20181130Quarterly Report.pdf

3Effi*.
JULIA A. HILTON
Senior Counsel
[e-mail]
November 30, 2018
iiEC I IVID
;.li l::ir 3l Pl{ 2: 5l
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
!mbalance Market - California Independent System Operator's ("CA|SO')
Third Quarter 2018 Western Energy Imbalance Market (.ElM") Benefits
Report
Dear Ms. Hanian:
Pursuant to Order No. 33706 issued in Case No. IPC-E-16-19, ldaho Power
Company ("ldaho Powe/' or "Company") hereby submits the quarterly CAISO Western
EIM Benefits Report ("Report") for the third quarter of 2018. The Report presents
CAISO's quantification of benefits associated with participation in the Western ElM. For
the third quarter ot2018, CAISO estimated Western EIM gross benefits of $13.31 million
for ldaho Power.
ldaho Power believes that the EIM has provided financial benefits to the Company,
and ultimately its customers. However, because CAISO makes some general
assumptions in its benefits quantification and relies upon a generic cost formula in
calculating estimated benefits for EIM participants, the Company would like to develop a
more precise benefit quantification. The Company is currently working with Power
Settlements to develop an alternative methodology to quantify specific benefits to ldaho
Power customers due to its participation in the Western ElM. Power Settlements is a
sofiware company that specializes in providing software solutions to energy companies
that participate in independent system operator and regional transmission organization
physica! power markets. ldaho Power anticipates that Power Settlements will provide a
more accurate methodology for quantifying ldaho Power's EIM benefits by shadowing the
current Western EIM benefits calculation and using inputs specific to the Company. ldaho
Power intends to keep the ldaho Public Utilities Commission Staff apprised of the
Company's progress as it develops an alternative benefit methodology that more closely
tracks ldaho Power-specific data.
lf you have any questions regarding the Report, please contact Regulatory Analyst
Nicole Blackwell at [phone] or [e-mail].
An IDACORP Company
122I W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
JAH:csb
Enclosure
Si
lia A
e Colifornio ISO
WESTERN EIM BENEFITS REPORT
Third Quarter 2018 r r
www.westernElM.com
October 29,2018
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
CONTENTS
REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS...........13
FLEXIBLE RAMPING PROCUREMENT DIVERSITY SAVINGS .74
MQRI Copyright 2018 California ISO PaEe 2 of 17
WESTERN EIM BENEF]TS REPORT THIRD QUARTER 2018
City
EXECUTIVE SUMMARY
This report presents the benefits associated with
participation in the western Energy lmbalance
Market (ElM) for the third quarter of 2018. The
benefits include cost savings and the use of surplus
renewable energy.
The report shows the EIM is helping to displace
less-clean energy supplies with surplus renewable
energy that othenrise may have been curtailed.
This analysis demonstrates the real-time market's
ability to select the most economic resources across
the EIM footprint.
Q3 2018 Gross Benefits by Participant
Powsr
'Pending stote commixioo opprovol
2018
03 BENEFITS
Arizona Public Service
California ISO
ldaho Power
NV Energy
PacifiCorp
Portland General Electric
Powerex
Puget Sound Energy
Total
(millions $)
520.78
527.02
s13.31
S11.oe
5L7.82
59.47
s2.6s
54.44
S1oo.s8
.ElM Quarterly Benefit Report Methodology,
hltos://vwvr,v.caiso.com/Documents/ElM Benefi tMethodoloov.pdf
'.The GHG emission reduction reported is associated with the avoided
curtailment only. The current market process and counterfactual methodology
cannot differentiate the GHG emissions resulting from serving ISO load via the
EIM versus dispatch that would have occurred external to the ISO without the
ElM. For more details, see
http:i/www.caiso.com/Documents/GreenhouseGasEmissionsTrackinqReoort-
FrequentlvAskedQuestions.pdf
,vtork€l Operolcr
E cdrftrnio lso
EIM mllty
I ttire porliciponl
I Phnncd EIM stry 2Ol9
! Phnncd EM onrry 2020
! Plonned EM entry 202 I
ron$502.31 m
$100.58M
8,1 46
48%
MQRI Copyright 2018 California ISO PaBe 3 of 17
Gross benefits from EIM since November 2014
N
PocifiCorp
NV
Energy
)1,
\
\
Powerex
ECONOMICAL
Gross benefits realized due to
more efficient inter-and intra-
regional dispatch in the Fifteen-
Minute Market (FMM) and Real-
Time Dispatch (RTD).
