20180814Quarterly Report.pdf

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An TDACORP Company
JULIA A. HILTON
Senior Counsel
ih i [e-mail]
August 14,2018
VIA HAND DELIVERY
Diane Hanian, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-16-19
Deferral and Recovery of Costs Associated with Participation in Energy
lmbalance Market - California lndependent System Operator's ("CA!SO)
Quarterly Energy Imbalance Market ('ElM") Benefits Assessment Report
Dear Ms. Hanian
Pursuant to Order No. 33706 issued in Case No. !PC-E-16-19, ldaho Power
Company ("ldaho Power" or "Company") hereby submits four (4) copies of the quarterly
CAISO Western EIM Benefits Report ("Report") for the second quarter of 2018. The
Report presents CAISO's quantification of benefits associated with participation in the
western ElM. For the second quarter of 2018, CAISO estimated western EIM gross
benefits of $7.75 million for ldaho Power. ldaho Power believes thatthe EIM has provided
financial benefits to the Company, and ultimately its customers. However, because this
represents the first reporting of EIM benefits for ldaho Power, the Company is currently
working to gain an understanding of CAISO's quantification methodology as it relates
specifically to ldaho Power's participation in the ElM. After receiving more information
from CAISO, ldaho Power intends to workwith the ldaho Public Utilities Commission Staff
to determine what other information or additional benefit methodologies may be available
to determine Idaho Power's western EIM benefits.
lf you have any questions regarding the Report, please contact Regulatory Analyst
Nicole Blackwe!! at [phone] or [e-mail].
Sincerely,
JAH:csb
Enclosures
1221 W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
Ju ia A.
I Cotifornio ISO
WESTERN EIM BENEFITS REPORT
Second Quarter 2018
July 31,2018
www,westernElM.com
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
..5
..8
13
74
CONTENTS
INTER.REGIONAL TRANSFERS.
WHEEL THROUGH TRANSFERS
REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS...................
FLEXIBLE RAMPING PROCUREMENT DIVERSITY SAVINGS .............................
MQRI Copyright 2018 California ISO Page2 of 77
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
$40 1.73 million
EXECUTIVE SUMMARY
This report presents the benefits associated with
participation in the western Energy lmbalance Market
(ElM) for the second quarter of 2018. The benefits
include cost savings and the use of surplus renewable
energy.
The report shows that EIM is helping to displace less-
clean energy supplies with surplus renewable energy that
othenivise may have been curtailed.
This analysis demonstrates the real-time market's
ability to select the most economic resources across
the EIM footprint.
Q2 2018 Gross Benefits by Participant
Q2 BENEFITS
Portlond
Arizona Public Service
California ISO
ldaho Power
NV Energy
PacifiCorp
Portland General Electric
Powerex
Puget Sound Energy
Total
(miilions $)
s8.se
527.s3
$7.7s
Ss.E+
s11.67
Ss.sa
52.27
s2.32
571.21
.ElM Quarterly Benefit Report Methodology,
httos://www.caiso.com/Documents/ElM Benefi tMethodoloov.odf
-.The GHG emission reduction reported is associated with the avoided
curtailment only. The cunent market process and counterfactual methodology
cannol differentiate the GHG emissions resulting from seMng ISO load via the
EIM versus dispatch that uould have occurred exlernal to the ISO without the
ElM. For more details, see
htto://www.caiso.com/Documents/GreenhouseGasEmissionsTrackinoReoort-
FrequentlvAskedQuestions. odf
lvlorkel Operoior
I Cqlifornio ISO
EIM otity
I Activo porlicipont
! Plonned EIM 6rrry 20l 9
! elonned EIM enrry 2020
46%
MQRI Copyright 2018 California ISO Page 3 of 17
Gross benefits from EIM since November 2014
.:{
LlI
ECONOMICAL
Gross benefits realized due to
more efficient inter-and intra-
regionaldispatch in the Fifteen-
Minute Market (FMM) and Real-
Time Dispatch (RTD).
