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HomeMy WebLinkAbout20200527Quarterly Report.pdf<EHmr. il':;CI IVED ":,i,,"; cl Pl'i 3:5E An lo coPPcomp.rry JULIA A. HILTON Deputy General Counsel ihilton@idahopower.com May 27,2020 Ms. Diane Hanian Secretary ldaho Public Utilities Commission PO Box 83720 Boise, lD 83720-0074 Re Case No. IPC-E-16-19 Deferral and Recovery of Costs Associated with Participation in Energy lmbalance Market - California lndependent 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-I6-19, ldaho Power Company ("ldaho Powe/' or "Company') hereby submits the quarterly CAISO Western EIM Benefits Report ("Report") for the first quarter of 2020. The Report presents CAISO's quantification of benefits associated with participation in the Western ElM. For the first quarter of 2020, CAISO estimated Western EiM gross benefits of $5.15 million 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 developed a more precise methodology, that uses inputs specific to ldaho Power, for determining actual EIM benefits, the details of which are 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 (208) 388-5764 or nblackwell@idahopower.com. Sincerely, L;,--y:(*- Enclosure Julia A. Hilton e Colifornio ISO WESTERN EIM BENEFITS REPORT First Quarter 2020 r r r www.wglbmElf .com April 30,2020 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O CONTENTS EXECUTIVE SUMMARY 3 4 4 5 5 BACKGROUND.......... WESTERN EIM ECONOMIC BENEFITS !N QI 2020......... CUMULATIVE EIM BENEFITS SINCE INCEPTION INTER-REGIONAL TRANSFERS. WHEEL THROUGH TRANSFERS 10 15 16 19 REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS ............ FLEXI BLE RAM PING PROCU REM ENT DIVERSITY SAVI NGS.. MPP Copyright 2020 California ISO PaBe 2 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O EXECUTIVE SUMMARY This report presents the benefits associated with participation in the Westem Energy lmbalance Market (ElM) for the first quarter of 2020. The measured benefits of participation in the Westem EIM include cost savings, increased integration of renewable energy, and improved operational efficiencies including the reduction of the need for real-time flexible reserves. This analysis demonstrates the benefit of economic dispatch in the realtime market across a larger EIM footprint with more diverse resources and geography. Ql 2020 Gross Benefits by Participant cilv Psthnd GcrcrclE*ric 2020 Ql BENEFITS Arizona Public Service BANC Califomia ISO ldaho Power NV Energy PacifiCorp Portland General Electric Puget Sound Energy Powerex Total (millions $) $11.26 $7.07 $9.57 $s.15 $5.36 $7.80 $6.93 $3.67 $1.09 $57.90 'ElM Quarterly Benefit Report Methodology, httos://www.caiso.com/Documents/ElM BenefitMethodoloov.odf *The GHG emission reduction reported is associated with the avoided curtailment only. The cunent market process and counterhctual methodology cannot difierentiate the GHG emissions resulting from serving ISO load via the EIM versus dispatch that would have occuned extemal to the ISO without the ElM. For more details, see htto J/www.caiso.com/DocumentJGreenhouseGasEmissionsTrackinoReoort- Freo uentlvAskedQuestions. odf lr.fuOprotu ! cdiftxnio sO tll .diry! fcrinpctlcipot I Plorld ElM dtry 2920 I n*,ra fnrcory ZOal ! fUma eulorry zozz $919.69 million ; $sz.90M 37,125 460/o MPP Copyright 2020 California ISO Page 3 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O H BACKGROUND The Western 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 in October 2016, and Portland General Electric began participating in October 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 are available at https://www.westernei m.com/Paqes/AbouVQua rterlyBenefits. aspx. I WESTERN EIM ECONOMIC BENEFITS IN Q1 2O2O Table 1 shows the estimated EIM gross benefits by each region per month2. The monthly savings presented show $17.21 million for January, $17 .42 million for February, and $23.27 million for March with a total estimated benefit of $57.90 million for the quarter. Region January February March Total APS BANC c,so tPco NVE PAC PGE PSE PWRX Total TABLE 1: First Quarter 2020 benefits in millions USD by month ' The benefits reflect the Sacramento Municipal Utility District as the participating resource within BANC. 