1. Grid Operations Engagement Group ISO/DSP Interaction and Coordination
August 25, 2016
Presentation material does not represent the views of the Joint Utilities Engagement Group as the group is still in discussion on these topics. Please do not redistribute this deck.

2. Agenda Time Topic 1:00 – 1:15 Introductions and Overview of Meeting
1:15 – 2:00
NYISO Presentation and Discussion
2:00 – 3:00
JU Presentation and Discussion
3:00– 3:15
Break
3:15 – 3:45
California ISO Presentation and Discussion
3:45 – 4:00
Summary & Next Steps

3. Engagement Group Ground Rules*
All stakeholder engagement (Advisory Group and Engagement Group) meetings, webinars and information exchange are designed solely to provide an open forum or means for the expression of various points of view in compliance with antitrust laws.
Under no circumstances shall stakeholder engagement activities be used as a means for competing companies to reach any understanding, expressed or implied, which tends to restrict competition, or in any way, to impair the ability of participating members to exercise independent business judgment regarding matters affecting competition or regulatory positions.
Proprietary information shall not be disclosed by any participant during any stakeholder engagement meeting or its subgroups. In addition, no information of a secret or proprietary nature shall be made available to stakeholder engagement members.
All proprietary information which may nonetheless be publicly disclosed by any participant during any stakeholder engagement meeting or its subgroups shall be deemed to have been disclosed on a non-confidential basis, without any restrictions on use by anyone, except that no valid copyright or patent right shall be deemed to have been waived by such disclosure.
AG & EG discussions will be open forums without attribution and no public documents by the AG or EG will be produced unless publication is agreed upon by the group.
*Ground Rules adapted from the JU Advisory Group

4. Grid Operations Engagement Group Charter
Purpose: Explore JU common approaches for continued secure, safe and reliable operation of the distribution system under increased penetration of Distributed Energy Resources (DER) while enhancing DER participation opportunities and move towards a future utility role as Distributed System Platform (DSP).
Topics and Scope: System Data; NYISO/DSP Interaction and Coordination, Monitoring and Control
System Data
Discuss the type of system data that the stakeholders would require to make investment decisions on the NY grid
Identify the highest value information for DER providers to make effective decisions
Identify the granularity of the information required for specific planning and analysis purposes
Identify the frequency of the information required
Discuss methods for overcoming limitations related to security and confidentiality
Discuss the process for providing value added information to stakeholders
Monitoring and Control
Determine monitoring requirement of DERs
Explore the impact of DERs on real- time operations of the grid that include scheduling, operation and dispatch
Explore potential control signals to align NYISO and DSP generation or needs for load reduction.
Discuss standards and protocols for DER aggregation
Discuss DER response to emergency and contingency events.
NYISO/DSP Interaction and Coordination
Describe the extent to which retail and wholesale operations are currently coordinated within existing programs.
Explore the evolution in assumptions necessary to align ISO and DSP operations.
Determine whether further analysis of DER is necessary for more accurate estimation of DER contribution to serving grid needs for planning and operations.
Explore the visibility required for DER on the distribution system for the ISO to accurately reflect and align their forecasts

5. NYISO/DSP Interaction and Coordination
Topics from Grid Ops Charter
Describe the extent to which retail and wholesale operations are currently coordinated within existing programs.
Explore the evolution in assumptions necessary to align ISO and DSP operations.
Determine whether further analysis of DER is necessary for more accurate estimation of DER contribution to serving grid needs for planning and operations.
Explore the visibility required for DER on the distribution system for the ISO to accurately reflect and align their forecasts

6. NYISO Perspective on DSP Interaction and Coordination
Grid Operations Stakeholder Engagement Group
August 25, 2016

7. Distributed Energy Resources Roadmap
Matt Darcangelo
Manager - Distributed Resources Integration
Joint Utilities Grid Operations
ISO/DSP Coordination
August 25, 2016
National Grid - Albany, NY

