Loading...
HomeMy WebLinkAbout20220811Quarterly Report.pdfLISA O’HARA Corporate Counsel lo’hara@idahopower.com August 11, 2022 Ms. Jan Noriyuki Secretary Idaho Public Utilities Commission PO Box 83720 Boise, ID 83720-0074 Re: Case No. IPC-E-16-19 Deferral and Recovery of Costs Associated with Participation in Energy Imbalance Market – California Independent System Operator (“CAISO”) Quarterly Energy Imbalance Market (“EIM”) Benefits Assessment Report Dear Ms. Noriyuki: Pursuant to Order No. 33706 issued in Case No. IPC-E-16-19, Idaho Power Company (“Idaho Power” or “Company”) hereby submits the quarterly CAISO Western EIM Benefits Report (“Report”) for the second quarter of 2022. The Report presents CAISO’s quantification of benefits associated with participation in the Western EIM. For the first quarter of 2022, CAISO estimated Western EIM gross benefits of $8.44 million for Idaho Power. The EIM has provided financial benefits to the Company, and ultimately its customers. However, as discussed in Idaho 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 Idaho 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 Idaho 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. If you have any questions regarding this report, please contact Matt Larkin, Revenue Requirement Senior Manager, at (208) 388-2461 or mlarkin@idahopower.com. Sincerely, Lisa J. O’Hara Enclosure RECEIVED 2022 AUG 11 PM 4:52 IDAHO PUBLIC UTILITIES COMMISSION WESTERN ENERGY IMBALANCE MARKET BENEFITS Second Quarter 2022 Prepared by: Market Analysis and Forecasting July 29, 2022 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 2 of 36 CONTENTS EXECUTIVE SUMMARY ......................................................................................................... 3 BACKGROUND ...................................................................................................................... 4 WEIM ECONOMIC BENEFITS IN Q2 2022 ............................................................................. 4 CUMULATIVE ECONOMIC BENEFITS SINCE INCEPTION.......................................................... 5 INTER-REGIONAL TRANSFERS ............................................................................................. 6 WHEEL-THROUGH TRANSFERS ...........................................................................................21 REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS .................................. 28 FLEXIBLE RAMPING PROCUREMENT DIVERSITY SAVINGS ............................................ 29 CONCLUSION ...................................................................................................................... 34 APPENDIX 1: GLOSSARY OF ABBREVIATIONS ................................................................ 36 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 3 of 36 EXECUTIVE SUMMARY This report presents the benefits associated with participation in the Western Energy Imbalance Market (WEIM). The measured benefits of participation in the WEIM 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 real time market across a larger WEIM footprint with diverse resources and geography. Q2 2022 Gross Benefits by Participant (millions $) Arizona Public Service $10.14 Avista $5.16 BANC $68.09 BPA $4.36 California ISO $71.75 Idaho Power $8.44 LADWP $13.78 NV Energy $8.63 NorthWestern Energy $5.90 PacifiCorp $35.21 Portland General Electric $11.92 PNM $3.10 Puget Sound Energy $4.90 Powerex $4.66 Seattle City Light $2.90 Salt River Project $21.26 Tacoma Power $1.55 TEP $2.84 TID $2.85 Total $287.44 Gross benefits from WEIM since November 2014 $2.39 billion ECONOMICAL $287.44 M