrupted only to the extent the output capability of the designated unit only to the extent the output capability of the designated unit or source has been reduced due to a or source has been reduced due to a derationderation or outage of the or outage of the designated unit or source. A Gdesignated unit or source. A G--FC product cannot be FC product cannot be interrupted for economic reasons.interrupted for economic reasons.

GG--FP: Firm Provisional Energy. This product may be FP: Firm Provisional Energy. This product may be interrupted only if the interruption is within the recall time interrupted only if the interruption is within the recall time and for conditions allowed by applicable provisions and for conditions allowed by applicable provisions governing interruption of service, as mutually agreed to by governing interruption of service, as mutually agreed to by the parties. A Gthe parties. A G--FP product cannot be interrupted for FP product cannot be interrupted for economic reasons.economic reasons.

Business Practice INTBusiness Practice INT--BPSBPS--018018--00 WR4. WECC product codes for WR4. WECC product codes for energy transactionsenergy transactions are are

identified and defined below:identified and defined below: GG--F1: Hourly firm energy. This product may be interrupted, F1: Hourly firm energy. This product may be interrupted,

consistent with the provisions of the transaction, provided consistent with the provisions of the transaction, provided the PSE or LSE receives notification of the interruption 40 the PSE or LSE receives notification of the interruption 40 minutes or more prior to the start of the operating hour. A minutes or more prior to the start of the operating hour. A GG--F1 product cannot be interrupted for economic reasons. F1 product cannot be interrupted for economic reasons.

GG--EX: Exchange of Firm Energy. An exchange of firm EX: Exchange of Firm Energy. An exchange of firm energy where by one entity delivers energy to another entity energy where by one entity delivers energy to another entity at one point on the grid and receives an agreed upon amount at one point on the grid and receives an agreed upon amount of energy from that entity at another point on the grid. of energy from that entity at another point on the grid.

Business Practice INTBusiness Practice INT--BPSBPS--018018--00 WR5. WECC product codes for WR5. WECC product codes for reserve transactionsreserve transactions

are identified and defined below: are identified and defined below: CC--SP: Capacity for spinning reserve. OnSP: Capacity for spinning reserve. On--Demand spinning Demand spinning

reserve obligation/resource is a spinning reserve product that reserve obligation/resource is a spinning reserve product that can be activated through the adjustment of a capacity ecan be activated through the adjustment of a capacity e--tag. tag.

CC--NS: Capacity for nonNS: Capacity for non--spinning reserve. Onspinning reserve. On--Demand nonDemand non--spinning reserve obligation/resource is a nonspinning reserve obligation/resource is a non--spinning spinning reserve product that can be activated through the adjustment reserve product that can be activated through the adjustment of a capacity eof a capacity e--tag. tag.

CC--RE: Capacity associated with energy recallable for reserves. RE: Capacity associated with energy recallable for reserves. This product is energy which is recallable within ten minutes This product is energy which is recallable within ten minutes of activation of reserves and has been included in the Source of activation of reserves and has been included in the Source Balancing Authorities reserve resources.Balancing Authorities reserve resources.

WECC/WSPP Cross ReferenceWECC/WSPP Cross Reference

Firm Energy Schedule C, amendedG-EX

Firm Energy Schedule C, amendedG-FP

Firm EnergySchedule C, amendedG-F1

Unit contingent EnergySchedule BG-FC

Non-firm EnergySchedule AG-NF

Firm EnergySchedule CG-F

Brief descriptionClosest WSPP Product

WECCProduct Code

WECC/WSPP Cross ReferenceWECC/WSPP Cross Reference

Recallable EnergySchedule C, amendedC-RE

Non-spinning ReservesSchedule C, amendedC-NS

Spinning ReservesSchedule C, amendedC-SP

Brief descriptionClosest WSPP Product

WECCProduct Code

The Ultimate EThe Ultimate E--TagTag

Questions?Questions?

Ask ChuckAsk Chuck……

Philip TicePhilip Tice

Deseret Power Electric CooperativeDeseret Power Electric CooperativePhone: (801) 619Phone: (801) 619--65056505

Cell: (801) 231Cell: (801) 231--44834483Email: Email: philtice@deseretpower.comphiltice@deseretpower.com