1. IPC’s Energy Imbalance Market OATT Stakeholder Meeting
April 3, 2017

2. Agenda Topic Presenter Welcome and Introduction
Tess Park, VP of Power Supply
EIM Background, Benefits, and Implementation Milestones
Kathy Anderson, Project Co-Lead
Key OATT Provisions, Stakeholder Process, Next Steps, and Additional Resources
Julia Hilton, Project Co-Lead
Comments or questions about IPC’s proposed OATT modifications or today’s presentation can be submitted by ing them to through May 5, 2017.

3. Welcome and Introductions
Tess Park

4. EIM Background, Benefits, and Implementation Milestones
Kathy Anderson

5. Opportunity for Grid Efficiencies
Western Balancing Authorities
Existing Organized Markets

6. Western EIM Today
A Real-Time Market for participating Balancing Authority Areas in the West
CAISO is the non-profit market operator
Future EIM Entities include:
Balancing Authority of Northern California
Seattle City Light
Los Angeles Department of Water & Power

7. What is the western EIM? A voluntary, real-time market
that considers load and generation
and economically dispatches low-cost resources
while taking into account transmission congestion.

8. What changes in resource planning and utilization?
Integrated Resource Planning (20 yrs)
Risk Management Process (18 mos )
Monthly Balancing
Day-ahead balancing
Hour-ahead balancing
Real Time (5-15 minute increments)
Key change is to real time, intra-hour scheduling and dispatches
Additional software and process changes to support real-time operations

9. Why join the EIM? EIM is good for Reliability, Customers & Renewables
Maintains excellent reliability
It strengthens reliability through improved real-time grid visibility and coordinated dispatch of resources to avoid congestion.
Maximizes low-cost regional resources
Lowest cost resources in the EIM are dispatched first (greater footprint = more resource/load variation = lower costs)
Improves Renewable Integration
Greater resource and load diversity eases balancing the variability of renewable resources
EIM is good for Reliability, Customers & Renewables

10. Are there financial benefits?
Energy and Environmental Economics (E3) conducted a study showing financial benefits to Idaho Power’s EIM participation
The study showed modest positive annual savings
$ M gross benefits
Approx $15M start-up costs
IPUC approved accounting treatment that will allow Idaho Power to defer the costs of joining until benefits are received.

11. How does the EIM work? Market Operator Load Data Full Network Model
Hourly Resource Plan
15-Minute Schedule
5-Minute Dispatch Instructions
Energy Bid Range
Schedules (Base & Interchange)
Forecasts (Demand and VER)
Transmission Limits
Outages (Generation & Transmission)
Resource Ramping Capability

12. Continual Information Exchange
15-minute dispatch intervals
(4.5 hour look-ahead)
T-75: Base schedules and energy bids due
T-55: Updated base schedules submitted
T-20: E-tagging deadline T
(T = start of the hour)
Market Participants
T-40: Final opportunity to submit base schedules
X:00
X:15
X:30
X:45
Y:00
5-minute dispatch intervals
(65-minute look-ahead)
T-22.5: 15-minute scheduled awards published
T-37.5: Start of Market 1 optimization
Market Operator
T-45: Results of sufficiency test published
T-60: Results of sufficiency test published
Resource sufficiency tests: Balanced load and generation? Free of congestion? Sufficient ramping capability?

13. Project Overview and Timeline
IPC will join the EIM on April 4, 2018
Implementation Agreement
April 2016
Stakeholder Processes
March 2017 – June 2017
Systems Testing
March 2017 – November 2017
Market Simulation
December 2017
Market Entry
April 2018

14. What does this mean to you?
Regulatory
Tariff Changes and Readiness Certification to participate in the Western EIM
Scheduling & Forecasting
Importance of Base Schedules in the EIM
Timing and content of forecasting and data requirements
Outage Coordination
Planned Outages
Unplanned Outages and De-rates
Accurate reporting and timely communications
Metering Compatibility
Metering changes to ensure compliance with CAISO metering requirements
Parallel Operations & Go Live
Prior to market participation (April 2018), extensive testing and parallel operations will take place
Billing & Settlements
New EIM-related charges

15. Key OATT Provisions, Stakeholder Process, Next Steps, and Additional Resources
Julia Hilton

16. Tariff Revisions
Most of IPC’s OATT provisions will not change. There will be changes in the following areas:
Timing and content of forecasting and data requirements
Price at which imbalance and losses are settled
Most changes will be located in the new Attachment O to IPC’s OATT. Other notable changes are located in:
Part I: Definitions
Schedule 1A: EIM Administrative Service
Schedules 4, 4A, 10, 10A: Imbalance Services
Schedule 12: Real Power Losses