Gross benefits realized due to more efficient inter-and intra-regional dispatch in the Fifteen-Minute Market (FMM) and Real-Time Dispatch (RTD)* ENVIRONMENTAL 50,655 Metric tons of CO2** avoided curtailments OPERATIONAL 54% Average reduction in flexibility reserves across the footprint 2022 Q2 BENEFITS WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 4 of 36 *WEIM Quarterly Benefit Report Methodology: https://www.westerneim.com/Documents/EIM-BenefitMethodology.pdf. **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 WEIM. For more details, see http://www.caiso.com/Documents/GreenhouseGasEmissionsTrackingReport-FrequentlyAskedQuestions.pdf 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. Idaho Power and Powerex began participating in April 2018, and the Balancing Authority of Northern California (BANC) began participating in April 2019. Seattle City Light and Salt River Project began participating in April 2020. In 2021, new balancing authorities began participating in the Western EIM, with the Turlock Irrigation District (TID) in March 2021, the second phase of BANC in March 2021, and the Los Angeles Department of Water and Power (LADWP) and Public Service Company of New Mexico (PNM) in April 2021, followed by NorthWestern Energy (NWMT) starting in June 2021. Avista Utilities (AVA) and Tacoma Power (TPWR), two utilities serving a combined 600,000 electric customers in the Pacific Northwest, became the newest members of the WEIM, with both beginning their participation on March 2, 2022. On May 3, 2022, the Bonneville Power Administration (BPA) and Tucson Electric Power (TEP) both Joined the WEIM. The Western EIM footprint now includes portions of Arizona, California, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming, and extends to the border with Canada. WEIM ECONOMIC BENEFITS IN Q2 2022 Table 1 shows the estimated WEIM gross benefits by each region per month1. The monthly savings presented show $93.66 million for April, $83.84 million for May, and $109.94 million for June with a total estimated benefit of $287.44 million for this quarter2. This level of WEIM benefits accrued from having additional WEIM areas participating in the market and economical transfers displacing more expensive generation. 1 The WEIM benefits reported here are calculated based on available data. Intervals without complete data are excluded in the calculation. The intervals excluded due to unavailable data are normally within a few percent points of the total intervals. 2 For several quarterly estimates, CAISO benefits were calculated on a variation of the counterfactual methodology. For CAISO only the logic had considered offline resources as part of the bid stack in the counterfactual. In Q4 2021, CAISO identified some questionable results that drove persistent negative be nefits for CAISO when considering offline resources. Since Q4 2021, the benefit calculation for CAISO area follows the same methodology applicable to all WEIM entities in which only online resources are used. WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 5 of 36 Region April May June Total APS $3.69 $3.83 $2.62 $10.14 AVA $1.98 $1.72 $1.46 $5.16 BANC $4.71 $13.78 $49.60 $68.09 BPA $2.26 $2.10 $4.36 CISO $42.10 $14.56 $15.09 $71.75 IPCO $3.89 $2.78 $1.77 $8.44 LADWP $4.42 $5.30 $4.06 $13.78 NVE $2.49 $2.40 $3.74 $8.63 NWMT $2.50 $2.44 $0.96 $5.90 PAC $13.35 $15.43 $6.43 $35.21 PGE $3.60 $3.43 $4.89 $11.92 PNM $0.07 $1.26 $1.77 $3.10 PSE $1.79 $1.94 $1.17 $4.90 PWRX $0.64 $2.05 $1.97 $4.66 SCL $1.10 $1.00 $0.80 $2.90 SRP $5.95 $7.04 $8.27 $21.26 TPWR $0.40 $0.43 $0.72 $1.55 TEP $1.29 $1.55 $2.84 TID $0.98 $0.90 $0.97 $2.85 Total $93.66 $83.84 $109.94 $287.44 TABLE 1: Q2 2022 benefits in millions USD CUMULATIVE ECONOMIC BENEFITS SINCE INCEPTION Since the start of the WEIM in November 2014, the cumulative economic benefits of the market have totaled $2.39 billion. The quarterly benefits have grown over time as a result of the participation of new BAAs, which results in benefits for both the individual BAA but also compounds the benefits to adjacent BAAs through additional transfers. The ISO began publishing quarterly WEIM benefit reports in April 2015.3 Graph 1 illustrates the gross economic benefits of the WEIM by quarter for each participating BAA. 3 Prior reports are available at https://www.westerneim.com/Pages/About/QuarterlyBenefits.aspx WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 6 of 36 GRAPH 1: Cumulative economic benefits for each quarter by BAA 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 ISO. As such, the transfer volumes are a good indicator of a portion of the benefits attributed to the WEIM. 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 balancing authority areas make available to the WEIM, with the exception of the PacifiCorp West (PACW) -ISO transfer limit and the Portland General Electric (PGE) -ISO transfer limit in RTD. These RTD transfer capacities between 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 EIM. Table 2 provides the 15-minute and 5-minute WEIM transfer volumes with base schedule transfers excluded. The WEIM 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 WEIM. The benefits do not include any transfers attributed to transfers submitted in the base schedules that are scheduled prior to the start of the EIM. The transfer from BAA_x to BAA_y and the transfer from BAA_y to BAA_x are separately reported. For example, if there is a 100 Megawatt-Hour (MWh) transfer during a 5-minute interval, in addition to a base transfer from ISO to NVE, it will be reported as 100 MWh WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 7 of 36 from_BAA ISO to_BAA NEVP, and 0 MWh from_BAA NEVP to_BAA ISO in the opposite direction. The 15-minute transfer volume is the result of optimization in the 15-minute market using all bids and base schedules submitted into the WEIM. The 5-minute transfer volume is the result of optimization using all bids and base schedules submitted into WEIM, based on unit commitments determined in the 15-minute market optimization. The maximum transfer capacities between WEIM entities are shown in Graph 2 below. Month From BAA To BAA 15min WEIM transfer (15m – base) 5min WEIM transfer (5m – base) AVA CISO 0 0 April AVA IPCO 20,394 16,524 AVA NWMT 6,205 5,541 AVA PACW 10,480 12,791 AVA PGE 48 62 AVA PSEI 0 1 AVA SCL 2 1 AVA TPWR 2,909 3,389 AZPS CISO 106,535 70,984 AZPS LADWP 6,478 7,404 AZPS NEVP 8,905 16,269 AZPS PACE 31,007 36,001 AZPS PNM 18,144 15,167 AZPS SRP 44,298 47,638 BANC CISO 7,941 3,264 BANC TIDC 30 145 CISO AVA 87 20 CISO AZPS 69,708 73,122 CISO BANC 85,021 100,826 CISO LADWP 76,743 80,241 CISO NEVP 73,631 78,704 CISO PACW 0 8,331 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 8 of 36 CISO PGE 11,468 15,791 CISO PWRX 41,738 50,391 CISO SRP 173,251 176,313 CISO TIDC 11,060 12,811 IPCO AVA 27,722 33,028 IPCO NEVP 45,717 33,915 IPCO NWMT 2,648 3,081 IPCO PACE 19,505 14,309 IPCO PACW 30,365 40,626 IPCO PSEI 0 0 IPCO SCL 9,280 10,695 LADWP AZPS 2,428 3,116 LADWP CISO 92,685 66,908 LADWP NEVP 11,999 16,419 LADWP PACE 34,565 37,081 NEVP AZPS 3,021 3,101 NEVP CISO 75,594 53,435 NEVP IPCO 34,940 45,747 NEVP LADWP 19,953 23,871 NEVP PACE 10,672 12,977 NWMT AVA 21,314 26,256 NWMT IPCO 3,773 4,108 NWMT PACE 8,283 5,869 NWMT PACW 0 4 NWMT