ENVIRONMENTAL
Metric tons of COz"" avoided
curtailments
OPERATIONAL
Average reduction in flexibility
reserves across the footprint
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2OI8
BACKGROUND
The EIM began financially binding operation on November 1 ,2014 by optimizing resources
across the ISO and PacifiCorp BAAs. NV Energy began participating in December 2015,
Arizona Public Service and Puget Sound Energy began operations October 1, 2016, and
Portland General Electric began participation on October 1,2017. Most recently, ldaho Power
and Powerex began participation on April 4,2018. The EIM footprint now includes portions of
Arizona, California, ldaho, Nevada, Oregon, Utah, Washington, Wyoming, and extends to the
border with Canada. The EIM facilitates renewable resource integration and increases reliability
by sharing information between balancing authorities on electricity delivery conditions across
the EIM region.
The ISO began publishing quarterly EIM benefit reports in January 2015. Prior reports can be
accessed at https://www.westerneim.com/Paqes/AbouVQuarterlvBenefits.aspx
The benefits quantified in this report fall into three main categories and were described in earlier
studies:1
I EIM BENEFITS IN Q2 2O1B
Table 1 shows the estimated EIM gross benefits by each region per month. The monthly
savings presented in the table show $26.34 million for April, $25.18 million for May, and $19.69
million for June with a total estimated benefit of $71.21 million.
The EIM benefits reported here are calculated based on available data. lntervals without
complete data are excluded in the calculation. The intervals excluded due to unavailable data
are normally within a few percent of the total intervals.
Region April May June Total
PWRX
/so
tPco
NV Energy
PacifiCorp
PGE
PSE
Total
TABLE 1: Second quarter 2018 benefits in millions USD by month
1 PacifiCorp-lSO, Energy lmbalance Market Benefits, http://www.caiso.com/Documents/PacifiCorp-
ISOE nerevlm ba la nceMarketBenefits.pdf
A $3.63 $2.95 $2.01 $8.59
$0.89 $0.77 $0.61 $2.27
$9.73 $9.99 $8.21 $27.93
$2.57 $2.54 $2.64 $7.75
$s.34$2.55 $1.98 $0.81
$4.43 $4.58 $2.66 $11.67
$1.48 $1.79 $2.07 $5.34
$2.32$1.06 $0.58 $0.68
$26.34 $25.18 $19.69 $71.21
MQRI Copyright 2018 California ISO PaEe 4 of 77
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
I INTER.REGIONAL TRANSFERS
A significant contributor to EIM benefits is transfers across balancing areas, providing access to
lower cost supply, while factoring in the cost of compliance with greenhouse gas (GHG)
emissions regulations when energy is transferred into the lSO. As such, the transfer volumes
are a good indicator of a portion of the benefits attributed to the ElM. Transfers can take place
in both the Fifteen-Minute Market and Real-Time Dispatch (RTD).
Generally, transfer limits are based on transmission and interchange rights that participating
balancing authority areas make available to the ElM, with the exception of the PacifiCorp West
(PACW)-ISO transfer limit and the Portland General Electric (PGE)-ISO transfer limit in RTD.
These RTD transfer capacities between PACWPGE and the ISO are determined based on the
allocated dynamic transfer capability driven by system operating conditions. This report does
not quantify a BAA's opportunity cost that the utility considered when using its transfer rights for
the ElM.
Table 2 provides the 1S-minute and S-minute EIM transfer volumes with base schedule
transfers excluded. The EIM entities submit inter-BAA transfers in their base schedules. The
benefits quantified in this report are only attributable to the transfers that occurred through the
ElM. The benefits do not include any transfers attributed to transfers submitted in the base
schedules that are scheduled prior to the start of the ElM.
The transfer from BAA_x to BAAj and the transfer from BAA_y to BAA_x are separately
reported. For example, if there is a 100 MWh transfer during a S-minute interval, in addition to a
base transfer from ISO to NVE, it will be reported as 100 MWh from_BAA ISO to_BAA NEVP,
and 0 MWh from_BAA NEVP to_BAA ISO in the opposite direction. The 1S-minute transfer
volume is the result of optimization in the 1S-minute market using all bids and base schedules
submitted into the ElM. The S-minute transfer volume is the result of optimization using all bids
and base schedules submitted into ElM, based on unit commitments determined in the 15-
minute market optimization. The maximum transfer capacities between EIM entities are shown
in Graph 1 below.
