20191112Quarterly Report.pdf

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Enclosures
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November 12, 2019
HAND.DELIVERED
Ms. Diane Hanian, Secretary
ldaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, ldaho 83714
Re: Case No. IPC-E-I6-19
Deferral and Recovery of Costs Associated with Participation in Energy lmbalance
Market - California Independent System Operator ("CA|SO") Quarterly Energy
lmbalance Market ("ElM") Benefits Assessment 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 the quarterly CAISO Western EIM Benefits Reports
("Report") for the second and third quarters of 2019. The Reports present CAISO's quantification
of benefits associated with participation in the Western ElM. For the second and third quarters of
2019, CAISO estimated Western EIM gross benefits of $8.33 million and $5.36 million,
respectively, for ldaho Power.
The EIM has provided financial benefits to the Company, and ultimately its customers.
However, as discussed in ldaho Power's prior quarterly compliance filings, as well as the
Company's May 24,2019, Report of EIM Benefits and Costs of Participation, CAISO'S calculation
of benefits for ldaho Power is overstated due to several of the modeling assumptions used in its
benefit calculation.
The Company continues to work with CAISO to improve the methodology utilized in the
quarterly Reports. Additionally, the Company has developed a more precise methodology, that
uses inputs specific to ldaho Power, for determining actual EIM benefits, as discussed in the
Company's May 24,2019, Report of EIM Benefits and Costs of Participation.
lf you have any questions regarding this report, please contact Regulatory Analyst Nicole
Blackwell at [phone] or [e-mail].
Since
a
Julia A. Hi on
JULIA A. HILTON
Oeputy General Counsel
And Director of Legal
[e-mail]
I Cotlfornio ISO
WESTERN EIM BENEFITS REPORT
Second Quarter 2019 r r
www.westernElM.com
July 31 ,2019
WESTERN EIM BENEFITS REPORT SECONO QUARTER 2019
CONTENTS
EXECUTIVE SUMMARY...........3
4
4
5
9
BACKGROUNO
WESTERN EIM BENEFITS IN Q2 2OI9
INTER-REGIONAL TRANSFERS,, ,, ,,
WHEEL THROUGH TRANSFERS,,,,,,,
REDUCED RENEWABLE CURTAILIVIENT AND GHG REDUCTIONS..,..,..
FLEXIBLE RAMPING PROCUREMENT DIVERSITY SAVINGS..,.,.............
74
15
t9
MQCRA Copyright 2019 California ISO Page 2 of 19
WESTERN EIM BENEFITS REPORT SECONO QUARTER 20I9
EXECUTIVE SUMMARY
This report presents the benefits associated with
participation in the Western Energy lmbalance
Market (ElM) for the semnd quarter of 2019.
The benefits include cost savings and the use of
surplus renewable energy.
The Western EIM is helping to displace less-
clean energy supplies with surplus renewable
energy that otheMise may have been curtailed.
This analysis demonstrates the benefit of economic
dispatch in the real time market across a larger EIM
footprint with more diverse resources and geography
Q2 2019 Gross Benefits by Participant
c,ry
2019
02 BENEFITS
Arizona Public Service
BANC
California ISO
ldaho Power
NV Energy
PacifiCorp
Portland General Electric
Powerex
Puget Sound Energy
Total
(ni ions $)
$8.s5
$8.81
$23.53
$8.33
$4.62
$15.15
$10.89
$3.06
$3.06
$86.0
'ElM Ouarterly Benefit Report Methodology,
httosr//wtw.caiso. com/Documents/El lvl Benef tlVethodoloov odf
"The GHG emission reductron reported is associated with the avoided
curtailment only. The cuffent ma*et process and counterfactual methodology
cannot differenliate the GHG emissions resulting from serving ISO load via the
EIM ve6us dispatch that would have occurred extemal to the ISO without the
ElM. For more details, see
htto:/ ,!\,!rv carso com/Documenls/GreenhousecasEmissionsTrackinaReoorl
FreouenllvAskedQuestrons odf
$736.26 million
! Colild.i. ISO
! eai* po,roponr
a Pbiod tlM ..try 2020
I Phn6d €lAr .'{r, iDz I
I PhiEdEu .,{ry m22
$86.0M
45%
MQCRA Copyright 2019 California ISO Page 3 of 19
F
\
Gross benefits from EIM since November 2014 I
-1
f'
En.,O)
t.iT fi
t
tI
}|'
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 COz** avoided
curtailments
OPERATIONAL
Average reduction in flexibility
reserves across the footprint
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2OI9
r WESTERN EIM BENEFITS IN Q2 2019
Table 1 shows the estimated EIM gross benefits by each region per month'?. The monthly
savings presented in the table show $29.72 million for April, $28.64 million for May, and $27.64
million for June with a total estimated benefit of $86 million for the quarter.
Region April May June Total
APS
BANC
c,so
tPco
NVE
PAC
PGE
PWRX
PSE
$3.77 TE]
$8.81$2.27
$8.33
s5.23 $15.15
$1.28 $s.06
Total $29.72 $28.64 $27.64 $86.00
TABLE 1: Second quarter 2019 benefits in millions USD by month
I The benefits reflect the Sacramento Municipal Utility Oistrict as the participating resource within BANC.
2 The EIM benefits reported here are calculated based on available data. Intervals 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.