8. Initiative’s Scope
Roadmap for next 3-5 years for integration of DER and evolutionary changes in current Demand Response programs
DER is a resource or set of resources -- typically located on an end-use customer’s premises and operated for the purpose of supplying customer electric load -- that seeks to provide NYISO wholesale market services
Curtailable load, generation, storage or various combinations
Individual resources or aggregations
Net load or net generation

9. DER Roadmap Development Process
Kickoff
Overview of Roadmap Concepts
May 24, 2016
Review Stakeholder Input for Roadmap Development
June /July 2016
Initial Draft Published
August 2016
Stakeholder Comments and Feedback
Summer/Fall 2016
Publish DER Roadmap (living document)
2016
Follow Roadmap and Execute Projects

10. Key Objectives Integrate DER into energy markets
Ability for real-time scheduling
Minimize out-of-market actions
Align with goals of NYS REV
Measurement and Verification
Align payments with performance
Focus on wholesale market

11. Future Wholesale DER Participation Real -Time Dispatchable
Capacity
Energy
Ancillary Services
Special Case Resource (SCR) Program
Manual Activation
Flexible Performance & Payment Options
Emergency Demand Response Program (EDRP)
Manual Activation
Voluntary Load Reduction
Reliability
Non - Dispatchable
Load Modifier
Self-managed Load Reductions to Reduce Capacity Obligation
Price Capped Load Bid
Economic Day Ahead Load Procurement
Dispatchable Distributed Energy Resources
Comparable to a Generator
Supports Aggregations of DER
Fully integrated in both Capacity and Energy Markets
Capacity with Daily Energy Must-Offer Obligation
Flexible performance & payment options
Economic
Real -Time Dispatchable

12. Integrating DER in Wholesale Electricity Markets
Wholesale service provided through DSP super aggregator
DSP
Wholesale service provided to ISO
Retail service
provided to DSP
ESCO
Aggregator
Wholesale Services
Capacity
Energy
Regulation Services
Operating Reserves
Retail Services
Wholesale service
direct to ISO
Retail service
direct to DSP
Service provided
through Aggregator
Distributed Energy Resources
Wholesale
Services
Retail
Services

13. DER Roadmap Development & Input
DER Workshop
September 22 – Radisson, Wolf Road Albany, NY
Verbal comments at DER Workshop and NYISO Shared Governance Meetings
Written comments to and/or

14. The Mission of the New York Independent System Operator, in collaboration with its stakeholders, is to serve the public interest and provide benefit to consumers by:
Maintaining and enhancing regional reliability
Operating open, fair and competitive wholesale electricity markets
Planning the power system for the future
Providing factual information to policy makers, stakeholders and investors in the power system

15. 2016 Solar Forecasting Initiative Overview
Arthur Maniaci
NYISO System & Resource Planning
Joint Utilities Grid Operations
ISO/DSP Coordination
August 25, 2016
National Grid - Albany, NY

16. Project Scope & Schedule
Provide real-time solar power forecasts to Operations -- both distributed (behind-the-meter) and specific sites (large grid-connected sites)
Provide solar forecasts to Operations for display on Grid Operations video display
Modify NYISO forecasting software to include forecasts of solar irradiance and solar power
Explore how to obtain real-time actual irradiance and behind-the-meter SPV power data from third-party firms
Project is to have Code-Ready status by Dec 2016 and implemented in Q2 2017

17. Current Forecasting Process of Load
Using Weather Forecasts as Input
Weather Forecaster Provides Hourly
Forecasts
NYISO Forecast Software
Inputs
Weather Forecasts Updated Hourly
Hourly update, 15 minute intervals
Forecasts
Load Forecast Models
Five-minute RTD forecast process
Load Data Updated Every 5 Minutes