Month From
BAA
To
BAA
1Smin EIM
transfer
(15m - base)
Smin EIM
transfer
(5m - base)
AZPS crso 89,259 52,854
AZPS NEVP 8,471 11,814
AZPS PACE 52,935 61,497
PWRX crso 2,016 7,222
PWRX PSEI 4,273 4,938
clso AZPS 142,487 166,250
CISO PWRX 34,857 68,950
crso NEVP 233,565 350,928
ctso PACW 41,529 44,198
ctso PGE 17,533 37,415
tPco NEVP 12,169 8,221
MQRI Copyright 2018 California ISO Page 5 of 17
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
tPco PACE 91,356 101,309
rPco PACW 9,646 15,893
NEVP AZPS 5,406 5,671
NEVP crso 53,947 27,912
NEVP tPco 26,035 4'1,257
274,597NEVPPACE204,274
PACE AZPS 64,107 39,919
PACE rPco 7,718 9,562
PACE NEVP 25,A87 '13,176
PACE PACW 42,094 58,876
PACW clso 71j22 71,143
PACW tPco 53,734 52,491
PACW PACE 4,86't 4,664
PACW PGE 14,535 15,530
PACW PSEI 28,039 22,234
PGE CISO 1,308 932
PGE PACW 51,560 54,636
PSEI PWRX 41,984 34,794
PSEI PACW 64,692 75,999
AZPS CISO 79,1 86 58,612
AZPS NEVP 6,799 9,669
AZPS PACE 147,558 167,836
1s,366PWRXcrso2,187
PWRX PSEI 13,495 12,808
crso AZPS 233,548 262,529
crso PWRX 4,853 42,926
CISO NEVP 293,407 376,027
CISO 79,1 56PACW76,019
clso PGE 18,466 35,840
rPco NEVP 10,415 6,581
IPCO PACE 100,808 128,040
IPCO PACW 14,18810,955
7,654NEVPAZPS7,585
NEVP CISO 39,997 22,674
NEVP tPco 44,642 64,778
NEVP PACE 221,644 259,597
PACE AZPS 43,829 28,075
PACE IPCO 11,255 I,O77
7,871PACENEVP14,271
PACE PACW 61,697 79,721
April
May
MQRI Copyright 2018 California ISO PaEe 6 of 77
I
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
clso 25,955 26,488PACW
PACW tPco 65,804 79,229
PACW PACE 5,410 5,163
19,376PACWPGE21,139
PACW PSEI 27,037 '19,023
PGE ctso 2,320 1,849
PGE PACW 39,492 47,397
PWRX 21,036 18,951PSEI
PSEI PACW 37,571 45,165
AZPS crso 96,903 75,340
AZPS NEVP 18,885 16,349
AZPS PACE 45,446 66,710
PWRX crso 2,795 32,'t03
PWRX PSEI 19,098 15,222
crso AZPS 127,789 163,425
CISO PWRX 1,973 25,658
crso NEVP 240,113 309,317
PACW 48,425 49,982crso
crso PGE 16,217 24140
IPCO NEVP 25,190 20,322
tPco PACE 60,239 81,078
PACW 24,550 27,811tPco
7,097NEVPAZPS7,139
NEVP CISO 41,304 24,735
NEVP rPco 29,033 50,693
NEVP PACE 193,873 241,623
AZPS 61,089 43,344PACE
PACE rPco 36,671 26,880
PACE NEVP 17,686 8,911
PACE PACW 67,636 81,623
PACW CISO 60,915 62,106
PACW rPco 46,573 56,249
PACE 5,013 5,035PACW
PACW PGE 19,898 18,725
PACW PSEI 28,862 21,731
PGE CISO 3,417 3,218
PGE PACW 67,546 72,302
PSEI PWRX 26,390
PSEI PACW 47,045 45,385
Jun
TABLE 2: Energy transfers (MWh) in the FMM and RTD markets for Q2 2018
MQRI Copyright 2018 California ISO PaEeT of U
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27,641
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
Poth 66
Po'*t Ertimotod liox
Copociry { ilVl
Pah 24 fwesl to eosfl IO0
Poh 2l {eosl tr westJ 35.90
Eldorodo 797
Po*r 35 fwest to eosf/580
Poh 35 leost b wes{538
Gondsrfsront 130
PACW b PGE 320
Poh 66 f,SO i, PGEI 627
Poh 66 fffif ro l50J ?96
Poth 66 I|SO,o PACIYJ 331
Poh 66 lPACWto tSO) 432
Pofi 17 0{$6'*'
Poh Yei&,
PSE to PACW 300
Eldorodo SO0-irloen kopi 73?
