1. www.eia.gov U.S. Energy Information Administration Independent Statistics & Analysis Balancing Authority Related Proposals for EIA Surveys EIA Stakeholder Presentation June 5, 2012

2. Overview 2 What are balancing authorities? Value of presenting data organized by balancing authority Survey Proposals –On existing surveys: Associate plants (EIA-860) and end-use supply entities (EIA- 826/861) with balancing authorities Collect on Forms 861/826 energy-only sales by distribution utility and delivery-only sales by energy-only supplier –New survey of balancing authority hourly operating statistics

3. What Are Balancing Authorities? 3 Balancing authorities are the basic operating unit of the electric power industry. Balancing authorities balance supply, demand and interchange. System operators manage generation, consumption, and the flow of power into and out of their electrically defined area. Balancing authorities ensure reliable and efficient electric system operation.

4. Balancing Authorities 4

5. Value of presenting data organized by balancing authority 5 Balancing Authorities (BAs): –BAs are unique (they do not overlap) and constitute a complete set of grid connected electric systems in the U.S. –All grid-connected generators, end-use devices and everything in-between are located in one BA or another. –About 90 BAs are interconnected and together encompass all grid-connected supply and demand in the U.S. To best represent electricity system operations, EIA data should be associated with the appropriate balancing authority. BA statistics useful for information presentation: –National: Due to significant regional differences in resources, consumption patterns, and operating, business and market processes, there are few meaningful national electricity statistics. –State: State-level statistics are valuable because of distinct regulatory and political policies. But state-level electricity data sometimes fail to capture important aspects of electric industry because utilities, operating entities and markets often span state lines. –Regional: Organizing and presenting electricity information based on balancing authority provides a convenient and meaningful middle ground between national and state statistics – regions defined by operating system areas.

6. Value of presenting data organized by balancing authority 6 Source: March 2012 Electricity Monthly Update Generator output data from the EIA 923 is aggregated by balancing authorities and then BAs values are aggregated into regions.

7. Proposed changes to existing surveys 7

8. Form 860: Annual Electric Generator Report 8 Collect the balancing authority location of power plants on Form 860.

9. Forms 826/861 9 Form 861 already collects balancing authority location. We would like to associate each entity’s reported data with a balancing authority. But some entities do business in more than one balancing authority.

10. Forms 826/861 10 Luckily, the current collection of data by state provides a balancing authority breakdown for most multi- balancing authority entities. However, an additional data breakdown by balancing authority may be needed for a small number of EIA- 826/861 multi-balancing authority entities.

11. Balancing Authority Data Breakdown May Be Needed for Some Multi-Balancing Authority Entities 11 Form 826/861 Entity Type Entities States Cooperatives 14 10 Municipals 7 6 IOUs 2 4 Washington PPD & Arizona Electrical Districts 5 2 Retail power marketers in:Illinois 17 1 MT, NV, OR, WA 8 4

12. Balancing Authority Data Breakdown May Be Needed for Some Multi-Balancing Authority Entities 12 Cooperatives: Singing River Elec Pwr Assn (AL, MS) Carroll Electric Coop Corp (AR, MO) Midwest Energy Cooperative (IN, MI) Dixie Electric Power Assn (MS) Southern Pine Elec Power Assn (MS) Tri-County Elec Member Corp (NC) Piedmont Electric Member Corp (NC) Tideland Electric Member Corp (NC) Northern Plains Electric Coop (ND) People's Electric Cooperative (OK) Oregon Trail El Cons Coop, Inc (OR) Deep East Texas Elec Coop Inc (TX) Lighthouse Electric Coop, Inc (TX) South Plains Electric Coop Inc (TX) Municipals: City of Roseville (CA) Orlando Utilities Comm (FL) City of Hillsboro (KS) Jonesville City of (LA) City of La Plata (MO) Town of Mannford (OK) City of Waynoka (OK) Investor-Owned Utilities: KCP&L Greater Missouri Operations (MO) Black Hills Power Inc (MT, WY, SD) Other: Roosevelt Irrigation District (AZ) Electrical Dist No 4,5,6 Pinal Cnty (AZ) PUD No 1 of Whatcom County (WA)

13. 13 Collecting energy-only competitive retail power marketer sales by distribution utility will provide data by BA. Collecting energy-only retail sales information by distribution utility and visa versa will allow EIA to identify the source of energy sales – delivery energy reporting discrepancies. This will make it possible to identify the major sources of discrepancies and work with respondents to significantly reduce the need for state level balancing items. This will also help EIA prepare NEMS input data by model region. Collect on Forms 861/826 energy-only sales by distribution utility and delivery-only sales by energy-only supplier

14. New survey proposal 14

15. Require balancing authorities to post the next day hourly operating statistics 15 Balancing is the most basic operating function in the electric utility industry. Electric system operations can be described with some simple hourly metrics: net generation, net energy for load (system demand), day-ahead demand forecast, and net actual interchange with each directly interconnected balancing authority area.

16. Require balancing authorities to post the next day hourly operating statistics 16 Reporting of these basic metrics on a near-time basis will benefit policymakers, market participants, and the public. This information will shed light on various operational dynamics important to integration of renewable energy sources and development of smart grid technologies and demand response.

17. Require balancing authorities to post the next day hourly operating statistics 17 Each Balancing authority (circle) would post daily for each hour: Net Gen Demand Forecast demand Actual Interchange for each line from circle

18. Require balancing authorities to post hourly their hourly demand 18 Optional proposal: Instead of posting today’s hourly demand the next day, require hourly posting of demand soon after the hour. This will provide comprehensive coverage of current U.S. electric system conditions.