Overview of the New England Generation Information System

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Overview of the New England Generation
Information System
Ashley HoustonMarket Development Manager,
APX508.650.2045 ahouston_at_apx.com
Massachusetts Electric Restructuring
Roundtable December 13, 2002Boston, MA
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APX Overview

• A leading independent transaction processing
  agent for wholesale electric power markets
• Supports over 550 TWh in trades globally
• Largest independent power scheduler in WSCC/WECC
  ERCOT (default Texas QSE)
• Back office financial settlements and data
  processing services
• Serves over 200 client companies in WECC, ERCOT,
  Northeast, UK and Scandinavia
• Operates renewable energy markets and title
  registries in California, Texas, New England and
  the Midwest.

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Overview of GIS

• Attribute Laws in New England States adopted as
  a result of electric restructuring

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Brief History...

• Public policies create need for credible data
  system to ensure
• value for customers
• currency for market participants
• verification for regulators
• Years of debate ensue...
• Two options investigated
• Contract-path tracking
• Certificates-based accounting

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Concept of Unbundling

• Separates the environmental attributes of
  electric power from the energy commodity
• Results in two commodities
• Energy (MWh)
• Certificates (environmental attributes)
• Certificate - an unbundled tradable commodity
  that contains fuel source, emission
  characteristics, etc.

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Key Challenge for Renewables

• Capturing the environmental value
• Environmental registries
• Create platform for monetization of the
  environmental value
• Facilitate the ability of renewables generators
  to access an additional revenue stream or green
  premium

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In Addition, Environmental Registries...

• Facilitate green power and green tag markets
• Reduce transaction costs for generators and
  suppliers
• Introduce administrative efficiency
• Provide flexibility to meet current/future
  requirements
• Provide third-party verification
• Address data confidentiality concerns

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APX Environmental Registries

• Centralized registries that track generation
  attributes and title
• Registry databases assists all participants to
  comply with
• RPS and GPS requirements
• Disclosure regulations
• Product verification
• Other purchase requirements

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NEPOOL GIS Detail

• Accounts for all generation in ISO-NE from source
  to sink
• Authenticates generation attributes and creates
  base for verifiable tradable certificate markets
• Provides emissions data and meets disclosure
  reporting requirements for users
• Automates complicated processes
• reserve transactions (green tags)
• pumped storage
• imports/exports
• residual mix

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Certificate Fields

• Asset information
• Fuel Source
• RPS Eligibility for MA, CT, and ME
• Emissions data
• Labor characteristics
• Vintage
• MWh generated
• Location
• Green-e eligibility

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NEPOOL Activity to Date

• Over 63 million certificates created for Q1 and
  Q2
• Nearly 6 million certificates traded during first
  trading period
• 2 million RPS-eligible certificates in Q1, over 6
  million in Q2
• All MA RPS eligible certificates settled
• Over 100 approved account holders
• Nearly 500 of the total 625 generators approved
• Several active brokers
• Green premiums between 20 and 40/MWh

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Other Certificates Activity

• PJM - GATS Working Group actively investigating
  info. system
• Ontario - developing regulations for certificates
  system
• NYSERDA - REACTS project
• FERC RTO Activity
• NARUC resolutions

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Questions???