Polo Verde, N. Gih 3.r5r
Poth 78 (PACE ro APS)625
Poth 78 (APS b PACq 660
No..uio.Cryskd 52?
lvlpod 5O0 349
A,reod 230 {APS <-> ,SO, 236
^
pod 230 l,5O i) f.IIlE, 3,443
^l€od
230 {I.IVE to ISO, 3,476
lrcO b PACW {Poth 751 1,5O0
PACW tc lrcO Poth 751 40o5lo
PACE b lrcO ?,557
IPCO b PACE t.550
NVE to IPCO 7b7
IPCO b NVE
l
39G428
Powerex <-> PSE 150
Powerex <-> ISO 150
' l, n €ptddpodr oailoAL b e{CEIff,WEIll *orotbr 6d$c
opmiyir o rdorof ,{trtrOfiOnCE oid ld /5qeilf
" lYtran h c, *c mdol* opor;ry m f,A[EffO/EGtrf,f
aid epth 75 will* c*rqail|lJndbyfE cdomto HtlT,odladai-Lcan*d.
Curranl os 20t I
GRAPH 1: Estimated maximum transfer capacity (ElM entities operating in Q2 2018)
I WHEEL THROUGH TRANSFERS
As the footprint of the EIM grows and continues to change, wheel through transfers may
become more common. Currently, an EIM entity facilitating a wheelthrough receives no direct
financial benefit for facilitating the wheel; only the sink and source directly benefit. As part of the
EIM Consolidated lnitiatives stakeholder process, the ISO committed to monitoring the wheel
through volumes to assess whether, after the addition of new EIM entities, there is a potential
future need to pursue a market solution to address the equitable sharing of wheeling benefits.
The ISO committed to tracking the volume of wheels through in the EIM market in this quarterly
*on€ directbn e b;direanonol
I f.olt*nio tSO I Ua,o Porver Cornpony
! r*ifc"rp ! Po*ers*
! tW EnorEq/ $. S"ottl" CiV LBht tfu:mede'dI.r 2omj
! nrizoro Prblk Sarvi:a I BANC/SMUB lphnnsdentry2otgf
! Portond Gerrerol Bxtrlc ! mOWf ffinedentry 20?Qf
I pt6.r Sorrd Enorgy fi Soh nive. fr<qe,d lpbarsd arir/ ,O20,
MQRI Copyright 2018 California ISO Page 8 of 17
t
,
r-.
t8
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a
t&,s
Y
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
report. ln order to derive the wheels through for each EIM BAA, the ISO uses the following
calculation for every real-time interval dispatch:
Total import: summation of transfers above base transfers coming into the EIM BAA
under analysis
Total export: summation of alltransfers above base transfers leaving the EIM BAA under
analysis
Net import: the maximum of zero or the difference between total imports and total
exports
Net export: the maximum of zero or the difference between total exports and total
imports
Wheel through: the minimum of the EIM transfers into (total import) or EIM transfer out
(total export) of a BAA for a given interval
All wheels through are summed over the month or quarter. This volume reflects the total wheels
through for each EIM BAA, regardless of the potential paths used to wheel through. The net
imports and exports estimated in this section reflect the overall volume of net imports and
exports; in contrast, the imports and exports provided in Table 2 reflect the gross transfers
between two EIM BAAs.
The metric is measured as energy in MWh for each month and the corresponding calendar
quarter, as shown in Tables 3 through 6 and Figures 2 through 5.
