Loading...
HomeMy WebLinkAbout20201119Quarterly Report.pdfflmr. JULIA A. HILTON Deputy General Gounsel ihiltor0idehooowor.com VIA ELECTRONIC TIAIL November 19,2020 Ms. Jan Noriyuki, Secretary ldaho Public utilities Commission PO Box A3720 Boise, lD 83720-0074 Re: ;Iifr=5i\Jfini --;t'- t. i- i '{ i- U :ii:i ft*Y I I PH l; l+9 '' ,: ':'l i5. :.'. 1, . -joi*l+;-' :',. -i;, i.,i'{is$l0i'j Sincerely *y u- AnID CoRPcomDanv Case No. IPC-E-1S19 Deferraland Recovery of Costs Associated with Participation in Energy lmbalance Market - california lndependent system operator ('CAlso') ouartlrty Energy lmbalance Market fElM) Benefits Assessment Report Dear Ms. Noriyuki: Pursuant to Order No. 33706 issued in Case No. IPC-E-16-19, ldaho power Company("ldaho Power'or"Company') herebysubmits the quarterly CAISO Western EIM Benefits n6port('Report") for the third quarter of 2020. The Report presints CAISO's quantification of benefitsassociated wilh participation in the Western ElM. For the third quarte r of 2O20, CAISO estimatedWestem EIM gross benefits of $8.51 miltion for tdaho porver. The EIM has provided financial benefits to the Company, and ultimately its customers.Houvever, as discrrssed in ldaho Porer's prior quarterty iomptiance filings, as well as the C_ompany's May 24,2019, Report of EIM Benefits ano Cosis of Pdrticipation, 6AlSO,s calculationof benellts for ldaho Power is overstated due to several of the modeling assumptions used in itsbenefit calculation. The Company developed a more precise metholobgy, inat uses inputsspecilic to ldaho Power, for determining actual EIM benefits, the details otwnitn are discussed inthe Company's May 24,2019, Report of EIM Beneftts and Costs of Participation. lf you have any 9!-estions regarding_ this report, please contact Regulatory Analyst NicoleBlackwell at (208) 38&5764 or nblackwell@idahoporer.com. I L: Julia A. Hilton JAH:slb Enclosure S Colifornio ISO WESTERN EIM BENEFITS REPORT Third Quarter 2020 m r r Prepared by: Market Analysis and Forecasting October 29,2020 WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O CONTENTS EXECUTTVE SUMIiARY .............3 BACKGROUT{D........... ................ 4 WESTERN EtM ECONOMTC BEilEFtTS !N Q3 2020..... ......................4 CUMU1ATIVE EIM BENEFITS SINCE INCEPTION. .............,...5TNTER-REG!ONALTRANSFERS......... ................5WHEELTHROUGHTRANSFERS......... ,.....,...,..11 REDUCED RENEWABLE CURTATLMENT AND GHG REDUCT|ONS....................................17 FLEXTBLE RAMptNc PROCUREmENT DttERSIW SAV|NGS............. ..............1E MPP/MA&F Copyright 2020 Callfornla tSO Pege 2 of 21 EXECUTIVE SUMMARY This report presenb the benefits associated with participation in the Westem Energy lmbalance Maket (ElM). The measured benefits of participation in the Westem EIM indude ost savlngs, lncreased integration of renewable energy, and improved operationaleffciencies including the reduction of the need for reaLthe ffexible reserves. This analysis demonstrates the benefit of economic dispatch in the real time market across a larger EtM footprint with more diverse rasoutces and geograPhy. 