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David Schiada, Chair of SIS August 1, 2011

Seams Issues Subcommittee (SIS) SIS & Efficient Dispatch Toolkit – Where Are We and How Did We Get Here?. David Schiada, Chair of SIS August 1, 2011. SIS Charter and Goals Relevant to EDT. SIS Charter

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David Schiada, Chair of SIS August 1, 2011

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  1. Seams Issues Subcommittee (SIS) SIS & Efficient Dispatch Toolkit – Where Are We and How Did We Get Here? David Schiada, Chair of SIS August 1, 2011

  2. SIS Charter and Goals Relevant to EDT • SIS Charter • The purpose of the Subcommittee is to assess market and reliability activities to identify seams issues that need in-depth evaluation to assure that outcomes do not unnecessarily impede efficient competitive electricity markets or the reliability of the Western Interconnection and take appropriate actions. • A “seams issue” is a barrier or inefficiency resulting from either (1) differences in market or tariff rules and designs or (2) operating and scheduling practices that inhibit or preclude the ability to economically trade capacity, energy and ancillary services across Balancing Authority boundaries. Such seams issues should be mitigated as they can otherwise lead to inappropriate price signals, gaming opportunities, and inefficient utilization of scarce transmission resources or reliability impacts. • SIS shall “Identify issues or opportunities to promote seamless, efficient, competitive electricity markets.” • 2011 Goals Related to EDT • The SIS will continue participating in the EDTTRS as required. • Populate and launch a joint task force with the OC to discuss issues surrounding the Enhanced Curtailment Calculator • Investigate Seams between potential Energy Imbalance Market and other Market or non-Market areas.

  3. How Did We Get Here? • December 9-11, 2009 WECC Board Meeting • “Congestion and Balancing Toolkit” presentation during technical session of Board. • February 8-9, 2010 SIS Meeting • “The SIS recommends that the MIC advance to the Board of Directors for approval a plan to fund and conduct a cost/benefit analysis regarding the development and implementation of an Energy Imbalance System in the Western Interconnection.” (Approved) • March 11-12, 2010 MIC Meeting • MIC approved the following motion: “The MIC recommends the Board of Directors approve the plan to fund and conduct a cost/benefit analysis regarding the development and implementation of an Energy Imbalance System in the Western Interconnection.” (Approved) • April 28-30, 2010 Board Meeting • “The Board of Directors approves the plan to fund and conduct a cost-benefit analysis regarding the development and implementation of an Efficient Dispatch Toolkit in the Western Interconnection. Funding for the cost-benefit analysis in an amount not to exceed $450,000, to be included in the 2011 Business Plan and Budget.” (Approved) • On April 30, Board established the Efficient Dispatch Toolkit Steering Committee (EDTSC) as an ad hoc Board committee; provide oversight and guidance to staff on the project to perform a cost-benefit analysis of the EDT. • May 14, 2010 • Efficient Dispatch Toolkit Technical Review Subcommittee (EDTTRS), a subcommittee of the EDTSC, is established; provide recommendations to the EDTSC on the project to perform a cost-benefit analysis of the EDT.

  4. How Did We Get Here? (cont.) • May-Dec 2010 • SIS educational outreach on EDT • SIS discussions and white papers on various issues (Tariff Concepts White Paper, ECC specs) • April 18-19, 2011 SIS Meeting • Given the Board direction that the SIS was to identify options, but not make recommendations, the Tariff Concepts White Paper needs some re-structuring and new direction from the Market Interface Committee (MIC). • “The SIS Recommends taking the outline of Draft Tariff Concepts White Paper as approved by the SIS to the MIC for a discussion item at their next meeting.” (Approved) • June 21-24, 2011 WECC Board Meeting • Resolved, That the Board of Directors directs WECC staff to perform 1) an initial Risk Assessment identifying risks to WECC as an organization and to membership as a whole; 2) an Analysis of Organizational and Governance Structure options and recommendation for WECC; and 3) a WECC-specific Cost Analysis based on the high-level market design prior to the September Board meeting, and • Resolved, That the Board of Directors directs the EDTSC, with input from Balancing Authorities, to develop a straw proposal for a written functional description of the proposed EIM prior to the September Board meeting, and • Resolved, That the Board of Directors authorizes the WECC CEO to expend up to $50,000 to accomplish these directives, and • Resolved, That the Board of Directors directs the EDTSC to develop a written functional description of the proposed EIM for consideration by the Board at the September meeting. (Approved)

  5. How Did We Get Here? (cont.) • July 15-16, 2011 MIC meeting • Announcement of Joint OC/MIC ECC Task Force • Task Force Membership will be • 3 OC reps: 1 each from ISAS / UFAS / OPS • 3 MIC reps: 1 each from SIS / MIS & at-large • 1 Reliability Coordinator rep • Today • Update of EDT Activities - Craig Williams • ECC Task Force Team - Steve Beuning • Security Constrained Economic Dispatch - Alstom/AREVA

  6. EIM and ECC Activities in WECC

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