BAA Net Export Net lmport Wheel Through
AZPS
PWRX
C/SO
lPco
NEVP
PACE
PACW
PGE
PSE/
TABLE 3: Estimated wheelthrough transfers in Q2 2018
199,014 321,667402,296
50,635 181,896 37,024
1,909,497 355,349 127,205
124,228 111,192 279,214
200,007 312,017 828,282
108,331 1,099,203 298,704
92,398 380,002
146,556 117,205 33,778
170,138 43,973 51,982
MQRI Copyright 2018 California ISO PaBe 9 of 17
386,788
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
2,500,m0
2,000,000
1,500,000
1,000,000
500,000
E
==
0)C
UI
0 T-l
rlilII
AZPS P\iAtRX CISO
MNet Export
IPCO NEVP
ts Net lmport
PACE PACW PGE
8, Wtreel Through
PSEI
GRAPH 2: Estimated wheelthrough transfers in Q2 2018
BAA Net Export Net lmport WheelThrough
PWRX
c/so
tPco
NEVP
PACE
PACW
PGE
PSE'
TABLE 4: Estimated wheelthrough transfers in April 2018
5,561 97,145 6,599
42,444 20,332 82,978
36,403 356,937 85,130
41,956 39,333 13,612
MQRI Copyright 2018 California ISO Page 10 of 17
n
46,859 132,535 79,305
109,027 51,036616,706
96,382 287,75761,681
37,409 95,'t34 128,653
71,540 13,733 13,439
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
800,000
700,000
600,000
-E
=
o)cut
000
000
500,
400,
300,000
200,000
100.000
U
ulII
AZPS P\ /RX CISO
o Net Export
I
IPCO NEVP
rNet lmport
PACE PACW PGE
sWheel Through
GRAPH 3: Estimated wheelthrough transfers in April 2018
BAA Net Export Net lmport WheelThrough
AZPS
PWRX
c/so
tPco
NEVP
PACE
PACW
PGE
PSE/
TABLE 5: Estimated wheelthrough transfers in May 2018
PSEI
16,831 50,534 11,342
34,847 39,312
29,434 466,084
36,146 42,112 13,101
MQRI Copyright 2018 California ISO Page 11 of 17
n
68,824 130,965 167,293
765,499 94,009 30,980
113,962
75,036 121,594 279,666
95,311
21,217 137,839 128,062
45,799 13,514 18,317
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
!
E
O)
o)cul
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0 il tlln
!
AZPS PACE PACW FG5 PSEIP\,RX CISO
e Net Export
IPCO NEVP
E Net lmport tr ffreel Through
GRAPH 4: Estimated wheelthrough transfers in May 2018
BAA Net Export Net lmport WheelThrough
AZPS
PWRX
c,so
tPco
NEVP
PACE
PACW
PGE
PSE'
TABLE 6: Estimated wheelthrough transfers in June 2018
28,243 34,216
46,937 51,548 82,274
42,494 276,182 118,263
68,455 35,760 7,065
MQRI Copyright 2018 California ISO PaEe 72 of 77
n i*i
83,330 138,796 75,069
19,082
45,189527,292 152,312
63,289 94,041 260,859
33,772 147,030 130,073
52,799 16,726 20,227
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
B
o)
C)cuJ
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0 I I -IltT1l
AZPS PSEIP\ARX CISO
w Net Export
IPCO NEVP
tNet lmport
PACE PACW PGE
mWreel Through
GRAPH 5: Estimated wheelthrough transfers in June 2018
I REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS
The EIM benefit calculation includes the economic benefits that can be attributed to avoided
renewable curtailment within the lSO. lf not for energy transfers facilitated by the ElM, some
renewable generation located within the ISO would have been curtailed via either economic or
exceptional dispatch. The total avoided renewable curtailment volume in MWh for Q2 2018 was
calculated to be 46,921 MWh (April) + 57,349 MWh (May) + 24,859 MWh (June) = 129,128
MWh total.
The environmental benefits of avoided renewable curtailment are significant. Under the
assumption that avoided renewable curtailments displace production from other resources at a
default emission rate of 0.428 metric tons COz/MWh, avoided curtailments displaced an
estimated 55,267 metric tons of COz for Q22018. Avoided renewable curtailments also may
have contributed to an increased volume of renewable credits that would otherwise have been
unavailable. This report does not quantify the additional value in dollars associated with this
benefit. Total estimated reductions in the curtailment of renewable energy along with the
associated reductions in COz are shown in Table 7.
MQRI Copyright 2018 California ISO Page 13 of 17
n fl
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
Year Quarter MWh Eq. Tons CO2
201 5
2016
2017
2018
TABLE 7: Total reduction in curtailment of renewable energy along with the associated
reductions in CO2
I FLEXIBLE RAMPING PROCUREMENT DIVERSITY SAVINGS
The EIM facilitates procurement of flexible ramping capacity in the FMM to address variability
that may occur in the RTD. Because variability across different BAAs may happen in opposite
directions, the flexible ramping requirement for the entire EIM footprint can be less than the sum
of individual BAA's requirements. This difference is known as flexible ramping procurement
diversity savings. Starting in November 2016, the ISO replaced the flexible ramping constraint
with flexible ramping products that provide both upward and downward ramping. The minimum
and maximum flexible ramping requirements for each BAA and for each direction are listed in
Table 8.