$2.03
$8.30 $9.58 $5.65 $23.53
$2.1 1 $4. 19
$1.23 $1.33 $2.06 $4.62
$s.74 $4. 18
$3.39 $3.52 $3.98 $10.89
$1.15 $0.63
$1.03 $1.12 $0.91 $3.06
IVlQCRA Copyright 2019 California ISO Pa8e 4 of 19
BACKGROUND
The Western EIM began financially binding operation on November 1,2014 by optimizing
resources across the ISO and PaciflCorp Balancing Authority Areas (BAAS). NV Energy began
participating in December 2015, Arazona Public Service and Puget Sound Energy began
particlpating 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
Balancing Authority of Northern Californaa (BANC)1, began participating on April 3, 2019. The
EIM footprint now includes portions of Arizona, California, ldaho, Nevada, Oregon, Utah,
Washington, Wyoming, and extends to the borderwith 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 April 2015. Prior reports can be
accessed at httos://www.westerneim.com/Paqes/AbouUQuarterlvBenefits.aspx.
$2.10
$4.55 $1.99
$2.68
WESTERN EIM BENEFITS REPORT SECOND 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 1s-Minute Market and ReaFTime 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 Megawatt-Hour (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 1 s-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 1S-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)(5m - bas6)
58,81 3 44.666
2,788
197,864
20.14'l 18,662
803
2,153
AZP
BAN
799
5,210PWRX
AZPS clso
NEVP
PACE
ctso
AZPS
ctso
PWRX PSEI
173,316D
.T
AZPS
MQCRA
CISO
CopyriSht 2019 California ISO
202,343 217 ,429
Page 5 of 19
I
1,613
|
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2019
ctso
CISO PWRX 123,099 132.834
CISO PACW 83.546
CISO PGE
IPCO NEVP 16,095
43.906
42,956
April NEVP PACE 122.543 118,447
PACE
PACE IPCO
PACE
PACE PACW 21 ,040 24,391
PACW t CISO 28,772 37 ,291
40,137 33,518
2,360
PGE PACW 78.012 90,067
PSEI PWRX 9,671
PSEI PACW 41 ,190 47 ,106
crso
'12,054
AZPS 56,03S
5,714
36,075
7 ,275
CISO
NEVP
PACE
AZPS
BANC
AZPS 246.067
18,599
260.039
16,619
PWRX 106 1,253
BANC 24,835 29,317
crso NEVP 165,005 173,555
71,539
66,529
41,419
20,382
rPco PACE 42,942 36.743
tPco PACW 38,1 85
4,357
42,523
NEVP AZPS
NEVP
NEVP rPcoI5U
36,234
3,681
72.934
AZPS 26,671
15,1 39 20,783
NEVP 42,168 25,045
PACW IPCO
PACW 11,95815,839
PACW
PGE
PSEI 32,13',128
PGE CISO
MQCRA Copyright 2019 California ISO PaSe 5 of 19
l
33,726
I
I
1,852
CISO
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2019
PWRX PSEI 1,648 3,240
40,490 L7 nnq
CISO PWRX 103,882 119,051
CISO NEVP
PACW
333,874 324,705
06CISO98,939 117 ,6
CISO PGE 65,603 97.985
PCo 13,47 5 8,633
IPCO PACE 95,965
May rPco
NEVP
PACW
AZPS 3,406
NEVP CISO 39.421 22
NEVP IPCO 86,006
NEVP PACE 219,*l
143-PACE AZPS 6,203 3,
tPco 6,076
PACE NEVP 17 ,145
PACW 13,7't3
PACW SO 20.985 27 ,788
PACW IPCO 42.884
PACW PGE 13,686 11,499
PACW PSE 14,475 I 7,139
PGE CISO 3,882 3,715
e6,rs IPGEPACW
IPSEPWRX't 1 ,315 8,E55
PSE PACW 61,085
L7PS CISO 1 19,059 10'1,073
AZPS NEVP 18,398 18,633
PACE
82,643
s0.923
CISO AZPS 259.128 258,904
CISO BA NC
NEVP
218,246
PACE
PACE 17 ,208
37,613
MQCRA
AZPS
Copvri8ht 2019 California ISO
'137,1 56 146,704
Page 7 of 19
I
95,716
22,82930,678 |
2,419
I
68,771
6,254
9,083
WESTERN EIM BENEFITS REPORT SECOND QUARTER 20I9
36,1'r 1 35,831
PWRX CISO 0
PWRX 3,820
CISO AZPS 132.869 '1 52,00.r
46,488 45 366
CISO PWRX 70,481 84,559
ctso NEVP 2't6,668 241 .982
CISO PACW 64,429 80,061
crso 34.510 53,783
rPco NEVP 14.928 13.946
IPCO PACE 37 ,786 42.831
IPCO PACW 34,178 30,864
June NEVP 2,115
NEVP C ISO 55,771 38,658
56.279 59.229
NEVP PACE 199,862 213,750
PACE AZPS 34.806 24,181
PACE PCO 20,129 24,469
PACE 1 5,9'r I
PACE PACW 24.279 20,929
PACW 50,682
PACW PSE I 22,584 23,510
CISO 2,231
PGE PACW 90,669 97,208
PWRX 1 1,941 10,703
PSEI PACW 43,407 54,294
TABLE 2: Energy transfers (MWh) in the FMM and RTD markets for Q2 2019
BANC CISO
PSEI 5,747
AZPS 1 ,452
NEVP IPCO
NEVP 26,639
CISO 41 j20
1,439
MQCRA Copyright 2019 California ISO Page 8 of 19
0
crso BANC
I I
I
PGE
II
PACW IPCO
IPACW IPGE
PGE
I
23 ,525 25 .81 4
16,480 13,'139
I
PSEI
WESTERN EIM BENEFITS REPORT SECOND OUARTER 2019
Estimoted Mox
Copo(ity IMW
Polh 24 lwos, lo aos,t00
Polh 24 (cost to west)35.90
Eldorodo 797
Gonderfovonl 130
PACW b PGE 320
Porh 66 flsO ro PGEI 627
Polh 66
Po$ 66 IPGE rc lSOf 296
Poth 66 ISO to PACW 33r
Poth 56 t Poth 66 IPACW to ,SOl 432
Po$ 17 o400r I
PSE IO PACW 300
Eldorodo SO0Menkopi
