PCI Webinar on Impacts of 5-mn Settlement on Energy Accounting · Impact of 5-mn Settlement on Energy Accounting Workflow at Consumers Energy 33 MISO plans to implement 5-mn settlement

1Copyright 1997-2016, Power Costs, Inc. All rights reserved.

PCI Webinar on Impacts of 5-mn Settlement on

Energy Accounting

May 26, 2016


Webinar Agenda

Brief Overview on PCI

Impacts of 5-mn settlement on Energy Accounting

Using PCI Energy Accounting System to Manage 5-mn Meter Data

Consumers Energy’s Experience with using PCI Energy-Accounting System to Validate Meter Data

Q&A

2


PCI Overview Company:

– Provide Software for Energy Companies

– 170+ employees – Founded 1992 / Privately

Owned

PCI Platform– Portfolio Optimization– Post-Analysis & Billing– ISO Bid-to-Bill– Deal Management– Asset Operations– Energy Accounting– BI & Data Warehouse

Clients– Over 60 Clients totaling 600

GW in 7 markets (MISO, SPP, PJM, ISO-NE, CAISO, NYISO, and ERCOT) are currently using PCI Platform for portfolio optimization, trading, bid-to-bill and MDMA functions


Transactional Database, Workflow Management, Communication, Permissions, Auditing, Web Browser Interface, APIs

Platform

Markets: ALL

Front Office

AESOCAISOERCOTIESO

CAISOISONENYISOPJMSPP

ISO Communication, Bid/Offer Management, Bid Evaluation, Price Forecasting

AESOCAISOERCOTIESO

CAISOISONENYISOPJMSPP

Trading

Markets: ALL

Deal Capture, E-Tag, Deal Analyst, ICE Interface, Gas Management, Contract Settlement, RT Pricing

Asset Operations

Markets: ALL

Outage Management, Journal, Plant Interface, GADS, Energy (QF) Scheduling, Gas Pipeline Scheduling

Post Analysis

Markets: ALL

Operational Performance Metrics

Optimization

Markets: ALL

ST, LT, Risk

PCI Data Warehouse

Back Office

ISO Shadow Settlement, Allocations, Pre-Settlements, Reporting, Energy Accounting

PCI Platform

4

PCI GenPortal PCI GenManager PCI GenTraderPCI Deal

ManagementPCI Asset

OperationsPCI PostAnalysis

PCI Energy Accounting

PCI EA Data Warehouse


Need for 5-mn Settlement

On September 17, 2015, FERC issued an order requiring RTOs to implement 5-minute RT settlement

RTOs that are currently using 5-mn RT settlement:

– NYISO (Starting in 1997)

– SPP (Starting on 3/1/2014)

– CAISO (Starting on 5/1/2014)

RTOs that will implement 5-mn RT settlement:

– ISO-NE (Q1, 2017)

– MISO (Q4, 2017, ??)

– PJM (Q4, 2017, ??)


Pros and Cons for Implementing

5-mn Settlement

Advantages for using 5-mn settlement

– Line up RT settlement with RT dispatch More accurate payments for generators, especially during periods with LMP spikes

– Provide more incentives to generators to follow RTO 5-mn dispatch instructions Pay for performance

– Minimize make-whole payments

Disadvantages for using 5-mn settlement

– Need 5-mn meter data

– Increase volume of settlement data by a factor of 12

– Require upgrade in bid-to-bill IT infrastructure


Key Impacts of 5-mn Settlement

on your Bid-to-Bill IT Infrastructure?

Energy-Accounting & MDMA Functions: Big Impact

– Upgrade metering system to support 5-mn granularity

– Submit & Validate 5-mn Meter data for selected generators

– Modify Data Interfaces to Import 5-mn Meter Data

– Increase in meter data volume (12 x increase) Need to upgrade Energy-Accounting software

Settlement Validation & P&L Calculations: Big Impact

– Changes in 20-40 RT charge codes from Hourly to 5 mn

– Changes in RT make-whole payment calculations from Hourly to 5 mn

– Increase in settlement data volume (12 x increase) Need to upgrade IT infrastructure to perform shadow-settlement and validate RTO settlement

Invoicing Workflow: Small Impact

– Settlement calendar and invoicing workflow will remain the same


Should we submit 5-mn Meter Data?

