WesternInterstateEnergyBoardCurrentActivities

MauryGalbraithExecutiveDirector

WesternInterstateEnergyBoard

WesternRegionalPartnershipEnergyCommitteeWebinar

October20,2017

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LegalBasis&Purpose

LegalBasisWesternInterstateNuclearCompact(PL910461)

• Enactedby12WesternstatesandratifiedbyCongressin1970.• Writtenbroadlytoencompassallenergytopics.

PurposeToprovidetheinstrumentsandframeworkforcooperativestateeffortsto“enhancetheeconomyoftheWestandcontributetothewell-beingoftheregion’speople.”

WesternInterstateEnergyBoard 2October20,2017

BoardMembers*

UT Dr.LauraNelson,Governor’sOfficeofEnergyDevelopmentNV AngelaDykema,Governor’sOfficeofEnergyAZ BrianGoretzki,ArizonaRadiationRegulatoryAgencyCA JaneaScott,CaliforniaEnergyCommissionID JohnChatburn,Governor’sOfficeofEnergyResourcesMT JeffBlend,DepartmentofEnvironmentalQualityOR JanineBenner,OregonDepartmentofEnergyWA TonyUsibelli,WashingtonDepartmentofCommerceAB ChristineLazaruk,AlbertaEnergyBC LesMacLaren,MinistryofEnergyandMinesSK MikeBalfour,MinistryoftheEconomy

*AppointedbyGovernorsandPremiers.WesternInterstateEnergyBoard 3October20,2017

WIEBPortfolio

WesternInterconnectionRegionalAdvisoryBody• GovernorscreatedpursuanttoSection215(j)oftheFederalPowerAct.• AdvisesFERC,NERCandWECConthereliabilityoftheWesternelectric

powersystem.

CommitteeonRegionalElectricPowerCooperation• JointCommitteeofWIEBandWesternConferenceofPublicService

Commissioners.• FocusedonimprovingtheeconomicefficiencyoftheWesternelectric

powersystem.

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MorePortfolioItems

WesternEnergyImbalanceMarket– BodyofStateRegulators• Onepublicutilitycommissionerfromeachstatewithautilityparticipating

intheWesternEIM.• AdvisestheEIMGoverningBodyonEIMissues.

High-LevelRadioactiveWasteCommittee• CommitteeofWIEB.• CooperativeAgreementwithU.S.DOE-NE.• Focusedontransportationofspentnuclearfuelandhigh-levelradioactive

waste.

WesternInterstateEnergyBoard 5October20,2017

CurrentActivities

• RegionalizationofElectricityMarkets• WIEBWesternElectricityMarketForum• JointCREPC-WIRABMeetings

• BaseloadGeneration&EssentialReliabilityServices• WIRABCommentsonDOEStaffReportonReliabilityandResiliencePricing• WIRABAdvicetoFERConReliabilityandResiliencePricingNOPR• WIRABAdvicetoFERCPrimaryFrequencyResponseNOPR

• DeploymentofSolarPVintheWest• WIEBSunShotAwardfromUSDOE

WesternInterstateEnergyBoard 6October20,2017

April2014

April2015

April2016

April2016

April2014

ElectricityMarketExpansion

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BenefitsofRegionalization

WesternInterstateEnergyBoard 8October20,2017

• WesternEIMbenefitstotaled$96.9millionin2016.

• Progressiontoaday-aheadmarketmakesperfectsense.

• EIMbenefitsderivedfromsecurityconstrainedeconomic“dispatch”ofgeneratingunits.

• Day-aheadbenefitscanbederivedfromsecurityconstrainedeconomic“commitment”ofgeneratingunits.

• Improvedsystemsecurityandsituationalawareness.

GovernanceConcerns

WesternInterstateEnergyBoard 9October20,2017

• Allstateswanttoretainauthorityto:• Implementstateenergypolicies• Determineprudenceofgenerationinvestment• Determineprudenceoftransmissioninvestment• Permitsitingofnewtransmissionlines

• Allstateswantimpartialmarketdesignandcostallocation

• Ifstatesallwantthesamethings,thenwhytheconcerns?

• Statesthinkotherstatesareseekingadvantages.Gametheory’sclassicprisoner’sdilemma.

IncrementalApproach

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• One-timeonce-and-for-allthinkingdrivestheclassicdilemma.

• Bettertothinkintermsofalong-termpartnership(infinitelyrepeatedprisoner’sdilemma).

• Thinkintermsofincrementalsteps:• Real-timemarketsto…• Day-aheadmarketsto…• Resourceadequacyandinvestmentto...

