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HomeMy WebLinkAbout20210222Quarterly Report.pdfsEm.- ..: Fil'+!l ' ' tr*lr 'it 0H ?' +l',..,, ir-- iL f fl a'*'t i- :": ' =* .''"i _l - :-:,.-., ..r 11 -. . 1- .,. j l- ...,i. *rr,q ';':-.i'*i\ AnDAOonPComBil VIA ELECTRONIC MAIL February 22,2021 Jan Noriyuki, Secretary ldaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg 8, Suite 201-A(83714) PO Box 83720 Boise, ldaho 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 ('CAISO") Quarterly Energy lmbalance Market ("ElM') Benefits Assessment Report Dear Ms. Noriyuki: Pursuant to Order No. 33706 issued in Case No. IPC-E-16-19, Idaho Power Company ("ldaho Powe/' or "Company') hereby submits the quarterly CAISO Western EIM Benefits Report ("Report") for the fourth quarter of 2020. The Report presents CAISO's quantification of benefits associated with participation in the Western ElM. For the fourth quarter of 2020, CAISO estimated Western EIM gross benefits of $6.56 million for ldaho Power. The EIM has provided financia! benefits to the Company, and ultimately its customers. However, as discussed in ldaho Power's prior quarterly compliance filings as well as the Company's May 24,2019, Report of EIM Benefits and Costs of Participation, CAISO's calculation of benefits for ldaho Power is overstated due to severa! of the modeling assumptions used in its benefit calculation. The Company developed a more precise methodology, that uses inputs specificto ldaho Power, fordetermining actual EIM benefits, the details of which are discussed in the Company's May 24,2019, Report of EIM Benefits and Costs of Participation. lf you have any questions regarding this report, please contact Regulatory Analyst Nicole Blackwell at (208) 388-5764 or nblackwell@idahooower.com. JULIA A. HILTON Deputy General Counsel ihilton@idahopower.com JAH:slb Enclosure Sincerely, rj-i:,*){t* Julia A. Hilton e Cdifornio ISO WESTERN EIM BENEFITS REPORT Fourth Quarter 2020 r r r Prepared by: Market Analysis and Forecasting January 29,2421 6 rr, 88i&a r.ItIteeffiW&ffi#MS 6i;,i&Aqer* f* Sj&r*l"r.g:s-o,* #;*r! Ai!&* eeB&ffieffie*ffi**6i&# &.r;-r; Ii;;* i;$ !u $: {;:il n* rs, g. r,"el*i&&*#TIIIII:IIIITITTTNITTTTTISTEIIIIIIIIIIIIITIIIIIITITTTTIIIIIITIIIIIrITITITTTTTTIIIIII:TITTTTIIII:IITIIITIIIIIIIIIIIIIIIIIIIIITTIIIITIIIIIIIIIIIIITTTIIIIIIIIITIIIIIIIII:IIIIIIIITIITIIIIIITIIIIIIIIIIIITIIIITIIIITTIIIIIITTIIIIIII:IIIIIIIIITI @i&&ffis&e*MeIIIIIIIII sd x$li *IITIIIIIIIrr lIr III WESTERN ElM BENEFITS REPORT FOURTH QUARTER 2O2O CONTENTS EXECUTIVE SUMMARY 3 4 4 5 5 BACKGROUND.......... WESTERN ElM ECONOMIC BENEFITS IN Q4 2020.......... CUMULATIVE EIM BENEFITS SINCE INCEPTION INTER-REGIONAL TRANSFERS ....... WHEEL THROUGH TRANSFERS 12 REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS............ FLEXIBLE RA,M PI NG PROCUREM ENT DIVERSITY SAVI NGS.. ....................1 8 ....................1 I .....23 .....24APPENDIX 1 : GLOSSARY OF ABBREVIATIONS......... MPP/MA&F Copyright 2021 California ISO PaEe 2 ot 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O EXECUTIVE SUMMARY Pm Morlet Operotor Colilornio ISO EIM entity t Active porticiponl ! Plonned EIM enrry 2021 ffi Plonned EIM enrry 2022 Seottle Ciry Lighr Tocomo Power Gross benefits from EIM since November 2014 Portlonduenerol El<trlc ldoho Pourcr f prbl,. s",u,."Compony o[ . New Mexico a footprint with more diverse resources and geography Q4 BENEFITS Q42020 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 lmillions $) $8.70 $5.42 $7.54 $6.56 $5.72 $10.90 $6.73 $3.73 $0.91 $2.14 $10.51 $68.86 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: iril'-.:,.;",..,r,',t:,L.tlrcitti,.:t:ttt/L,i.,r.irtrtettlsrt:jfi'iL-lrtr:litir,l(rlir!,i1,)ii,..l,i,Ji 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 dispatch that would have occurred external to the ISO without the ElM. For more details, see lt.iit !,,"r. Lilrrrr.-L_i,r_r_!,9Cqri15rlt: (rrcCrli,{-,rlSi]!(l.L iti ,,:.i.;tr:, I t.ri I tuirfrei,,rtl. I i i:(]r rr {ri, ! ;1r iii(l(l!eSti({rs, pdl Average reduction in flexibility reserves across the footprint MPP/MA&F Copyright 2021 California l5O PageS of 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O . 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 in April 2018, and the Balancing Authority of Northern California (BANC)1 began participating in April 2019. Most recently, Seattle City Light (SCL) and Salt River Project (SRP) began participating in April 2020.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 Q4 2O2O Table 1 shows the estimated EIM gross benefits by each region per month3. The monthly savings presented show $29.78 million for October, $22.50 million for November, and $16.58 million for December with a total estimated benefit of $68.86 million for the quarter. Region October November December Total APS BANC c/so tPco NVE PAC PGE PSE PWRX scL SRP Total TABLE 1: Q4 2020 benefits in millions 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/AbouVQuarterlvBenefits.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 2021 California ISO PaEe 4 of 24 $4.22 $2.64 $1.84 $8.70 $2.00 $2.10 $1.32 $5.42 $2.41 $3.79 $1.34 $7.54 $2.39 $2.03 $2.14 $6.56 $3.73 $1.60 $0.3e $5.72 $4.26 $3.40 $e.zq $10.90 $2.94 $1.e4 $1.85 $6.20 $1.34 $1.24 $1.15 $3.73 $0.16 $0.24 $0.51 $0.91 $0.79 $0.73 $0.62 $2.14 $5.54 $2.79 $2.18 $10.51 $29.78 $22.50 $16.58 $68.86 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O I CUMULATIVE EIM BENEFITS SINCE INCEPTION Since the start of the EIM in November 2014, the cumulative economic benefits have totaled $1.18 billion. 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 individual BAAs 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. $0 rCISO TPAC NNEVP IPSEI 'AZPS TPGE TIPCO TPVI/RX IBANC TSCL TSRP GRAPH 1: Gross economic benefits for each quarter by BAA 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 transfened 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 benefits quantified in this report are only attributable to the transfers that occuned through the MPP/MA&F Copyright 2021 California ISO Page 5 of 24 $140 $120 6 $100te = $Bo g g $50ooog $40 0 $20 Ql 02 Q3 A4 Q1 Q2 03 Q4 01 02 03 04 01 Q2 Q3 04 01 A2 03 04 01 Q2 Q3 04 r Q4 ?o14 20162015 202020192018m1'7 WESTERN ElM BENEFITS REPORT FOURTH 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 BAA3 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 1Smin EIM transfer (15m - base) Smin EIM transfer (5m - base) AZPS clso 168,332 148,958 AZPS NEVP 9,820 7,667 AZPS PACE 28,712 27,426 AZPS SRP 39,242 36,802 BANC ctso 29,932 18,715 CISO AZPS 9,220 13,070 ctso BANC 80,425 96,438 crso NEVP 11,030 7,784 crso PACW 428 7,658 crso PGE 2,947 