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. $4.10 $3.48 $3.68 $11.26 $1.66 s1.26 $4.15 $7.07 $2.57 $2.91 $4.09 $9.57 $1.66 $1.43 $2.06 $5.15 $1.10 $1.80 $2.46 $5.36 $2.22 $2.46 $3.12 $7.80 $2.46 $2.u $2.13 $6.93 $1.16 $1.23 $1.28 $3.67 $0.28 $0.51 $0.30 $1.09 $17.21 $17.42 $23.27 $s7.90 MPP Copyright 2020 California ISO Page 4 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O I CUMULATIVE EIM BENEFITS SINCE INCEPTION Since the start of the EIM in November 2014, the cumulative economic benefits have totaled $919.69 million. The quarterly benefits have grown over time as a result of the participation of new Balancing Authority Areas (BAA) in the market, which results in additional benefits for both the individua! BAA but also compounds the benefits to adjacent BAA's by enabling further transfers. Graph 1 illustrates the gross economic benefits of the EIM by quarter for each participating BAA. $ 120 .CISO EPAC ENEVP PSEI OAZPS TPGE IIPCO TPWRX TBANC GRAPH 1: Cumulative gross benefits since the inception of the EIM 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 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) -lSO transfer limit and the Portland General Electric (PGE) -lSO transfer limit in RTD. These RTD transfer capacities between PACW/PGE 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 00$ $80 $60 $40 $20 $0 oEe =I oEooooo o EHffiE@EHHEE HI EH I H ; EEIE o4 2014 2020172016 01 02 03 2015 04 01 Q2 03 04 01 02 03 04 01 Q2 03 Q4 01 A2 03 04 Ql 202020198 .*d 4 MPP copyright 2020 california lso Page 5 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O benefits quantified in this report are only attributable to the transfers that occurred through the ElM. The benefits do not include any transfers attributed to transfers submitted in the base schedules that are scheduled prior to the start of the ElM. The transfer from BAA_x to BAAj and the transfer from 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 MWh from_BAA ISO to_BAA NEVP, and 0 MWh from_BAA NEVP to_BAA ISO in the opposite direction. The 1S-minute transfer volume is the result of optimization in the 1S-minute market using all bids and base schedules submitted into the ElM. The S-minute transfer volume is the result of optimization using all bids and base schedules submitted into ElM, based on unit commitments determined in the 1S-minute market optimization. The maximum transfer capacities between EIM entities are shown in Graph 2 below. Month From BAA To BAA 15min EIM transfer 5min EIM transfer AZPS crso 146,580 118,035 AZPS NEVP 4,396 7,516 AZPS PACE 31,022 34,140 BANC crso 5,218 3,705 CISO AZPS BANC 51,059 62,838 crso 102,749 115,280 ctso PWRX NEVP 33,513 49,461 crso 70,572 94,165 ctso PACW 24,582 41,224 crso PGE 23,995 36,003 4,442 rPco NEVP 19,786 rPco PACE 11,976 10,826 lPco PACW 32,504 40,927 tPco PSEI 0 0 NEVP AZPS 6,365 4,578 NEVP ctso 82,274 40,914 NEVP IPCO 26,080 28,996 NEVP PACE 91,058 100,398 PACE AZPS 94,262 72,968 PACE rPco 52,866 63,932 PACE NEVP 45,373 30,234 MPP January Copyright 2020 California ISO Page 6 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O PACE PACW 21,566 29,096 PACW crso 85,524 104,694 PACW rPco 45,622 29,565 PGE 42,483 44,254PACW PSEI 21,578 