©2005 PJM 1 Redispatch Credit NERC/NAESB TLR Task Force Feb 2-3, 2005 Houston, Texas Operations Reliability Subcommittee Feb 8-9, 2005 Scottsdale, AZ

©2005 PJM 2 Background PJM implemented the joint PJM/MISO Congestion Management Process (CMP) in May 2004; MISO will implement March Due to limitations in the current process, it is difficult to acknowledge relief provided by redispatch in all situations PJM and MISO built their systems to address this limitation; however, the NERC community felt it appropriate to further investigate the issue to ensure both reliability and equitable treatment

©2005 PJM 3 What the IDC Sees 0MW 100MW -100MW FORWARD 60MW Firm-7 35MW ED-6 15MW ED-2 REVERSE 45MW Firm-7 15MW ED-6 10MW ED-2 110MW Forward, 70MW Reverse F R ED6 7FN MF ED2

©2005 PJM 4 How Actual Flows Behave 0MW 100MW -100MW NET 40MW Actual Flow COUNTERFLOW Neutralizes 70MW of Flow 110MW F - 70MW R = 40MW Net F R ED6 7FN MF ED2

©2005 PJM 5 How This Can Create a Problem 0MW 100MW -100MW Flowgate Limit is 40MW RTO wants to Reduce Flows by 20MW IDC Reported Flow Actual Flows Limit Target F R ED6 7FN MF ED2

©2005 PJM 6 How This Can Create a Problem 0MW 100MW -100MW RTO Provides 20MW Counterflow IDC Reported Flow Actual Flows 20MW CF Increase Resultant Decrease of 20MW Limit Target F R ED6 7FN MF ED2

©2005 PJM 7 How This Can Create a Problem 0MW 100MW -100MW RTO Provides 20MW Counterflow Actual Flows Change, but Forward IDC Flows do Not Change IDC Reported Flow Actual Flows 20MW CF Increase Resultant Decrease of 20MW Limit Target F R ED6 7FN MF ED2

©2005 PJM 8 How the IDC Handles this Today 0MW 100MW -100MW When TLR is called, the IDC monitors the RTOs net flow change from the time the TLR begins to see if relief has been provided, and applies it to the forward flow IDC Reported Flow Actual Flows 20MW Change = 20MW Relief 20MW Relief = 20MW Reduction Limit Target F R ED6 7FN MF ED2

©2005 PJM 9 Where the Problem Still Lies 0MW 100MW -100MW If PJM or MISO redispatch BEFORE calling a TLR, the IDC doesnt see any relief, and will determine their relief obligation using the full forward flow IDC Reported Flow Actual Flows 20MW Change = No Change in Forward Flow Limit Target F R ED6 7FN MF ED2

©2005 PJM 10 Troubles and Consequences Equity Concerns –Double Charging PJM Market Participants for redispatch –CAs are allowed credit for proactive redispatch in TLR; RTOs are not Reliability Concerns –Inaccurate data leads to inaccurate relief requests

©2005 PJM 11 Ensuring Equity and Enhancing Reliability With the specification of standard rules, equitable treatment can be assured –PJM and MISO can perform network service redispatch in TLR 3 and 5 per the CMP; other Control Areas are only exposed to redispatch requirements in TLR5 –Standard treatment of proactive actions will ensure reasonable allocation of relief responsibility Reliability will be enhanced –The IDC will have more accurate data; no ghost megawatts will be counted

©2005 PJM 12 Redispatch in Practice 8:00 AM - RTO determines flowgate is becoming constrained. Snapshot of flows is taken. –250 in the forward direction –190 in the reverse direction. 0MW 300MW -300MW IDC Reported Flow Actual Flows F R ED6 7FN MF ED2

©2005 PJM 13 Redispatch in Practice 8:00 AM - RTO determines flowgate is becoming constrained. Snapshot of flows is taken. –250 in the forward direction –190 in the reverse direction RTO mitigates constraint by increasing counterflow 0MW 300MW -300MW IDC Reported Flow Actual Flows F R ED6 7FN MF ED2

©2005 PJM 14 Redispatch in Practice 10:00 AM – RTO determines flowgate must go into TLR. Current flows are: –290 in the forward direction –265 in the reverse direction 0MW 300MW -300MW IDC Reported Flow Actual Flows F R ED6 7FN MF ED2

©2005 PJM 15 Redispatch in Practice 10:00 AM – RTO determines flowgate must go into TLR. Current flows are: –290 in the forward direction –265 in the reverse direction Comparing Snapshot with Current shows 35MW relief provided between time of initial constraint control and TLR issuance 0MW 300MW -300MW IDC Reported Flow Actual Flows Snapshot F R ED6 7FN MF ED2

©2005 PJM 16 Redispatch in Practice RTO adjusts IDC Reported Flow to reflect 35MW relief already provided Forward and Reverse adjusted to keep net equal to real net flow 0MW 300MW -300MW IDC Reported Flow Actual Flows Snapshot F R ED6 7FN MF ED2

©2005 PJM 17 Redispatch in Practice Results –RTO non-firm = 35MW, not 50MW –IDC sees relief already provided by RTO, assigns more relief to CAs, who have not yet provided relief –Firm Service (for RTO and CAs) not touched until TLR5 0MW 300MW -300MW IDC Reported Flow Actual Flows Snapshot F R ED6 7FN MF ED2

©2005 PJM 18 Benefits to NERC, the IDC, and RTOs Number of TLRs will be reduced –Not giving credit for pre-TLR redispatch forces RTO to call TLR more often (to ensure equitable treatment under tariff) IDC has more accurate data –RCs do not have unrealistic expectations of available relief –IDC does not display ghost megawatts that dont exist RTO participants contribute equitable share of relief –Execution of Reliable Control Actions are recognized –Proactive Constraint Management is not penalized

©2005 PJM 19 Ensure Equity and Enhance Reliability PJM and MISO ask that you: –Resolve real-time proactive redispatch undertaken to avoid TLR be treated as relief already provided if a TLR must be issued PJM and MISO agree with NERC that more review must be done to determine how to consider actions taken in advance of real-time

©2005 PJM 20 Questions?