12,556 crso PWRX 18,020 34,027 crso SRP 53,386 65,826 IPCO NEVP 75,571 52,666 IPCO PACE 10,122 8,523 rPco PACW 68,454 76,450 rPco PSEI 13,046 9,811 tPco SCL 6,433 5,915 NEVP AZPS 13,935 13,538 NEVP crso 247,959 85,367 MPP/MA&F October Copyright 2021 California ISO Page 6 of 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O October Month From BAA To BAA 1Smin EIM transfer (15m - base) Smin EIM transfer (5m - base) NEVP PACE 4,886 4,796 PACE AZPS 87,413 79,407 PACE tPco 78,712 PACE NEVP 133,700 113,512 PACE PACW 24,586 28,856 PACE SRP 0 0 PACW crso 20,226 71,163 PACW tPco 29,901 15,139 PACW PGE 61,211 59,163 PACW PSEI 31,556 20,937 PACW SCL 2,068 1,395 PGE crso 15,976 10,891 PGE PACW 27,O02 34,295 PGE PSEI 1,696 1,018 PGE scL 9,747 8,124 PSEI tPco 0 0 PSEI PACW 25,956 35,202 PSEI PGE 4,108 4,961 PSEI PWRX 44,046 45,273 PSEI SCL 5,449 6,458 PWRX ctso 5,825 0 PWRX PSEI 11 852 15,422 SCL tPco 7,870 7,203 SCL PACW 2,782 4,034 SCL PGE 3,271 3,858 SCL PSEI 21,666 21,728 SRP AZPS 39,688 38,102 MPP/MA&F Copyright 202L California ISO ?a$e7 ol 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O November 4,569 54,272 Month From BAA To BAA 1Smin EIM transfer (15m - base) 5min EIM transfer (5m - base) October SRP crso 163,634 159,393 SRP PACE 0 0 AZPS ctso 158,259 100,240 AZPS NEVP 3,643 7,089 AZPS PACE 47,575 61,239 AZPS SRP 18,052 13,893 BANC crso 15,150 7,852 ctso AZPS 66,025 81,412 ClSO BANC 101,828 120,790 ctso NEVP 80,359 108,659 crso PACW 1,212 24,362 crso PGE 9,724 23,107 ctso PWRX 5,489 9,292 crso SRP 57,592 63,623 lPco NEVP 84,329 46,557 IPCO PACE 26,499 25,763 lPco PACW 37,111 45,517 IPCO PSEI 672 1,023 rPco SCL 3,344 NEVP AZPS 11,61 4 5,655 NEVP clso 142,705 81,708 NEVP tPco 24,953 27,665 NEVP PACE 35,707 PACE AZPS 125,083 89,299 PACE lPco 32,015 36,995 PACE NEVP 79,769 54,681 PACE PACW 8,259 12,263 MPP/MA&F Copyright 2021 California ISO Page 8 of 24 Month From BAA To BAA 1Smin EIM transfer (15m - base) 5min EIM transfer (5m - base) November PACE SRP 0 0 PACW crso 19,387 52,849 PACW rPco 48,5',11 31,783 PACW PGE 55,679 62 325 PACW PSEI 17,223 '18,039 PACW SCL 1,412 1,210 PGE ctso 9,367 PGE PACW 27,468 28,338 PGE PSEI 1,055 1,349 PGE SCL 2,430 2,151 PSEI IPCO 0 0 PSEI PACW 50,963 55,951 PSEI PGE 5,992 6,526 PSEI PWRX 28,714 31,561 PSEI SCL 't6,689 15,383 PWRX CISO 10,455 0 PWRX PSEI 20,104 21,603 SCL IPCO 13,694 11,009 SCL PACW 7,020 8,132 SCL PGE 3,462 3,845 SCL PSEI 12,437 '13,811 SRP AZPS 8,139 16,586 SRP ctso 109,179 96,097 SRP PACE 0 0 AZPS crso 112,088 75,488 AZPS NEVP 3,714 5,995 AZPS PAEE 26,146 42,092 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O MPP/MA&F December Copyright 2021 California ISO Page 9 of 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O December 0 Month From BAA To BAA 1Smin EIM transfer (15m - base) Smin EIM transfer (5m - base) AZPS SRP 18,259 14,938 BANC ctso 9,808 5,082 crso AZPS 43,349 58,925 ctso BANC 78,369 87,407 clso NEVP 61,284 87,223 ctso PACW 6,336 22,159 ctso PGE 4,956 17J20 ctso PWRX 4,436 7,650 crso SRP 32,764 35,364 tPco NEVP 92,320 69,182 IPCO PACE 18,422 19,567 IPCO PACW 41,455 43,284 rPco PSEI 0 0 rPco SCL 4,836 5,235 3,975NEVPAZPS5,226 NEVP crso 138,938 91,807 NEVP tPco 19,879 19,961 NEVP PACE 22,032 32,348 PACE AZPS 129,450 107,902 PACE tPco 18,927 20,011 67,692PACENEVP83,600 PACE PACW 12,926 13,360 PACE SRP 0 PACW crso 39,132 