First Choice: Submit 5-mn meter data (Revenue-Quality Data) Most accurate settlement

– Resources with loadings that fluctuate a lot in RT market, such as wind farms, hydro plants, and combined-cycle resources Big advantage to use 5-mn revenue-quality meter data to compute RT payments for generators

– Resources with loadings that do not fluctuate in RT market, such as nuclear or coal units Continue using Hourly Meter Data, not a big need to implement 5-mn meter

Second Choice OK for transition period

– Submit hourly meter data for generators using Revenue-Quality Meters

– RTO will derive 5-mn meter data by profiling using 5-mn state-estimator data

Third choice Not recommended

– Use 5-mn meter data obtained from SCADA or state estimator to perform RT settlement

First Choice: Actual 5-Minute

Meter Data

Second Choice: Actual Hourly

Meter Data profiled against State

Estimator Data

Third Choice: State Estimator 5-

Minute Data


Impacts of 5-mn Settlement on Energy

Accounting and MDMA Functions Review meter data for all resources. Decide whether or

not to upgrade meters to handle 5-mn granularity:

– Generators

– Loads, including Pumping Loads for Pump-Storage plants

– Interties

Modify data interfaces to import 5-mn meter data

Update data-validation rules to detect potential errors in 5-mn meter data

Upgrade ISO-communication software to submit 5-mn meter data for selected resources

Provide selected reports to front-office and plant personnel at 5-mn level -- showing impact of 5-mn meter data on market operations, RTO settlement, and plant P&L


Key Functions of PCI Energy Accounting

Meter-Data Management

• Meter Data Quality (validation, editing, estimation)

• Meter Data Submission to MISO

Schedule / Reservation Management

• Review, correct, and validate schedules

Check out (intraday, day after, monthly)

• Scheduled Interchange

• Actual Interchange

• Inadvertent

Meter Calculations

• Load, Hierarchical, JOU, Aggregate, NAI, NSI

• Losses, Transmission usage

Reporting

• Standard & Ad-Hoc Reports

Add-on Functions (Optional)

• Weather, Emissions, and Fuel Tracking

• Data Warehouse to support enterprise reporting

• Transmission Billing

Small error of 10-20 MWhper hour can impact your cash register by 2-4 M$/year


Demo of PCI Energy Accounting

to Illustrate Impacts of 5-mn settlement

• Set up meter data source (Hourly, 5-mn)

• Review 5-mn meter data. Show data drilling process to go from daily review to hourly review to 5-mn review

• Configure validation rules to detect potential errors in 5-mn meter data

• Modify scripts to compute hourly loads using 5-mn meter data for generators

• Submit 5-mn meter data to RTO


Companies can define all their meter locations (Load, Gen, Tie, ISO Node, Interchange, Inadvertent, Miscellaneous)

Multiple data sources for each meter (MV90, Accumulator, AAV, External, etc.) with primary and backup values that can be tracked and compared.

Meters can be “real” or “virtual” (calculated) with hundreds of attributes to define their characteristics

Allow user to select time granularity for each meter data source (Hourly, 5 mn)

Meter Configuration


Provide Powerful Dashboard to Validate Meter Data and

Identify Potential Meter Data Errors

Multiple meters can be seen at once (Meter Groups) with vertical and horizontal type screens.

Meter data screen displays support drill-down from daily to hourly to sub-hourly, including 5-minute intervals.

Multiple sources can be seen and compared on the display

Colors for meter quality flags and validation errors

Ability to enter Comments / Reasons for changes

All meter data revisions are tracked by date and user.


PCI Data Validation Engine

PCI provides a built-in validation engine, with user-configurable rules to check and validate meter data (Hourly, 5-mn) using multiple meter data sources

Support standard rules, and provide capability to create new rules

Provide Auto-validation Exception report


Graphing Capabilities

Multiple Meters and Sources can be graphed for comparison


Visually view calculation results and all their inputs using Calculation Tree

Calculations propagate both value and quality code

Calculations Review


Reports

Provide Standard hourly, daily, monthly reports

Some reports will show meter data at 5-mn level

Create ad-hoc reports Create ad-hoc datasets for export or

direct data access to other systems. PCI provides a comprehensive API to

import and export data from/to external systems.


Managing & Validating Tie Schedules

Review and checkout schedules with neighbors and counterparties.

Support Drill-in capability from check out to schedule data

Use tie schedules to calculate loads, NSI, NAI, Transmission usage

Can support sub-hourly tie schedules


PCI Checkout Screens

Provide screen to display Net Actual Interchange, with daily, on/off peak, and Tie-by-Tie display

Support Drill-down capability to view and modify underlying data

Provide Journal/Log screen to track checkout activity (when, who, notes)


Meter-Data Submission to RTO

Provide Screens to review and submit meter data (Hourly, 5-mn) to RTO

Support Automated submissions to meet RTO settlement deadline (S7, S14, etc)

Users can see changes from last submissions for NAI and Meter Data

Provide Verification and Status screens.


