1. Changing Market Dispatch
Ken Rutter

2. Evolution of Dispatch OLD DISPATCH CURRENT DISPATCH Baseload
Regulation Load Following
Reliability
Emphasis on Lowest Price Dispatch
Tax Subsidy Influence
Diverse Generation Mix
Reliability

3. What is Baseload Generation?
It use to be that the efficiency of coal resulted in units running at maximum output. Their operation profile looked like a block volume. Coal was baseload. Other units followed load. Now wind is “cheaper”, and some view it as being first dispatched. Is “baseload” even a relevant term any longer?

4. Wind Tax Subsidies Were a Game Changer
SPP Total Load
SPP Wind Generation
SPP hit a new wind to load record on 12/ %
Tax benefit up to $25-$30/MWh

5. Basin Focuses on Economic Dispatch of Our Assets
Basin’s members benefit by dispatching our assets based on market economics or by purchasing lower cost energy from the market
Lower fuel costs
Purchases below generation costs (negative prices at times)
At times our assets are cheaper than others and can add value through surplus sales

6. Basin September Wind Generation
Basin currently has 1400 MW of wind generation available
Basin’s average September load was 2322MW at our load zone

7. Basin September Coal Dispatch
Coal backed down to unit minimums when uneconomic
Challenges at times with operating at minimums with financial losses
More and more, short-term economic shutdowns are becoming common

8. Basin September Natural Gas Dispatch
Basin currently has 1500 MW of natural gas generation available
Gas dispatch for reliability and sometime for regulation value
Maintenance costs for natural gas are considered in dispatch decisions

9. Challenges Ahead Operation of coal assets in this type of market:
Unit minimums
Operational risks (fuel in bunkers)
Ability to do short-term shutdowns
Wear and tear from ramping
Operation of natural gas assets in this type of market:
Maintenance engineered previously based on unit starts
What is the true cost of maintenance?
Operation of wind assets
Negative market prices vs. penalties in power purchase agreements
Market saturation and capability to handle wind vs. load levels

10. Thank You