43,663 PACW rPco 46,573 36,213 PACW PGE 38,422 39,498 PACW PSEI 14,002 15,053 MPP/MA&F Copyright 2021 California ISO Page 10 of 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O TABLE 2: Energy transfers (MWh) in the FMM and RTD markets for Q4 2020 Month From BAA To BAA 1Smin EIM transfer (15m - base) 5min EIM transfer (5m - base) December PACW scL 1,226 1,181 PGE crso 28,138 639 PGE PACW 42,675 48,129 PGE PSEI 5,081 5,941 PGE SCL 2,846 2,598 PSEI IPCO 0 0 PSEI PACW 49,864 57,705 PSEI PGE 13,813 16,425 PSEl PWRX 16,824 15,814 PSEI SCL 20,944 24,423 PWRX crso 12,418 7 PWRX PSEI 41,409 52,430 SCL rPco 11,498 10,508 SCL PACW 5,535 6,928 SCL PGE 2,814 3,375 SCL PSEI 6,450 6,048 SRP AZPS 23,923 38,541 SRP CISO 147,514 124,690 SRP PACE 0 0 MPP/MA&F Copyright 2021 California ISO Page 7! of 24 WESTERN ElM BENEFITS REPORT FOURTH QUARTER 2O2O Fdr Etlr*dflc UYn, Foh 24 faodbnsrl 3590 Eldorodo Foh 35 fwa lb 5BO ta gACWh FGT 320 Fofi 66 flSObgGB 627 Poh 66|FGEoSq 296 Fotr 66 [5O b PAC]U 33t Pdrli Ffi 66 pACwfuSO,132 Foh t7 G400r r PSE I'o PACW 300 Foar 78 IPACE b APS,625 Pdt 78 fAPS b 660 522 ,r,laod 230 IAff +> ffiJ 236f'b b bbr*?L BACwh FCO Fdr7sl {00510 HACE b IFCO 2,557 ra IPCObPACE t.550 -ffi diruoim e bidirrctio.El fi, Cd*trnio S.O I no.ris"gI xvtrogr/ ! *ito,a iuilic SrYir ! f*"naC-od Eodrk I n€.r So*nd tragy I *uroro canpirrr I I,{DYVP tg.ltrffitt ! fuHk Scrtc Compony ol Na* lrtceico lc;cy7oi21l ! A{or*'fV"$"nr Er*rgy fary AC?1,; ! Turlor* lrQaion Dirbid hrry r0?tl !l"i*o bl}:fffitt ! Tucron Elctxk Pq*ct ln1r ?ffnt f laomo ?o*c llr*yfr?,1 (ft Eonrt'rilh Fm Adminiamfion ,r.4fr]21 ! LcA lr*rgy . Color€do I*:.rI ?022J II naru BAt{( &*u?rrtif ?trI, s.dd. Cirr tbtrtI sot riw rftixr t{vT blFCo W IPCO to t{Vf 300478 Pswerex {-> PSf 150 Pouerex <-> lS0 l5O ! + *raJs$ qa*ll b }taEffdlv t/ E*o 6J t-rF.di. ".4- Jxcsolrm- aJ Fd z, 6+611 I wha n q irmlJ6cFydrltHcoficosaEl d nnt' rJ ril A.'a+r+,*ldJCy *. a.J # r Fd I 4sJaJJL-*J. Cacofj{&O GRAPH 2: Estimated maximum transfer capacity (ElM entities operating in Q4 2020) I WHEEL THROUGH TRANSFERS As the footprint of the Western EIM grows, 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 ISO will continue to track the volume of wheel-through transfers in the EIM maket in the quarterly reports. ln order to derive the wheelthrough transfers for each EIM BAA, the ISO uses the following calculation for every real-time interval dispatch: MPP/MA&F Copyright 2021 California ISO Page 72 ot 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O a Total import: summation of transfers above base transfers coming into the EIM BAA under analysis Total export: summation of alltransfers above base transfers going out of the EIM BAA under analysis Net import: the maximum of zero or the difference between total imports and total exports Net export: the maximum of zero or the difference between total exports and total imports Wheelthrough: the minimum of the EIM transfers into (total import) or EIM transfer out (total export) of a BAA for a given interval a a a a Allwheelthrough transfers are summed over both the month and the quarter. This volume reflects the tota! 