03 2020 Gross Benefits by Particlpant Sodb Crry tl6hl IoenoPdil lrtarlet Oprotor lil cdifomto so EIM anlily I AcFv. pdlicipdt ! Plonncd EIM aary 202 I I rtonnca EL\l ontry 2022 r,,i t'l:;1',t Q3 BENEFITS Arizona Public Service BANC Califomia ISO ldaho Porer NV Enegy Paclficorp Portland General Eledric Puget Sound Eneqy Powerex Seattle City Light Salt River Projec't Total (nlilbnsS) $22.60 $8.70 $23.68 $8.s1 $8.81 $13.47 $8.95 $3.44 $0.88 $2.s2 $17.41 $119.32 'ElM Quariedy Beneff Repott ltbthodology, hlb./rwwu.6abo.offit p@u4gl* ElU B.nGfttlisfiodobor.odt '"The GHG emiasion ledrctoil Eported ls assochbd wlth the avolded qrrhllrnent mly. The flrrcnt mar&et plmoss and counterfaotJal me0roddogy cannot ditbrsntiate tre GHG cmlaaionc rsaultrlg fionr seruhg ISO bad vla the EIM versus dbpabh that rrould hane occuned eldemd to the ISO without the ElM. For morc dotaib. see filpr1*st.cClo.oomrDogfitor&8 6€rfEUtcGeBErr{sSniTra#rBM- Frsn €rdlYA.lcdGtueidms,odl MPP/MA&F Copyright 2020 caltfornia lS0 Paee 3 of 21 WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O I BACKGROUND The Western EIM began financially binding operation on November 1,2014 by optimizing resources across the lSO and PacifiCorp Balancing Authority Areas (BAAs). NV Energy beganparticipating in December 2015, Arizona Public Service and Puget Sound Energy beganparticipating in October 2016, and Portland General Electric began participating in O&ober 2017. ldaho Pourcr and Pouerex began participating in April2018, and the Balancing Authodty of Northern Califomia (BANC)i began participating in Aprit2019. Most recenfly, Seattte City Light (SCL) and Salt River Project (SRP) began participating in Aprit 2020.TheEtM fooerint now includes portions of Arizona, California, ldaho, Nevada, oregon, lJtah, washington, Wyoming, and extends to the border with Canada. The lso began publishing quarterly EtM benefit reports in April 201s2. I WESTERN EIM ECONOMIC BENEFITS IN Q3 2O2O Table 1 shouts the estimated EIM gross benelits by each region per month3. The monthty savings presented show $25.00 million for July, $66.09 million for August, and g29.23 million for September with a total estimated benefit of $1 19.32 million for the quarter. This quarter observed high load conditions rdrich drove tighter supply conditions and high prices. This was mainly obserued in August due to the extreme heatwave that impac.ted the west. Region Juty August September Total APS BANC c,so tPco NVE PAC PGE PSE PWRX scr SRP Totel $4.30 $12.85 $5.45 $22.60 $1.75 $4.92 $2.03 $8.70 $3.77 $17.88 $2.03 $23.68 $2.05 $4.13 $2.33 $8.51 $1.89 $4.18 s2.74 $8.81 $6.65 $4.3s $13.47 $2.64 $0.9e $4.00 $2.31 $8.95 $1.28 $1.17 $.n+ $0.39 $0.29 $0.20 $0.88 $1.10 ss.oe $1.13 $0.64 $4.94 $28.23 $2.87 $17.41 Sr rs.iz$25.00 $8.78 $66.09 TABLE 1: Third Quarter 2020 benefits in mifiions USD I The beneflts reflect the-sacramento Municipal Utilig District as the participating resource within BANC.2 Prior reports are available.at httos/v*yw.pirstemeih.comlpaoeyA6;wciuardrp8enefiti.aioxI The ElM.benefits reported here are te dataare excluded in the calculatlon. The intervals exduded due to unavailable data are normally Uinin a tewpercent of the total intervals. MPP/MA&F Copyright2020California tSO pate4of 21 $2.43 WESTERN EIM BENEFITS REPORT THTRD QUARTER 2O2O I CUTf,ULATIVE EIM BENEFITS SINCE INCEPTIOI{ Since the start of the EIM in November 2014, the cumulative economic benefits have totaled $1.11 billon. The quarterly benefib have grorn over time as a result of the participation of neur Batancing Aufrrority Areas in the market, wttich results in additional benefib for both the indMdual BAAs but also compounds the benefib to adjacent BAAs by enabling further tansfere. Graph 1 illustrates the gross economio benefits of the EIM by quarterfor eadt participating BAA. rCISO INEVP IAZPS TPGE rPWFJ(rSRP GRAPH 1: Gtoss economlc benefits for each quarter by BAA I INTER.REGIONAL