Polo Verde, N. Gilo 3,151
Porh 78 (PACE to APSI 625
Porh 78 (APS to PACEI 660
NovojoCrystol 522
Meod 5OO 3d9
Meod 230 fAPs <-> /SOl 236ft\,{eod 230 llSO b Nr4l 3,443
lr6od 230 ll,tl/E t l5O, 3,476
IPCO ro PACW (Porfi 751 1,50O
Polo Ycrdq )r,PACW b lrco (Po$ 75) 400510
PACE ro trcO 2,557
IrcO iC PACE 1,550
+on dir.crion .+ biiJn€.iiohol NVE b lrcO 262
I Cdik nio ISO
! ecitcorp
! Nv Encrgy
! l.izo.'o P,lti" Sfiicc
I e*tnd c,+,'.rot ebdrt
I Pug.l Soi;nd En.ryy
! ldoho Poerer Compony
I P"..,co,
IBA^lc
I ScoiL Cify t€li ft,/o.Bd qi.t n2q
I Soh Riltr Prciect lploarcd .a,.y 2o2q
ltfrw? t*nd.,r,y 2o2t)
I eu6tt S..,i." Co.np"ny oI tLw
^
.rico
hb d qtry 202 tl
! N".tWcleln tr*rgy t'hn/.t l'/i./ 2al
I Tu ocl lrrigorion Dikict lpbmd atu/ 2o2tl
a a'isto ld-na - ,r 2u2)
! l*:on Electr;c lo"e' lplo-ca,'ry zorzl
lrco to NvE 390478
Powerex <-> PSE t50
Powerex <-> l5O r50
t, d .F,od Ft o.,l*lt b trcE&tt trM ror*, od l,l.
@roc+ . o *ad o, P^CffiO/X O CE dd dt rS @*rr
r r+re o € fi. dnff. c.Fcit @ zActKa/?co.4ct otdW 75.ltt, ubra.,l' t',dr'b,t tlIdn*dMt7.
GRAPH 1: Estimated maximum transfer capacity (ElM entities operating in Q2 2019)
MQCRA CopyriSht 2019 California ISO Page 9 of 19
Poth
Poth 35 lnrrbaosd 580
Podr 35 {cos, to rws4 538
a
f
L}
t8
I
I WHEEL THROUGH TRANSFERS
As the footprint of the Western Ellvl 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 wheeli only the sink and source directly benefit. As part
of the Western 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 wheel-through transfers in the
EIM market in the quarterly reports. ln order to derive the wheel{hrough transfers for each EIM
BAA, the ISO uses the following calculation for every real-time interval dispatch:
WESTERN EIM BENEFITS REPORT SECOND QUARTER 20I9
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 ofthe 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 wheel-through transfers are summed over both the month and the quarter. This volume
reflects the total wheelthrough transfers 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 tmpoft Wheel Through
AZPS
BANC
c/so
IPCO
NEVP
PACE
PACW
PGE
PSE/
PWRX
305,752 178,346 514,915
71 ,261 122,721
2,158,797 306,124
139,127 1s1 .739 173,400
204,565 659,897
1 388 1,243,723 92,681
633,406 252,686
173.894 142.630 118,114
174.881 66.700 17,354
11 ,295 360,341 6,409
TABLE 3: Estimated wheel-through transfers in Q2 2019
177,602
CopyriBht 2019 California ISO PaSe 10 of 19
I
182,083
|
75,296
I
MQCRA
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2019
3,000,000
2,500,000
2 ,000
,500
,000
,000
3
{,)c[!
1
1 .000.000
500,000 lttl0 I n_
AZPS BANC CISO IPCO
r Net Export
NEVP PACE PACW PGE PSEI
lNet lmport t V\,heel Through
PWRX
GRAPH 2: Estimated wheel-through transfers in Q2 2019
BAA Net Expot Net lmport Wheel-Through
AZPS
BANC
c/so
tPco
NEVP
PACE
PACW
PGE
PSE/
PWRX
TABLE 4: Estimated wheel-through transfers in April 2019
18,676 29,432
42,949 54,09243,091
57,526 315,192 39,491
53,331 44,946 38,805
4,533 140,115 2,848
MQCRA CopyriSht 2019 California ISO PaSe 11 of 19
In
29,488 204,354 85,584
29,600 4,704
L
l
58,1 89 58,376 191 ,095
90.743651,169 60,069
172,85436,358 48,632
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2OI9
800.000
700,000
600,000
.c,
B
=
Eil)
uJ
500.000
400,000
300.000
200.000
100.000
0 AZPS BANC CISO
rNet Export
IPCO NEVP PACE
!Net lmport
PACW PGE PSEI PIA/qX
r Vvheel Through
GRAPH 3: Estimated wheel-through transfers in April 2019
BAA Net Export Net lmport Wheel- Through
AZPS
BANC
c/so
tPco
NEVP
PACE
PACW
PGE
PSE/
PWRX
TABLE 5: Estimated wheel-through transfers in May 2019
16,659 47,598
50,872 41,725 76,566
'I 3,1 25 557,873 19,094
49,642 59,181 50,636
2,944 126,525 1 ,616
MQCRA Copyright 2019 California l5O Page l2 of 19
In nn
104,103 65,357 199,970
57,3779 t8,466 50,518
48,069 85,136 266,052
237,U924,9U 74,541
15,49310065,4,937
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2019
B
Io
Lit
1,000,000
900,000
800,000
700,000
600.000
s00,000
400,000
300.000
200,000
100.000
0 I I
AZPS BANC CISO IPCO NEVP PACE
lNet Export a Net lmport
PACW PGE PSEI PV1/RX
r Vvheel Through
GRAPH 4: Estimated wheel-through transfers in May 2019
BAA Net Export Net lmport Wheel Through
AZPS
BANC
C/SO
lPco
NEVP
PACE
PACW
PGE
PSEI
PWRX
TABLE 6: Estimated wheel-through transfers in June 2019
35,926 45,691
45,306 66.923 42.742
51,737 370,658 34,097
70,921 38,504 28,673
3,819 93,700 1,945