PGE 10 29 NWMT PSEI 20 33 NWMT TPWR 3,119 3,684 PACE AZPS 163,693 150,630 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 9 of 36 PACE IPCO 51,491 64,637 PACE LADWP 84,511 69,606 PACE NEVP 23,563 20,808 PACE NWMT 24,092 27,565 PACE PACW 32,675 41,067 PACE SRP 0 0 PACW AVA 8,656 9,452 PACW CISO 60,528 80,218 PACW IPCO 21,181 14,035 PACW NWMT 5 5 PACW PGE 39,297 45,740 PACW PSEI 30,125 32,468 PACW SCL 998 972 PGE AVA 0 61 April PGE CISO 30,727 29,991 PGE NWMT 34 29 PGE PACW 21,307 24,282 PGE PSEI 0 0 PGE SCL 1,067 996 PGE TPWR 2,843 2,905 PNM AZPS 28,441 36,596 PNM SRP 15,061 16,969 PSEI AVA 0 1 PSEI IPCO 0 0 PSEI NWMT 8 33 PSEI PACW 34,478 37,186 PSEI PGE 0 0 PSEI PWRX 5,578 6,972 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 10 of 36 PSEI SCL 12,480 11,398 PSEI TPWR 5,344 5,461 PWRX CISO 0 0 PWRX PSEI 21,825 21,249 SCL AVA 1 1 SCL IPCO 1,474 1,341 SCL PACW 920 1,112 SCL PGE 1,374 1,607 SCL PSEI 12,048 16,353 SRP AZPS 4,575 6,585 SRP CISO 49,283 40,892 SRP PACE 0 0 SRP PNM 1,580 1,225 TIDC BANC 74 148 TIDC CISO 14,826 12,010 TPWR AVA 2,038 1,631 TPWR NWMT 1,796 1,493 TPWR PGE 3,053 3,061 TPWR PSEI 10,632 10,722 May AVA BPAT 4,997 3,193 AVA CISO 321 320 AVA IPCO 12,634 12,924 AVA NWMT 20,196 14,720 AVA PACW 7,459 9,702 AVA PGE 0 27 AVA PSEI 0 0 AVA SCL 8 3 AVA TPWR 1,915 1,951 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 11 of 36 AZPS CISO 56,237 34,273 AZPS LADWP 526 1,364 May AZPS NEVP 1,175 2,596 AZPS PACE 29,605 38,059 AZPS PNM 42,248 34,449 AZPS SRP 94,492 90,578 AZPS TEPC 11,098 11,526 BANC BPAT 1,112 1,264 BANC CISO 7,397 6,010 BANC TIDC 33 76 BPAT AVA 3,264 2,655 BPAT BANC 45 171 BPAT CISO 9,105 13,408 BPAT IPCO 1,277 1,325 BPAT LADWP 1,928 818 BPAT NEVP 389 220 BPAT NWMT 8,458 4,973 BPAT PACW 3,747 1,938 BPAT PGE 15,217 10,544 BPAT PSEI 13,355 15,088 BPAT PWRX 13,404 2,790 BPAT SCL 964 1,242 BPAT TPWR 4,105 4,675 CISO AVA 0 0 CISO AZPS 108,931 119,324 CISO BANC 140,055 144,032 CISO BPAT 5,329 9,780 CISO LADWP 65,629 76,466 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 12 of 36 CISO NEVP 114,631 142,138 May CISO PACW 898 13,245 CISO PGE 13,869 35,171 CISO PWRX 103,222 116,329 CISO SRP 233,061 251,791 CISO TEPC 3,935 3,799 CISO TIDC 16,133 16,403 IPCO AVA 22,176 25,776 IPCO BPAT 4,252 1,603 IPCO NEVP 4,572 2,682 IPCO NWMT 4,814 5,912 IPCO PACE 62,009 39,574 IPCO PACW 27,098 32,785 IPCO PSEI 0 0 IPCO SCL 8,334 9,465 LADWP AZPS 2,322 3,093 LADWP BPAT 1,735 800 LADWP CISO 71,092 50,524 LADWP NEVP 15,764 21,057 LADWP PACE 28,235 32,900 LADWP TEPC 0 83 NEVP AZPS 9,672 8,583 NEVP BPAT 743 502 NEVP CISO 100,199 65,338 NEVP IPCO 18,269 20,665 NEVP LADWP 24,255 27,189 NEVP PACE 62,305 75,527 NWMT AVA 13,111 16,444 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 13 of 36 NWMT BPAT 8,236 5,871 May NWMT IPCO 2,319 3,858 NWMT PACE 18,733 13,988 NWMT PACW 0 1 NWMT PGE 31 16 NWMT PSEI 43 7 NWMT TPWR 1,679 2,136 PACE AZPS 188,726 166,512 PACE IPCO 59,360 86,462 PACE LADWP 107,420 95,825 PACE NEVP 95,324 73,337 PACE NWMT 24,644 28,147 PACE PACW 17,234 21,078 PACE SRP 0 0 PACE TEPC 2,868 1,649 PACW AVA 10,429 11,849 PACW BPAT 6,114 8,427 PACW CISO 40,522 74,582 PACW IPCO 41,422 36,860 PACW NWMT 1 1 PACW PGE 61,168 52,085 PACW PSEI 23,739 24,918 May PACW SCL 1,476 1,513 PGE AVA 24 28 PGE BPAT 10,097 9,760 PGE CISO 25,689 23,700 PGE NWMT 38 12 PGE PACW 18,473 26,855 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 14 of 36 PGE PSEI 0 2 PGE SCL 1,396 1,621 PGE TPWR 5,783 7,298 PNM AZPS 7,443 9,283 PNM SRP 3,717 3,799 PNM TEPC 19,551 19,898 PSEI AVA 0 0 PSEI BPAT 23,116 24,524 PSEI IPCO 0 0 PSEI NWMT 14 3 PSEI PACW 13,399 14,445 PSEI PGE 0 2 May PSEI PWRX 19,784 20,398 PSEI