Western Electricity Coordinating Council Market Interface Committee Report to the WECC Board of Directors December 6-7, 2007 Robert D. Schwermann MIC Chair

Western Electricity Coordinating Council

Market Interface CommitteeMarket Interface Committee

Report to theWECC Board of Directors

December 6-7, 2007

Robert D. Schwermann

MIC Chair


MIC Topics for this ReportMIC Topics for this ReportApproval Item

E-Tag Energy Product Codes Specific to the WECC INT-BPS-WECC0004-0

Seams Issues Subcommittee (SIS) Report of Findings Seams Issues Evaluation

Cal ISO Market Redesign and Technology Upgrade

Market Issues Subcommittee (MIS) FERC Order 890 Activities Conditional Firm Strawman Business Practice


Board Approval Item

E-Tag Energy Product Codes Specific to the WECC

INT-BPS-WECC0004-0


E-Tag Energy Product Codes

Purpose of Business Practice:• E-Tags include “energy product codes” to

identify categories of energy transactions• Definitions included for all retained Energy

Product Codes, including the NERC codes• Energy Product Codes for “Capacity”

previously approved in BP 9 and 11 are included for completeness


MIC Voting Results

VOTING CLASS YES NO ABSTAIN

TRANSMISSIONPROVIDERS

11 0 0

TRANSMISSIONCUSTOMERS

9 0 1

STATE andPROVINCIAL

0 0 0

TOTALS 20 0 1


E-Tag Energy Product Codes

Request for Motion

The Market Interface Committee recommends the Board approve the Business Practice

INT-BPS-WECC0004-0 E-Tag Energy Product Codes Specific to the WECC


Seams Issues SubcommitteeSeams Issues SubcommitteeChair, Jerry Smith Chair, Jerry Smith (AZPS)(AZPS)

Report of FindingsSeams Issues Evaluation

California Independent System OperatorMarket Redesign and Technology Upgrade


Why an Evaluation?

• SIS Mission is to Identify, Evaluate, and Propose Solutions to Seams Issues in the WECC

• Cal ISO MRTU Conditionally accepted by FERC• Member concerns about potential seams issues• FERC Technical Conference on Seams Issues held

December 2006 in Phoenix – SIS Chair, Jerry Smith reported SIS evaluation already underway


SIS FindingsCongestion Management

Real-time congestion management issues exist in the WECC today, are an interconnection-wide issue, and are not specifically related to MRTU.

Resource Adequacy ResourcesThe CISO’s treatment of export schedules under

MRTU is consistent with general operating practice in the WECC.

Market Timing/E-Tagging/SchedulingMRTU does not create any new seams issues

related either to e-tagging or market timelines.


SIS FindingsCongestion Revenue Rights

The SIS does not find specific new seams issues related to CRRs.

LMP impact on System OperationsThe current system monitoring processes in the

WECC are sufficient to maintain the integrity of the interconnection.

Parallel Operations during CutoverThe SIS is satisfied the FERC required Readiness

Certification, that will include a Cutover and Reversion Plan, should be sufficient to address concerns related to a failure of the MRTU software.


SIS Overall Conclusion

“The SIS finds no specific seams issues, appropriate for regional solutions, that are either created by MRTU or existing seams issues that are substantially worsened by MRTU implementation.”


WHY DOES THE BOARD CARE??WHY DOES THE BOARD CARE??

• California ISO – Market Redesign and Technology Upgrade

– The SIS has done it’s homework on MRTU

• The implementation of MRTU will create no new regional seams issues which could affect reliability of the Interconnection

• FERC stated concerns with the implementation of MRTU

– Concerns have been addressed


Market Issues SubcommitteeMarket Issues SubcommitteeChair, Phil Tice Chair, Phil Tice (DGTM)(DGTM)

FERC Order 890 Activities

Conditional Firm Strawman Business Practice


FERC Order 890 Preventing Undue Discrimination and

Preference in Transmission Service

Purpose of MIC Facilitation• WECC has over 40 registered Transmission Service

Providers• Tariff is an individual company responsibility• Coordination and sharing of information to gain

common understandings and promote consistency


FERC Order 890 Preventing Undue Discrimination and

Preference in Transmission Service

• MIC Meeting Agenda in March, June, and October 2007

• MIC Sponsored “Open Mic” Conference Calls– July 17

– August 1

– August 21


FERC Order 890 Conditional Firm Transmission Service

Conditional Firm Task Force (CFTF)• Co-Chaired by Lauren Nichols-Kinas (BPAT)• Transmission Providers and Customers including

advocates for wind energy• Consulted with FERC staff and members of the

financing community• Close collaboration with WestConnect


FERC Order 890 Conditional Firm Transmission Service

Principle purposes of the Strawman– Meet the FERC requirement for TSPs to

coordinate on developing Conditional Firm– Encourage consistency across TSPs – Give TSPs a good starting point for individual

tariff business practices – Provide potential users of conditional firm

service with as much clarity as possible



In Summary Business Practice – Energy Products SIS Report of Findings – CISO MRTU Seams FERC Order 890 – Facilitation Conditional Firm Strawman Business Practice


Market Interface CommitteeMarket Interface CommitteeIn Addition

ATC Task Force for NERC Standards Evaluation of Prescheduling Practices NAESB Communication/Coordination Merchant Communications in Emergency Implementation of Reserves Policies Congestion Management – Interconnection Coordination of Scheduling Curtailments Day-Ahead Trading Timeline SIS Charter Revision – Define “Seams Issue”



QUESTIONS???

Documents

Western Electricity Coordinating Council Market Interface Committee Report to the WECC Board of Directors December 6-7, 2007 Robert D. Schwermann MIC Chair