MQCRA Copyri8ht 2019 California ISO Page 13 of 19
I n l
143,460 123,851u,612
589,162 158,004 71,496
93,175 70,797 220,992
20,875 92,561191,403
57,519 21,607 7,713
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2019
800,000
700,000
600,000
i
Io
uJ
500 000
400.000
00300.0
200 000
l I I100.000 I ft0I I
AZPS BANC CISO
r Net Export
IPCO NEVP
r Net lmport
PACE PACW PGE PSEI
r \Meel Through
P\ /RX
GRAPH 5: Estimated wheel-through transfers in June 2019
I REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS
The Western EIM benefit calculation includes the economic benefrts 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 Q2 2019 was calculated to be 46,812 lvlwh (April) + 59,422 MWh (May) + 26,703
MWh (June) = 132,937 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 COr/MWh, avoided curtailments displaced an
estimated 56,897 metric tons of COz for Q2 2019. Avoided renewable curtailments also may
have contributed to an increased volume of renevrrable 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 CopyriSht 2019 California l50 Page 14 of 19
l1 n
WESTERN EIM BENEFITS REPORT SECONO QUARTER 2019
Year Quarter MWh Eq. Tons CO2
3 828 354
4 17,765 7,521
112,948 48,342
2 158,806
2016 J 33,0%14,1U
4 23,390 10,011
52,651 22,535
2017 67,055 28,700
23,331 9,986
18,060 7,730
1 28,188
2018 129,128 55,267
19,032 8,146
4 23,425 10,026
2019 22.36s
2 132,937 56,897
Total 943,053
I FLEXIBLE RAMPING PRoCUREMENT DIVERSITY SAVINGS
The Western 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 EllV 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 flexable 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
J
1
2
65,860
J
,|52,254
403,546
Copyright 2019 California ISO PaSe 15 of 19
1 3.7928,860
4
2015 2 3,629 1,553
67,969
TABLE 7: Total reduction in curtailment of renewable energy and the associated reductions in
co?
MQCRA
35 185
605
up
up
up 215 1701
up 45 157
152
298
0
105
up
up
up 56
PSE/106
ALL EIM
PWRX
54
JO
68
PACW
PGE
137
129up
up
up
1,823
AZPS down 190
69t-4
c/so down 1 ,349343
tPco down
NEVP down
1
PACE down
down 19
0
82
153
152
321
119
PGE down 35 146
Month BAA Direction Minimum
requirement
Maximum
requirement
AZPS
tPco
NEVP
PACE
April
PSE/down
PWRX down
ALL EIM down
145
4't 8
230
1,484
43
54
AZPS up 27 185
c/so up 167 1 ,701
725
IPCO up 15744
up 0 152
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2019
BANC up
NEVP
up 68
MQCRA
May PACE
Copyright 2019 California l50
298
Page 16 of 19
IBANC
c/so
l
up 287
ZJ
BANC dorm I
PACW
I
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2019
PACW up 61
up 58
JUup
137
129
106
ALL EIM up
down
260
21
't,823
190
PACE down
0
4
t3
45
152
tcJ
286
down
down
ov
1,349
321
PSEi
PWRX
37
145
52
40
146
410
down
down 230
1,184428
AZPS
up 1)
41
38up
up 4
293
185
't,701
72
157
152NEVP
up
b5 298
up 234
up
up 60 137
106
129
59
'18
down
PGE
PSE/
PWRX
AZPS
EANC
c/so
up
down
down
63 234
IPCO
June
NEVP
PACW
PGE
down
down
ALL EIM down
BANC
crso up
IPCO up
PACE
PACW
PGE up
PSE/
PWRX
ALL EIM up
AZPS down
BANC
down
380
21
5
't,823
190
227
MQCRA
C/SO
Copyright 2019 Catifornia l50
1 ,349
Page 17 of 19
I
I
57
I
I
I
I
I
tPco down 45 '153
PACE 66
down
down
152
321
PACW down 119,7
PGE down 47 146
down 145
PWRX down
down
60 230
1,184
WESTERN EIM BENEFITS REPORT SECOND QUARTER 2019
NEVP
PSE/
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.
April May June
Direction
Avemge MW saving
Sum of BAA requirements
Percentage savings
Up
827 881 844 880 8s3 880
1,867 1,953 1,879
440k 45%450k 45o/o 440k 47o/o
Table 9: Flexible ramping procurement diversity savings in Q2 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 positrve 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.
Up Up Down DownDown
1,861 1,959 1,934
MQCRA Copyri8ht 2019 California l50 Page 18 of 19
ALL EIM 337
WESTERN EIM BENEFITS REPORT SECOND QUARTER 20I9
I CONCLUSION
The first real-time wholesale power market of its kind in the western United States, the EIM uses
state-of{he-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 $736.26 million, demonstratrng that utilities can
realize cost benefits and reduce carbon emissions through increased coordination and
optimization in the West.
Sharing resources across a larger geographic area 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 403,546 metric tons of COz, roughly the equivalent of
avoiding the emissions from 84,844 passenger cars driven for one year.