WIEBWesternElectricityMarketForum

• Game-basemarketsimulationtrainingforregulatorsandpolicymakers• CollaborativeeffortwithStanfordUniversity

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CREPCResourceAdequacyDiscussions

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NWPP RMRG SRSG CA/MX WECC

DOEMarketsandReliabilityReport

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SecretaryPerry’s“April14Memo”asked:

• Whethertheerosionofbaseloadpoweriscompromisingareliableandresilientgrid?

• Whetherthediversityofgenerationresourceshasdiminishedandwhetherthisisaproblemforgridreliabilityandresilience?

• Whetherthelossofbaseloadpowerismakingthegridlessaffordable?

• Whetherelectricitymarketsareadequatelycompensatingattributesthatstrengthengridreliabilityandresilience?

DOEReport:BaseloadTrends

WesternInterstateEnergyBoard 14October20,2017

• About70%ofthecoalplantsthatretiredbetween2010and2016hadacapacityfactoroflessthan50%intheyearpriortoretirement.

• Abouthalfofthefutureplannedcoalplantretirementsoperatedbelowa50%capacityfactorin2016.

• TheaveragecapacityfactorforallNGCCplantshasgrownfromabout40%in2008toroughly56%in2016,surpassingthatofcoal.

• Attheendof2016,thesystemhadmoredispatchablecapacitycapableofoperatingathighutilizationratesthanitdidin2002.

WIEB- StanfordSummerInternship

• BenjaminLimandMaxVilgalys

• Focusedonchangesinthedailygenerationpatternofcoal-firedgeneratingunitsintheWesternInterconnectionoverthe2001-2016timeperiod.

• EPA’sContinuousEmissionsMonitoringSystem(CEMS)Database• AllthermalelectricgeneratingunitsintheWest• 96CoalUnits,544NGUnits• HourlydataforHeatInput,Generation,Emissions,etc.• 96coalunitsx365daysx24hoursx16years=~13,455,360datapoints• 96coalunitsx365daysx16years=~560,640unit-daysofoperation

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GenerationPatterns- 2001

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52%oftheUnit-Dayswerebaseloadgeneration

GenerationPatterns- 2006

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52%oftheUnit-Dayswerebaseloadgeneration

GenerationPatterns- 2011

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27%oftheUnit-Dayswerebaseloadgeneration

GenerationPatterns- 2016

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22%oftheUnit-Dayswerebaseloadgeneration

KeyFindings

• Coalfleetbaseloadoperationdecreasedfrom52%ofcoalunitoperatingdaysin2001to22%in2016intheWesternU.S.

• Coalfleetofflineoperationincreasedfrom9%ofcoalunitoperatingdaysin2001to21%in2016intheWesternU.S.

• In2001,53unitsoperatedinbaseloadmodeinmorethan50%oftheoperatingdays;only11exceededthisthresholdin2016.

• Since2011,themajorityofcoalunitshavespentlessthan30%oftheoperatingdaysinbaseloadoperation.

WesternInterstateEnergyBoard 24October20,2017

WIRABCommentsonDOEStaffReport

WIRABconfirmedtwoimportantfindingsintheU.S.DOEStaffReport:

1. Manycoal-firedgeneratingunitsthatwereusedforbaseloadgenerationinthepastarenolongeroperatinginthatroleatthistime.

2. BulkPowerSystemreliabilityisadequatetoday,buttherehasnotyetbeenmuchanalysisofhowmuchprimaryfrequencyresponsewillbeneededasthecompositionofthegridchanges,norhowbesttocomplementprimaryfrequencyresponsefromtraditionalsources.

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WIEBSunShotAward

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BarrierstoDeployment

• ThegoalistomitigateorevenremovebarrierstodistributedsolarPVdeploymentintheWesternU.S.

• Threetypesofbarriers:• lengthytimelines• utilityratedesigns• reliability

• Partners:NRELandLBNL

• TechnicalAdvisoryCommitteeMeeting:Oct.26-27,2017inFolsom,CA

WesternInterstateEnergyBoard 27October20,2017

OpportunitiesforEngagement

WIRABMonthlyTeleconferences:1st ThursdayEveryMonthat11a.m.Mtn.

Spring2018JointCREPC-WIRABMeeting:April18-20,2018inVancouverBC

WIEBAnnouncements:http://westernenergyboard.org/

Webinars:http://westernenergyboard.org/category/webinars/

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Maury GalbraithWestern Interstate Energy Board

mgalbraith@westernenergyboard.org

WesternInterstateEnergyBoard 29October20,2017

ThankYou