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. MPP/MA&F Copyright 2021 California ISO Page 13 of 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O BAA Net Export Net lmport WheelThrough AZPS BANC c/so tPco NEVP PACE PACW PGE PSE/ PWRX scL SRP TABLE 3: Estimated wheel-through transfers in Q4 2020 53 = E"oc UJ 1,800,000 1,600,m0 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 SRP I AZPS I I BANC CISO IPCO NEVP rNet Export PACE PACW PGE ENet lmport PSEI P\,RX SCL r\Mreel Through GRAPH 3: Estimated wheel-through transfers in Q4 2020 31,843 305,031 172,343 65,485 242,591 656,033 232,266 44,737 118,042 227,612 25,787 80,960 134,960 8,671 473,285 230,570 550 MPP/MA&F Copyright 2021 California ISO Page L4 ot 24 18,715 96,592 54,583 15,116 99,092 280,543 20,459 20,zffi 69,132 ,48211421843 4,25011,214 75,144 197,438 102,548 135 WESTERN ElM BENEFITS REPORT FOURTH QUARTERzOM BAA Net Export Net lmport Wheel-Through AZPS BANC crso tPco NEVP PACE PACW PGE PSE/ PWRX sct SRP TABLE 4: Estimated wheel-through transfers in October 202O 700,000 800,m0 500,000 s3 = 400,0m EDocut 300,0m 200,000 100,m0 I I ll III I0 I SCLAZPS BANC CISO IPCO NEVP PrcE PACW PGE PSEI P1,VRX I Net Export r Net lmport lVt/heel Through SRP GRAPH 4: Estimated wheel-through transfers in October 2020 MPP/MA&F copyright 2021 callfornir lso Page 15 of 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O BAA Net Export Net lmport Wheel- Through AZPS BANC c/so lPco NEVP PACE PACW PGE PSE' PWRX SCL SRP TABLE 5: Estimated wheel-through transfers in November 2020 ,c == EDoc, T.lJ 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 I AZPS t I !ry BANC CISO IPCO NEVP r Net Export PACE PACW PGE PSEI PV1IRX rNet lmport rWheel Through SCL SRP GRAPH 5: Estimated wheel-through transfers in November 2020 8,046 120,911 46,029 29,234 77,783 177,864 128,832 12,879 28,277 92,353 3,873 20,316 39,356 1,383 112,875 77,939 106 MPP/MA&F Copyright 2021 California ISO Page 16 of 24 5,082 87,529 21,135 65,71671,731 82,974 11,571197,627 10,43246,922 66 127, 49,430 20,459 3,039 50,083 309162,972 WESTERN EIM BENEFITS REPORT FOURTH QUARTER2O2O BAA Net Export Net lmport WheelThrough AZPS BANC crso tPco NEVP PACE PACW PGE PSE' PWRX scr SRP TABLE 0: Estimated wheel-through transfens in December 2020 33 = Eocut 700,000 600,0m 500,0m 400,000 300,000 200,000 100,000 tltrr0II I I scL I SRPAZPS BANC CISO IPCO r Net Export NEVP PACE rNet lmport PACW PGE PSEI PWRX I\ rheel Through GRAPH 6: Estimated wheel-through transferc ln Decembsr 2020 MPP/MA&F Copyrlght 2021 California l5O PagetT cf-24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O 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 Q4 2020 was calculated to be 4,678 MWh (October) + 20,908 MWh (November) + 14,370 MWh (December) = 39,956 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 17,101 metric tons of COz for Q4 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. 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 COz 2015 2016 2017 2018 2 132,937 1 8,860 3,792 2 3,629 1 553 3 828 354 4 17,765 7,521 1 112,948 48,342 2 158,806 67,969 3 33,094 14,164 4 23,390 10,011 1 52,651 22,535 2 67,055 28,700 3 23,331 9,986 4 18,060 7 730t 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 MPP/MA&F 2019 Copyright 2021 California ISO 56,897 Page 18 of 24 3 33,843 14,485 4 35,254 15,089 1 86,740 37,125 2 147,514 63,136 16,071337,548 4 39,956 1 7 1 01 Total 1,323,908 586,553 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O Year Quarter MWh Eq. Tons COz 2019 2020 TABLE 7: Total reduction