MQCRA Copyrieht 2019 California l5O PaBe 19 of 19
S Colifornio tSO
WESTERN EIM BENEFITS REPORT
Third Quarter2019 r r
www.westernElM,com
October 29,2019
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2019
CONTENTS
EXECUTIVE SUMMARY 3
4
4WESTERN EIM ECONOMIC BENEFITS IN Q3 2OI9
INTER.REGIONAL TRANSFERS,.,.,,,
WHEEL THROUGH TRANSFERS,,-,,
5
9
REDUCED RENEWABLE CURTAILMENT AND GHG REOUCTIONS...........,.........14
15
t9
FLEXIBLE RAMPING PROCUREMENT DIVERSITY SAVINGS
CONCLUSION
MQCRA CopyriBht 2019 California ISO Page 2 of 19
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2OI9
EXECUTIVE SUMMARY C,ry t,ghr
a c.lih-io rso
I ran ponapoa
I flond ElM.nhy 2O2O
! th^rd tl/vt 'rry 202l
I lb.rd €M iry 2022
This report presents the benefits associated with
participation in the Western Energy lmbalance
Market (ElM) for the third quarter of 2019. The
benefits include cost savings and the use of
surplus renewable energy.
The Western EIM is helping to displace less-
clean energy supplies with surplus renewable
energy that otherwise may have been curtailed.
E
This analysis demonstrates the benefit of economic
dispatch in the real time market across a larger EIM
footprint with more diverse resources and geography.
2019
03 BENEFITS
Q3 2019 Gross Benefits by Participant
Arizona Public Service
BANC
California ISO
ldaho Power
NV Energy
PacifiCorp
Portland General Electric
Powerex
Puget Sound Energy
Total
(millions $)
$20.36
$4.37
$5.77
$5.36
$5.92
$9.54
$9.48
$1.04
$2.97
$6.t.81
'ElM Quarte.ly Benefit Report Methodology,
httos://wvw.caiso.com/Documents/ElM Benefitl\,4ethodoloov odf
$801.07 million
$64.81M
14,485
49o/o
MQCRA Copyright 2019 California lso PaSe 3 of 19
Gross benefils from EIM since November 2014
\,t!,
8-^&ll;
-t /I iirflr'I
"The GHG emission reduction repoded is assocjated wilh the avoided
curtailment only. The current market process and counterfaclual methodology
cannot differentiate lhe GHG emissions resulting from seMng ISO load via lhe
EIM vecus dispalch thal tlould have occured extemal to the ISO wilhoul lhe
ElM. For more details, see
hllo://w!vw caiso.com/Documents/GreenhousecasEmissionsTrackinoReoorl-
FreouentlvAskedQuestions.odt
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 COz.* avoided
curtailments
OPERATIONAL
Average reduction in flexibility
reserves across the footprint
'C' BACKGROUND
The Western EIM began financaally bindang 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 Oc{ober
1, 2017. ldaho Power and Powerex began participating on April 4, 2018. Most recently, the
Balancing Authority of Northern California (BANC)1, began participating on April 3, 2019. The
EIM footprint now includes portions of Arizona, California, ldaho, Nevada, Oregon, Utah,
Washington, Wyoming, and extends to the border with Canada,
The ISO began publishing quarterly EIM benefit reports in April 2015. Prior reports can be
accessed at https://www.westerneim.com/Paqes/AbouUQuarterlyBenefits.aspx.
I WESTERN EIM ECONOMIC BENEFITS IN Q3 2019
Table 1 shows the estamated EIM gross benefits by each region per month2. The benefits in the
third quarter of this year reflected typical ranges, tracking lower load levels and fuel prices
generally associated with market condilions for this period. The monthly savings presented in
the table show $22.48 million for July, $19.32 million for August, and $23.01 million for
September with a total estimated beneflt of $&1.81 million for the quarter.
Region July August September Total
APS
BANC
c/so
tPco
NVE
PAC
PGE
PWRX
PSE
$1 .57 $1 .52 $5 36
$3.19 s2.70 $3.65 $9.54
$0.66 $0.17 $1 04
Total $22.48 $64.81
' The benefits reflect the Sacramento Municipal Utility District as the participating resource within BANC.
'?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.
MQCRA Copyright 2019 California ISO PaSe 4 of 19
$6.08 s7.55 $6.73 $20.36
o t.oJ $1 35 $1.39
$2.96 $1.33 $1.48 $5.77
$1.47 $1 .52 $2.93 $5.92
$3.97 s2.10 $3.41 s9.48
$0 21
$0.95 $1.04 $0.98 $2.97
$19.32 $23.01
WESTERN EIM BENEFITS REPORT THIRD QUARTER 20I9
$2 27
TABLE 1: Third quarter 2019 benefits in millions USD by month
$4.37
I
WESTERN EIM BENEFITS REPORT THIRD QUARTER 20I9
I INTER-REGIONALTRANSFERS
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 ofthe benefits attributed to the ElM. Transfers can take place in
both the 1s-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 BAA_y and the transfer from BAAj to BAA_x are separately
reported. For example, if there is a 100 Megawatt-Hour (MWh) transfer during a s-minute
interval, in addition to a base transfer from ISO to NVE, it will be reported as 100 l\rwh
from_BAA ISO to_BAA NEVP, and 0 MWh from_BAA NEVP to_BAA ISO in the opposite
direction. The 1s-minute hansfer volume is the result of optimization in the 1s-manute 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.