TRANSFERS A signiffcant contributor to EIM benefits is transfers across balancing aneas, poviding access to lower cost supply, wtrile factoring in the cost of compliance with greenhouse gas (GHG) emissions regulations when energy is transfened into the lSO. As such, the tranSer volumes are a good indicator of a portion of the benefits attibuted to the ElM. Transfiers can trake place in both the 1$Minute Market and Real-Time Dispatch (RTD). Generatly, kansfer limits are based on transmission and interchange rights that participating balancing authority areas make availabte to the ElM, with the exception of the PacifiCorp West (pAGW -lSO transfer limit and the Portland General Electric (PGE) -lSO transbr limit in RTD. These RTD transEr 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 ib transfer rights for the ElM. Table 2 provides the 15-minute and 5-minute EIM transfer volumes with base schedule transfers excluded. The EtM entities submit inter-BAA transfers in their base schedules. The benefits quantified in this report are only afrributable to the transfers that occuned through the MPP/MA&F Copyrlght 2020 Callfornia ISO Page 5 of 21 $140 t120 6.$r00C.9 E*ogEI $60o6a8 $40 o s20 I so tr!t ct4 cll ?o14 EI@03 2015 IPAC nBsB@os04cll EI T al t nnflBo'r 02 03 04 ?o17 nln02 03 04 2016 *PSEI EN CI4 Q1 IEII-a;Q3 I ; I a2@qt 20'19 tBANG 2010 tPco xi JI,'ql;iu WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O ElM. The benefits do not include any transfers attributed to transfers submitted in the base schedules that are scheduled priorto the start of the ElM. The transfer from BAA-x to BAA3 and the transbrfrom BAA3 to trAA:x are separately reported' Forexample, if there is a 100 Megarvatt-Hour (ttMh) tanshrduring a S-minute interual, in addition to a base hansfer trom lSo to NVE, it will be reporEd as 1fi) MV\rh ftom-BAA lso to-BAA NEVP, and 0 tvlWh from_BAA NEVP to_BM lso in the opposite direction. The 1 $minute transEr volume is the result of optimization in the l$minute market using all bids and base schedules submitted into frre ElM. The $minute transGr volume is the result of ofiimization using all bids and base schedules submitted into ElM, based on unit commitments determined in the 1$'minute market optimization. The maximum trans6r capacities beh^Een EIM entities are shorrm in Graph 2 below. July 105,550 49,359 32,099 tPco 7,173 l6mln EIM transfer Smln Elill transfertonth From BAA To BAA AZPS ctso 88,736 55,882 AZPS AZPS NFr/P PACE 10,534 89,589 13,042 102,7il ctso SRP fi,722 10,469 31,167 8,609 AZPS BANC crso crso AZPS BANC crso NEVP crso PACW 48,997 124,023 0 E3,ggg il,527 1U,497 10,107 91,413 PGE 2,092 P\A'RX crso clso crso SRP 151,490 11,059 8,156 NEVP PACE 54,909 6,239 20,297 142,589 57,330 14,472 NEVP lPco tPco rPco rPco rPco NEVP PACW ctso PSEI AZPS SCL 42,221 7U 3,795 5,920 93,521 38,946 7(x) 3,300 5,819 61,929 33,034 32.429!PCO PACE 93,845 NB/P PACE NEVP AzPS MPP/MA&F PACE Copyrigtrt 2020 California tSO 5,512 PeSc 6 of 21 16,802NFt/P 33,950PACE 19,92021,829PACEPAO,V 00PACESRP 83,959crso66,562PACW 12,913rPco14.115PACI/V 14,73916,374PACWPGE 7,2378,805PSEIPACW 637scL808PACW crso 108,798 8,3638,499 105,950 PGE PGE PAGI'V 0PSEI0PGE 5,2*6,202PGESCL 0IPGO0PSEI 109,131101,045PSEIPAO/V 0PGE0PSEI PSEI 10,894 5,820P\A'RX scL 11,200 4,286 PSEI nr/ru(crso 0 36,976 0 39,443PSEIn /ru( 12,116rPco11,981scL 8,9)6PAO'V 7,WscL 5,6385,108SCLPGE 20,75518,097PSEIscL 57,796AZPS47,893SRP 110,191123,961SRPctso 00SRPPACE 139,421crso202,206AZPS 15,477 20,981 40,613 AZPS AZPS