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Black Start Service in New England System Operator’s Perspective. Robert B. Burke ISO New England Inc. July 23, 2002 IEEE - Chicago, Illinois. Overview of Remarks. Background: NEPOOL & ISO New England New England Electric System Statistics Reason For Black Start Service
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Black Start Service in New EnglandSystem Operator’s Perspective Robert B. Burke ISO New England Inc. July 23, 2002 IEEE - Chicago, Illinois
Overview of Remarks • Background: • NEPOOL & ISO New England • New England Electric System Statistics • Reason For Black Start Service • Development of Compensation Plan • Why it’s a Service not a Market
ISO New England • NEPOOL formed in response to 1965 blackout • November 1971 • ISO New England began operation in July 1997 • Independent System Operator for the New England Control Area • Private not-for-profit corporation • Operate the New England Transmission • Dispatch generation • Operate the New England Wholesale Energy Markets • Regulated by the FERC • Consistent with FERC’s eleven principles for an ISO
ISO and satellite facilities 320 mi. 520 km New England’s Electric Power System • 14 million people; 6.5 million customer meters • 340+ bulk generators • 8,000+ miles oftransmission lines • 4 satellite control centers • 12 interconnections to neighboring systems • 28,000 MW of installed generating capacity • Peak demand: 24,967 MW 400 mi. 650 km
History of Black Start Service • Black start service provided by franchised utilities • Installed equipment included in rate base • Utilities operated equipment as part of integrated generation resource planning • Provided black start capability to generating station • Utilities, power exchange and satellites developed plans for restarting the system
Preparation for Market • ISO recognizes need to maintain black start capability for reliability • ISO requests confirmation from black start owners that they will continue to provide service to allow market to open • ISO agrees to work towards a compensation plan
Black Start Working Group • NEPOOL begins to examine costs – July 22, 1998 • Unit Availability Task Force requested to define black start related cost components • Initial estimated rate ($4.58/kW-Yr) – including fuel storage - October 14, 1998 • Working Group established to develop compensation plan – November 12, 1998
Compensation Plan • August 1999 basic compensation plan developed • Based upon FERC filed cost of service rate • Rate to be part of NEPOOL Open Access Transmission Tariff (OATT) • Proposal explained to NEPOOL committees – October 1998 • NEPOOL wants estimate of annual cost • Black start providers requested to provide cost data • Data for 25% provided by 2 companies - January 2000
Cost of Service - Rationale • Divested generation purchased for energy market capability • Resource earns ROI in energy and capacity markets • Black start capability represents incremental cost to maintain beyond energy market capability • Black start testing is incremental to normal energy market capability testing
WRITE UP OF PLANT ASSETS Assets Book Purchase Percent Company Value (Net) Price Over Book N.E.E.S. $1,100 $1,590 44.55% B.E.Co $ 450 $ 536 19.11% C.M.P. $ 240 $ 846 252.50% AVERAGE $ 597 $ 991 66.00% Amounts in Millions ($1,000,000)
Service Separate From Energy • Black start service is – • Willing and capable to provide service • Capability of starting without external power • Annual testing of black start capability • Annual training of operators • Black start energy is – • Energy generated under actual black start conditions separate from willing and capable to provide service • Actual energy delivered to restart generating units or energize portion of grid as directed by ISO or satellite • Energy payments are subject to Energy Market Rules