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HomeMy WebLinkAbout20190524Quarterly Report.pdf3Iffi*.RECEIVEO i$19 ?4AY Ztt Pl'l h: hb ,*J,?fff#*?*h18t'o* An IDACORP Company JULIA A. HILTON Senior Counse! ihi lton@idahooower.com May 24,2019 VIA HAND DELIVERY Diane M. Hanian, Secretary ldaho Public Utilities Commission 472 West Washington Street Boise, Idaho 83702 Re Case No. IPC-E-16-19 Deferral and Recovery of Costs Associated with Participation in Energy lmbalance Market - California Independent System Operator's ("CAISO") First Quarter 2019 Western Energy lmbalance Market ("EIM') Benefits Report Dear Ms. Hanian: Pursuant to Order No. 33706 issued in Case No. IPC-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 first quarter of 2019. The Report presents CAISO's quantification of benefits associated with participation in the Western ElM. For the first quarter of 2019, CAISO estimated Western EIM gross benefits of $8.45 million for ldaho Power. ldaho Power believes that the EIM has provided financia! benefits to the Company and, ultimately, its customers. However, ldaho Power believes that CAISO's calculation of benefits for the Company is overstated. This conclusion is primarily based on several of CAISO's modeling assumptions related to the costs of Company-owned resources. Pursuant to ldaho Power's discussions with CAISO, CAISO revised its benefit quantification methodology beginning in the fourth quarter o12018 based on one subset of ldaho Power's concerns about its modeling assumptions. !n compliance with Order No. 33706, ldaho Power is submitting concurrently with this Report, its report detailing the costs incurred and benefits achieved in its first year of EIM participation. The Company presents its methodology for determining EIM benefits and its quantification of actual EIM benefits and discusses the Company's efforts with CAISO to improve the methodology utilized in the quarterly benefit reports. 1221 W. ldaho St. (83702) P.O. Box 70 Boise, lD 83707 Diane M. Hanian, Secretary May 24,2019 Page 2 lf you have any questions regarding this Report, please contact Senior Regulatory Analyst Mark Annis at (208) 388-5208 or mannis@idahopower.com. Sincerely, ulia A.ilton JAH:csb Enclosures & Colifornio ISO WESTERN EIM BENEFITS REPORT First Quarter 2019 r r www.westernElM,com April 29,2019 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 CONTENTS EXECUTIVE SUMMARY 3 4 4 BACKGROUND EIM BENEFITS IN Ql 2019 I NTER-REGIONAL TRANSFERS ..5 ..9 14 15 18 WHEEL THROUGH TRANSFERS................... REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS......... FLEXIBLE RAMPING PROCUREMENT DIVERSITY SAVINGS MQCRA Copyright 2019 California ISO Page 2 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 ciry EXECUTIVE SUMMARY This report presents the benefits associated with participation in the western Energy lmbalance Market (ElM) for the first quarter of 2019. The benefits include cost savings and the use of surplus renewable energy. [os & EIM is helping to displace less-clean energy supplies with surplus renewable energy that otherwise may have been curtailed. This analysis demonstrates the benefit of economic dispatch in the realtime market across a larger EIM footprint with more diverse resources and geography 201 I Q1 BENEFITS Ql 2019 Gross Benefits by Participant Arizona Public Service California ISO (niilions $) $8.20 $13.08 $8'45 $5.71 ldaho Power NV Energy PacifiCorp Portland General Electric Powerex Puget Sound Energy Total $11.74 $7.23 $7.21 $85.38 -ElM Quarterly Benefit Report Methodology, httos.