miso day 2: a transmission users (marketers) perspective leon white august 8, 2007
TRANSCRIPT
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MISO Day 2:A Transmission User’s (Marketer’s) Perspective
Leon White
August 8, 2007
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MISO Footprint
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US RTO’s
ERCOT ISOERCOT ISO
Grid FloridaGrid Florida
PJMPJM
PJM WestPJM West
New YorkNew YorkISOISO
RTORTONew EnglandNew England
Grid WestGrid West
WestConnectWestConnect
California ISOCalifornia ISO SPPSPP
MISO138,870 MW capacity111,275 miles transmission 16.5 million customers111,503 MW load
MISO138,870 MW capacity111,275 miles transmission 16.5 million customers111,503 MW load
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MISO Control Center - Indianapolis
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MISO Market – Types of GenerationMISO Generation Distribution (MWs)Other, 944 - 0.7%
Wind, 792 - 0.6%
Oil, 7318 - 5.3%
Hydro, 8152 - 5.8%
Nuclear, 10013 - 7%
Gas, 37495 - 27.0%
Coal, 74157 - 53.4%
Coal
Gas
Nuclear
Hydro
Oil
Wind
Other
Ameren Corporation Generation Distribution (MWs)
Wind, 0
Other, 0Oil, 617 - 4.5%
Hydro, 780 - 5.6%
Nuclear, 1174 - 8.5%
Gas, 2430 - 17.5%
Coal, 8858 - 64.9%
Coal
Gas
Nuclear
Hydro
Oil
Wind
Other
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Summer Load CurveSummer Peak
6000
7000
8000
9000
10000
11000
12000
19:12 0:00 4:48 9:36 14:24 19:12 0:00 4:48
MW
s
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Winter Load CurveWinter Peak
7500
8000
8500
9000
9500
10000
19:12 0:00 4:48 9:36 14:24 19:12 0:00 4:48
MW
s
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Forward Prices
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MISO Market & Bilateral MarketBilateral Market
• Energy Sale Between Two Counterparties
• ex : AEM -> TVA - 200 MWs @ $45.00
• Can Occur External or Internal to MISO
• Long Term, Day Ahead, & Hourly Markets
MISO Energy Market
• Offer Generating Units into MISO Power Pool
• Bid Loads into MISO
• Day Ahead & Hourly (Real-Time) Markets
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MISO “Day 2” LMP Market Locational Marginal Pricing Market (April 1, 2005)Locational Marginal Pricing Market (April 1, 2005)
All generators offer generation into the day ahead and the All generators offer generation into the day ahead and the hourly (real-time) markethourly (real-time) market
Load is forecast on a day ahead basisLoad is forecast on a day ahead basis Day Ahead market closes at 11 am EST day aheadDay Ahead market closes at 11 am EST day ahead Day Ahead market settles at 5 pm EST day aheadDay Ahead market settles at 5 pm EST day ahead Day Ahead RAC (Reliability Assessment Commitment) Day Ahead RAC (Reliability Assessment Commitment)
completed at 8 pm EST day aheadcompleted at 8 pm EST day ahead Hourly unit capability declaration 30 min prior to hourHourly unit capability declaration 30 min prior to hour MISO LMP Market runs a security constrained dispatch MISO LMP Market runs a security constrained dispatch
model which determines the lowest cost generation model which determines the lowest cost generation dispatch without exceeding any transmission limitationsdispatch without exceeding any transmission limitations
MISO redispatches generation based on LMP dispatch model MISO redispatches generation based on LMP dispatch model every 5 minutesevery 5 minutes
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Unit 1 Unit 2 Unit 3 Unit 4
MISO Market – Day Ahead Awards
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LMP = Energy + Congestion + Losses
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Congestion
Load
Gen1000MW
On
Gen200MW
OFF
3000MW
Gen2000MW
On(3000MW Capability)
2000MWLimit
$40 Offer
$200 Offer$40
Offer
$
LMP
$
LMP
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Financial Transmission Rights (FTRs)DA Congestion
• Financial Transmission Rights (FTRs) from base load generation to load provide a hedge against congestion.
• FTRs are funded if congestion shows up in the DA market– On paper, Generators lose money, but FTRs recover the lost
money• FTRs assure that at the very least, load obligations are served
with low cost units whenever possible– Other Generators may see increased DA LMPs
• No DA congestion means units will be paid more but the FTRs will have no daily value
RT Congestion• FTRs do not apply to RT congestion• If congestion does not show up in DA, but instead shows up in RT,
then the RT LMP will be less than the Generator Offer• Generators are paid in full in the DA market and can make more
money in RT by NOT generating.
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MISO Market – 5 Minute LMP Dispatch
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Unit Meets Day Ahead Commitment
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Unit Trip – RT LMP Settlement
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Unit Trip – RSG Charges
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Total Cost of Unit TripProfit (Unit Meets DA Commitment) = $684,200
Profit (Unit Trips) = $45,375
Average RSG Charge (Unit Trips) = $95,051Low RSG Charge (Unit Trips) = $2,019High RSG Charge (Unit Trips) = $316,805
Cost of Unit Trip• Ave = ($684,200 - $45,375) + $95,051 =
($733,876)• Low = ($684,200 - $45,375) + $2,019 = ($640,844)• High = ($684,200 - $45,375) + $316,805 =
($955,630)
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Typical Generator/Marketer/MISO Communications
Marketer
Balancing Authority (Control Area)
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Unit Returns from Outage Late – RT LMP
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Unit Returns from Outage Late – RSG
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Unit Returns from Outage Early
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Actual Ramp vs. MISO Dispatch
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MISO Charges Uninstructed Deviation :
Unit is deviating greater than 10% of MISO Basepoint for an integrated hour (25 MWs max cap, 5 MWs min cap)
Regulating Unit is deviating greater than the sum of 10% of MISO Basepoint for an integrated hour plus the amount of Reg Up and Reg Down offered in the generation offer
Revenue Sufficiency Guarantee Revenue to Generators due to:
Make whole payments to DA, RAC, or Reliability committed units
Costs to Generators, Loads, Virtuals & MISO interchange due to:
Charged for every MW difference between actual and MISO Dispatch Variation of RT load from DA load bid Variation of RT imports from DA imports Variation of RT unit output from DA unit schedule All exports from MISO All RT imports into MISO All DA Virtual Offers and Bids
Average RSG Rates: 2005 - $7.72 / MWh; 2006 – $4.04 / MWh
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2006 RSG Rates by Quarter
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Improvement OpportunitiesRegulation
Units Available to Regulate for ACE Units Available to Regulate to Track 5 Min LMPIncreased Ramp Rate SpeedLarger Ramp RangesRegulate to Top of Unit Capability
Outage SchedulingMore Exact Return to Service TimesOptimal Economic Derate Windows
Capability DeclarationsMore Accurate Day Ahead Capability Estimates
Plant and Marketer CommunicationsMISO Ancillary Service Market - 2008
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Questions?