CISO 198,528 169,708
AZPS N
BANC
PWRX
PWRX
CISO
PACE
CI SO
ctso
PSEI
AZPS
BANC
EVP '15,
69,232
22.291
u4
60,895
29,623
0
3,6%
61,185
5,396
74,320
0
MONth FTOM BAA TO BAA
(lsm - base)
smin EIM
transfer
'lsmin EIM
transfe r
(5m - base)
1 1,602
MQCRA
rso
CopyriSht 2019 California tSO
99,553 116,2?8
Page 5 of 19
AZPS
AZPS
t
70,766
79,935PACW
PACW PSEI
PGE crso
2'11,676 184,635
21,680
17 ,384
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2019
PWRX 68,309 81,070
CISO NEVP
crso PACW 32,583
CI SO
IPCO NEVP 23,634 'I 9,143
0 745
IPCO PACW 21 ,283 23,604
NEVP AZPS 3,758
NEVP ctso
tPco
109,430 68,383
July NEVP PACE 71 ,391
82,489 74,935
PACE tPco 32,447 38,1 35
PACE NEVP 46,179
PACE PACW 44.57 4 49,232
ctso 67 ,760
41 ,857 38,526
2,734
PGE PACW 60,004 62,064
PSEI PWRX 59,511 58,767
PACW 30,106 41,598
AZPS ctso
NEVP 15,617
AZPS -1 PACE I
BAN CISO 3'l ,565 24,787
I[wRx '. -ctso
PSEI
0
PWRX 10,897 13,4'18
90,349
60,'168
7 5,743
38,026
24,837
IPCO PACE 10,900
3,629
85,066
PACE AZPS
crso AZPS
MQCRA Copyright 2019 California tSO
12,746
ctso
l
PGE
NEVP --iorzef----=,zss
]I
I
2,495
I
PACW |PCO 19,847 20,814
-PTcw TcE T sTrosT 54;or
I
I
1
PSEI
AZPS
rs.*o I rs"asz
I
I ol
I
Page 6 of 19
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2019
41 ,700
crso BANC
crso
CISO
PACW
crso PGE
rPco
tPco PACE
86,540
12,541
18,449
3,505
22,152
3,968
77,069
17 ,256
62,492
35,345
50,840
72.917
12,892
s3,52 0
29,975
1 ,502
41 ,492
33 628
234,767
1't ,877
16,733
27 ,478
0
103.262
39,644
34,429
23,1s0
?7,971
13,395
2,389
23,969
4,147
54j46
27 ,696
73,349
81,050
19,561
80,1 63
1 I ,806
53,906
27 .494
1 ,421
38,052
33,576
48.427
19,408
25,098
0
August IPCO
NEVP
NEVP
NEVP
NEVP
PACW
crso
tPco
PACE
AZPS 97,468
(,PC 009PACE
PACW CISO
PGE
PACW
PSEI PWRX
PACW
PAC
PSEI
AZPS
AZPS
AZPS
BANC
PACW
ctso
PACE
ctso
64
too
213,8
4
C SO
PSE
PWRX
25,661
crso 17,619
PACW
PGE ctso
PGE
tPco
PACE NEVP
PACE PACW 64,038
NEVP
MQCRA
PWRX
Copyrieht 2019 California l5O
9,758 12.52?
Page 7 of 19
I
I
26,17s
I
NEVP
AZPS
I
PACE
61,062 I
PSEI
NEVP
PWRX
l
AZPS 77,55890,359PACE
PACE
IPCO 47 ,224
48,166
56,804
PACW PGE
14,471
78,710
PACW PSEI
83,176
)2,I Jt
4,e11
25,541
44,258
4,553
22,257
crso
PWRX
PGE
PACW
WESTERN EIM BENEFITS REPORT THIRO QUARTER 2019
AZPS 28,526 33,739
rPco NEVP 25,77 3 22,449
rPco PACE s,334 3,450
IPCO PACW 55,252 49,400
September NEVP AZPS
NEVP CISO 93,334
NEVP rPco 30,265 30,263
t NEVP PACE 48,1 55 53,892
49,229
PAC E PACW 58,991 A7 117
PACW ctso
PACW IPCO 't6,527
47.300
PSEI 42,918
PSEI PACW 24,764 33, 'r 94
TABLE 2: Energy transfers (MWh) in the FMM and RTD markets for Q3 2019
66,931
46,783
ctso
crso
BANC
PWRX
74,065
64,272
crso NEVP 38.264
CISO PACW 35,503
44.932
43,925
PGE 34,558 s5.963
7,266
113,227
MQCRA Copyright 2019 California l50 Page I of 19
crso
ctso
5,722 |
I
I
I
PACE
NEVP | 5e466
|
65,8s6
]
I
PGE
I
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2019
Pol[ 65
Poth fslimohd Mox
CopociV (MWl
too
Polh 24 (eost lo wettl 35-90
Eldorodo 7C7
Poh 35 lwrrt to oos,580
Pofi 35 [eos, lo wes4 538
Gonder-Povonl 130
PACW to PGE 3?O
Porh 66 frsO rc PGEf 627
Po$ 66 [PGf ,o tso,296
Pofi 66 l'SO b PAC
Pofi 66 [PAcw,o ,5o/432
Po$ 17 0-400' ,
PSE to PACW 300
Eldorodo S0od,tocnkopi 732
Polo rde, N. Gilo 3. t5l
Porh79 (PACE ro APS)625
Porh 78 IAPS ro PACE)660
Novoloaryrhl 522
Meod 5 0O 349
Meod 230 IAPS <-> lSO, 236fMeod 230 f6O b NtlE, 3,,143
Meod 2 30 3,476
rrco b PAcw (Po6 7sl r,5oo
PACW to IPCO (Podr 751 40G510
PACE b rrcO 2,557
rrco b PACE r,550
Po 66(
Polo Yerde,?l,
.- one direclir <+ Mir€.lionol NVE to lrcO 262
IrcO b NVE 390-d/8I Coiik nb EO
I r""itic-p
I w Enc'gy
! &izom Public Scr"icc
I Podhnd Go'Eml ELcrk
I Lrgcf sornd E -gyI Eoho Powcr Compony
I Po"ao,
I B./r,.lC blo'. ?.nr),2o2,
& SdrL Cirv Liohrtud.;tbnl
I Soh River Proi*l lphrytd ery 2o?o,
aLADwP l*n.d.nty 2o2tt
! Publk Scrvicc Cornpony o, N€v M€rico
l&nEA &.r 202 tl
! NodhwkEm End,gy 6h, d @ry 2m Uj rrdo"t t,,igori- Oi"i bt lCor.Ed chty 2o2tt
I A*F ly'oo^d cntry 2022)
I locson €l€ctic Pow€r /p/o .Md 6ry 2022)
a l&.orn ?aldot lda d any 20221
Eonnevil€ Power Admini{rononl*rd at,/ n24
Powerox <-> PSE l5O
P"."*, .-rSO | 50
' h 6 qtb.et Ft alat b acEllcw ar. }..!la 'd..c*+ n. 'A*.I?ACEXO/1pCO}AC dd ld 75 c#r/
: wlrt r d. t- oaldn ..@.t 6 PaCEXO/KAPrcE ddM Z5 'ilL e6-s-t.ad/ by a- u4 dz't 6 ?di 17,
C[r.ddW2Ot9
GRAPH 'l: Estimated maximum transfer capacity (ElM entities operating in Q3 2019)
I WHEEL THROUGH TRANSFERS