//www.caiso.com/Documents/ElM BenefitMethodoloov.pdf "The GHG emission reduction reported is associated Wth the avoided curtailment only. The current market process and counterfactual methodology cannot differentiate the GHG emissions resultlng 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://www.caiso.com/Documents/GreenhouseGasEmissionsTrackino Reoort- FreouentlvAskedQuestions. odf $650.26 million Morkat Opcrolor I Colifornio ISO EIM entity f Acfw porticipont ! Plonned EIM entry 2020 I Plqnned EIM ent y 202 I ! Plonned EIM enrry 2022 22,365 45% MQCRA Copyright 2019 California ISO Page 3 of 19 Sanle Porllord tlerti. \ Enetgy tflvrj Gross benefits from EIM since November 2014 J l**ptI H t-t! &* * Solt Rive:oroj*l )i.t Gross benefits realized due to more efficient inter-and intra- regionaldispatch in the Fifteen- Minute Market (FMM) and Real- Time Dispatch (RTD). $8S.38M ENVIRONMENTAL Metric tons of COz** avoided curtailments OPERATIONAL Average reduction in flexibility reserves across the footprint WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 BACKGROUND The EIM began financially binding operation on November 1,2014 by optimizing resources across the ISO and PacifiCorp Balancing Authority Areas (BAAs). NV Energy began participating in December 2015, Arizona Public Service and Puget Sound Energy began participating on October 1,2016, and Portland General Electric began participating on October 1,2017. ldaho Power and Powerex began participating on April 4,2018. Most recently, the Sacramento Municipal Utility District (SMUD), part of the Balancing Authority of Northern California (BANC), began participating on April 3,20191. 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.//wmv.westerneim.com/Paqes/AbouUQuarterlvBenefits.aspx. I EIM BENEFITS IN Q1 2019 Table 1 shows the estimated EIM gross benefits by each region per month2. The monthly savings presented in the table show $14.08 million for January, $40.26 million for February, and $31.04 million for March with a total estimated benefit of $85.38 million for the quarter. Higher benefits in February and March were driven by increased transfers compounded with higher energy prices. Region January February March Total APS /so lPco NVE PAC PGE PWRX PSE Total TABLE 1: First quarter 2019 benefits in millions USD by month t SRNIC/Sr\4UO will be included in the quarterly benefits report starting in Q2 2019 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. $1.10 $4.76 $2.34 $8.20 $1.25 $5.63 $6.20 $13.08 $1.64 $4.21 $2.60 $8.45 $1.09 $2.20 $2.42 $5.71 $5.56 $11.01 $7.19 $23.76 $1.36 $5.36 $5.02 $11.74 $1.23 $2.91 $3.09 $7.23 $0.85 $4.18 $2.18 $7.21 $14.08 $40.26 $31.04 $85.38 MQCRA Copyright 2019 California ISO Page 4 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 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)-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 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 15-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 15min EIM transfer Smin EIM transfer (15m - base) AZPS crso 163,672 127,',183 AZPS NEVP 8,471 11,289 AZPS PACE 8,614 15,975 PWRX crso 10,806 40,547 PWRX PSEI 22,508 13,933 CISO AZPS 14,376 24,891 CISO PWRX 20,473 37,502 MQCRA Copyright 2019 California ISO Page 5 of 19 17,633CISOPACW13,660 48,466IPCONEVP65,219 IPCO PACW 9,155 17,511 5,297 4,798NEVP 94,336 13,217 54,001 crso PACE 135,018 41,750 NEVP NEVP NEVP 120,937PACEAZPS148,219 PACE IPCO 47,048 56,553 85,123PACENEVP98,495 PACE PACW