23,446PACW 3,010PGEctso3,272 60,642PGEPACW57,741 2,309PGEPSEI1,947 38,452PSEIruvRx36,840 PSEI rPco 0 0 PSEI PACW 52,512 53,785 PSEI PGE 2,755 2,883 F{/r/RX crso 0 PWRX PSEI 12,029 15,666 AZPS ctso 110,197 84,590 AZPS NEVP 1,243 2,03',1 AZPS PACE 49,441 67,028 BANC ctso 15,318 12,762 crso AZPS 62,791 90,838 crso BANC 53,241 62,792 ctso PVVRX 50,290 61,2U crso NEVP 125,094 129,734 crso PACW 24,058 38,847 PGE 26,134 48,985crso rPco NEVP 26,689 17,026 PACE 39,221 30,664tPco PACW 29,334 35,149tPco 2,160rPcoPESI1,300 AZPS 17,018 12,257NEVP 74,392NEVPcrso120,880 40,715NEVPtPco41,426 NEVP PACE 100,130 103,027 PACE AZPS 6'1,353 46,796 February MPP Copyright 2020 California ISO Page 7 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O PACE rPco 13,289 13,872 PACE NEVP 35,684 19,018 PACE PACW 9,754 17,294 PAC\,V crso 67,058 79,157 PACW rPco 29,470 20,974 PACW PGE 17,822 17,247 PACW PSEI 13,828 18,807 PGE crso 2,*5 2,104 PGE PACW 85,897 88,355 PGE PSEI 3,293 4,241 PSEI PWRX 31,655 32,500 PSEI rPco 3,941 2,749 PSEI PACW 57,737 60,498 PSE!PGE 2,81 2,588 PWRX crso 0 0 PlA'RX PSEI 8,880 10,174 AZPS crso 92,088 73,985 AZPS NEVP 1 721 4,2U AZPS PACE 50,487 64,233 BANC ctso 19,643 15,780 CISO AZPS 57,988 73,220 crso BANC 62,205 68,134 CISO PWRX 42,058 54,981 NEVP 96,890clso 108,966 crso PACW 30,926 44,195 crso PGE 26,517 56,148 IPCO NEVP 32,182 23,767 rPco PACE 24,923 26,958 rPco PACW 37,485 54,883 tPco PSEI 0 0 NEVP AZPS 6,574 5,579 NEVP crso 125,012 89,517 NEVP tPco 35,922 47,472 MPP March Copyright 2020 California ISO Page 8 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O PACE AZPS 38,155 29,4fi PACE NEVP 30,556 17,372 PAO/V crso 66,383 75,005 PGE 31,274 31,354PACW PGE oso 6,300 5,556 PGE PSEI 5,073 6,46 PSEI tPco 2,fi1 1,W PSEI PGE 4,752 5,350 P\,\/RX PSEI 25,899 25,663 TABLE 2: Energy transfers (irwh) in the FillM and RTD markets for Ql 2020 MPP Copyrleht 2020 Callfornia ISO Page 9 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O Po$Erlimorrd Mox C"p".,ty (tlilt Pofi 24 fwesl trc eosfl 100 Po$ 24 (cost to wcst)35-90 Eldorodo 797 Poth 35 fuesl fo eosfl 580 Polh 35 lcod lo nlar,l 538 GonderPovonl r30 PACWb PGE 320 Porh 66 (Ifi b reEl 627 Porh 66 fPGE ro 'SO,| 296 Po$ 66 fifi b PACWI 331 Po$ 66 Pofi66 (PACl/tttol50il 132 Pofi 17 o{@r z PSE to PACW 300 E ldorodo 5 00l'{oenlopl 732 Polo tlardc, N. qh 3,'l5t Pofi 78 6@ 522 500 349 ^^€od 230 fAPS <->,SO, 236f'Meod 230 f,SO b NYE, 3,43 hbUdq )L tlrod23O (NWtolSOl 3,176 lrco b PACW lPolh z5) I,sOo PACE lo IPCO 2,557 -a trcob PACE t,550 +one directioo e bklirectionol NVE b trcO 262 I colibnir so I PoclfiCorp ! tW Energy ! Arizorr Public Scrvice I Porrtond Ccneml Elecrrt I Puea Sound Encrgy ! Uolo Powcr Compony I Poror", I aeNc @tcr2efiy2o2t! Seotle Ciry Lighrglnn:dc*yNN) S Soh River Prolecl (fumd any 20201 I ]ADWP tfunnd aty 20211 ! Publk Senke Conrpony o[ Naw Mexico bhnmd c,rry 202ll ! NorthWesbm Erergy lphaud d*ry 202 ll I t rlck lnigolion Disfiict ldffid cnny 2O2l) ! Avisr (flnned onry 2022) ! fucson Electrk Power !fulrcdcnty 2022) ! Toconrc Pwrer lplonrcd atry 2022J S Bonneville Power Adminishotion lfuiudalrtry20221 trco b twE 390478 Powerex <-> PSE l5O ro*ereil ' h o ql;mlp<ri mlobl b PACE+ACWEX,I lulr dd{'. cop.ity it o td,rt 4 Pre{CO/?COII,CE an Pa$ 75 cryQ ) VJla n w, thc wlo6bcryty aPlrCEJfCOt'KQPfrood Po$ 75 *l b ubryt* M by b uod oaatt a Pa* 1 7,qd hd dattJo.q,obd. C,rmaJtuclr2019 GRAPH 2: Estimated maximum transfer capacity (ElM entities operating in Ql 2020) I WHEEL THROUGH TRANSFERS As the footprint of the Westem EIM grows and continues to change, wheel-through transfers may become more common. Cunently, 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 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 potentialfuture need