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HomeMy WebLinkAbout20200903Quarterly Report.pdf3Em.- .-- "5. l- t 1 ,f- i:t-r+i: !4\ut-il,:'*i/:+i a &u ; ;:i' ii1) -3 P!{ ?: 3i t'. lj1' .'. r.:i ," , . ti, ,=. ',1;' -" l-r-,1:i*ilx$iOl-{'i . :l-l j ir, *j ir!'iYtlYtis An IoACORP Compeny JULIA A. HILTON Ileputy General Counsel ihilton@idahooower.com VIA ELEGTRONIC MAIL September 2,2020 Ms. Jan Noriyuki Secretary ldaho Public Utilities Commission PO Box 83720 Boise, lD 83720-0074 Re:Case No. IPC-E-16-19 Defenal and Recovery of Costs Associated with Participation in Energy lmbalance Market - california lndependent system operator C'cAlso') euarterly Energy lmbalance Market ("ElM') Benefits Assessment Report Dear Ms. Noriyuki: Pursuant to Order No. 33706 issued in Case No. IPC-E-16-19, ldaho Power Company ("ldaho Powe/' or'Company") hereby submits the quarterly CAISO Western EIM Benefits Report("Report") for the second quarter of 2020. The Report presents CAISO's quantification of benefits associated with participation in the Western ElM. For the second quarter of 2020, CAISO estimated Western EIM gross benefits of $6.08 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, eAISO'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 nblackwel l@idahopower. com. Sincerely, )i-'ln t'f-= Julia A. Hilton JAH:slb Enclosure { I wililt F{i! i t",l[ li{ ,Y lMt{AtAl'.J(:f AAAI{Kt t JTs i.crliii.,, r rro lIi ) July 29,2O20 The ISO is pleased to announce that as of July 3,2020 customers of entities participating in the Westem Energy lmbalance Market (Westem EIM) have seen $1 billion in gross benefits since its start in 2014. This milestone wis achieved based on the benefits quantified in the Q22020 EIM benefits report plus additlonal benefits quantified in the first days of July. When the Westem EIM began in November 2014,1 noted that "consumers across the West win one today as the EIM is live, performing well and working to reduce costs to @nsumers." The Westem EIM has surpassed the participation and benefit savings expectations of the origlnal studies. The access to a real-time market continues to provide value to customers acrcss the West while preseMng participating entities'oontrolover transmission and generation assets. lt is building on the ISO's highly successful market platfonn and provides a low-cost, low-risk option with proven benefits. The ISO looks fonrard to the continued success of the Western EIM and building upon our strong relatlonship with all stakeholderc following thls significant milestone. Sincerely Sterre Berberich President and CEO www.westerneim.corr I CalifornialsO 250 Outcr.opping Way, Folsom, CA 95630 | S16.351.4400 @ Colifornio tSO WESTERN EIM BENEFITS REPORT Second Quarter 2020 , r r Prepared by: Market Analysis and Forecasting July 29, 2020 WESTERN EIM BENEFITS REPORT SECOND SUARTER 2O2O CONTENTS EXECUTIVE SUMMARY ..'.,... 