ENVIRONMENTAL
Metric tons of COe** avoided
curtailments
OPERATIONAL
Average reduction in flexibility
reserves across the footprint
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
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/AbouUQuarterlvBenefits.aspx.The benefits
quantified in this report fall into three main categories and were described in earlier studies.l
r ErM BENEFTTS rN Q3 zOtB
Table 1 shows the estimated EIM gross benefits by each region per month2. The monthly
savings presented in the table show $39.66 million for July, $45.09 million for August, and
$15.83 million for September with a total estimated benefit of $100.58 million. The benefits in
Quarter 3 of this year were higher than usual due to more economical transfers in periods of
high loads and higher electric prices following higher fuel prices. This was mainly observed in
July and August; the estimated benefits dropped in September to typical ranges tracking lower
load levels and fuel prices.
Region July August September Total
APS
/so
tPco
NVE
PAC
PGE
PWRX
PSE
Total
TABLE 1: Third quarter 2018 benefits in millions USD by month
1 PacifiCorp-lSO, Energy lmbalance Market Benefits, http://www.caiso.com/Documents/PacifiCorp-
lSOEnersvl m balanceMarketBenefits. odf
2 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.
$9.48 $9.34 $1.96 $20.78
$9.93 $7.85 $3.24 $21.02
$4.55 $6.36 $2.40 $13.31
$4.07 $4.96 $2.06 $11.09
$5.80 $9.46 $2.56 $17.82
$3.29 $3.90 $2.28 $9.47
$2.65$0.93 $1.20 $0.52
$1.61 $2.02 $0.81 $4.44
$39.66 $45.09 $15.83 $100.58
MQRI Copyright 20L8 California ISO Page 4 of !7
WESTERN EIM BENEFITS REPORT THIRD 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)-|SO transfer limit and the Portland General Electric (PGE)-lSO 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 5-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 BAA_y 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 5-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 ToFrom
BAA
lSmin EIM
transfer
Smin EIM
transferBAA
(15m -,ase (5m - base)
AZPS ctsol 308,299 279,306
AZPS NEVP 27,273 35,453
AZPS PACE 4,O11 8,601
PWRX crso 7,039 28,128
PWRX PSEI 9,400 6,692
crso AZPS 20,542 26,108
CISO PWRX 6,801 34,025
crso NEVP 38,074 63,089
CISO PACW 15,181 17,545
crso PGE 13,349 '18,579
tPco NEVP 74,651 65,046
MQRI Copyright 2018 California ISO Page 5 of 17
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
IPCO PACE 2,465 4,813
IPCO PACW 17,963 22,938
NEVP AZPS 2324 9,577
NEVP crso 115,574 93,098
NEVP rPco 4,954 8,886
NEVP PACE 45,656 70,036
PACE AZPS 172,719 138,028
79,468PACEIPCO72,451
PACE NEVP 57,884 47,174
PACE PACW 58,997 68,577
PACW clso 95,257 113,sil
