Joint Initiative

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• Joint Initiative
• Northwest Wind Integration Forum
• Technical Work Group Meeting
• October 29, 2009

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Goal of the Joint Initiative

• Encourage and facilitate Western Interconnection
  parties to develop and implement high-value
  cost-effective regional products
• Broader scope than integration of variable
  generation, but immediate wind and solar
  integration issues provide significant motivation

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Approach

• Joint Initiative Strike Teams develop business
  case proposal
• Interested parties move to implementation
  agreement when critical mass is achieved may not
  involve all Joint Initiative parties

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How JI Relates to Wind Integration Action Plan

• Touches on issues raised in Action 13
• Address the transmission, scheduling, product
  design, demand-management, regulatory,
  contractual and cost-recovery barriers to
  expanding the market for flexibility products and
  services.
• Joint Initiatives focus is on more efficient use
  of the existing transmission system by accessing
  existing flexibility without negatively impacting
  reliability of the system

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Current Focus

• Currently focused on three areas
• Intra-Hour Transmission Purchase and Scheduling
  (Products and Services Strike Team)
• Allows for intra-hour schedule changes to address
  unanticipated generation patterns
• Better use of capacity within and outside of BA
  (bilateral transactions) by allowing shorter
  timeframes for scheduling

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Current Focus

• Intra-Hour Transaction Accelerator Platform
  (I-TAP) (Products and Services Strike Team)
• Facilitates bilateral transactions to address
  unanticipated generation patterns
• Facilitates accessing flexibility both within and
  outside of a BAs area as opposed to relying
  exclusively on BAs system to support wind
  integration
• Helps manage costs of integrating wind

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Current Focus

• Dynamic Scheduling System (DSS) (Infrastructure
  Strike Team)
• Provides more agile delivery mechanism for
  dynamic energy products (currently, dynamic
  scheduling must be arranged manually days, weeks,
  or months in advance)

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Intra-Hour Transmission Purchase and Scheduling

• Current status
• NV Energy currently has business practice in
  place
• PacifiCorp, Puget Sound Energy, Avista (pilot),
  BPA (pilot), and PGE have draft business
  practices posted
• WestConnect TSPs made policy decision to adopt a
  coordinated business practice and are currently
  finalizing specifics
• Chelan, Grant, Tacoma and Seattle (BAs) have
  agreed to participate in processing intra-hour
  e-tags
• Other TSPs are interested
• Timing
• Northwest TSPs/BAs targeting December 1
• WestConnect TSPs do not have target date

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Intra-Hour Transmission Purchase and Scheduling
Business Practices

• Scope
• Each provider different, but all view as starting
  point
• NV Energy exports/imports/wheeling, for any
  purpose
• PacifiCorp exports, one an hour per PSE, new
  e-tags, for any purpose
• Puget exports/imports/wheeling, for any purpose
• Avista Pilot exports, one an hour per PSE, new
  e-tags, for any purpose
• BPA Pilot exports for increases in wind
  generation on the half-hour, new e-tags
• PGE exports/imports/wheeling one an hour per
  PSE, new e-tag, for any purpose
• WestConnect exports/imports/wheeling for any
  purpose

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Intra-Hour Transmission Purchase and Scheduling
Business Practices

• Issues
• Different perspectives on whether OATT amendment
  is required some TSPs plan to make joint tariff
  amendment filing with FERC in the next few weeks
  all participating TSPs are coordinating

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I-TAP

• Facilitate intra-hour bilateral transactions
  within and outside of BAs area through
  electronic platform that provides information,
  communications links, and user interfaces
• Not limited to intra-hour, but anticipate that
  this is where it will provide greatest benefit

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I-TAP

• Automated Information Exchange
• Information regarding state of participating
  systems, including individual generators ability
  and prices to move up (inc) or down (dec)
• Leads to greater visibility regarding needs,
  opportunities, and costs
• Automated Mechanisms to access system flexibility
  swiftly and efficiently
• Communications links
• Links to OASIS
• Links to e-TAG author and approval

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I-TAP

• Business Case and Agreement of Interest out for
  review and signature with deadline of October
  28th
• Have already received from Seattle City Light,
  BPA, NorthWestern, Xcel Energy, Grant County PUD,
  NaturEner, Puget Sound Energy, WAPA
• If sufficient interest RFP will be issued in
  November

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Dynamic Scheduling System (DSS)

• The DSS is a communications infrastructure that
  exchanges dynamic signals via e-Tag and ICCP
  links
• DSS supports increased utilization of the
  electric grid by providing the ability to
  implement dynamic schedules between any number of
  BAs at any scheduling granularity, depending upon
  need and capability
• Replaces the months it takes today to negotiate
  and make system changes with a one-time DSS
  implementation that can accommodate any number of
  future dynamic schedules
• Contract negotiations can follow the same process
  used today for striking block energy deals, but
  taking just minutes rather than months

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Benefits of DSS

• DSS facilitates
• Development of intermittent resources
• More efficient use of generating resources
• Potential reduction in imbalance charges
• Potential market opportunities that may result in
  lower portfolio costs
• NERC and WECC standards and business practices

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DSS Status Update

• Currently 19 Parties have executed Participant
  and Vendor Contracts

• Arizona Public Service Company
• BCTC
• BPA
• Grant County PUD
• Idaho Power
• Imperial Irrigation District
• NaturEner, USA
• Northwestern Energy
• NV Energy
• PacifiCorp

• Portland General
• PowerEx
• Public Service of New Mexico
• Puget Sound Energy
• Seattle City Light
• Salt River Project
• Tri-State GT
• WAPA
• Xcel Energy

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Window for Joining DSS Extended
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DSS The Players and their Contracts
Comprehensive Power Solutions CPS (Project
Manager) Will provide management services to the
DSS
Initial and Additional Participants
Agreement to Fund the Development of a Dynamic
Scheduling System
Idaho Power Company (Finance Agent) Will collect
money from the participants and pay OATI and CPS
OATI WebDynamic Service Agreement
Idaho Power Company (Finance Agent) Will get
invoiced by and make payments to OATI on behalf
of participants
OATI Will develop and operate the DSS
OATI WebDynamic Finance Agent Agreement
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DSS Draft Implementation Timeline
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Other Joint Initiative Activities

• Next steps
• Participants exploring opportunities associated
  with aspects of a virtual balancing system
• Assessing associated timing and resource impacts,
  including review and consideration of WECC
  activities

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For More Information

• Infrastructure Facilitator
• Sharon Helms (503-644-6262)
• Products and Services Co-Facilitators
• Charlie Reinhold (480-215-0299)
• Kristi Wallis (206-726-1699)
• JI Materials posted and Interested Persons list
  maintained at www.columbiagrid.org

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• Questions

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