3 4 4WESTERN EIM ECONOMIC BENEFITS IN Q2 2020........" CUMULATIVE EIM BENEFITS SINCE INCEPTION ...., " I NTER-REGIONAL TRANSFERS ...,.... ..5 ..5 12WHEEL THROUGH TRANSFERS REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS...'17 FLEXIBLE RAMPING PROCUREMENT DIVERSIW SAVINGS............. ..............18 coNcLUS1ON................21 MPP/MA&F Copyright 2020 California ISO Page 2 of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O EXECUTIVE SUMMARY Povrerex Morket Oporolor Coli[ornio ISO EIM entity [''i A"tirn porticipont ! Plonmd EIM entry 2021 p' elonred EIM enrry 2022Gross benefits from EIM since November 2014 Seqflle City Lishl Iocomo Pqwer Portlond Generol Elthic This report presents the benefits associated with participation in the Western Energy lmbalance Market (ElM). The measured benefits of participation in the Western EIM include cost savings, increased integration of renewable energy, and improved operational efficiencies including the reduction of the need for real-time flexible reserves. los Anqeles Deptlol Ariaxm?ublic f Public Service Compony oINew Mexico Power , y ...,:.J J.-, ,"nrt( i )t' Prorsl I' Iucson Eletric Powsr a 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 BENEtrITS Q22020 Gross Benefits by Participant Arizona Public Service BANC California ISO ldaho Power NV Energy PacifiCorp Portland General Electric Puget Sound Energy Powerex Seattle City Light Salt River Project Total (miilions $) $6.40 $9.1 7 $21.25 $6.08 $4.73 $8.46 $9.1 5 $2.84 $1.15 $1.63 $8.14 $79.00 ECONOMICAL Gross benefits realized due to more efficient inter-and intra-regional dispatch in the Fifteen-Minute Market (FMM) and Real-Time Dispatch (RTD). ENVIRONMENTAL Metric tons of COz**avoided curtailments -ElM Quarterly Benefit Report Methodology, https //www.caiso.com/Documenls/ElM BenefitMethodolooy.pdf OPERATIONAL -'The GHG emission reduction reported is associated with the avoided curtailment only. The current market process and counterfactual methodology cannot differentiate the GHG emissions resulting from serving ISO load via the EIM versus dispalch lhat would have occurred external to the ISO without the ElM. For more details, see http.//wwv. caiso.com/DocumenlsicrceLhouseG_asEmrssionsTrackinoReoort- flegue ntlyAs kedQuesliEtq QdI Average reduction in flexibility reserves across the footprint i r, rr' MPP/MA&F Copyright 2020 California ISO Page 3 of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O ffi BACKGROUND The Western EIM began financially binding operation on November 1,2014 by optimizing resouroes across the ISO and PacifiCorp Balancing Authori$ 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 Oc-tober 2017. ldaho Power and Powerex began participating in April2018. The Balancing Authori$ of Northern California (BANC)1 began participating in April2019. Most recently, Seattle City Light (SCL) and Salt River Project (SRP) began participating in April2020. 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 20152. I WESTERN EIM ECONOMIC BENEFITS IN Q2 2O2O Table 1 shows the estimated EIM gross benefits by each region per months. The monthly savings presented show $23.54 million for April, $28.14 million for May, and$27.32 million for June with a total estimated benefit of $79.00 million for the quarter. Region April May June Total APS BANC c,so lPco NVE PAC PGE PSE PWRX scr SRP $1.83 $2.24 $6.40 $9.17$3.90 $2.36 $2.91 $6.01 $1.63 $7.82 $2.34 $7.42 $2.11 $0.88 $6.08 $2.34 $1,51 $4.73 $1.62 $3.55 $3.29 $8.46 $2.10 $0.95 $0.39 $0.48 $3.45 $1.17 $3.60 $0.72 $0.37 $0.69 $3.00 $E.14 $79.00$27.32 $2.33 $21.25 $9.15 $2.84 $0.39 $1.15 $0.46 $1.63 $2.29 $2.85 Total $23.54 $28.14 TABLE 1: Second Quarter 2020 beneflts in milllons USD ' The benefits reflect the Sacramento Municipal Utility District as the participating resource within BANC. 2 Prior reports are available at https://www.westerneim.com/Paqes/AbouUQuarterlvBenefits.aspx 3 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. MPP/MA&F Copyright 2020 California ISO Page 4 of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O I CUMULATIVE EIM BENEFITS SINCE INCEPTION Since the start of the EIM in November 2014, the cumulative economic benefits have totaled $998.69 million. The quarterly benefits have grown over time as a result of the participation of new BAAs in the market, which results in additional benefits for both the individual BAA but also compounds the benefits to adjacent BAAs by enabling further transfers. Graph 1 illustrates the gross economic benefits of the EIM by quarter for each participating BAA. $120 $100 ECISO iPAC ONEVP EIPSEI @AZPS EPGE 'IPCO IPWRX 'BANC SCL NN r SRP GRAPH 1: Cumulatlve gross benefits slnce the lnception of the EIM I INTER.REGIONAL TRANSFERS A significant contributor to EIM benefits is transfers across BAAs, 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 15-Minute Market and Real-Time Dispatch (RTD). Generally, transfer limits are based on transmission and interchange rights that participating BAAs 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 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 15-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 MPP/MA&F Copyright 2020 California ISO Page 5 of 21 B*oE=" t# $40 gE',.msEffimHHEnfrEffiBHI Q4 Ql 02 03 04 01 02 Q3 Q4 01 02 Q3 04 Q1 02 2014 2015 2016 2017 n 01 a2 MU EH 01 Q2o4 20 19 o3 18 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O 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 BAA3 to BAA_x are separately reported. For example, if there is a 100 Megawatt-Hour (MWh) transfer during a $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 submifted 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 lSmln EIM transfer (15m - base) Smin EIM transfer (5m - base) April AZPS CISO 72,483 52,848 AZPS NEVP 3,558 5,406 AZPS AZPS PACE SRP 114,949 s5,591 '140,215 50,295 BANC ctso 2,677 1,799 crso AZPS 143,796 172,210 ctso BANC 107,842 113,520 oso clso NEVP PACW 260,691 21,564 38,982 252,850 41,158 ctso PGE M,748 clso PWRX 57,402 71 557 CISO SRP 99,096 97,471 tPco NEVP 29,644 18,209 tPco rPco rPco PACE 64,934 50,898 5,859 57,266 PACW PSEI 01,499 7,575 tPco NEVP SCL AZPS 4,817 25,661 6,123 14,905 NEVP CISO tPco PACE 99,893 70,765 166,394 59,691 70,376 182,U4 NEVP NEVP MPP/MA&F Copyright 2020 California ISO Page 5 of 21 WESTERN EIM BENEFITS REPORT SEGOND QUARTER 2O2O Month From BAA To BAA {Smin EIM transfer (15m - base) Smin EIM transfer (5m - base) April PACE AZPS 25,967 PACE IPCO 4,576 PACE NEVP 21,797 PACE PACW 27,960 PACE SRP 0 PACW ctso 44,562 PACW tPco 37,43 PACW PGE 9,605 PACW PSEI 7,809 PACW SCL 188 PGE