2,446PACWIPCO2,900
87,902PACWPGE88,242
PACW PSEI 85,520 70,970
PGE clso 6,914 6,990
PGE PACW 22,942 24,336
PSEI 51,164PWRX58,595
PSEI PACW 17,454 14,592
283,392AZPSclso336,838
AZPS NEVP 22,131 24,404
AZPS PACE 741 1,482
PWRX CISO 8,351 31,923
PWRX PSEI 10,750 5,366
oso AZPS 11,866 19,684
34,432crsoPWRX6,057
CISO NEVP 38,398 74,357
crso PACW 9,1 33 1',1,754
CISO PGE 3,567 9,171
rPco NEVP 85,822 64,415
1,442tPcoPACE1,526
tPco PACW 15,845 27,465
NEVP AZPS 1,203 669
NEVP CISO 124,9U 92,743
NEVP IPCO 848 3,1 96
NEVP PACE 24,691 39,164
PACE AZPS 212,357 167,794
PACE IPCO 80,531 84,948
PACE NEVP 57,552 49,692
PACE PACW 46,273 69,641
PACW CISO 97,488 1 17,688
PACW 7,198IPCO1A,267
July
August
MQRI Copyright 2018 California ISO Page 6 of 17
PACW PGE 61,184 65,1 1 5
PACW PSEI 65,444 55,07'l
crso 7,118 10,097PGE
30,402PGEPACW29,562
PSEI PWRX 56,383 56,670
PSEI PACW 30,585 30,024
AZPS crso 233,913 205,634
AZPS NEVP 8,977 10,413
PACE 5,816 6,534AZPS
PWRX crso 5,4U 19,446
PWRX PSEI 9,1 40 4,692
CISO AZPS 31,025 35,535
44,696crsoPWRX12,416
crso NEVP 46,338 62,393
CISO PACW 24,419 30,382
CISO PGE 16,475 27,210
rPco NEVP 51,248 34,1 59
PACE 2,378 2,232tPco
tPco PACW 25,976 33,741
NEVP AZPS 1,138 1,100
NEVP CISO 147,8M 113,253
NEVP IPCO 8,312 13,675
57,825NEVPPACE46,582
PACE AZPS 155,787 121,870
PACE IPCO 35,502 40,515
PACE NEVP 76,716 66,272
PACW 29,513 39,796PACE
PACW CISO 66,992 82,093
PACW rPco 36,858 23,759
PACW PGE 47,967 47,583
PACW PSEI 64,917 46,803
PGE crso 2102 4,064
PACW 22,931 21,154PGE
PSEI PWRX 54,029 48,050
PSEI PACW 25,278 25,967
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
September
TABLE 2: Energy transfers (MWh) in the FMM and RTD markets for Q3 2018
Copyright 2018 California ISO PageT of 17MQRI
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
-ons
dirgctiqn * bidlrsctisnol
f Gtorni" tSO I U*r" Porvrr Corapony
! rocfiCerp ! ro*arer,
f F,lY fm€pf :& S""tta. City Lqht &krnsdsr*ry m4
I *izo<ro fliilic Sarviop I BANC/Si.fUb fdsrredal.w zotyl
! flo(f"nAear?rd Sxrric I LqDVYP &madenrymml
! *Arr Sorna **gy $ Soh nivar fro;6cr {Fbnnad €r{r}.2oloJ
Poth Ertimoted Mox
Ccpa.iry {rttWl
Poh ?4 fweil to eostJ ro0
Po*r 24 {eosf b wesfl 35-90
Eldorodo 797
Poth 35 fwesl lo eos{580
Polh 35 {ea:t b wes{538
Gonderftrrani I30
PACVf toFG€320
Polh 66 flS0 fo PACtl{331
Po,h 66 {FAChrto ISOJ 432
Po*r tr7 &d$0" "
PSE to PACW 300
Eldsodo 500iAoenkopi 732
Polo \brde. N. Gih 3.r 51
Poth /8 fPACEto APS/6?5
Pofi 78 fAP.Slo PACEf 6E0
tlo,rop{ryrhl 522
lvbod 5O0 34C
Msod ?3O {APS <-} I$O, 236
tulsod 230 {,5O b r\it4] 3,a43
23O ,r"rYE ro ,5O, 3,476
Itr I,500
PACW b trcO a00Jlo
PACE b IPCO
IPCO b PACE 1.550
'*/t t0 lrco 26?