in curtailment of renewable energy and associated reductions in GOz 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 31 289 BANC up 6 80 c/so up 369 1776 tPco up 20 217 NEVP up 29 280 PACE up 77 311 PACW up 48 171 PGE up 50 215 PSE/up 25 157 PWRX up 56 216 sct up 4 40 SRP up 2 151 October MPP/MA&F Copyright 2021 California ISO Page 19 of 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O November Month BAA Direction Minimum requirement Maximum requirement October ALL EIM up 484 2,080 AZPS down 21 272 BANC down 6 101 c/so down 130 1,295 tPco down 47 224 NEVP down 256 PACE down 7',\345 148PACWdown35 PGE down 27 216 PSE/down 35 167 PWRX down 77 242 sct down 2 SRP down 18 132 ALL EIM down 189 1,761 AZPS up 0 259 BANC up 0 54 c/so up 0 1,776 tPco up 0 217 NEVP up 0 up 0 280 PACE 318 PACW up 0 1 71 PGE up 0 21s PSE/up 0 157 PWRX up 0 250 scr up 0 40 SRP up 0 1 5 1 ALL EIM up 0 2,080 AZPS down 0 272 BANC down 0 76 MPP/MA&F Copyright 202L California ISO Page 20 of 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O Month BAA Direction Minimum requirement Maximum requirement November c/so down 0 1,295 tPco down 0 21 1 NEVP down 0 315 PACE down 0 345 PACW down 0 148 PGE down 206 PSE/down 0 190 PWRX down 246 sct down 0 42 SRP down 0 132 ALL EIM down 0 1 851 AZPS up 83 276 BANC up 6 59 c,so up 280 2,392 tPco up 25 219 NEVP up 24 261 PACE up 85 328 PACW up up 62 181 PGE 46 263 PSE'up 44 196 PWRX up 56 253 52scrup4 SRP up 33 180 ALL EIM up down 407 2,666 AZPS 12 243 BANC down 3 70 c/so down 147 1,303 tPco down 46 224 NEVP down 20 339 December MPP/MA&F Copyright 2021 California ISO Pagezl of 24 BAI\Direction Minimum requirement Maximum Requirement PACE down 112 391 PACW down 17325 PGE down 43 206 PSEI down 40 165 PWRX down 64 251 scr down 1 43 SRP down 21814 downALL EIM 216 1,807 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O 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. October November December Direction Average MW saving Sum of BAA requirements Percentage savlngs Table 9: Flexible ramping procurement diversity savings in Q4 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. Up Down Up Down Up Down 831 882 828 872 962 914 2,116 1,699 1,871 1,711 1,947 1,772 39Yo 52%44%51%49Yo 52o/o MPP/MA&F Copyright 2021 California ISO Paee 22 of 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O I CONCLUSION Using state-of-the-art technology to find and deliver low-cost energy to meet real-time demand, the Western EIM demonstrates that utilities can realize financial and operational benefits through increased coordination and optimization. ln addition to these benefits, 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 20't5 to-date reached 566,553 metric tons of COz, roughly the equivalent of avoiding the emissions from 119,115 passenger cars driven for one year. MPP/MA&F Copyright 2021 California ISO Page23 ot 24 WESTERN EIM BENEFITS REPORT FOURTH QUARTER 2O2O Appendix 1: Glossary of Abbreviations Abbreviation Descri APS Arizona Public Service BAA Area BANC of Northern California cl rso California lSO EIM E lmbalance Market FMM Fifteen Minute Market GHG Greenhouse Gas IPCO ldaho Power MW MWh NVE NV PAC PACE East PACW West PGE Portland Genera! Electric PSE Sound PWRX Powerex RTD RealTime SCL Seattle L SRP Salt River Project MPP/MA&F Copyright 2021 California ISO Page}A ol 24