crso 8,298 PGE PACW 98,689 PGE PSEl 2,311 PGE SCL 3,611 PSEI rPco 0 PSEI PACW 73,082 PSEl PGE 932 PSEI PWRX 16,1 15 PSEI SCL 3,753 PWRX ctso 0 PWRX PSEI 21,165 SCL tPco 7,217 SCL SCL PACW PGE 7,770 4,817 SCL PSEI 19,110 SRP AZPS 23,600 SRP crso 65,182 SRP PACE 0 15,724 6,218 5,M6 38,411 0 49,485 23,872 7,513 10,473 423 7,507 105,787 2,524 4,123 0 71,234 1,014 20,345 4,456 0 19,865 6,1 08 8,349 5,026 19,269 28 032 67,M4 0 May AZPS crso 41,930 4,070 24,544 6,072AZPSNEVP MPP/MA&F Copyright 2020 California ISO Page 7 of 21 WESTERN EIM BENEFITS REPORT SECONO OUARTER 2O2O Month From BAA To BAA lSmln EIM transfer (15m - base) Smin EIM transfer (5m - base) May AZPS AZPS BANC crso crso ctso crso crso crso crso tPco rPco tPco tPco tPco NEVP NEVP NEVP NEVP PACE PACE PACE PACE PACE PACW PACW PACW PACW PACW PGE PACE 150,220 161,038 SRP crso 109,066 108,844 8,673 6,146 AZPS 256,917 268,7ffi BANC 107,338 1 15,550 NEVP 345,660 359,883 PACW 27,795 45,548 PGE PWRX 26,418 26,313 50,229 36,553 SRP 138,772 135,264 NEVP PACE PACW 10,047 5,459 79,540 64,778 87,145 53,291 PSEI 3,092 2,830 SCL 2,331 2,139 AZPS 18,571 16,691 ctso 39,603 83,362 224,444 19,362 tPco 75,839 PACE 230,665 AZPS 26,685 11,926 17,315 tPco 9,738 NEVP 15,030 6,998 PACW SRP 19,301 20,934 0 0 ctso 63,533 70,808 tPco PGE 29,908 8,307 26,891 8,612 PSEI SCL crso 3,109 189 882 5,143 325 838 MPP/MA&F Copyright 2020 California ISO Page I of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O Month From BAA To BAA l5min EIM transfer (l5m - base) Smin EIM transfer (5m - base) May PGE PACW 102,552 110,046 PGE PSEl 1,763 2,139 PGE SCL 3,134 3,332 PSEI tPco 0 0 PSEI PACW 92,987 100,189 1,939PSEIPGE2,024 PSEI PlA'RX 10,995 12,838 PSEI SCL 5,1 95 6,219 PVVRX ctso 0 0 PVVRX PSEI 28,934 29,781 scL tPco PACW PGE PSEI 10,817 10,209 scL scL 6,899 7,968 4,U8 4,780 SCL 8,109 9,329 SRP AZPS 32,159 42,233 SRP crso 49,921 43,272 SRP PACE 0 0 AZPS crso 81,299 59,776 AZPS NEVP PACE SRP 5,501 129,536 87,648 16,091 6,152 138,818AZPS AZPS 97,546 BANC CISO 13,897 clso crso AZPS 131,269 163,389 BANC 119,050 130,846 CISO i NEVP 20a,517 213,329 ctso crso PACW PGE '109 10,040 15,'t433,076 crso PWRX 14,707 24,811 SRP 172,246 8,125 166,915 7,296NEVP MPP/MA&F Copyright 2020 California ISO Page 9 of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O Month From BAA To BAA 16min EIM transfer (15m - base) Smln EIM transfer (5m - base) June rPco PACE 86,625 91,534 tPco PACW 31,093 22,182 IPCO PSEI 2,868 2,475 tPco SCL 1,350 1,356 NEVP AZPS 9,669 9,175 NEVP ctso 59,802 44,789 NEVP tPco 54,540 42,488 NEVP PACE 177,282 181,080 PACE AZPS 42,370 36,569 PACE tPco 3,604 2,514 PACE NEVP 20,528 17,037 PACE PACE PACW SRP 10,986 0 6,119 0 PACW crso 21,950 58,136 14,755PACWlPco14,833 PACW PGE '12,363 9,301 PACW PSEI 9,474 8,436 PACW SCL 1,026 909 PGE crso 19,811 19,189 PGE PACW 85,380 1,474 91,870 1,44',1PGEPSEI PGE SCL 4,244 3,898 PSEI rPco 0 0 82,797PSEIPACW72,976 PSEI PGE 851 839 PSEI PWRX 20,406 7,252 0 20,724 PSEI SCL 7,010 PWRX ctso 0 23,011PWRXPSEI20,055 16,295SCLrPco 15,993 MPP/MA&F Copyright 2020 California ISO Page 10 of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O TABLE 2: Energy transferc (MWh) ln the FMM and RTD markets for Q2 2020 Cfirrfrd lrcCqr.tylml Fotr 24 itraatbaosil 100 Fofi 2a lhost t lrorf, 3540EHorodo 797ffiffiC'ondm.no,s* l3O Rtcwb f$f 320ffi Folft 66 0G[ tul$t? 206 Pil'i Folfi 66 NObB4Cttul 331 lot'SPrcli/ir$C, 432 Fdt 17 g4ggt rffi@ Fdotttnd., t{. Gilo 3.151BairTSFrGoapS azs Fdl78 lAPsrrfl^Ctl 660NorioC'.rltol 522 irnod 500 3{0 l&ftrt,)t''b FCO .