As the footprint ofthe Western 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 Western EIM Consolidated Initiatives stakeholder process, the ISO committed to
monitoring the wheel through volumes to assess whether, after the addition of new Ellvl 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 wheel-through kansfers in the
EIM market in the quarterly reports. ln order to derive the wheel-through transfers for each EIM
BAA, the ISO uses the following calculation for every real-time interval dispatch:
MQCRA CopyriSht 2019 Calilornia ISO
Polh 24 lwest to eosl
u
78
I
Page 9 of 19
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2019
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 betvveen total exports and total
imports
Wheel through: the minimum of the EIM transfers into (total import) or EllM transfer out
(total export) of a BAA for a given interval
All wheel-through transfers are summed over both the month and the quarter. This volume
reflects the total wheel-through transfers 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 an Table 2
reflect the gross transfers between two EIM BAAs,
The metric is measured as energy in MWh for each month and the correspondang calendar
quarter, as shown in Tables 3 through 6 and Figures 2 through 5.
BAA NetExpon Net lmpon wheel Through
AZPS
BANC
c/so
IPCQ
NEVP
PACE
PACW
PGE
rJE'
PWRX
502,133 148,880 226,5U
72,314 294,707
334,097
78,00s 207,248 91,230
274,115 266,546
553.303 207.615 130,751
164,861
110,714 23,572
1 85,867 73.404
17 ,826 307,368 13,683
TABLE 3: Estimated wheel-through transfers in Q3 2019
124,895
217 .991 409,684
688,168
MQCRA CopyriSht 2019 California ISO Page 10 of 19
308,774
71,806 l
758,022
THIRD QUARTER 20.I9
=
[!
1,600,000
1.400.000
1.200.000
1.000.000
800,000
600,000
400 000
200.000 I
AZPS
BANC
c/so
tPco
NEVP
PACE
PACW
PGE
PSEI
PWRX
IIltlII l0
AZPS BANC CISO IPCO NEVP PACE PACW PGE PSEI
6 Net Export aNet lmport I Vvheel Through
GRAPH 2: Estimated wheel-lhrough transfers in Q3 2019
BAA Net Export Net lmport Wheel-Through
11,846
3,568
P\ /RX
52,971 103,102
1.858 140,115
TABLE 4: Estimated wheel-through transfers in July 2019
152,397 51 ,648 102.269
22,291 1',t6,647
340,590 226,317 116,922
26.059 69,537 27 ,684
75,095 51,005 120,635
183,634 25,345800't40,
57 ,087 72,947 136,761
73,290 16,618 27 .407
MQCRA PaBe 11 of 19
WESTERN EIM BENEFITS REPORT
n
CopyriSht 2019 California ISO
WESTERN EIM BENEFITS REPORT THIRD QUARTER 20I9
600.000
500.000
400.000
=
q)
uJ
300
200
,000
,0@
100,000
0
AZPS BANC CISO
E Not Export
IPCO NEVP PACE
INet lmport
PACW PGE PSEI P\AiRX
rVvheelThrough
GRAPH 3: Estimated wheel-through transfers in July 20'19
BAA Net Export Net lmport Wheel- Through
AZPS
BANC
c/so
tPco
NEVP
PACE
PACW
PGE
PSE/
PWRX
TABLE 5: Estimated wheel-through transfers in August 20'19
24.833 103,7 42
21 ,311 88.605 18,503
167.871 30,962 64,400
36,743 79,596 2,771
8,6s2 't26,525 4,845
MQCRA CopyriSht 2019 California l5O Page 12 of 19
l n nt-l
173,909 50,383 52.290
96.130150,806
40,787 64,917 133,127
19,'17921,85163,004
I
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2019
600,000
500.000
400,000
3
=
d,o
LU
300 000
200 000
100 000 I T0
AZPS BANC CISO IPCO
r Net Export
NEVP PACE
r Net lmport
PACW PGE PSEI
rVlheel Through
P\ /RX
GRAPH 4: Estimated wheel-through transfers in August 2019
BAA Net Export Net lmport Wheel Through
AZPS
BANC
C/SO
IPCO
NEVP
PACE
PACW
PGE
PSE/
PWRX
TABLE 6: Estimated wheel-through transfers in September 2019
25,190 74,317
30.635 49,106 45,043
201,758 35,853 41 ,007
8,95521,000 126,075
7,316 93,700 s,271
MQCRA Copyright 2019 California ISO PaSe 13 of 19
tl
t-
lluII
't75.827 46,849
33,338
72,024
26,817
't96,773 282,031 121 ,045
95,177 40,394
66.987 139,79580.127
49,573
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2019
600.000
500,000
400 000
00
00
=
p
LIJ
300.0
200,0
100.000 I I I I0IT
AZPS BANC CISO
E Net Export
IPCO NEVP PACE
a Net lmport
PACW PGE PSEI
r \.vheel Through
P\A,RX
GRAPH 5: Estimated wheel-through transfers in September 2019
I REDUCED RENEWABLE cURTAILMENT AND GHG REDUCTIoNS
The Western EIM benefit calculation includes the economic benefits that can be attributed to
avoided renewable curtailmenl 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 2019 was calculated to be 12,922 MWh (July) + 3,126 MWh (August) + 17,794
MWh (September) = 33,843 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 .ale of 0A28 metric tons COlMWh, avoided curtailments displaced an
estimated 14,485 metric tons of COz for Q3 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.
