ACE DIVERSITY INTERCHANGE

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Byron Martin
6 years ago
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1 ACE DIVERSITY INTERCHANGE O P E R A T I O N A L E F F I C I E N C Y A C H I E V E D T H R O U G H C O O R D I N A T I O N A M O N G B A L A N C I N G A U T H O R I T I E S

2 WHAT IS IT? ADI stands for Area Control Error (ACE) Diversity Interchange. ADI pools the momentary imbalance (ACE) among Balancing Authorities to reduce control burden; reduce generation movement; reduce sensitivity to non-dispatchable resource output; and, improve control performance. ADI adjustments do not involve schedules or transmission; they are modeled as actual interchange (pseudo-tie) in the ACE equation. ADI adjustments are not monetized.

3 THE HISTORY ADI has been used in various regions in North America since the mid-1980s (MAPP). ADI has been used by the Northeast Power Coordinating Council, MISO and, SPP. ADI was introduced into the WECC in 2006, designed by BC Hydro, Idaho Power Company, NorthWestern Energy and, PacifiCorp. Currently, there are eight (8) ADI Participants: Arizona Public Service Company; BPA; BC Hydro; GWA (Glacier); Idaho Power; NorthWestern Energy; Puget Sound Energy; and, Salt River Project.

4 THE DESIGN Check for diversity among Participants ACEs (both over-generation and under-generation during ACE cycles, e.g., 4-second cycles). If there is diversity, apply equal share adjustments: PCA Raw ACE Adjustment Adj. ACE A -26 MW +26 MW 0 MW B -20 MW +20 MW 0 MW C +30 MW - 24 MW + 6 MW D +27 MW - 24 MW + 3 MW Net + 9 MW +9 MW

5 GEOGRAPHIC SCOPE Western Interconnection Single bubble configuration (default) Direct and/or permitted connectivity Separate bubbles NWPP (northern bubble) WestConnect (southern bubble) Trigger for separate bubbles Concerns about transmission NWPP and SWRSG Reserve sharing events Single bubble configuration requires full support

6 THE LIMITS Adjustments < 30 MW. Accumulated adjustments < 60 MW-hours. The Host is the system of record for the adjustments. The ADI adjustments are reported to WIT as ADI interchange ; the common ADI BA is GWA; WIT accounting is managed by CECD. The Participants suspend the ADI tool if concerned about reliability (e.g., transmission overloads, AGC paused, frequency deviation). ADI is suspended during contingency events.

7 AGREEMENT Minimum structure necessary to enable implementation. ADI is a reliability tool; a transmission function activity. ADI does not change or impact system operations or control area functions. ADI Host and Participating Control Areas are Parties. Start-up costs were paid for by initial four Participants expenses $24,000/ Balancing Authority Criteria to allow additional Participants: A BA located in Western Interconnection Adjacent to one or more ADI Participants or to a BA that supports ADI operations Execute Exhibit E to the ADI Agreement Execute Exhibit B to the Versify License Agreement (optional)

8 GOVERNANCE Agreement Group Approves budget Interprets agreement Establishes management procedures Resolves disputes 2/3 vote required for decisions Operating Group Establish, implement and modify Implementation Protocols, operating parameters, suspension protocols, etc.; majority rules among members.

9 DOCUMENTATION Introduction Participation in the Western Interconnection The ADI Tool ADI Versify Tool ADI in the Area Control Error Equation ADI and NERC Standards Normal ADI Operations The ADI Algorithm Parameters Balancing Authority Operations Suspension Protocols Participant ADI Implementation Application Test Procedures References Revision Log

10 OVERSIGHT TOOL 10

11 SAMPLE REPORT 11

12 BENEFITS Captures momentary diversity Avoids generator movement (relaxed control) Reduces regulation requirements Enhances ability to absorb intermittent output Improves control performance + 10 MW valued at $25/MWh ($2.1 million/year)

13 PHILOSOPHY Straight-forward Agreement Governance by two committees Cost-sharing for start-up and annual expenses Early conversation with FERC Early conversation with WECC Leverage existing infrastructure Dedicated Remote Interface Gateway (RIG) Equal share logic avoided unnecessary complications WECC Operating Network (WON) WECC Interchange Tool (WIT) Design decisions ensure that all Participants are either held harmless or better off. Operational improvement rather than commercial activity. Low cost to operate.

ACE Diversity Interchange White Paper

ACE Diversity Interchange White Paper Authored by: The NERC ACE Diversity Interchange Task Force March 2012 3353 Peachtree Road NE Suite 600, North Tower Atlanta, GA 30326 404-446-2560 www.nerc.com Table