PACW tPco PACW 20,310 48,830 29,284 37,370 93,804 57,684PACW PACW PSEI 49,900 43,861 oso 6,934 7,318PGE PGE PACW 15,839 17J06 PWRX 38,161 PSEI PACW 30,759 26,386 174,412 17,136NEVP9,046 '195,015 PWRX CISO 8,358 29,965 crso AZPS 11,843 20,2',t5 PWRX WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 January Copyright 2019 California ISO Page 6 of 19 43,388CISONEVP26,46',1 22,603CISOPGE11,447 tPco PACE 11,14 1,337 AZPS IPCO 7,991 CISO 74,258 PGE 59,252 PSEI 31,913 AZPS clso AZPS AZPS PACE 6,615 10,568 PWRX PSEI 32,635 24,372 crso 26,747 56,363 MQCRA WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 crso NEVP 28,759 47,817 CISO PGE 24,932 45,611 IPCO PACE 1,847 rPco PACW 36,277 NEVP AZPS 2,700 NEVP CISO 134,958 95,479 NEVP rPco 7,959 12,527 NEVP 45,311 6',t,457 PACE AZPS 104,361 96,904 PACE rPco 25,900 32,644 PACE NEVP 69,535 59,355 PACE PACW 22,499 31,146 PACW crso 55,088 63,121 PACW IPCO 34,453 26,763 PACW PGE 72,913 75,099 PACW PSEI 64,463 58,874 PGE ctso 15,978 PGE 7,659 8,243 PSEI PWRX 28,527 28,759 PSEI PACW AZPS CISO 119,271 114,418 AZPS PACE 87,467 105,988 PWRX PSEI 5,584 5,280 08,821 ctso PWRX 130,714 161,877 February MQCRA Copyright 2019 California ISO Page 7 of 19 CISO PACW 29,968 37,256 tPco NEVP 82,473 62,435 2,451 51,301 PACE 16,824 PACW 39,891 35,174 AZPS NEVP 2,320 3,531 PWRX CISO 1,100 7,907 clso AZPS 95,191 CISO PACW 42,997 58,509 tPco NEVP 60,982 42,648 tPco PACW 55,133 67,375 NEVP CISO 180,201 1 10,043 NEVP PACE 104,963 5,62611 PACE rPco 16,565 20,955 PACE PACW 28,224 34,229 PACW tPco 36,512 24,277 PACW PSEI 63,772 63,387 PGE PACW 39,146 49,546 PSEI PACW 30,382 29,769 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 March TABLE 2: Energy transfers (MWh) in the FMM and RTD markets for Q1 2019 MQCRA Copyright 2019 California ISO Page 8 of 19 ctso NEVP 103,306 108,577 crso PGE 58,216 91,'156 tPco PACE 20,297 13,817 NEVP AZPS 5,660 5,556 rPco 41,577 48,951NEVP 65,902PACEAZPS59,637 95,139 62,051PACENEVP PACW CISO 42,253 55,294 PGE 45,011 43,871PACW PGE crso 10,814 11,142 PSEI PWRX 38,625 32,000 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 Poft 66 Pofi 66 ( Polo Verde, +one direction e biJirectionol I colifornio lso I MNC/SMUD ! PocifiCorp ;1 Seottle City tight !flonred atry 2o2o) ! NV Energy $ Solt River Proiecl {plonned eotry 2O2O) ! Arizono Public Service I IADWP lflonned arry 2o2l) I Po.tlond Generol Electric I Prbllc Service Compony o[ New Mexico ! Puger Sound Energy ly'onred entv 2021) I faJo Power Compony ! NorthWestarn Energy lfonned eotrv 2o2ll I po.ere, I Aristo lptonned entry 2022] Meod 500 349 Meod 230 (APS <-> ISO)236f.Meod 230 (lSO to NVE) Meod 230 (NVE to ISO) 3,476 3.4A3 IPCO to PACW (Poth 75) I,500 PACW to IPCO (Poth 75) 400-510 PACE IO IPCO 2,557 IPCO to PACE 1,550 NVE tO IPCO 262 IPCO lo NVE 390.478 Powerex <-> PSE r50 Powerex <-> ISO 150 Poth Estimoted Mox Copocity (MWl Polh 24 (west to eost)100 Polh 24 {eost to west)35-90 Eldorodo 797 Polh 35 [wesl lo eosl)580 Poth 35 (eost lo wesf 538 Gonder-Povont 130 PACW to PGE 320 Poth 66 (lSO to PGE)627 Poth 66 (PGE to l5O) 296 Poth 66 (lSO to PACW) 331 Poth 66 (PACW to ISO)432 Poth 17 0-400' 2 PSE lo PACW 300 Eldorodo SOOMoenkopi 732 Polo Verde, N. Gilo 3,151 Poth 78 IPACE to APS)625 Poth 78 (APS to PACE) 660 NovoioCrystol 522 ' ls on optiaol pk ovoi/r,&c lq PACE PACW EM tonshrs ond lhe copcity is o sub*t of PACHrcO/PCAPACE ond Poth 75 copcity. 