IPCO b NYE 390-478
Pc,ra,erex <+ PSE I50
Por,verex <-> ISO I50
' L sn crtmdpdr milo&le fi, ntC[Itf,wEl4f iefo, dd dE
epaoyrr orl*r*rf il{tr}?C0/ffiOgtfFod k /5ryoilr
" lfficn i: e, ta mr**h cryei7 a &lCflf@TK0rdCFono 75 r* bc r utcqa*| rrd,r,c, by rle ad olm o A**
17 ald*h*an*d
dt
Psth
rtrtlle6
1
iI
Ish Y.r&,I
ra
Curant or c,f Ap rit 2Ol I
GRAPH 1: Estimated maximum transfer capacity (ElM entities operating in Q3 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 wheel through 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 will continue to track the volume of wheels through in the EIM market in the quarterly
reports. ln order to derive the wheels through for each EIM BAA, the ISO uses the following
calculation for every real-time interval dispatch:
MQRI Copyright 2018 California ISO Page 8 of 17
t--ia
F.[-t
Prth66ttSW
Poh 66 {ffiE to lSOl 296
I ,{
'i
F
,i ::I
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
Total import: summation of transfers above base transfers coming into the EIM BAA
under analysis
Total export: summation of all transfers above base transfers going out of 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 wheelthroughs are summed over both the month and the 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 overallvolume 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 lmport Net Export Wheel Through
AZPS
c/so
IPCO
NEVP
PACE
PACW
PGE
PWRX
PSE/
TABLE 3: Estimated wheelthrough transfers in Q3 2018
156,828 492,078 365,046
1,355,904 377,370 128,945
t33,902 t26,237
t92,r27 312,593
57,243 840,597 135,594
1L9,478 372,r05 350,170
24L,2L6 82,188 15,215
215,351 46,284 50,323
111,463 L48,28t 78,753
MQRI Copyright 2018 California ISO Page 9 of 17
285,871,
L30,799
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
2,000,000
1,800,000
'1,600,000
1,400,000
a 1.2oo.ooo
=3 r,ooo,ooo
t,P 800,000
[!
600,000
400,000
200,000
0 Inl
AZPS
GRAPH 2: Estimated wheelthrough transfers in Q3 2018
BAA Net lmport Net Export WheelThrough
AZPS
c/so
tPco
NEVP
PACE
PACW
PGE
PWRX
PSE/
ctso lPCo
w Net Export
NEVP PACE PACW
rNet lmport
PGE PSEI P\A,RX
rWheel Through
TABLE 4: Estimated wheel through transfers in July 2018
472,764 110,109 49,683
91,011 6L,977 L20,253
25,294 L52,402 723,723
67,552 17,204 77,783
MQRt Copyright 2018 California ISO Page 10 of 17
n n n
50,085 200,290 123,922
48,735 50,799 42,3L2
24,685 274,73L 59,L27
102,185 26,739 4,U9
45,489 34,555 31,347
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
c
Ba
o)
o
uJ
700.000
600.000
500.000
400 000
300.000
200.000
100,000
0 t
AZPS ctso rPCo
tr Net Export
NEVP PACE
aNet lmport
PACW PGE PSEI
:l/Vheel Through
P!A/RX
GRAPH 3: Estimated wheelthrough transfers in July 2018
BAA Net lmport Net Export WheelThrough
AZPS
c/so
tPco
NEVP
PACE
PACW
PGE
PWRX
PSE/
TABLE 5: Estimated wheelthrough transfers in August 2018
499,048 LO7,L62 38,498
L29,643 52,349 83,879
44,486 120,518 L25,55L
66,773 L6,744
MQRI Copyright 2018 California ISO PaBe 11 of 17
n n I u
45,924 167,558 142,655
48,770 46,917 46,736
8,873 339,691 33,368
67,M5 33,868 6,926
20,656
34,347 60,504 26,476
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
.c.