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ll I
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2019
Year Ouarter MWh Eq. Tons CO2
3,792
2015 3,629 1,553
7 ,521
158,806 67,969
2016
23,390 10,0 1 I
2017
4
1 65,860 28,188
2018 2 129,128 55,267
4 23,425 10,026
2019
976,896 418,031
TABLE 7: Total reduction in curtailment of renewable energy and the associated reductions in CO2
I FLEXIBLE RAMPING PROCUREMENT DIVERSITY SAVINGS
The Western 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 lasted in Table 8.
8,860
2
354
4
828
17,765
1 112,948 48.342
2
3 33,094 14jU
4
,|52,651
67,055
22,535
28,7002
3 23,33'l 9,986
1E,060 7 ,730
3 19,032 8,146
1
2
52,254 22.365
56.897
3 33,843 14,485
Total
MQCRA CopyriSht 2019 California ISO Page 15 of 19
1
'132,937
Month BAA Direction Minimum
requirement
Maximum
requirement
July
AZPS up 0 185
BANC up 0 72
c/so up 0 1701
tPco up 0 '157
NEVP up 0 't52
PACE up 0 298
PACW up 0 137
PGE up 0 129
PSE/up 0 106
PWRX up 0 200
ALL EIM up 0 1,523
AZPS down 0 190
BANC dowrl 0 72
c/so down 0 1,349
trco down 0 153
NEVP down 0 tat
PACE down 0 321
PACW down 0 119
PGE down 0 146
PSE/down 0 '145
PWRX down 230
ALL EIM down 0 1,484
AZPS up 41 280
up 4
up '185 1,459
tPco up 3 164
NEVP up ?0 291
upPACE 89 316
WESTERN EIM BENEFITS REPORT THIRD QUARTER 2019
MQCRA
August
Copyright 2019 California ISO Page 16 of 19
I
BANC
C/SO
WESTERN EIM BENEFITS REPORT THIRO QUARTER 2019
PWRX up
PSEI down
PACE up
September
down 153
PACW up 34 133
43 213up
up 20 169
50 234
ALL EIM 312 1,553
AZPS down 20 358
BANC 0
c/so 1E9 1,305
aodown
down
IPCO down 185
NEVP down 297
?o
36
PACE down 59 390
down
down
PACW
PGE
13
30
'148
242
28 201
PWRX down 65 270
ALL EIM down 0 't,526
AZPS up 33 280
upBANC 734
c/so 't 85
tPco up 35
up 'l,592
211
upNEVP 14 291
320
PACW up
to
JO 162
44 ztJ
26 163
upPWRX 51
ALL EIM up 3',12 1,6s3
AZPS 28 370down
BANC down 6 82
MQCRA
c/so
Copyright 2019 California l5O
1,305
PaSe 17 of 19
PGE
PSE/I
I
I
upl
IL
-------------
I
231
PGE up
iPsETup I
THIRD QUARTER 2019
down 34
down ot
ALL EIM down 79
Table 6: Flexible ramping requirements
July August September
Up Oown Down
807 798 841 846
'l ,750
460/0 49vo 49o/o 50Yo 47'k 51Yo
Table 9: Flexible ramping procurement diversity savings in Q3 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 lvlvv 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.
downIPCO 39 232
297
PACE down 390
PACW down 27
PGE down JJ
down 205
270
1,52',1
Up Up Down
1,690 1,630 I ,679 1,701 1,675
MQCRA Copyright 2019 California l5O Page 18 of 19
WESTERN EIM BENEFITS REPORT
8'1
NEVP
148
242
PSE/26
PWRX
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.
Direction
Average MW saving
Sum of BAA requirements
Percentage savings
797
WESTERN EIM BENEFITS REPORT THIRD QUARTER 20I9
I CONCLUSION
The first real-time wholesale power market of its kind in the western United States, the Western
EIM uses state-of{he-art technology to find and deliver low-cost energy to meet real-time
demand across eight western states and a Canadian province. The EIM has proven extensive
financial and operational benefits, and cumulative gross economic benefits ofthe EIM have
surpassed $800 million since its inception in November 2014.
ln addition, the EIM provides increased situational readiness and environmental benefits
through the reduction of renewable curtailments during periods of oversupply. Sharing
resources across a larger geographic area 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 201 5 to-date reached 41 8,031 metric tons of CO2, roughly the equivalent of
avoiding the emissions from 87,889 passenger cars driven for one year.
Entities representing over 77yo of he load in WECC are now operating in the Ellvl or in the
implementation phase, demonstrating that utilities can realize cost benefits and reduce carbon
emissions through increased coordination and optrmization in the West.
MQCRA Copyright 2019 California lso Page 19 of 19