7 When in u*, the ovoilobh copocity on PACEJK.O/IPCO?ACE ond Pdh 75 will be sub*guuly redoccd by thc u*d oaovnt oa Pah I 7, and not dqbh cqnted. Curat os ol April 2Ol9 :r, fa J GRAPH 1: Estimated maximum transfer capacity (ElM entities operating in Ql 2019) r 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 MQCRA Copyright 20L9 California ISO Page 9 of 19 q(q I t ,t !, F' L J, 78 35 Meod I s WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 reports. 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 Totalexport: summation of alltransfers 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 Allwheel-throughs 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 Export Net lmport Wheel Through AZPS ctso tPco NEVP PACE PACW PGE PSEI PWRX TABLE 3: Estimated wheelthrough transfers in Ql 2019 257,0O7 L26,t74 325,304 724,239 882,4t5 L6L,777 163,394 L30,030 t44,060 153,651 t37,735 456,023 576,786 262,13L 120,105 293,26L 1,60,733 351,,625 il,296 290,801 46,38L 128,155 1,47,337 62,79L 83,322 3t6,754 38,972 MQCRA Copyright 2019 California ISO Page 10 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 B o) o)C I.JJ 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 l1 AZPS I I I Icrso tPco E Net Export NEVP PACE PACW tNet lmport PGE PSEI PI ,RX sffieel Through GRAPH 2: Estimated wheelthrough transfers in Ql 2019 BAA Net Export Net lmport WheelThrough AZPS ctso tPco NEVP PACE PACW PGE PSEI PWRX TABLE 4: Estimated wheelthrough transfers in January 2019 L20,364 338,007 26,408 3L,423 53,466 135,435 743,348 1-8,351 90,023 43,270 36,316 21,663 MQCRA Copyright 20L9 California ISO Page 11 of 19 n n n 55,095 51,088 LOO,O24 28,634 68,70L 38,887 252,092 30,878 40,804 19,408 75,383 5,163 33,822 55,205 20,8L6 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 a = g, oCIU 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 I CISO IPCO w Net Export NEVP PACE eNet lmport PACW PGE PSEI u \Afteel Through GRAPH 3: Estimated wheelthrough transfers in January 2019 BAA Net Export Net lmport WheelThrough AZPS CISO IPCO NEVP PACE PACW PGE PSEI PWRX TABLE 5: Estimated wheelthrough transfers in February 2019 754,458 327,789 53,725 32,059 47,445 139,888 78,593 L7,795 145,835 43,238 62,2t9 2t,o57 MQCRA Copyright 2019 California ISO Page 12 of 19 n n nttttI 114,306 31,157 88,28L 74,62!30,743 41,31"8 182,855 36,L19 37,763 15,399 1L1,274 9,787 40,524 71,508 13,903 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 E = c') oc t.lJ 500,000 450,000 400,000 350,000 300,0@ 250,0@ 200,000 150,000 '100,000 50,000 0 rl ll I I AZPS ctso rPCo &Net Export NEVP PACE aNet lmport PACW PGE PSEI rWreel Through GRAPH 4: Estimated wheelthrough transfers in February 2019 BAA Net Export Net lmpoft Wheel Through AZPS ctso tPco NEVP PACE PACW PGE PSEI PWRX TABLE 6: Estimated wheelthrough transfers in March 2019 449,4L7 2t6,620 82,L84 100,169 36,824 180,700 71,320 724,587 tls,765 4L,707 48,803 20,071 MQCRA Copyright 2019 California ISO Page 13 of 19 t] n il ntt TIt, 87,607 43,930 136,999 60,139 30,586 63,855 t4L,839 195,1.35 41,538 29,488 104,t44 31,43L 8,980 190,041 4,253 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 700 000 600 000 500.000 a = 400,000 =o) o tll 300,000 200.000 | .'\" , 100,000 I I0AZPS CISO M Net Export IPCO NEVP PACE rNet lmport PACW PGE PSEI n Wheel Through GRAPH 5: Estimated wheelthrough transfers in March 2019 X 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 Q1 2019 was calculated to be 8,216 MWh (January) + 6,243 MWh (February) + 37,795 MWh (March) = 52,254 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 22,365 metric tons of COz for Q1 2019. 