*qildire!. <+bidi.Efiorcl Sii (dil*ni: lI(] ! HOWP iutr rOetl I fo.fiX-"7 ! fuHic Stnke Compony od Ne Mar;o !.Hyilr* r*,- r$i'rffijl.r"* y tnrr rnt) ! *nono o,a thdic I L'loct lrE'non Dirhrcl lorq'ot I ! I no* so.n+ t*v I,r"i*" lcfrf ,'dnl ! gr-|no 2o* 1--ftv I lwsn ttdnc Po*o lst)' zi??'l I fo* ! bcono Pwa l*'iY'rlnl ! lAr.rc 1,,r* r.,ryzu:4 ESlf4PnoAd'i'i*"ri"'S.dil. (rI lEk ! Xrcl trcrgy Colwdo t*ry ?o?i15oi Xiw Fr{m ffi |FLOlo l{Yt 3Vg4/U lbterex <-> ?5[ l5Offi r a *sd ue+ adLl{. L' glElrriw fr4 i'.L- aJ *.si s . .&{ J rralrE(t,lEcrrrEr -J rJ E +t: $4r h il A. MLIL ro n r*:r$OrladrriCl ..J!,1' il +.1L dry+,rltEl h *. rJGwe tkl t.r,rJaJ.tLmrL c.dr.rl4 ilrD GRAPH 2: Estimated maximum transfer capacity (ElM entities operating in Q2 2020) Month From BAA To BAA lSmin EIM transfer (15m - base) Smln EIM transfer (5m - base) SCL PACW 7,161 4,928 8,678 SCL PGE 5,378 22,',|59SCLPSEI17,602 SRP AZPS 50,365 48,843 52,980 0 ctso 59,886 0SRPPACE MPP/MA&F Copyright 2020 California ISO PaSe 11 of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O r WHEEL THROUGH TRANSFERS As the footprint of the Western EIM grows and continues to change, wheel-through transfers may become more common. Currently, an EIM entity facilitating a wheelthrough receives no direct financial benefit for facilitating the wheel; only the sink and source directly benefit. As part of the 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 lSO 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: . 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 impot the maximum of zero or the difference between total imports and total exports. Nef expott: the maximum of zero or the difference between total exports and total importso 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-through transfers are summed over both the month and the quarter. This volume reflects the totalwheel-through transfers for each EIM BAA, regardless of the potentialpaths 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 Graphs 3 through 6. MPP/MA&F Copyright 2020 California ISO Page tZ of 27 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O BAA Net Export Net lmport Wheel Through AZPS BANC c,so tPco NEVP PACE PACW PGE PSE/ PWRX sct SRP TABLE 3: Ertlmated wheel.through transferc ln Q2 2020 3.000,000 2,500,000 =E o 0) UJ 2,000,000 1,500,000 ,000,000 500,000 ffi ffi ffi ffi SRP 0 ffi ffi AZPS BANC CISO IPCO NEVP PACE PACW PGE PSEI PII,IIX SCL rNet Export @Net lmport Evvheel Through GRAPH 3: Estlmated wheel-through transfers ln Q2 2020 255,206 237,A92 597,722 21,847 360,376 2,299,397 401,569 203,687 82,387 251,350 223,218 217,227 174,093 731,599 84,619 1,172,909 98,853 32,695 624,505 261,656 83,525 262,U5 91,351 212,424 49,272 117,363 49,U5 159,683 23,397 99,139 16,125 24,221 281,171 656,289 1,760 MPP/MA&F Copyright 2020 California ISO Page 13 of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O BAA Net Export Net lmport Whee!