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ISO OutlookSummer 2005 and Beyond
Senate Energy, Utilities and Communications Committee
February 22, 2005
Jim DetmersVice President of Grid Operations
RRC/OE&M 2 2/16/05
OVERVIEW
• ISO: Who we are, functions
• Summer 2004 Conditions
• ISO Focus and Activities, 2005
• ISO Procedures for Balancing Loads and Resources
• Conclusion
RRC/OE&M 3 2/16/05
California ISOCalifornia ISO 501c(3) nonprofit corp., created by state
statue & regulated by FERC 5 member board appointed by the
Governor and confirmed by Senate One of 3 Western Electricity Coordinating
Council Reliability Coordinators (WECC) in the West
Functions: Operate the High Voltage Grid for 75% of
California in a safe and reliable manner Created to provide open &
nondiscriminatory access to transmission grid
Maintain grid reliability by matching supply & demand in real time & meet WECC mandated power reserves
Recommend appropriate grid upgrades Schedule & coordinate power plant &
transmission lines coming out of service for maintenance
RRC/OE&M 4 2/16/05
California ISO—Other Functions
• Prepare annual grid plans w/10-year outlook on ISO controlled grid
• ISO does not acquire long-term resources; we direct transmission and adjust flow of power in real time for balancing purposes
• Supports Intermittent Resource Program accommodate wind and solar power into our ancillary services markets (serves as national model according to wind industry)
RRC/OE&M 5 2/16/05
Record Loads Summer 2004 7 record setting days in 2004:
July 19 44,042 MW July 20 44,330 MW July 21 44,360 MW August 10 44,497 MW August 11 44,872 MW September 7 45,165 MW September 8 45,597 MW
We hit loads in 2004 that were not forecasted until 2005 and the State did not have exceptionally high temperatures!
The previous record peak demand of 43,609 MW, set July 1999, stood for four years. (SMUD load subtracted from this total)
RRC/OE&M 6 2/16/05
Summer 2004 In spite of moderate temperatures, CAISO set a new
system peak of 45,597 MW on September 8, 2004. At the time of system peak, reserves were not
distributed throughout the system. Joint Energy Action Forum (JEAF) has developed
estimated load and resource picture for 2005. JEAF includes: CAISO, CEC, CPUC, Governor’s
Office. JEAF is looking at expedited solutions to help address
the Summer 2005 problem.
RRC/OE&M 7 2/16/05
ISO Focus
• ISO continually monitors system conditions and prepares actions:– Operational Forecast of Loads and
Resources– Transmission Upgrades– Demand Response– Emergency Procedures– Communication
RRC/OE&M 8 2/16/05
Load and Resource Forecasts• ISO Seasonal Operational Assessment
– ISO Summer 2005 Operational Assessment presently in development; to be published 3/31/05.
– Builds from CEC’s Planning Assessment, fine tunes assumptions for: load growth, changes in Control Area definition (WAPA/SMUD), economic factors, updates in generation/transmission.
– considers potential adverse conditions.
• Generation Assumptions:– Retirements refined based on “Request For Offer”
outcomes, air emissions, and unit age. – Additions refined based on “Request For Offer” contract
outcomes, construction progress.
RRC/OE&M 9 2/16/05
Transmission Upgrades
• Key Southern California Paths for 2005 include “Path 26”, “South of Lugo”, “Miguel”.
• ISO monitors and supports construction progress on transmission upgrades.
• Complete operational studies, determine new Path ratings.
RRC/OE&M 10 2/16/05
Emergency Preparedness• Promote Demand Response
– Voluntary Load Reduction Programs– Encourage Energy Conservation, “Power Watch”– Promote “Alerts-Warnings-Emergency” education
and drills, both internally and externally
• Operator Emergency Preparedness– Update Procedures– Provide operator analysis tools– Conduct training, drills
RRC/OE&M 11 2/16/05
Issue Stage Two news release Invoke UDC Interruptible Load Programs
Issue Stage Three news release Issue Notice of Load Interruptions Instruct utilities to implement rotating outages
Stages of Electrical Emergencies*
Generating reserves less than requirements(Continuously recalculated. Between 6% & 7%)
Issue Stage One news release calling for conservation
Coordinate with public safety agencies
Generating reserves less than 5%
Generating reserves less than largest contingency(Continuously recalculated. Between 1.5% & 3%)
Generating Reserves7%
6%
5%
4%
3%
2%
1%
0%
Stage OneEmergencyStage OneEmergency
Stage Two
Emergency
Stage Two
Emergency
Stage Three
Emergency
Stage Three
Emergency
*Many emergencies are due to operating reserve levels, however, some emergencies are declared as a result of transmission line losses or limitations.
VLRPTriggered
VLRPTriggered
Voluntary commercial customers reduce electricity use. Provides advance notice to businesses that power reserves are low
and that business operations could be affected.
Voluntary Load Reduction Program
Log into www.caiso.com for the California ISO’s latest emergency information
Electrical Emergency CommunicationsElectrical Emergency Communicationsand Voluntary Load Reduction Programand Voluntary Load Reduction Program
RRC/OE&M 12 2/16/05
ISO Procedures for Balancing Loads and Resources
• ISO Coordinates proposed outages of major generation and transmission facilities up to 15 months in advance.
• The industry must submit reasonable, accurate, and balanced schedules for Loads and Resources.
• In Day-Ahead timeframe, ISO compares schedules with ISO forecast.
• In Real-Time, ISO monitors and balances Load and Resources every 5 minutes. ISO seeks to fill any anticipated shortfall with supplemental (Spot market) energy.
• If reserves diminish in Real-Time, seek to reduce demand through alerts, warnings, emergencies. (Voluntary load reduction to rotating outages).