NEVP PACE 17,256SRP 32,1U 21,425AZPS crsoBANC 42,128 21,08028,111 27,538clsoAZPS 138,589117,770ctsoBANC WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O NEVP 62,994 MPP/MMF ctso Copyrlght 2020 California l5O 79,345 P.g. 7 of 21 WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O 0 23,699 3,931 August crso PACI,V crso PGE 2,566 7 688 crso Pl 'ru( 8,464 13,932 ctso SRP 71,49 71,696 tPco NE\/P 50,096 38,(b2 rPco PACE 29,gog 24,036 rPco PA6W 37,098 11,475 rrco PSE!6,408 6,017 rP@ scL 4,377 7,901 4,595 8,029NEVPAZPS NEVP ctso 132,173 89,219 NEVP lPco 25,953 31,123 NF/P PACE 31,08E 37,t/,1 PACE AZPS 109,751 90,050 PACE tPco 23,(xN 23,881 PACE PACE NEVP 105,347 79,529 44,910PAG1,V 37,945 PACE PAC\AI SRP 0 0 crso 51,123 91,404 PACW lPco 17,669 12,129 PAC!/V PGE 27,6E5 27,W PACW PSEI 23,372 16,914 PAO/V scL 2,355 1,597 PGE crso 8,526 6,306 PGE PACI,V 90,754 9.1,806 PGE PSEI 0 0 PGE scL 7.141 0 5,627 PSEI rrco 0 PSEI PAC1,V 58,072 7]7,375 0PSEIPGE0 PSEI Pl/rrru(10,148 11,gog 11,175 PSEI scL 11 ,699 Pl rru(crso 0 0 PWRX PSEI MPP/MA&F Copyright 2020 Califomta tSO 32,297 P4a I of 21 WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O 9,55611,2CnrrcoscL 6,5174,474PACT/VSCL 4,906PGE3,756scL 12,63010,996PSEIscL 48,60238,101AZPSSRP 201,693crso207,A14SRP 0PACE0SRP 150,732187,364crsoAZPS 12,61012,241NE\'PAZPS 25,859PACE24,892AZPS 48,69055,85ESRPAZPS 9,83811,064crsoBANC 19,60815,171AZFScrso 149,762133,480ctsoBANC crso 31,590 15,682 26,659 0 NE.\/P PAO'Vctso 24.735 38,360 PGE FJVR)( 6,137 25,(D0 crso crso crso SRP 28,414 82,67957,527 43,568NEVPtPco 8,553PACEtFco 3,29311 12.726 111,536PACWrPco 00rPcoPSEI 9,6709,538SCLtPco 8,7057,230NH/P 114,637 19,945 1{1,721 22,U9rrco AZPS crsoNEVP NEVP PACE AZPS NEVP PACE 5,330 95,310 81,28283,616 3,280 107,020 rrcoPACE 69,05687.762NE1/PPACE 23,818PACWPACE 0SRPPACE Sepfember 20,589 0 ctso 21,595 MPP/MA&F PACW cogyrlght 2020 callbrnla lSO 57,409 Pige 9 ot 21 WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O PAO/V 20,191 10,333 TABLE 2: Energy transfers (Mwh) in the FMM and RTD markets for e3 2020 trco PACW PGE 43,429 &,417 PACI/y PSEI 52,1U PACW SCL 61,539 2,W7 1,516 PGE ctso 11,655 11,092 PGE PACW 33,299 35,691 PGE PSEI 0 0 PGE SCL 2,42 2,102 PSEI rPco 0 0 PSEI PACW 20,909 29,667 PSEI PGE 0 0 PSEI PIA'RX 25,100 25,O29 PSEI scL 18,422 1711A PlA'R,\ctso 0 0 P1/tR)(PSEI 22,180 28,373 scL tPco SCL PAOA'1,507 5,(N0 3,312 2,q2 SCL PGE scL PSEI 5,134 9,481 5,665 10,2% SRP AZPS 40,059 SRP ctso 1go,7gg SRP PACE 0 37,352 183,759 0 MPP/MA&F copyrlght 2020 califomia tso Pate 10 of 21 WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O nd Fotr fpartlo PACWh PGE Foll b 56 t} u$Fo$ PSE lrPACW I5l ,PAGb fo 572 it od 23O fA75 <-rf' fUofr&]*' a{ -qm dilt<li:n * bidimclionol $[ ('danb 6o I HDwPrh0t];t?U I ;o"f,.c*+ ! Milc-Srruct Conpory ol Noe ltiuxeo i};=fl*,** !mffi:"'13vrmy'r r'lll -;;;;JH*k ! ffi rrEono! Di't'id h'nr 'o"'}I ;: :-::s" lil;tr:r* u,v ri,, i ffi*t-''-' i o"* Pm' h'tv'oi?i Io* &rrruror.r?fiti BffiSr.|*oltirrrlonS.dS. g ky fhlt I Lcl lra1n, . C.loftrdo talny ro??ll,r Sol li$, H.iJ Fl\rE l,o lPrfo Povrerex <-> ls(., .las,**ffiH##* ' s,f- . .r ir *lJl.re *frr-*-Or'fafiCf rdr.i; Iif.;ilI5Jav J.*J.