17. Defining Key Terms EIM Entity
Balancing Authority that represents one or more EIM Transmission Service Providers and that enters into an EIM Entity Agreement with CAISO to enable the operation of the Real-Time Market in its Balancing Authority Area
EIM Entity
Owner, operator, or seller of energy from a resource that elects to participate in the Real-Time Market and enters into a EIM PR Agreement under which it is responsible for meeting requirements of Section 29 of the CAISO Tariff
Participating Resources
A resource in an EIM Entity’s BAA that is not a participating resource
Non-Participating Resources

18. Participating Resource Eligibility
May elect to participate in EIM as a Participating Resource
The resource must be associated with qualified transmission service
Resources inside IPC’s BAA (Att. O § 3.1)
May participate in the EIM as a Participating Resource
Requires a pseudo-tie into the IPC BAA
Obtains firm transmission to an IPC boundary equal to the amount of energy that will be dynamically transferred
The resource must follow IPC Business Practices relating to pseudo-ties and upcoming EIM Business Practices
Resources outside IPC’s BAA (Att. O § 3.2)

19. Scheduling and Forecasting
Currently
Penalties for over- and under-scheduling
Within the EIM
EIM charges caused by scheduling errors will shift to the entity that made the scheduling errors
Submitted by all transmission customers to the IPC EIM Entity
Used to balance loads and resources within the BA
Also used as a baseline for settlements

20. Forecast and Schedule Timing
Forecast submittal for service is required at T-7 days
Must update forecast at least once by T-1 day
Forecasts serve to support market functions, but are not financially binding until base schedule submission (T-77 min)
Forecast Submittal
Final base schedule submission at T-77 minutes
Modifications are accepted up to T-57 minutes
Base Schedule Submittal
Transmission customers have full access to purchased transmission rights past base schedule submission; however, modifications are settled as imbalance at the respective LMPs
Adjustments After Base Schedule Submits

21. Pricing Proxy for EIS and GIS
OATT Schedules 4 (Energy Imbalance) & 10 (Generator Imbalance)
Currently: Mid-C Powerdex
The Mid-C hourly price published by Powerdex is used to calculate imbalance charges and penalty tiers are applied.
As reflected in Schedules 4A and 10A, Mid-C pricing will remain in place if IPC is not participating in the EIM or if the EIM is suspended.
Within the EIM: LMP and LAP
Imbalance pricing in the EIM is aligned with the geographic footprint of the EIM. No penalty tiers are applied.
Generation and E-tag changes settle at LMP
Locational Marginal Price (LMP): The marginal cost of serving the next increment of demand at a particular node, consistent with transmission constraints
Load Changes Settle at LAP
Load Aggregation Point (LAP): The weighted average of all LMPs in IPC’s BAA.
Schedule 4 applies to load, Schedule 10 applies to non-participating resources.

22. Real Power Losses Currently OATT §§ 15.7, 28.5
Transmission Customers are responsible for replacing losses on scheduled energy
In-kind or financial settlement, based on loss factors
Within the EIM
OATT §§ 15.7, 28.5, Sch. 12
Transmission Customers remain responsible for losses
Financial settlement only
Loss factors remain for NITS, Firm or Non-Firm Point-to Point
LAP price for Schedules 4 (Energy Imbalance Service) and 10 (Generator Imbalance Service)

23. Settlement Statements
CAISO will invoice IPC weekly; IPC will then allocate charges to Transmission customers.
Charges will include:
Schedule 1A EIM Administrative Services
Schedule 4 Energy Imbalance
Schedule 10 Generation Imbalance
Schedule 12 Losses
Other EIM charges, e.g. uplift
Western EIM pricing reflects competitive, real-time energy market costs

24. Stakeholder Process Timeline
Activity
Date
Announcement of Stakeholder Process
March 8, 2017
Post OATT Revisions on OASIS
First Comment Period
March 8 – March 28, 2017
First OATT Stakeholder Meeting
April 3, 2017
Second Comment Period
April 3 – May 5, 2017
Second Stakeholder Meeting
May 12, 2017
Third Comment Period
May 12 – June 12, 2017
Post Responses to Stakeholder Comments
July 12, 2017
File OATT with FERC
August 3, 2017
Please submit questions to

25. EIM Information on OASIS

26. Additional EIM Resources
CAISO site for EIM participation
CAISO EIM Computer-based training (CBT)
Introduction to the EIM
How the EIM works
EIM Business Practice Manuals
Includes readiness criteria