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Issues Surrounding Reconstitution of Load Response

Issues Surrounding Reconstitution of Load Response. Robert B. Burke NEPOOL Markets Committee April 13, 2004. Must Keep LSEs Whole. Assumption LSE did not sign up customer Customer interruption reduces LSE load LSE purchases less energy from market Or LSE sells excess energy into market

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Issues Surrounding Reconstitution of Load Response

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  1. Issues Surrounding Reconstitution of Load Response Robert B. Burke NEPOOL Markets Committee April 13, 2004

  2. Must Keep LSEs Whole • Assumption • LSE did not sign up customer • Customer interruption reduces LSE load • LSE purchases less energy from market • Or LSE sells excess energy into market • Reconstitution • Add back into LSE load LRP reduction • Make LSE whole (credit LSE for customer’s energy charge) • Interruption * (LMP – customer’s energy charge)

  3. Metering Domain & Load Assets • 3 Load Assets in metering domain • Different group of suppliers serve customers in each load asset • Generation + Imports - Exports Total Load in metering domain Total Load = LA 1 + LA 2 + LA 3 Tie Lines LA 1 LA 2 LA 3

  4. Load Response in Load Asset 1 • Load Response in LA 1: 10 MW • Load Response is part of profiled commercial • Not a load meter read every night as part of load calculations (not in the 250 MW read) • Total Load in Metering Domain is 10 MW less • Initial settlement: • All load assets in Metering Domain share part of 10 MW reduction

  5. Example • Total Load = 350 MW • LA 1 = 75 + 40% Non-Metered Load • LA 2 = 125 + 30% Non-Metered Load • LA 3 = 50 + 30% Non-Metered Load • Including Load Response of 10 MW: • Non-Metered Load = 100 MW • If there were no Load Response of 10 MW: • Total Load = 360 MW • Non-Metered Load = 110 MW Note: Non-Metered Load in this example means the load in the entire metering domain that is profiled for the initial settlement

  6. Initial Settlement Loads

  7. Settlement Implications • Initial Settlement • Total Load = 350 MW = 115 + 155 + 80 • 10 MW of Load Response located in LA 1 • Effect of load response shared by all Load Assets • 90-day Resettlement • 10 MW of Load Response should be associated with correct Load Asset (LA 1) • Total Load = 350 MW = 109 + 158 + 83 • Require Meter Reader to check at least monthly if a load response asset changes Load Asset • Require Meter Reader to provide customer energy rate

  8. 90-Day Resettlement Loads

  9. Reconstitution • LA 1 has only LSE 1 • 10 MW LRP Interruption (EP= EP 4) • If customer didn’t interrupt • LSE 1 would purchase 10 MW from market • Charge LSE 1 for 10 MW addition • Cost of additional MW: (LMP – Energy Rate) • LSE 1’s cost: same as if 10 MW sold to customer

  10. Reconstituted Loads

  11. Issues • Meter Readers don’t always have LSE rate • Providing LSE rate to ISO may violate state privacy laws • Meter Readers may not be able to associate customers with Load Asset if only one LSE assigned to the Load Asset (identifies supplier)

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