*d' n'* r'. -.la&tLand Elrar a of h{y ltEO GRAPH 2: Estimated maximum transfer capacity (ElM entlties operating in Q3 2020) I WHEEL THROUGH TRANSFERS As the footprint of the Western EIM grows and continues to change, wheel-through transfers may become more common-. Crrrenily, an EIM entity facilitating a wheel through receives no direct financial benefrtioiir.ilit"ting the wheel; onlyihe sink and souroe directlybenefit. As part of the Western EIM Gonsolidated liitiatives stakehblder progessf the ISO committed to monitoring the wtreel through volumes to assess whethei, after the addition of nqi' EIM entities' there is a potential future need to pursue a market solution to address the equitable sharing of wtreeling benefits. MPP/MA&F copyright 2020 Callfornla ISO Page u of 21 The ISO wil! continue to track the volume of wtreet-through transfers in the EIM market in thequartedy reports' ln order to derive the wtreel-througn tra-nsfersior eacn EIM BAA, ttrJlSO usesthe following calculation for every real-time interualiispatct, ' Total import summation of transfers above base transfers coming into the EIM B4,qunder analysis o lotal export summation of all transErs above base transfers going out of the EIMBAA under analysis o Net imPort the maximum of zero or the difference between total imports and totalexports t Net export the maximum of zero orthe difference between total exports and totalimporE t )Allr,elthrough: the minimum of the Eltt4 transfers into (total import) or EIM transferout (total export) of a MA for a given interuat All wheel-through transfers are summed over both the month and the quarter. This volumereflects the totalrrvtreel-through transhrs for each EIM BIAA, regardless of tre potential paths used to wheel through. The net imports and erports estimated in this section reflect the overailvolume of net imports ard exports; in contrast, the imports and exports prodded in Table 2reflect the gross transfers behreen two EIM BAAs. WESTERN EIM BENEFITS REPORT THIRO QUARTER 2O2O The metric is measured as energy in ltrtWh for each month and the corresponding calendarquarter, as shown in Tables 3 through 6 and Grafis 3 through 6. MPP/MA&F Copyrlght 2020 Callfornta tSO PaEe 12 or 21 WESTERN EIM BENEFITS REPORT THIRD OUARTER 2O2O BAA Net*qort Netlmport WhedThtortilt AZPS BANC crso trco NEVP PACE PACW PGE PSE' Htws( sct SRP 1 5 TABLE 3: Estlmated wheel'through transfers ln QB 2020 EB ;aIul 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 II rI llrr ![ AZP$ BAT.IC CISO IPCO NWP PACE PACW PGE PSEI F1'I'RX SCt SRP rNcl Erport rNd lmport rWheel Tkough GRAPH 3: Estlmated wheel'through transfers ln Q3 2020 oo&3so2r131r356,61.| 39,813 386,007 124,214 1,03t,720788,893 189,45805,625200,185 303.3171V2,7U216,7U2 E1,218326,732502,178 454,105100,031 118,690255,E60 104885176,(125 20,99081,77379,328 30,r3040,97969,817 MPP/MA&F Copyffi 2020 Callfornh ISO P.g! 13 of21 T'I'ESTERN EIM BENEFTTS REPORT THIRDQUARTER2OM BAA Net Expoil Net tmport Wheel.Through AZPS BANC crso tPco NEW PACE PACW PGE PSE' PtttlF,r scr SRP TABLE 4: Estlmated wheehthrough transferc ln July 2020 700.0m 600,000 500,@ t3 = 400.000 EDaCl! 3@.0m 200.0m ilrt00,000 $;:f,I0 mmAZPS BANC CISO IPCO NEVP PACE PACW PGE PSEI PIA,RX SCL SRp .Nct Export rNet lmport rtfyhoel Through GRAPH 4: Estlmated wheet-through transferc ln July 2020 1@,704 60,240 sa@- 8,q)g l3/',W 366,663 223,tot 100,216 70,971 f 9,133 2A,220, 52,632 24/.,141 21,921 14,141 190,519 114,A17 23,455 8,m 15,2V/,53,060 10,350 3,627 36,555 9,249 10,996 1il,470 180,059 3,590 MPP/MAAF copyrlfht 2020 Callfornta lgo Pqc t4of 21 95,s3gilg96123,156 138,86221,162 438,302245,005 429,75267,155 106,21453,3U1 38,50863,7361S,945 1{5,205158.886350s,I 73i!,990101,M0 3l.gil8u3n 18,75226,002 11,37E21,59E 187,070248,462 WESTERN EIM BENEFITS REPORT THIRD OUARTER 2O2O BAA Net Export Net lmport Wheel- Through AZPS BAA'C crso trco NEVP PACE PACW PGE PSE' Hturu( sct SRP TABLE 5: Estlmated whee!