to pursue a market solution to address the equitable sharing of wheeling benefits. MPP Copyright 2020 California ISO Page 10 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O 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-through transfers for each EIM BAA, the ISO uses the following calculation for every real-time interval dispatch: o 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 analysiso Nef import: the maximum of zero or the difference between total imports and total exportso Nel 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 Allwheelthrough 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 wheelthrough. 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 Graphs 3 through 6. BAA Net Export Net lmport Wheel Through AZPS BANC c/so tPco NEVP PACE PACW PGE PSE/ PWRX TABLE 3: Estimated wheel-through transfers in Ql 2020 237,528 181,011 218,657 246,73332,285 1,051,716 593,098 20'1,248 137,416125,432 162,999 248,060 89,481 385,682 326,984 438,008 84,689 357,zffi 354,935148,313 55,808167,047 201,921 212,129 84,877 61,317 29,587 237,667 22,007 MPP Copyright 2020 California ISO Page 11 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER2O2O 1,800,000 1,800,000 1,400,@0 1,200,000 a3 1,ooo,ooo =F soo,ooootrul 600,000 400,0m 200,0m 0 I AZPS BANC CISO IPCO IN6t Export NEVP PACE PACW PGE PSEI P\ARX INet lmport IVVheslThrough IIIIT GRAPI{ 3: Estimated wheel-thrcugh transfers in Ql 2020 BAA Net Export Net lmport WheehThrough AZPS BANC crso tPco NEVP PACE PACW PGE PSE' PWRX TABLE 4: Estlmatsd wheel-through transfers in January 2O2O 3,721.115,327 26,753 77,760 M,810 152,580 101,859 43,690 47,800 77,483 18,189 7,416 79,735 8,260 MPP CopVright 2020 Glttomia ISO Page 12 of 19 WESTERN EIM BENEFITS REPORT FIRST OUARTER2O2O 3e Et) oc UJ 000,000 500,0m 400,000 300,000 200,000 100,000 0 IIIIII AZPS BANC CISO IPCO INet Export TABLE 5: Estimated wheel-through transfens in February 2020 PACW PGE PSEI P\'\,RX rVvheelThrough NEVF PACE lNet lrport GRAPH 4: Eetimded wheel-through transfers in January 2020 BAA Net Export Net lmport Wheel- Through AZPS BANC crso tPco NEVP PACE PACW PGE PSE' PWRX 12,783 63,100 45,710 38,732 39,677 78,731 183,309 18,336 19,66375,164 49,265 7,185 90,982 3,019 MPP Copyright 2020 Glifornia ISO Page 13 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTERzO2O s3E CD ocul 600,(x)0 500,(n0 400,o00 300,000 200,000 100,000 0 I I I I I AZPS BANC CISO IPCO INet Export NEVP PACE !Net lmport PACW PGE PSEI PIA,RX rvVfleelThrough GRAPH 5: Estimated wheehthrough tranefers ln February 2020 BAA Net Export Net lmport Wheel Through AZPS BANC crso tPco NEVP PACE PACW PGE PSE' PWru( TABLE 6: Estlmated wheel-through transfers in March 2020 15,781 68,306 52,969 46,507 52,928 95,672 152,839 22,663 M,Og2 75,174 17,956 14,986 66,951 10,728 MPP CopVright 2020 Califomia ISO rue 14 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O 600 000 500.000 E =(,, otr uJ 400 300 200 000 000 000 100,000 I' tt]r kr ffir B k,L;0 t H t; AZPS BANC CISO o Net Export IPCO NEVP PACE i ,Net lmport PACW PGE PSEI aWheel Through P\ /RX GRAPH 6: Estimated wheel-through transfers in March 2020 I REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS The Western 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 2020 was calculated to be 23,977 MWh (January) + 33,575 MWh (February) + 29,188 MWh (March) = 86,740 MWh total. There are environmental benefits of avoided renewable curtailment as well. Under the assumption that avoided renewable curtailments displace production from other resources at a default emission rate of 0.428 metric tons COziMWh, avoided curtailments displaced an estimated 37,125 metric tons of COz for Q1 2020. 