1. Kevin Harris, ColumbiaGrid TEPPC\Model Work Group - Chair
MWG Identified Area of Improvement November 2-3, 2016 Salt Lake City, UT
Kevin Harris, ColumbiaGrid
TEPPC\Model Work Group - Chair

2. Overview Objective of Model Work Group What is a Production Cost Model
Potential MWG Topics
Identify area in WECC dataset that can be improved upon by the MWG
Clear up existing assumptions
Change to existing assumption
Other MWG Topics/Suggestions?

3. Objective of Model Work Group
Define what do we want to represent?
Identify ways to represent this in the PCM
Review results after implementation
Did we see the behavior we expected?
Review for unintended consequences!

4. What is a Production Cost Model

5. Understanding a Production Cost Model
A Production Cost Model (PCM)
Economically commits and dispatches supply to serve net system load
Everything is evaluated as a cost ($)
System economics dictates the order units are committed and dispatched
There are no hard constraints, only ($)
Ancillary requirement are an accounting requirement by area/region, i.e. unloaded local supply
Modeling Objective
To mimic utility/market behavior to gain insight into future operation or changes to the market

6. If you don’t understand how your PCM works your just throwing darts
Summary of PCM
Rules of Production Cost Modeling
Single owner dispatch
A modeler can only layer in constraints to mimic a desired behavior
What inaccuracies are you willing to accept?
A backcast provides a know behavior to mimic
If you don’t understand how your PCM works your just throwing darts

7. Potential MWG Topics

8. What do we model: DA, HA or RT
Classify what market an assumption is relevant to:
I’ve seen assumption for RT and HA mixed with those for a DA market
Classify assumption by market and if it would change going from DA to HA to RT

9. Modeling Reserves Review current NERC standards
Review way to implement in GridView
What are Flex reserves
Methods to calc additional reserves
Agree on method and input assumptions
BAL – Real Power Balancing Control Performance
BAL-002-WECC-2 – Contingency Reserve

10. California CO2 Identify components associated with CA CO2 cost
Unspecified imports
Asset Controlled Supply: BPA, Powerex & Tacoma
How much should be made available?
Exempt out of area supply
Will CA schedule wind/solar to bypass unspecified?
If so, how much?

11. Non-Dispatchable Supply
Currently Non-Dispatchable Supply (NDS) is dispatchable: GEO, Cogen, QF, BIO,..
Wind and solar are modeled with hourly shapes
GridView can economically commitment and dispatch these units.
The problem is commit and dispatch are driven by factors outside the wholesale power market.

12. Wheeling
Current method assumes utilities charge themselves third party wheeling cost when transaction with neighboring entities
This results in pancake wheeling impeding sales in the market

13. Modeling PARs Review current operation of PAR throughout WECC
If a PAR is set seasonally why are we allowing it to change hourly?
Review how PCM manages PAR operation
Determine best approach to model

14. Modeling Tools
Identify modeling tools available in GridView to allow to improve back casting
Nomogram
Exempt out of area controlled supply from CA CO2 import fee (Thermal if CA CO2 cost modeled and green energy)
Set min generation level
Start Cost
Min Up and Down time

15. Other MWG Suggestion?