SCL 7,287 7,266 PSEI TPWR 5,988 6,051 PWRX BPAT 3,143 2,461 PWRX CISO 0 0 PWRX PSEI 9,627 9,607 SCL AVA 4 2 SCL BPAT 1,583 1,514 SCL IPCO 6,414 6,157 SCL PACW 502 652 SCL PGE 1,001 1,031 SCL PSEI 10,783 13,798 SRP AZPS 8,960 13,548 SRP CISO 35,923 32,898 SRP PACE 0 0 SRP PNM 777 1,096 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 15 of 36 SRP TEPC 80,131 91,726 May TEPC AZPS 250 72 TEPC CISO 13,630 2,924 TEPC LADWP 0 0 TEPC PACE 158 225 TEPC PNM 8,882 6,798 TEPC SRP 8,763 17,041 TIDC BANC 148 226 TIDC CISO 7,454 6,662 TPWR AVA 991 1,194 TPWR BPAT 5,938 5,746 TPWR NWMT 594 371 TPWR PGE 3,586 2,963 TPWR PSEI 6,116 7,682 June AVA BPAT 5,697 406 AVA CISO 0 0 AVA IPCO 19,387 9,691 AVA NWMT 8,671 8,888 AVA PACW 4,100 2,252 AVA PGE 0 0 AVA PSEI 0 0 AVA SCL 7 0 AVA TPWR 0 0 AZPS CISO 62,964 27,082 AZPS LADWP 20,883 18,279 AZPS NEVP 8,203 9,826 AZPS PACE 78,792 95,501 AZPS PNM 28,526 29,050 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 16 of 36 AZPS SRP 30,063 17,897 June AZPS TEPC 26,059 23,874 BANC BPAT 2,035 0 BANC CISO 6,626 9,577 BANC TIDC 161 309 BPAT AVA 5,927 3,735 BPAT BANC 136 0 BPAT CISO 970 2,042 BPAT IPCO 1,597 31 BPAT LADWP 2,748 0 BPAT NEVP 267 0 BPAT NWMT 25,521 3,725 BPAT PACW 9,990 3,840 BPAT PGE 26,200 16,429 BPAT PSEI 28,247 28,987 BPAT PWRX 13,371 0 BPAT SCL 5,389 4,838 BPAT TPWR 11,342 9,848 CISO AVA 0 0 CISO AZPS 95,766 117,824 CISO BANC 189,226 186,320 CISO BPAT 862 1,968 CISO LADWP 92,507 120,240 CISO NEVP 114,963 134,766 CISO PACW 5,909 48,873 CISO PGE 22,744 62,760 CISO PWRX 63,709 83,326 CISO SRP 205,170 240,137 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 17 of 36 CISO TEPC 2,011 2,538 June CISO TIDC 9,640 9,452 IPCO AVA 21,875 23,515 IPCO BPAT 1,411 0 IPCO NEVP 23,059 11,967 IPCO NWMT 4,394 7,790 IPCO PACE 25,922 15,769 IPCO PACW 37,118 19,512 IPCO PSEI 0 0 IPCO SCL 7,773 10,522 LADWP AZPS 3,850 5,604 LADWP BPAT 5,096 0 LADWP CISO 14,438 6,421 LADWP NEVP 13,680 17,035 LADWP PACE 13,217 12,022 LADWP TEPC 0 0 NEVP AZPS 6,668 7,636 NEVP BPAT 1,347 0 NEVP CISO 43,430 10,628 NEVP IPCO 70,804 77,974 NEVP LADWP 39,289 34,228 NEVP PACE 43,582 47,042 NWMT AVA 21,277 19,088 NWMT BPAT 6,028 625 NWMT IPCO 3,571 2,858 NWMT PACE 5,959 2,625 NWMT PACW 282 0 NWMT PGE 174 0 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 18 of 36 NWMT PSEI 77 0 NWMT TPWR 1,229 2,492 June PACE AZPS 74,780 55,992 PACE IPCO 57,496 62,736 PACE LADWP 49,749 51,623 PACE NEVP 39,964 22,428 PACE NWMT 30,729 27,130 PACE PACW 51,580 40,357 PACE SRP 0 0 PACE TEPC 1,536 1,103 PACW AVA 15,528 16,880 PACW BPAT 4,176 656 PACW CISO 7,124 21,286 PACW IPCO 14,579 13,248 PACW NWMT 0 0 PACW PGE 54,893 47,383 PACW PSEI 22,296 29,307 PACW SCL 1,680 2,024 PGE AVA 0 0 June PGE BPAT 9,824 14,726 PGE CISO 9,436 5,703 PGE NWMT 108 0 PGE PACW 19,654 18,578 PGE PSEI 3 0 PGE SCL 1,469 1,868 PGE TPWR 1,339 2,453 PNM AZPS 24,924 25,722 PNM SRP 4,149 2,826 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 19 of 36 PNM TEPC 25,169 24,931 June PSEI AVA 0 0 PSEI BPAT 9,819 13,642 PSEI IPCO 0 0 PSEI NWMT 17 0 PSEI PACW 11 0 PSEI PGE 1 0 PSEI PWRX 15,518 16,414 PSEI SCL 20,565 17,180 PSEI TPWR 6,136 6,662 PWRX BPAT 4,255 34 PWRX CISO 0 0 PWRX PSEI 12,295 12,347 SCL AVA 17 0 SCL BPAT 118 46 SCL IPCO 9,305 6,415 SCL PACW 1,098 798 SCL PGE 1,170 867 SCL PSEI 3,912 6,684 SRP AZPS 15,979 19,695 SRP CISO 50,824 38,195 SRP PACE 0 0 SRP PNM 947 1,651 SRP TEPC 65,964 77,789 TEPC AZPS 399 0 TEPC CISO 16,959 10,582 TEPC LADWP 0 0 TEPC PACE 864 1,578 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 20 of 36 TABLE 2: Energy transfers (MWh) in the FMM and RTD markets for Q2 2022 TEPC PNM 17,131 13,585 June TEPC SRP 12,777 