-through transfers ln August 2020 .t3 = Focut 8m,000 700,0m E(x},0()0 5@.0@ 400.m0 300.0m 2m.0@ 100.m0 0 *l SCL SRPtItItnn AZPS BANC CISO lPCo NEVP PACE PACW PGE PSEI Pl/l'Rx rNotEport rNet lmport rmeelThough GRAPHS:Eetimatedwheel-throughtransfertlnAugust2020 MPP/}'AAF Copyrlght 2020 Callfornla ISO P.gG 15 of 21 WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O BAA AZPS BANC c,so tPco NEVP PACE PACW PGE PSE' PWRX scL SRP Net Export Net lmport WheelThrough 124,isi I 51,775 I ! I I I I I I I l : I I I 112,273 9,843 150,409 g7o,g2s177,225 i 166,205 62,059 62,104 249,600 50,9b8 40,24ts 38,639 16,739 98,471 81.82160,282 19,954 'ide,701 20,899 111,756 42,245 57,790 .t : i I I I Ij I I 9,910 33,453 11,016 io;iiB 17,49 52,672 2035211,664 231,1 93 109,449 119 TABLE 6: Estimated wheel-through transfers in September 2020 E3E PtUcul 700,000 600,000 500,000 400,000 300,000 200,0q) 100.000 0 il iili il li in n )t_. ill,Iln n ,.''.i I I I ! I I l AZPS BANC CISO , Net Export lPcO NEVP PACE PACW pcE pSEt pltRx SCL r,Net lnport Wtreel Through SRP GRAPH 6: Estimated wheel-through transfers ln September 202O MPP/MA&F Copyright 2020 Californta ISO PaBe 16 of 21 WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS I ,n" *"r*m 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 tocated within the ISO would have been curtailed via either economic or exceptional dispatch. The total avoided renewable curtailment volume in MWh for e3 2O2O was calculated to be 16,014 Mla/h (July) + 11,158 MWh (August) + 10,376 ltlWh (September) = 37,548 MWh total. There are environmental benefits of avoided reneurabte curtailment aswell. Under the assumption that avoided renewable curtailments displace production from other resources at a default emission rate of 0.428 metric tons CO/trtlVVh, avoided curtailments displaced an estimated 16,071 metric tons of COz for Q3 2020. Avoided renewable curtailments also may have contributed to an increased volume of reneuvable credits that would othenrise have been unavailable. This report does not quantify the additional value in dollars associated with this benefit. Total estimated reductions in the curtailment of renanrable energy along with the associated reduc'tions in COz are shown in Table 7' Year Quarter MVfi Eq' Tons CO2 1 2015 2 1 112,UO 48,U2 2016 2 158,806 67,969 I 4 33,094 14r1O{ 10,01123,390 1 52,651 22,535 2017 2 67,055 28,700 23!331 18,060 9,986 4 7 t7* 28,18865.860 2018 129,128 55,267 3 19,032 8,146 231?? g:2,2il 132,937 33,843 10,0?6 22,365 56,897 3 14,445 15,08935,2544 3,792 7,521 354 1,553 17,-165 8,860 828 3,629 3 4 MPP/MA&F 2019 Copyrlgtrt 2020 California ISO PegeLT olzL \A'ESTERN EIM BENEFITS REPORT THIRO QUARTER 2O2O 1 86,740 37J25 2020 1,2&),952 TABLE 7: Total reduction in curtailment of renewable energy and associated reducgons ln coz I FLEXIBLE RAMPING PROCUREMENT DIVERSITY SAVINGS The Westem EIM facilitates procurement of flexible ramping capacrty in the FMM to addressvariability that may occur in the RTD. Because variability across ditrerent EtAAs may happen inopposite directions' the flexible ramping requirement for the entire EIM footprint ."n U" tertthan the sum of indlvidual BAA's requlrements. This difference is knorn as flexible rampingprocurBment diversi$ savings. Starting in 2016, the ISO replaced the flexible ramping constraintwith flexible ramping products that provide both upard and downtyard ramping. rne minimumand maximum flexible