18. Proposed Plan for Solar Forecasting
Includes Use of Actual Irradiance and BTM SPV kW Data
Inputs
Hourly Weather, Irradiance & Power Forecasts
NYISO Forecast Software
Solar Forecaster: irradiance and power forecasts
Hourly update, 15 min. intervals
Load & Solar Forecast Models
Forecasts
Five-minute RTD forecast
15-Minute Load & Solar Forecasts
Actual solar irradiance and SPV power data are sent to solar forecast vendor in real-time.
Actual Grid-Scale SPV MW Data from NYISO
Actual Distributed BTM SPV MW Data from Vendor
Actual Irradiance Data from Vendor

19. Dispatch, Commitment & Visual Display
All Forecasts are sent to other NYISO Systems & NYISO Video Display Wall
Actual Load
&
Solar Inputs
Forecasts at 15-min Intervals
Forecasts of load, distributed solar and grid solar, all at 15-minute Intervals
Net MW Load in Zone
Grid Operations:
Dispatch, Commitment & Visual Display
BTM SPV MW in Zone
Total Load = Net Load + BTM SPV
Grid-Connected Solar Sites
Site 1
Site 2
Site 3

20. The Mission of the New York Independent System Operator, in collaboration with its stakeholders, is to serve the public interest and provide benefit to consumers by:
Maintaining and enhancing regional reliability
Operating open, fair and competitive wholesale electricity markets
Planning the power system for the future
Providing factual information to policy makers, stakeholders and investors in the power system

21. ISO-DSP Operations Coordination
Grid Operations Stakeholder Engagement Group
August 25, 2016

22. Outline and Agenda Overview Where are we now Where are we heading
Review current coordination practices between JU and NYISO
Where are we heading
Review and expected timing
Next Steps and Summary
JU / NYISO continuing discussion

23. ISO-DSP Coordination Overview
John Borchert, Central Hudson

24. Relevance of ISO-DSP Coordination to the REV Goals
Under “Reforming the Energy Vision” (REV) strategy, New York is seeking to promote, among other things, wider deployment of distributed energy resources (DERs) such as micro grids, roof-top solar, other on-site power sources and storage
As greater numbers of DERs interconnect to the grid and participate in new programs, additional coordination between the ISO and DSPs for safe and reliable operation of the system is necessary
Coordination is paramount as the NYISO administers markets under the NYISO tariffs, resources connected at <115kV are likely to be dispatched on a pure market evaluation vs. a combined market and security constrained basis. Conversely dispatch by a DSP may also have impacts upward onto the Bulk Electric System.
Coordination may also provide additional opportunities for DERs to participate in programs at either or both the ISO and/or DSP levels
Coordination will improve customer benefits through appropriate procurement of capacity and energy

25. DSIP Filing Guidance on ISO-DSP Coordination
The April 20th DSIP Order instructs the utilities to begin to identify areas which will require interaction between the ISO and DSP to maintain quality operations:
“With respect to the roles, responsibilities, and interactions between utilities and the NYISO, it is expected that the Supplemental DSIP will begin to define the obligations and actions that will be needed to ensure seamless and reliable operations of a dynamic transmission and distribution grid”

26. DSP/NYISO Coordination Required in Multiple Areas
Grid Operations
Distribution Planning
Market Operations
Real Time and Day Ahead DER performance
Load Forecasting
ISO Programs
Real Time and Day Ahead Load Forecasts
DER Penetration Forecasts
DSP Programs
Sharing info on DER participation in programs at ISO and DSP level
Settlement
Communications type and frequency
Today’s discussion is focused on the Grid Operations area only

27. NYISO-DSP Operations Discussions
The JU has begun collaborative process to engage experts from the NYISO in the bulk and distributed power system operations
The JU/NYISO have sought input from participants in the California processes to identify relevant issues with respect to ISO-DSP coordination on operational issues