B
o)
oc
LU
700,000
600,000
500,000
400,000
300,000
200,000
100,000 III0
AZPS crso lPco
E Net Export
NEVP PACE
I Net lmport
PACW PGE PSEI
r\ /heel Through
P\A/RX
GRAPH 4: Estimated wheel through transfers in August 2018
BAA Net lmport Net Export WheelThrough
AZPS
c/so
tPco
NEVP
PACE
PACW
PGE
PWRX
PSE/
TABLE 6: Estimated wheelthrough transfers in September 2018
384,092 160,099 40,763
65,277 77,80L 108,461
49,697 99,185 !01,,496
8L,026 72,336 lL,884
MQRI Copyright 2018 California ISO PaBe 12 of 77
tl n n
60,818 L24,230 98,469
36,396 28,515 4L,75L
23,685 226,L75 43,199
71,585 21,580 3,640
30,627 53,222 20,930
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
000
000
000
400,
300,
200,
-cB
o)oc
uJ
700,000
600,000
500,000
100,000 r
AZPS CISO
rNet Export
IPCO NEVP PACE
r Net lmport
PACW PGE PSEI
r Wheel Through
P\ /RX
GRAPH 5: Estimated wheelthrough transfers in September 2018
T REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS
The EIM benefit calculation includes the economic benefits that can be attributed to avoided
renewable curtailment within the ISO footprint. 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
Q3 2018 was calculated to be 5,206 MWh (July) + 5,879 MWh (August) + 7,947r*n
(SePtember) = 19,032 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 8,146 metric tons of COz for Q3 2018. 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 PaBe 13 of u
I I n
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
1 8,860 3,792
2 3,629 1,553
3 828 354
4 17,765 7,521
1 112,948 48,342
2 158,806 67,969
33,094 14,',\U
23,390 10,01'1
22,53552,651
67,055 28,700
23,331 9,986
4 7,73018,060
65,860 28,1881
55,2672129,128
3 19,032 8,146
Total 734,437 314,258
Year Quarter MWh Eq. Tons CO2
2015
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 individua! 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.
MqRr Copyright 2018 California ISO Page 74 of 17
3
4
1
2
3
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
Year Month
201 I
2018
DirectionBAA Minimum
uirement
Maximum
irement
AZPS up 0 199
crso up 0 1,499
NEVP up 0 170
PACE up 0 319
161PACWup0
PGE up 0 147
152PSEIup0
PWRX up 0 296
222rPcoup0
ALL EIM up 0 1,630
180AZPSdown0
crso down 0 1,294
down 0 152NEVP
PACE down 0 269
PACW down 0 192
PGE down 0 189
down 0 127PSEI
PWRX down 0 198
rPco down 0 209
ALL EIM down 0 1,492
AZPS up 0 199
crso up 0 1,499
NEVP up 0 170
PACE up 0 319
PACW up 0 179
PGE up 0 147
PSEI up 0 152
279PWRXup0
lPco up 0 222
1,630ALL EIM up 0
AZPS down 0 180
ctso down 0 1,316
down 0 152NEVP
PACE down 0 269
down 0 192PACW
PGE down 0 189
PSEI down 0 127
down 0 198PWRX
tPco down 0 209
ALL EIM down 0 '1,492
August
MQRI Copyright 2018 California ISO Page 15 of 17
July
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
2018
September
AZPS
crso up 1,499
NEVP 39
PACE up 83 319
PACW
PGE up 53 138
PSEI
PWRX up 71 279
tPco
ALL EIM up 250 1,630
AZPS down 180
crso down 231 1,316
NEVP down
PACE down 82 269
PACW down 31 188
PGE down 35
PSEI down 29 127
PWRX down 65
rPco down 20
ALL EIM down 300 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.
August September
Direction
Average MW saving
Sum of BAA requirements
Percentage savrngs
Table 9: Flexible ramping procurement diversity savings for third 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
July
Down Down Up Down
864 877 807 845 74L 798
L,757 L,754 L,722 L,758
49%50%47%48o/o 45%47%
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up 36 199
0
up 170
up 46 143
up 26 152
up 45 222
35
27 152
189
198
203
Up Up
L,652 3",714
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2018
provided to help other BAAs, and a negative flexible ramping surplus MW is the capaci$ 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
With $502.31 million in gross benefits to date, the realized savings are in line with analysis
conducted by each EIM entity before they joined ElM. Sharing resources across a larger
geographic area, even if it's just in real-time, continues to have a positive effect of 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 314,258
metric tons from 20151o date is roughly equivalent to avoiding the emissions from 66,071
passenger cars driven for one year. These reports also reflect variability from month to month
and quarter to quarter, caused by seasonal conditions. Growing participation in the western EIM
demonstrates that utilities can realize cost benefits and reduced carbon emissions with
increased coordination and optimization in the west.
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