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Update on Dispatch Issues SE-9 Presentation to the SAC

Update on Dispatch Issues SE-9 Presentation to the SAC . Darren Finkbeiner, Manager – Market Entry and Analysis November 1, 2006. Dispatch Issues Working Group. In November 2005, IESO began meeting with representatives from all dispatchable generators

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Update on Dispatch Issues SE-9 Presentation to the SAC

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  1. Update on Dispatch Issues SE-9Presentation to the SAC Darren Finkbeiner, Manager – Market Entry and Analysis November 1, 2006

  2. Dispatch Issues Working Group • In November 2005, IESO began meeting with representatives from all dispatchable generators • Five areas were targeted for improvement to address internal generation dispatch issues to support reliability in time for Summer 2006 • 12 tests and pilot programs were carried out over the winter and early spring with the assistance of generators • As a result of these pilots, three initiatives were put into service over the summer: • Increase to Compliance Deadband May 8, 2006 • Compliance Aggregation for river systems June 7, 2006 • Replacement Offers August 19, 2006

  3. Next Steps for Dispatch Issues • Market Manual changes on the way to allow fossil units with a simple structure for ramp rates to participate in Compliance Aggregation. • Additional pilot planned in late October for a fossil unit with a more complex ramp rate structure, changes to Market Manuals may follow if successful.

  4. Market Participant Feedback Compliance Aggregation: • Reduced need to start hydro units, pulverizers at coal plants, saves on wear and tear • Smaller number of dispatch instructions required action on the part of operators Increase to Compliance Deadband • Smaller number of dispatch instructions required action on the part of operators • Medium size combined cycle and cogeneration operators found larger deadband allowed them to operate more efficiently, without the need to participate in a more complex program like Compliance Aggregation Replacement Offers • Although no opportunities to exercise Replacement Offers occurred during the pilots, at least one Replacement Offer event occurred after the market rules went into service August 17, 2006.

  5. Market Participant Feedback on DIWG Pilots “reduced the number of forced outages” “allowed us to aggregate the whole river, which not only reduced the need for the many stop starts, it also allowed for much more flexibility to control the head ponds” “gave us the ability to be ready to respond to ORA dispatches with an additional margin for safety at all plants” “The operator shutting off the mills was in a better position to fulfill our [policies] with regards to number of starts allowed on a 4kv motor [and] the required running time between each start” “The stress level in the control room appeared to go down, which has to be a very positive thing”

  6. Net Effect of the work of the Dispatch Issues Working Group NW fossil resources and cascade river systems were the “poster children ” in dealing with dispatch issues

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