-Through AZPS BANC crso tPco NEVP PACE PACW PGE PSE/ PWRX scr SRP 83,596 65,732 1,799 722,429 64,639 86,336 86,773 41,601 240,921 29,647 343,727 36,513 8,275 243,243 32,446 83,680 74,107 46,0'15 63,577 26,263 33,529 10,485 82,602 9,406 29,791 6,100 9,033 95,319 147,870 284 TABLE 4: Estlmated wheel-through transfers ln Aprll 2020 c 3 o IIJ 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 rill IIIt llll litllrl tlf] tl Lni t-Jtnl LJlni rl SCL li SRPAZPS BANC CISO IPCO NEVP PACE PACW PGE PSEI P\ /RX ElNet Export t-lNet lmport [:l\nheel Through GRAPH 4: Estimated wheel-through transfers in April2020 165,511 113,707 92,414146,736 20,412 MPP/MA&F Copyright 2020 California ISO Page 14 of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER2O2O BAA Net Export Net lmport Wheel- Through AZPS BANC c,so tPco NEVP PACE PACW PGE PSE' PWPX scr SRP 244,017 899 TABLE 5: Estlmated wheel-through transferc ln May 2020 1,200,000 1,000,000 800.000 .c B = rt)ocUJ 600,000 400,000 200.000 &&ffi @ffiffi SCL SRP ffi ffi ffi ffi ffi{ AZPS BANC CISO IPCO NEVP PACE PACW PGE PSEI P\ATIX tsNet Export sNet lmport s4l^/heel Through GRAPH 5: Estlmated wheel-through transfers ln May 2020 64,425 109,(N2 236,758 6,150 5,69811 944,955 95,613 69,358 70,463 42,336 80,547 54,775 90,764 288,375 20,980 23,583 15,308 83,732 81,645 241,995 32,994 9,678 40,672 448,096 8,839 96,491 32,752 39,620 31,491 24,483 4,199 7,933 84,606 MPP/MA&F 0 Copyright 2020 California ISO PaSe 15 of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O BAA Net Export Net lmport WheelThrough AZPS BANC c,so tPco NEVP PACE PACW PGE PSE' PWRX scL SRP TABLE 6: Estlmated wheel-through transferc ln June 2020 1,200,000 1,000,000 800.000 a ts =o oc]U 600,000 400,000 l, ,,i tittl;,.'lllII ft.ri 200,000 ffi dh t;i ,lllIIil SRP 0 t-t tilL-i ffil H t:l Htnl L:l AZPS BANC CISO IPCO n Net Export NEVP PACE PACW uNet lmporl PGE PSEI PVI/RX SCL rt\Mreel Through GRAPH 6: Estimated wheel-through transfers in June 2020 107,185 13,897 62,918 130,970 195,454 89,578 56,336 202,302 30,849 82,474 12,584 44,215 5,153 7,355 577 632,O12 159,224 68,585 75,679 31,390 9,111 103,817 67,202 17,881 44,865 101,245 19,639 41,719 381,086 139,267 18,084 '13,330 36,409 5,825 264,401 MPP/MA&F Copyright 2020 California ISO Page 16 of 21 WESTERN ElM BENEFITS REPORT SECOND QUARTER 2O2O I REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS The Western EIM benefil 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 Q22020 was calculated to be 51,654 MWh (April) + 60,398 MWh (May) + 35,462 MWh (June) = 147,514 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 COzlMWh, avoided curtailments displaced an estimated 63,1 36 metric tons of COz for Q2 2A20. Avoided renewable curtailments also may have contributed to an increased volume of renewable credits that would otherwise have been unavailable. This report does not quantiff 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. Year Quarter MWh Eq. Tons CO2 2015 1 2 3 4 8,860 3,629 828 17,765 3,792 1,553 354 7,521 2016 1 2 3 4 112,948 158,806 