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. Totalestimated reductions in the curtailment of renewable energy along with the associated reductions in COz are shown in Table 7. Year Quarter MWh Eq. Tons CO2 ,l 8,860 3,792 2 3,629 1,553 3 828 354 4 17,765 7,521 MPP 2015 Copyright 2020 California ISO Page 15 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O I 2,94811 48,342 2 158,806 67,969 3 33,094 14,1U 4 23,390 10,011 1 52,651 22,535 2 67,055 28,700 3 23,331 9,986 4 18,060 7,730 1 65,860 28,188 2 129,128 55,267 3 19,032 8,146 4 23,425 10,026 1 52,254 22,365 2 132,937 56,897 3 33,843 14,485 4 35,254 15,089 1 86,740 37,125 Total 1,098,890 470,245 2016 2017 2018 2019 2020 TABLE 7: Total reduction in curtailment of renewable energy and the associated reductions in COz I FLEXIBLE RAMPING PROGUREMENT 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 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. Month BAA Direction Minimum requirement Maximum requirement AZPS up 21 230 BANC up 3 58 c/so up 37 1716 MPP Copyright 2020 California ISO Page 16 of 19 WESTERN ElM BENEFITS REPORT FIRST QUARTER 2O2O tPco up 28 143 291NEVPup0 PACE up 78 252 PACW up #162 PGE up 35 206 PSE'up 27 158 PWRX up 51 23',1 ALL EITT up 36 1,962 down 11 275AZPS down 8 95BANC 1,530c/so down 171 dourr 54 196tPco NEVP down 0 267 291PACEdown80 PACW down 19 146 217PGEdown46 PSE'down 39 155 69 224PWp(down 1,957ALL EIM down 303 235AZPSup23 BANC up 4 53 1,634crsoup81 tPco up 28 't31 NEVP up 23 257 PACE up 75 291 PACW up 55 197 PGE up 24 206 PSE'up 27 't58 PWRX up 52 228 ALL EIM up 119 1,935 down 12 202AZPS down 7 81 91 1 ,616 BANC c/so down January MPP February Copyright 2020 California ISO PaSe 17 of 19 tPco down 59 210 NEVP down 17 259 PACE down 79 269 PACW down 30 140 PGE down 42 238 PSE/down 39 163 PWRX down 73 286 ALL EIM down 320 1,957 March AZPS up 27 235 BANC up 3 53 crso up 201 1,652 tPco up 48 152 NEVP up 22 257 PACE up 81 269 PACW up 71 197 PGE up 40 206 PSE'up 38 158 PWRX up 63 228 ALL EIM up 277 1,935 AZPS down 23 227 BANC down 6 81 c,so down 95 1,616 tPco down u 210 NEVP down 19 284 PACE down 79 301 PACW down 45 140 PGE down 48 238 PSE/down 46 178 PWRX down 71 289 ALL EIM down 249 1,957 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O Table 8: Flexible ramping requirements MPP Copyright 2020 California ISO Page 18 of 19 WESTERN EIM BENEFITS REPORT FIRST QUARTER 2O2O 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 savlngs Table 9: Flexible ramping procurement diversity savings in Q1 2020 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. I CONCLUSION Using state-of-the-art technology to find and deliver low-cost energy to meet realtime demand across eight western states and extending to the border with Canada, the Western EIM has proven extensive financial and operational benefits for participants. Since its inception in November 2014, the cumulative gross economic benefits have reached $919.69 million. The Western EIM provides significant environmental benefits through the reduction of renewable curtailments during periods of oversupply. Sharing resources across a larger geographic area reduces greenhouse gas emissions by using renewable generation that otherwise would have been turned off. The quantified environmental benefits from avoided curtailments of renewable generation from 2015 to-date reached 470,245 metric tons of CO2, roughly the equivalent of avoiding the emissions from 98,867 passenger cars driven for one year. The Western EIM demonstrates that utilities can realize cost benefits and reduce carbon emissions through increased coordination and optimization in the West. MPP Copyright 2020 California ISO Page 19 of 19 Up Down Up Down Up Down 715 769 806 821 830 814 1 606 11,73 1,699 1,781 1,807 1,770 46%44o/o 440/47o/o 46Yo 46Yo