E3_EDT_Phase2_Methodology_and_Sensitivities_2011-04-22

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2. Modified conventional reserverequirement assumptionsCaseTEPPC PC0ReserveProcurementRequirement4% of weeklypeak load*E3 Phase 1 4% of hourly load*E3 Phase 26% of hourly load*Geography of generationthat can meet reserve needsWithin local 7 TEPPC Regions (e.g., Basin,Southwest, etc.)Benchmark Case: Within local 12 ZonesEIM Case: Throughout in EIM footprintBenchmark & EIM Case: Fixed split(75/25%) between local 24 Zones and 6reserve procurement area*Note: Generator ramp rate constraints enforced in all cases for reserve needs.Simulation holds regulation and contingency reserves requirements even in dispatch.Phase 1: EIM case produced savings from optimized procurementof operating reserves within EIM footprintPhase 2: Will require same procurement geography of regulation& contingency reserves in both benchmark and EIM casesWill address flexibility reserve requirements separately16
2. Proposed Phase 2 ReserveProcurement AreasNameDescription1 BC British Columbia2 Alberta Alberta3 Northwest BPA region plus MontanaIPC, PACE, SPP, BANC, TID4 Rockies WACM + PSCO5 California CAISO + CFE6 Southwest PNM, APS, TEP, SRP,WALC, NVP, IID, LADWPBenchmark Case & EIM Case:Conventional reserve procurement splitbetween Zone and Area level• 75% portion of conventional reserves procuredfrom resources physically located in Zone(reflects regulation)Zone Area 1 Zone Area 2Area 3Area 4• Can procure remaining 25% from resourcesphysically located within the broader ProcurementArea (reflects contingency reserve needs)• Will confirm percentage splits with additional BAsArea 5Area 6Flexibility reserves addressed separately1317
Page 5: About E3E3’s expertise has placed
Page 8 and 9: Phase 2 Overview & MotivationOveral
Page 10 and 11: Phase 2 CasesThe analysis will cons
Page 12 and 13: Key Assumptions to Phase 2 CasesUpd
Page 14 and 15: 1. Proposed 24 Zone Modelfor Phase
Page 18 and 19: 3. Flexibility Reserve Requirement
Page 20 and 21: Summary of Phase 2 Methodologyby Re
Page 22 and 23: 5. Price-ResponsiveHydro Modeling (
Page 24 and 25: Anticipated Impact of RevisedPhase
Page 26 and 27: Section 3: Phase 2 StudyProposed Se
Page 28 and 29: Additional Sensitivity AnalysisAs t
Page 30 and 31: Sensitive Case PrioritizationOrder
Page 32: E3 Contact InformationEnergy and En

E3_EDT_Phase2_Methodology_and_Sensitivities_2011-04-22

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