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. MQCRA Copyright 2019 California ISO Page 14 of 19 n r-1il nl TI WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 Year Quarter MWh Eq. Tons CO2 2015 2016 2017 2018 2019 TABLE 7: Total reduction in curtailment of renewable energy along with the associated reductions in CO2 T 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 7,521 112,948 48,342 158,806 67,969 33,094 14,164 23,390 10,011 1 52,651 22,535 2 67,055 28,700 3 23,331 9,986 4 18,060 7307, 1 65,860 28,188 2 129,128 55,267 3 19,032 8,146 23,425 10,026 52,2il 22,365 Total 810,116 346,649 MQCRA Copyright 2019 California ISO Page 15 of 19 1 2 3 4 4 1 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 Minimum requirement Maximum requirement BAA Direction crso 1,701 1,823 1,349down PACE down 300 down down January down 117 1,701 PGE PWRX 234 MQCRA February Copyright 2019 California ISO Page 16 of 19 Month AZPS up 25 185 up 189 NEVP up 32 152 PACE up 98 298 PACW up 51 137 PGE up 41 129 PSEI up 32 106 PWRX up 85 234 IPCO up 41 157 ALL EIM up 356 AZPS down 26 190 crso 143 NEVP down 18 152 64 PACW down 25 119 PGE 45 146 PSEI down 32 145 PWRX 64 230 tPco down 53 153 ALL EIM 146 1,484 AZPS up 26 18s crso up NEVP up 32 152 PACE up 98 298 PACW up 47 137 up 41 129 PSEI up 32 106 up 75 down down down down '1,484 CISO 204 1,701 1,823 down 1,349ctso PACE down down down WESTERN ElM BENEFITS REPORT FIRST QUARTER 2019 March MQCRA Copyright 201.9 California ISO Page 17 of 19 up 53 157lPco ALL EIM up 266 1,823 down 23 190AZPS crso 143 1,349 down 22 152NEVP PACE 108 321 down 28 119PACW 38 146PGE PSEI down 39 145 down 81 230PWRX down 53 153rPco ALL EIM 207 AZPS up 33 185 up NEVP up 33 152 PACE up 93 298 PACW up 52 137 PGE up 39 129 PSEI up 44 106 up 66 234PWRX 157rPcoup47 up 274ALL EIM AZPS down 21 190 232 NEVP down 12 152 98 321 PACW down 27 1'!9 146PGE44 down 43 145PSEI 230PWRX55 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 tPco down 53 153 ALL EIM down 302 1,484 Table 8: Flexible ramping requirements The flexible ramping procurement diversity savings for all the intervals averaged over the month are shown in Table 9. The percentage savings is the average MW savings divided by the sum of the four individual BAA requirements. January February March Direction Average MW saving Sum of BAA requirements Percentage savrngs Table 9: Flexible ramping procurement diversity savings in Ql 2019 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 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 for more details. r CONCLUSION The first real-time wholesale power market of its kind in the Western United States, the EIM uses state-of-the-art technology to find and deliver low-cost energy to meet real-time demand across eight western states and a Canadian province. Since launching in November 2014, the Western EIM has produced gross economic benefits of $650.26 million, demonstrating that utilities can realize cost benefits and reduce carbon emissions through increased coordination and optimization in the West. MQCRA Copyright 2019 California ISO Page 18 of 19 Up Down Up Down Up Down 753 759 778 761 789 800 1 649 1,648 1,692 1,747 1,782 1,853 46%46%460/o 44%44%43o/o WESTERN EIM BENEFITS REPORT FIRST QUARTER 2019 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 quantified benefits from avoided curtailments of renewable generation from 2015 to-date reached 346,649 metric tons of COz, roughly the equivalent of avoiding the emissions from 72,881 passenger cars driven for one year. MQCRA Copyright 2019 California ISO Page 19 of 19