10,796 TIDC BANC 203 0 TIDC CISO 12,951 14,046 TPWR AVA 0 0 TPWR BPAT 1,275 2,462 TPWR NWMT 2,957 1,689 TPWR PGE 2,372 1,449 TPWR PSEI 7,000 9,278 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 21 of 36 GRAPH 2: Estimated maximum transfer capacity WHEEL-THROUGH TRANSFERS As the footprint of the WEIM grows, wheel-through transfers may become more common. In order to derive the wheel-through transfers for each WEIM BAA, the ISO uses the following calculation for every real-time interval dispatch:  Total import: summation of transfers above base transfers coming into the WEIM BAA under analysis WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 22 of 36  Total export: summation of all transfers above base transfers going out of the WEIM BAA under analysis  Net import: the maximum of zero or the difference between total imports and total exports  Net export: the maximum of zero or the difference between total exports and total imports  Wheel-through: the minimum of the WEIM transfers into (total import) or WEIM transfer out (total export) of a BAA for a given interval All wheel-through transfers are summed over both the month and the quarter. Currently, a WEIM 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 WEIM Consolidated Initiatives stakeholder process, the ISO committed to monitoring the wheel through volumes to assess whether, after the addition of new WEIM 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 WEIM market in the quarterly reports. This volume reflects the total wheel-through transfers for each WEIM BAA, regardless of the potential paths used to wheel through. The net imports and exports estimated in this section reflect the overall volume of net imports and exports; in contrast, the imports and exports provided in Table 2 reflect the gross transfers between two WEIM 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 Import Wheel Through AVA 62,566 151,797 39,821 AZPS 127,260 325,482 500,557 BANC 19,328 430,405 1,317 BPAT 93,752 70,440 39,571 CISO 2,160,868 441,541 372,362 IPCO 118,497 263,568 224,029 LADWP 84,341 418,433 188,721 NEVP 183,385 273,110 331,057 NWMT 40,364 71,478 69,628 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 23 of 36 PACE 824,667 198,626 284,023 PACW 248,054 142,851 277,458 PGE 88,154 214,303 82,713 PNM 113,932 76,929 26,093 PSEI 79,693 130,587 107,944 PWRX 16,732 267,654 28,967 SCL 32,420 55,646 25,956 SRP 169,868 720,349 155,433 TEPC 58,079 253,395 5,521 TIDC 32,509 38,613 583 TPWR 19,923 29,186 29,818 TABLE 3: Estimated wheel-through transfers in Q2 2022 GRAPH 3: Estimated wheel-through transfers in Q1 2022 BAA Net Export Net Import Wheel Through WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 24 of 36 AVA 22,848 54,990 15,462 AZPS 30,459 110,147 163,004 BANC 3,272 100,837 137 CISO 494,339 255,490 102,212 IPCO 46,954 57,693 88,700 LADWP 41,281 98,879 82,243 NEVP 55,128 82,111 84,004 NWMT 17,552 15,316 22,431 PACE 294,558 27,639 79,755 PACW 72,220 53,570 111,828 PGE 41,277 49,303 16,987 PNM 52,128 14,956 1,436 PSEI 29,559 49,335 31,492 PWRX 10,937 47,051 10,312 SCL 13,337 16,984 7,077 SRP 45,994 238,211 2,708 TIDC 12,011 12,809 147 TPWR 8,702 7,234 8,205 TABLE 4: Estimated wheel-through transfers in April 2022 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 25 of 36 GRAPH 4: Estimated wheel-through transfers in April 2022 BAA Net Export Net Import Wheel Through AVA 29,449 44,558 13,391 AZPS 20,765 128,333 192,081 BANC 6,170 143,248 1,180 BPAT 32,468 48,067 27,379 CISO 769,360 151,522 159,118 IPCO 47,285 97,739 70,512 LADWP 25,667 118,873 82,789 NEVP 59,358 103,585 138,445 NWMT 13,868 25,684 28,454 PACE 332,732 60,441 