1 8,860 3,792
2 3,629 1,553
3 828 354
4 17,765 7,521
1 112,948 48,U2
2 158,806 67,969
3 33,094 14,164
4 23,390 10,01 1
1 52,651 22,535
2 67,055 28,700
3 23,331 9,986
4 18,060 7,730
1 65,860 28,188
2 129,128 55,267
Total 715,405 306,112
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WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
AZPS up 25 252
crso up 246 1,530
up 24 218NEVP
PACE up 85 319
up 53 179PACW
PGE up 43 150
up 41 152PSEI
PWRX up 65 288
tPco up 56 92
ALL EIM up 339 1,932
AZPS down 17 196
crso down 166 1,055
downNEVP 15 242
PACE down 69 300
PACW down 41 152
PGE down 53 189
PSEI down 23 135
PWRX down oo 399
tPco down 50 96
April
ALL EIM down 288 1,568
AZPS up 0 199
crso up 235 1,530
NEVP up 26 170
PACE up 107 319
PACW up 60 179
PGE up 43 147
PSEI up 31 152
up 60 166PWRX
rPco up 60 92
up 2,291ALL EIM 314
AZPS down 0 '180
CISO down 166 1,055
NEVP down 17 152
PACE down 89 269
PACW down 36 185
PGE down 61 189
PSEI down 26 127
PWRX down 69 145
IPCO down 54 96
ALL EIM down 366 1,568
May
Year Month BAA
2018
2018
Direction Minimum Maximum
uirement
MQRI Copyright 2018 California ISO Page 15 of 17
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WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
2018
June
AZPS up 28 199
crso up 127 1,467
NEVP up 32 170
PACE up 93 319
PACW up 63 179
PGE up 45 147
PSEI up 35 152
PWRX up 66 296
tPco up 55 92
ALL EIM up 220 1,467
AZPS down 27 180
CISO down 242 1,308
NEVP down 16 152
PACE down 97 269
PACW down 29 192
PGE down 52 189
PSEI down 34 127
PWRX down 67 198
tPco down 33 96
ALL EIM down 254 1,492
Table 8: Flexible ramping requirements
The flexible ramping procurement diversity savings for allthe intervals averaged over a month
are shown in Table 9. The percentage savings is the average MW savings divided by the sum
of the four individual BAA requirements.
April May June
Direction
Average MW saving
Sum of BAA requirements
Percentage savrngs
Table 9: Flexible ramping procurement diversity savings for second quarter 2018
Flexible ramping capacity may be used in RTD to handle uncertainties in the future interval. The
RTD flexible ramping capacity is prorated to each BAA. Flexible ramping surplus MW is defined
as the awarded flexible ramping capacity in RTD minus its share, and the flexible ramping
surplus cost is defined as the flexible ramping surplus MW multiplied by the flexible ramping
EIM-wide marginal price. A positive flexible ramping surplus MW is the capacity that a BAA
Up Down Up Down Up Down
736 771 758 748 790 804
1,656 I I,68 1,609 1,695 1,649 1,704
44%46%47%44%48o/o 47o/o
MQRI Copyright 2018 California ISO Page 16 of 17
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2018
provided to help other BAAs, and a negative flexible ramping surplus MW is the capacity that a
BAA received from other BAAs. The EIM dispatch cost for a BAA with positive flexible ramping
surplus MW is increased because some capacities are used to help other BAAs. The flexible
ramping surplus cost is subtracted from the BAA's EIM dispatch cost to reflect the true dispatch
cost of a BAA. Please see the Benefit Report Methodology in the Appendix for more details.
I CONCLUSION
Participation in the western EIM continues to show that utilities can realize cost benefits and
reduced carbon emissions. With $401.73 million in gross benefits to date, the realized savings
are in line with analysis conducted by each EIM entity before they joined ElM. The EIM
resource sharing also continues to have a positive effect on reducing greenhouse gas
emissions by using renewable generation that otherwise would have been turned off. Use of
this energy to meet demand across the EIM footprint is likely replacing less clean energy
sources. The GHG quantified benefits from avoided curtailments of 306,1 12 metric tons from
2015 to date is roughly equivalent to avoiding the emissions from 64,359 passenger cars driven
for one year.
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