33,094 23,390 48,U2 67,969 14,1d4 10,011 2017 1 2 3 4 52,651 67,055 23,331 18,060 22,535 28,700 9,986 7,730 2018 1 2 3 4 2019 1 2 65,860 129,128 19,032 23,425 52,254 132,937 28,188 55,267 8,146 10,026 22,365 56,897 MPP/MA&F CopyrlSht 2020 California ISO Page 17 of 21 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O Year Quarter MWh Eq. Tons CO2 2019 3 4 33,843 35,254 14,485 15,089 37,125 63,1 36 2020 1 2 86,740 147,514 Total 1,246,404 533,381 TABLE 7: Total reduction in curtailment of renewable energy and associated reductions in COe 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 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. DirectlonMonth April BAA AZPS up BANC up c,so up tPco up Mlnlmum requlrement 25 Maximum requlrement 235 53 1652 152 271 291 197 206 157 3 201 19 NEVP up PACE up PACW up PGE up PSEI up 23 86 53 49 20 56 228PWRX scL up 3 46 SRP up 33 198 ALL EIi'I down down 7 3r 31 i -1 II i {,935 AZPS MPP/MA&F BANC Copyright 2020 California ISO 272 Page 18 of 21 Month Maximum requirement April c,so IPCO down down 101 81 1,616 210 NEVP down 22 284 PACE down 105 320 PACW down 37 140 238PGE PSE/ down down 63 30 178 PWRX down 79 286 sct down 6 54 SRP down 34 156 ALL EIM down 293 1,816 AZPS up 3 308 BANC c/so tPco up up up 2 319 14 78 1,695 216 NEVP up 18 29s PACE up 05 315 197PACWup37 up up 37 5 215 157 up 73 228 scL up 3 46 SRP up 19 353 39 4 188 ALL ElM AZPS down EANC down 1,936 207 75 c,so down tPco down 142 1,641 27875 down down down WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O BAA Dlrcction Minimum requirement PGE PSE' PWRX May NEVP 27 314 PACE 77 345 32 MPP/MA&F PACW Copyright 2020 California ISO 148 Page 19 of 21 Month BAA Direction Minimum requirement Maximum requlrement May PGE down 47 277 PSE'dowtt 30 244 PWRX down 58 297 scr down 3 63 SRP down 38 194 146 ALL EIM down 1,772 AZPS up 14 308 78 1,772 BANC c/so up 3 up 438 tPco up 33 217 NEVP PACE up up 20 74 295 3'18 PACW PGE up up 60 57 171 215 PSE/ PWRX up up up up 18 41 157 212 scr 3 31 SRP 25 151 ALL EIM up 465 1,940 AZPS down down down 26 1 272 67BANC c/so 261 1,299 tPco down, down 75 19 278 306NEVP down down 107 u5 148 277 244 PACW 42 PGE PSE/ down down 48 30 down down 4S 297 633 down down 29 132 306 1,453 WESTERN EIM BENEFITS REPORT SECOND QUARTER 2O2O Table 8: Flexible ramping requirements MPP/MA&F Copyright 2020 California ISO Page 20 of 21 WESTERN EIM BENEFITS REPORT SECOND 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. April May June Direction Average MW saving Sum of BAA requirements Percentage savrngs Down Up 999 9s3 1,983 1,998 1,957 1,990 2,050 48o/o 47o/o 49o/o 50o/o 47o/o Table 9: Flexible ramplng procurement diversity savlngs in Q2 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{he-art technology to find and deliver low-cost energy to meet real-time 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 $998.69 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 533,381 metric tons of CO2, roughly the equivalent of avoiding the emissions from 112,141 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. Up Down Down 961 945 Up 966 1,840 988 54o/o MPP/MA&F Copyright 2020 California ISO Page 21 of 21