Data Auditing

PCI provides dashboards to track all meter data changes (when, who, notes)

May 26, 2016 Ben Coon, Consumers Energy

Consumers Energy’s Experience with Using PCI Energy Accounting

System To Validate Meter Data

Implementation of PCI Energy Accounting at Consumers Energy 23

Consumers Energy implemented PCI Energy Accounting system in 2015

EA Implementation took 6 months to complete

EA Benefits 23 MW per hour RLA

Reduction

Around $6 million

Increased Productivity

Increased Accuracy

Reduced Reliance On IT

Life Before PCI Energy Accounting 24

• Cumbersome In-House Solution

• Could Not Import Meter Data or Losses On Demand

• Load Calculation Over 15 Minutes Per Operating Day

• No Auto Meter Validations or Verifications

• Separate Submittal Interface (15 Minute Export)

• Headache to View and Edit Data

• Meter Changes Relied on IT

Energy-Accounting Workflow using PCI EA System 25

Manual Imports

Automatic Imports

Data Validation 26

Data Validation 27

Partial Data ValidBad QualityValue Differences

Missing Intervals

Data Validation 28

MV90 Values from

Source 1

Analog Values from

Source 2

Simple Logic Determines Source

Used

29Data Editing

Gen, Load, and, Tie Editing

Journal Entries

30Data Editing

Select Different Source

MV90, AAV, ACCUM, MANUAL, EXT, etc.

31PCI Energy Accounting

Delete Journal Entry

• To Err is Human, To Undo is Divine.

32Bulk Validation, Imports, & Exports

MISO Submittals

Calculations

Imports

Auto-Verifications

Data Warehouse

Impact of 5-mn Settlement on Energy Accounting Workflow at Consumers Energy 33

MISO plans to implement 5-mn settlement in Q4, 2017

Right now, Consumers Energy plans to: Submit 5-minute

meter data for generators only.

Submit load and tie meter values as hourly values.

34

Current IT Infrastructure to support PCI Energy Accounting System

DEV TEST PROD

DR Server Farm

On Site

Off Site

• 3 EA Instances On Site

• 1 EA Instance Off Site

• Servers have 64 GB RAM, 2 4-core 3.5 GB Processors

Continuous Replication

DW DW GSMSGSMS

• 10 GB/s Ethernet


Key Takeaway Points from Webinar

To support 5-mn settlement, market participants will need to submit 5-mn meter data for selected generators. Using 5-mn meter data will yield more accurate settlement results, especially for units that move a lot in RT, such as wind/solar farms, combined-cycle resources, hydro resources, etc…

PCI Energy-Accounting System provides a flexible IT architecture to manage a large volume of meter data for both hourly and 5-mn meter data:

– Set up meters

– Import meter data

– Validate meter data

– Build reports

PCI also provides a multi-dimensional data warehouse to support enterprise data reporting


Next Steps

• Please contact PCI if you need help to review potential impacts of 5-mn settlement on:

Energy Accounting and MDMA

Shadow Settlement

P&L Analysis

• Provide in-house demo

• Provide Budgetary Quote

37Copyright 1997-2016, Power Costs, Inc. All rights reserved.Page 37

For More Information

Bid-To-Bill Automation

– Forecast LMPs– Automate XML Communications– Create Unit & Demand Bids– Evaluate Bidding Strategies– Perform Shadow Settlement

Deal Management

– Capture Bilateral Deals

– Perform Deal Settlement

– Submit NERC Tags

Operations & Trading

– Optimal unit commitment and economic dispatch

– Fuel & Emissions Forecasting

Transmission Scheduling

– Energy Accounting

– ETag Schedules

– OASIS Reservations

BI & Data Warehouse

– P&L Analyzer

– Settlement Analyzer

PCI GENERATION SUPPLY MANAGEMENT SYSTEM™

Khai Le

(919) 730-9899

[email protected]

Stuart Wright

(303) 917-3565

[email protected]

Andres Barbaro

(405) 694-3438

[email protected]

Julie Rogers

(580) 362-0199

[email protected]

Documents

PCI Webinar on Impacts of 5-mn Settlement on Energy Accounting · Impact of 5-mn Settlement on Energy Accounting Workflow at Consumers Energy 33 MISO plans to implement 5-mn settlement