140,277 PACW 114,734 24,756 95,945 PGE 36,218 68,781 33,058 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 26 of 36 PNM 21,064 30,427 11,916 PSEI 37,049 35,461 35,640 PWRX 2,802 130,251 9,266 SCL 14,237 12,194 8,916 SRP 45,112 269,052 94,156 TEPC 22,104 123,726 4,955 TIDC 6,752 16,343 135 TPWR 5,415 9,570 12,541 TABLE 5: Estimated wheel-through transfers in May 2022 GRAPH 5: Estimated wheel-through transfers in May 2022 BAA Net Export Net Import Wheel Through AVA 10,269 52,249 10,968 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 27 of 36 AZPS 76,036 87,001 145,473 BANC 9,886 186,320 - BPAT 61,283 22,373 12,192 CISO 897,170 34,529 111,033 IPCO 24,257 108,136 64,817 LADWP 17,394 200,681 23,689 NEVP 68,899 87,414 108,608 NWMT 8,944 30,478 18,743 PACE 197,378 110,546 63,991 PACW 61,100 64,525 69,685 PGE 10,660 96,220 32,669 PNM 40,739 31,545 12,741 PSEI 13,085 45,791 40,812 PWRX 2,992 90,351 9,389 SCL 4,846 26,468 9,964 SRP 78,761 213,086 58,569 TEPC 35,975 129,669 567 TIDC 13,745 9,460 300 TPWR 5,806 12,383 9,072 TABLE 6: Estimated wheel-through transfers in June 2022 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 28 of 36 GRAPH 6: Estimated wheel-through transfers in June 2022 REDUCED RENEWABLE CURTAILMENT AND GHG REDUCTIONS The WEIM benefit calculation includes the economic benefits that can be attributed to avoided renewable curtailment within the ISO footprint. If not for energy transfers facilitated by the WEIM, some renewable generation located within the ISO would have been curtailed via either economic or exceptional dispatch. The total avoided renewable curtailment volume in MWh for Q2 2022 was calculated to be 31,330 MWh (April) + 41,764 MWh (May) + 45,259 MWh (June) = 118,352 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 CO2/MWh, avoided curtailments displaced an estimated 50,655 metric tons of CO2 for Q2 2022. 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 in the ISO footprint, along with the associated reductions in CO2, are shown in Table 7. Year Quarter MWh Eq. Tons CO2 1 8,860 3,792 2015 2 3,629 1,553 3 828 354 4 17,765 7,521 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 29 of 36 1 112,948 48,342 2016 2 158,806 67,969 3 33,094 14,164 4 23,390 10,011 1 52,651 22,535 2017 2 67,055 28,700 3 23,331 9,986 4 18,060 7,730 1 65,860 28,188 2018 2 129,128 55,267 3 19,032 8,146 4 23,425 10,026 1 52,254 22,365 2019 2 132,937 56,897 3 33,843 14,485 4 35,254 15,089 1 86,740 37,125 2020 2 147,514 63,136 3 37,548 16,071 4 39,956 17,101 2021 1 76,147 32,591 2 109,059 46,677 3 23,042 9,862 4 38,044 16,283 2022 1 94,168 40,304 2 118,352 50,655 Total 1,782,720 762,925 TABLE 7: Total reduction in curtailment of renewable energy and associated reductions in CO2 FLEXIBLE RAMPING PROCUREMENT DIVERSITY SAVINGS The WEIM 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 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 30 of 36 directions, the flexible ramping requirement for the entire WEIM 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 AVA up 21 91 April AZPS up 30 286 BANC up 7 113 CISO up 367 2,072 IPCO up 34 159 LADWP up 59 315 NEVP up 26 332 NWMT up 36 118 PACE up 116 516 PACW up 45 190 PGE up 33 177 PNM up 40 177 PSEI up 39 203 PWRX up 77 319 SCL up 5 45 SRP up 32 152 April TIDC up 2 14 TPWR up 3 29 ALL EIM up 471 2,759 AVA down 22 87 AZPS down 38 229 BANC down 5 88 CISO down 148 1,682 IPCO down 36 223 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 31 of 36 LADWP down 45 279 NEVP down 16 395 NWMT down 31 135 PACE down 116 470 PACW down 60 186 PGE down 62 219 PNM down 49 163 PSEI down 27 174 PWRX down 76 314 SCL down 3 38 SRP down 17 160 TIDC