28. Where Are We Now?
David MacRae, ConEd

29. COMMUNICATIONS AND COORDINATION CURRENTLY VARY BY PROGRAM NEED
Where Are We Now?
COMMUNICATIONS AND COORDINATION CURRENTLY VARY BY PROGRAM NEED
Currently, coordination between the NYISO and JU regarding DERs is primarily focused on Demand Response (DR)
DR participation exists today as
Utility only – contingency, peak load shaving
NYISO only – SCR; EDRP; DSASP
Both NYISO and Utility
Units larger than 1 MW may also directly participate in the NYISO markets as SC 11 customers, or as Large CHP/Cogen units
NYISO also allows Behind the Meter (BTM) net generation (NG) resources to participate in the wholesale market with surplus (“net”) energy and/or capacity available after serving their host load obligations
Resources with a name plate rating of 2 MW, with valid interconnection allowing export of at least 1 MW

30. Current Coordination Activities
Parameter
Operations
Planning
Details
Frequency
Load-Forecasting
Typically, individual company forecasts are not coordinated with the NYISO, except on high load days
As needed basis via conference calls
Utilities provide NYISO with a 10 year electric load forecast
Annual
DER/DR Dispatch
Utilities and NYISO notify each other via s and/or phone calls when they plan to dispatch DR for test or actual events
As needed basis via phone calls and s. The coordination depends on the DR program being called.
N/A
DER/DR Forecasted Operations
If signed onto the NYISO tariff as DG’s and SCR’s, need to communicate their operation in the form of a bid
Daily
Available DER/DR Capacity
DR enrollment information is shared for identifying overlapping resources so that operational awareness can be improved
Monthly
Embedded in the 10-year electric load forecast
DER/DR Performance
DR event performance summary filed with PSC

31. NYISO-Utilities Coordination for DR Programs
Coordination occurs at various levels:
Pre-Event
, Phone Call between NYISO and utilities
Day Ahead
2-hour prior to event
During Event
Utilities and NYISO notify each other of when a DR event is activated
Post Event
Monthly Reporting of participating resources to estimate:
Addback MW for NYISO’s peak load formulation

32. Con Edison and NYISO Demand Response – Operational Coordination Activities
Coordination with the NYISO occurs at various stages of demand response operations
NYISO provides a list of its participating accounts each month.
Verify the account and cross reference to identify discrepancies
The list of participating accounts impacts aspects of DR operations:
Enrollments
Measurement and Verification (M & V)
Operations Planning

33. Enrollments, M & V, Operations Planning
We advise the NYISO of any inactive accounts on their list, they follow up with the aggregators
The list includes ACL and Pledged kW for each account
M & V
Update customer baseline (CBL) calculation to ensure that the days of NYISO DR events are excluded from the CBL calculation for accounts that participate in Con Edison and in NYISO programs
We provide DR event performance data for DR events initiated by us to the NYISO for “add back” purposes. NYISO uses this data to add back these kWs to customer load profiles for ACL determination
Operations Planning
Prepare the “overlap” report to understand the amount of DR resources in each network and the overlap of the NYISO and Con Edison DR resources. This report is used to communicate the expected level of DR to operators for contingency planning.

34. The Challenges Ahead
John Borchert, Central Hudson

35. Bulk and Distribution Grid Operational Coordination Concerns
The JU anticipates further areas of review as dispatchable DER participation via aggregators becomes possible as per NYISO’s roadmap
Limitation on aggregation due to reliability impacts on distribution systems
Operational Awareness of the response of aggregated/individual resources on individual circuits due to activation and dispatch instructions of NYISO
Also, as dispatchable resources serve as both load reductions and power injections, additional coordination between the DSP and NYISO will be required
NYISO currently anticipates a 3 to 5 year timeline before such programs are introduced under its roadmap
The timeline should allow for scaling up existing communication systems and protocols to handle more frequent communication with NYISO and an increasing number of DERs

36. Bulk and Distribution Grid Operational Coordination Concerns
No formal standards exist today between the NYISO and JU. As DER programs types increase, and the flexibility and responsiveness of DERs grow, formalization of operational standards will be required
Possible formalization could be through the NYISO stakeholder process
Solar forecasting methods
NYISO working on 8760 solar forecasts for enhancing operations
NYISO-JU can leverage the tool further to share inform information and inform operations
Information sharing requirements between the ISO and DSP will increase to ensure appropriate planning and operations standards exist.
NYISO and JU should be able to freely share information for planning, operations with out concerns for markets, privacy.