ramping requirements for each BAA and fur each direction are listed inTable 8. July 0 74 36 1,1 77 trco 65 224 NEVP down 19 233 PACE donn 79 345 dourr 2 147,514 63,136 3 37,il8 Total 16,071 ilg,452 MS ,lonth BAA Diroc{lon up 30814 taximum rcqulroment Xlinimum toqulrement BANC up 5 71 crso up u2 16E6 trco up 40 217 NEVP PACE up up 35 68 318 28 PACW 38 PGE up up 171 215 157PSE' PWru< 57 30 45 't99 scr up up up 3 2E SRP up 28 151 ALL EIT 1,904 ATPS up down .t53 24 272 8,4Nc crso down down dorn MPP/MA&F PACW Copyrlght 2020 caltfornla tSO 148 Psge lt of 21 WESTERN EIM BENEFITS REPORT THIRD QUARTER2O2! up BANC up 80 crso up 1,776 up 31 m 244 PGE PSE' it4 37 62Ptilru( sct down down down down 297 63 132 4 26dortrrSRP r,€90dosmALL E!f, 270 80 1,776crso AZPS BANC 2'.|-7 420 35 21 7 up up up up trco NEW 25 8g 215 298 318 17123 u up up up upPACE PACW PGE 15730PSE' 21654upPWil( 3scl 151 40 45 up upSRP 2,ooo480upALL HN 27234dotffiiAZPS 980BANC 1,121 down down 30crso ?,2434tFco 21435 douun doi,nNEVP 34577do$,n r483 PACE PACW dortt 248&ilrnreE 244 38 37dqrnPSE' 20964Hilru( 63E &u,n dolf,nsct 132do{n 1,3&l 4 0down SRP ALL EII August 28sAZPS 393 24 I MPP/MA&F tPco Copyrlght 2020 Callfornta ISO 170 Page 19 of 21 WESTERN EIM BENEFITS REPORT THIRD OUARTER 2O2O NEVP 298 PACE 318 September Table 8: Flexlble ramplng requirements The flextble ramping procurement dlversi$ savings for allthe interuats averaged overthe monthare shonn in Tabb g. The percontage savings is the average MW savings oivioeo by the sum ofthe four individual BAA requiremenb. July August September Awnge MW saving Sum of BAArequircments Percentage savings 45%fio/o 4 So/o Table 9: Flexible ramping procurgment dlverslty savings tn e3 2020 29 up up up 171 215 PACW reE PSE'up 150 PWH(up 64 25 5E 74 u 224 sct up 2 fi SRP up 48 151 ALL E|T up tOl 4oao AZPS down 272 81itc dom 34 6 24 c,so down 70 1.289 tPco down 20 224 NEVP down u 214 PACE (hffii 345 PACW down 81 20 148 down 213reE PSE'down 27 29 232 PWn(dwn 69 scr down 3 232 63 SRP down u 132 ALL EIM down $1,791 ei5 969 906 to6 924 957 ,699 1 MPP/MA&F Copyright 2020 Crltfomte ISO Page 20 of 21 WESTERN EIM BENEFITS REPORT THIRD QUARTER 2O2O 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 ttllw is defined as the awarded flexible i"rping capacity in RTD minus its share, and the flexible ramping surplus cost is defined as the flexible ramping surplus MW multiRlied by the flexible ramping gtU-wlOe marginal price. A positive flexible ramping surplus lvlW 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 ftom 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 tecfrnology to find and deliver low-cost energy to meet real-time demand' the Western EIM demonstrates that utilities can realize financial and operational benefits and reduce carbon emissions through increased coordination and optimization' Since ib inception in November 2014, the cumulative gross egonomic benefits have reached $1'11 billion' The western EIM provide significant environmental benefits through the reduction of reneurable curtailments during periods of oversupply. sharing resouroes across a larger geographic area reduces greenhouse gas emissions by using renewable generation that otherwise would have been tumed off. The quantified environmental benefits from avoided curtailments of reneuaable generafion ftom 2015 to-date reached il9,452 metic tons of GO2' roughly the equivalent of aioiding the emissions from 115,520 passenger cars driven for one year. MPP/MA&F copyright 2020 California l5o Page 21 of 21