down 1 19 TPWR down 4 34 ALL EIM down 326 2,122 AVA up 21 84 May AZPS up 33 286 BANC up 7 113 BPAT up 85 236 CISO up 363 2,072 IPCO up 38 159 LADWP up 66 315 NEVP up 0 332 NWMT up 36 129 May PACE up 118 516 PACW up 49 190 PGE up 51 277 PNM up 40 149 PSEI up 41 203 PWRX up 71 319 SCL up 5 45 SRP up 25 169 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 32 of 36 TEPC up 37 135 TIDC up 0 14 TPWR up 4 25 ALL WEIM up 359 2,759 AVA down 33 84 AZPS down 38 229 BANC down 3 88 BPAT down 139 385 CISO down 142 1,682 May IPCO down 61 223 LADWP down 51 279 NEVP down 0 395 NWMT down 38 135 PACE down 116 470 PACW down 55 221 PGE down 55 219 PNM down 40 163 PSEI down 36 174 PWRX down 59 314 SCL down 2 37 SRP down 15 143 TEPC down 33 149 TIDC down 1 19 TPWR down 3 19 ALL EIM down 337 2,122 June AVA up 17 84 AZPS up 40 286 BANC up 7 113 BPAT up 64 407 CISO up 363 1,967 IPCO up 41 159 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 33 of 36 June June LADWP up 66 315 NEVP up 0 332 NWMT up 24 128 PACE up 135 516 PACW up 47 200 PGE up 48 177 PNM up 34 179 PSEI up 40 203 PWRX up 71 225 SCL up 5 45 SRP up 30 169 TEPC up 42 135 TIDC up 0 15 TPWR up 4 26 ALL WEIM up 358 2,560 AVA down 23 84 AZPS down 39 229 BANC down 3 88 BPAT down 139 402 CISO down 149 1,682 IPCO down 63 223 LADWP down 56 279 NEVP down 0 327 NWMT down 30 156 PACE down 129 470 PACW down 57 221 PGE down 65 219 PNM down 45 163 PSEI down 33 174 PWRX down 67 239 SCL down 2 34 WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 34 of 36 SRP down 22 159 TEPC down 26 134 TIDC down 1 19 TPWR down 2 24 ALL WEIM down 342 2,122 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 individual BAA requirements. April May June Direction Up Down Up Down Up Down Average MW saving 1,387 1,397 1,676 1,428 1,747 1,504 Sum of BAA requirements 2,708 2,472 3,010 2,945 3,056 2,880 Percentage savings 51% 57% 56% 48% 57% 52% Table 9: Flexible ramping procurement diversity savings in Q2 2022 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 WEIM-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 WEIM dispatch cost to reflect the true dispatch cost of a BAA. Please see the Benefit Report Methodology for more details. CONCLUSION Using state-of-the-art technology to find and deliver low-cost energy to meet real-time demand, the WEIM demonstrates that utilities can realize financial and operational benefits through increased coordination and optimization. In addition to these benefits, the WEIM provides significant environmental benefits through the reduction of renewable curtailments during periods of oversupply. WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 35 of 36 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 762,925 metric tons of CO2, roughly the equivalent of avoiding the emissions from 160,402 passenger cars driven for one year. WEIM BENEFITS REPORT SECOND QUARTER 2022 MPP/MA&F Copyright 2022 California ISO Page 36 of 36 APPENDIX 1: GLOSSARY OF ABBREVIATIONS Abbreviation Description APS Arizona Public Service AVA Avista Utilities BAA Balancing Authority Area BANC Balancing Authority of Northern California BPA Bonneville Power Administration CISO, ISO California ISO EIM Energy Imbalance Market FMM Fifteen Minute Market GHG Greenhouse Gas IPCO Idaho Power LADWP Los Angeles Department of Water and Power MW Megawatt MWh Megawatt-Hour NVE NV Energy PAC PacifiCorp PACE PacifiCorp East PACW PacifiCorp West PGE Portland General Electric PSE Puget Sound Energy PWRX Powerex RTD Real Time Dispatch SCL Seattle City Light SRP Salt River Project TEP Tucson Electric Power TID Turlock Irrigation District TPWR Tacoma Power WEIM Western Energy Imbalance Market