37. Path Forward – Coordination of Operational Activities
Formalize Current Communication Practices
Improve Communication Protocols
As DERs increase market penetration, communication processes will need improvement for daily operating plans and day-ahead forecasts
Dispatch Protocols
DER becomes integrated at a level that communication needs to enable the utility to override dispatch orders
Dispatch Interface Development
Resources will service ISO and the DSP needs
JU and NYISO develop an operating interface that matches the need for market coordination

38. Next Steps and Summary
John Borchert, Central Hudson

39. ISO-DSP Coordination Next Steps
The ISO and JU will continue to engage in regular discussions to advance coordination requirements and needs
NYISO is expecting to receive stakeholder comments on their draft ‘Roadmap’ positions, the NYISO intends to engage the JU once comments are received to begin to identify key issues for coordination with the DSP
Regular working groups will continue thereafter – propose quarterly meetings subject to NYISO agreement
NYISO DER evolution roadmap will influence next steps
Summer 2016 – DER Roadmap draft released (8/17/16)
Fall Stakeholder review
Modifying tariff language for initiating market rule changes
2018/2019 – Market products development

40. ISO-DSP Potential Areas for Discussion
Information exchanges between DSP and NYISO – content, format, and timing
Short-term forecasting (real-time, day-ahead, week-ahead) of net load and autonomous DER behavior
Ability to calculate expected distribution system impacts of ISO dispatches of DER; “feasibility” of ISO dispatches
Standard interface between DSP and NYISO
Situational awareness – sensing and data systems
Operating procedures to deal with the normal day to day activities & the unexpected

41. ISO-DSP Operations Coordination Summary
Currently DERs can participate in utility and NYISO administered programs. The primary area of overlap is demand response.
Demand response dispatch by the NYISO is coordinated with the JU and vice-versa. Various communication channels are used depending on the program
Near-term goals include:
Establish a formal process of cross-pollination with NYISO and the JU
Identify a process to formalize coordination standards between the parties going forward
Rules on sharing customer or resource level information may evolve over time
Establish a feedback process for DERs to communicate with the JU and NYISO
In the long-term, utilities need to monitor penetration levels and gauge how coordination can be improved.
Using the amount of DER in queue as a trigger, steps towards a more coordinated Day Ahead forecast can be initiated
As Solar PV in the queue is realized, it would influence wholesale market mechanisms, causing further coordination issues
Reciprocity of information sharing between NYISO and DSPs will be established
The JU supports continuing discussions with the NYISO to achieve increased awareness and situational response of distribution and bulk grid activities

42. CAISO Experience on DSP Interaction and Coordination
Grid Operations Stakeholder Engagement Group
August 25, 2016

43. Thank you for joining us!
Please contact or
visit our website for more information

44. Appendix & Reference Materials

45. Overall Engagement Group Purpose & Objectives
The Grid Operations Stakeholder Engagement Group (EG) is an open forum for stakeholders who are actively engaged in the REV process and the Distributed System Implementation Plan (DSIP) filings to provide input to, and exchange ideas with, the Joint Utilities of New York (JU) on topics related to grid operations as identified by the Joint Utilities Stakeholder Advisory Group (AG).
Objectives
Exchange information, ideas, and perspectives of mutual interest to grid operations.
Facilitate JU understanding of the grid operations business needs of Stakeholder participants.
Facilitate Stakeholder understanding of the scope of JU grid operations.
Discuss identified topics to achieve shared understanding, identify areas of convergence and clarify areas of differences.

46. Engagement Process Overview
Stakeholder Engagement Schedule
Jan 2016
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2017
DSIP Final Guidance
Initial DSIP Filings
Supplemental DSIP Filing
Advisory Group Mtgs
Initial DSIP
Stakeholder Engagement*
Supplemental DSIP
Engagement Groups
Distribution Planning**
Grid Operations
Market Operations
Stakeholder
Conferences***
*Initial DSIP engagements dates based on individual JU workshop schedule during this period. **ITWG beginning in March, EG begins in May.
*** Stakeholder engagement conferences to engage a wider set of participants to inform technical discussions and share Engagement Group results, as needed and in consultation with the Advisory Group
Source: Updated plan for stakeholder engagement process as reflected in May 5th DSIP filing

47. Grid Operations Engagement Group Charter
Purpose: Explore JU common approaches for continued secure, safe and reliable operation of the distribution system under increased penetration of Distributed Energy Resources (DER) while enhancing DER participation opportunities and move towards a future utility role as Distributed System Platform (DSP).
Topics and Scope: System Data; NYISO/DSP Interaction and Coordination, Monitoring and Control
System Data
Discuss the type of system data that the stakeholders would require to make investment decisions on the NY grid
Identify the highest value information for DER providers to make effective decisions
Identify the granularity of the information required for specific planning and analysis purposes
Identify the frequency of the information required
Discuss methods for overcoming limitations related to security and confidentiality
Discuss the process for providing value added information to stakeholders
Monitoring and Control
Determine monitoring requirement of DERs
Explore the impact of DERs on real- time operations of the grid that include scheduling, operation and dispatch
Explore potential control signals to align NYISO and DSP generation or needs for load reduction.
Discuss standards and protocols for DER aggregation
Discuss DER response to emergency and contingency events.
NYISO/DSP Interaction and Coordination
Describe the extent to which retail and wholesale operations are currently coordinated within existing programs.
Explore the evolution in assumptions necessary to align ISO and DSP operations.
Determine whether further analysis of DER is necessary for more accurate estimation of DER contribution to serving grid needs for planning and operations.
Explore the visibility required for DER on the distribution system for the ISO to accurately reflect and align their forecasts

48. Grid Operations Topic Descriptions
System Data
System data includes grid information such as power consumption, power quality, and reliability at various granularities (system-wide, substation, feeder, etc.). The data is used to generate insightful information that is used by the utilities to support the planning and operation of the distribution system. Insightful information derived from system data would also enable DER providers to make investment and operational decisions that would be beneficial to the overall system thereby increasing societal benefits. The utilities would provide the information necessary for developers to offer solutions that can improve the efficiency of the system and add value to customers.
Cyber Security
Cyber security measures are essential for maintaining the confidentiality, integrity, and availability of information. With increased communication and information exchange between the grid entities, cyber security is a critical issue that must be addressed by the utilities. Cyber security plans account for protection of all and any communication of data within the utility and between the utility and third party facilities.

49. Grid Operations Topic Descriptions continued
Monitoring and Control
Monitoring
Monitoring of the distribution assets and DERs in the distribution system is essential for maintaining the reliability of the grid. As distributed energy resources have considerable impact on the distribution grid operation, the need for advanced monitoring capability increases with the penetration of distributed energy resources. The topic focuses on the needed expansion and improvement in visibility and communication protocols to interact with and observe DER providers.
Control/Dispatch
Control at the distribution level refers to signaling and mobilization of distribution assets to satisfy system operational goals in real-time. The ability to control distribution system assets is vital to the reliable and efficient operation of the distribution grid. The term ‘control’ signifies the utility having complete discretion over operation of the asset. Whereas, the term ‘dispatch’ indicates that the utility sends control signals to the asset owner who have discretion over operation of the asset. The term ‘dispatch’ is used for signals sent to DER providers.