E3_EDT_Phase2_Methodology_and_Sensitivities_2011-04-22

Anticipated Impact of RevisedPhase 2 Assumptions on ResultsFactor1. Ph.2 Benchmark case will use hurdlerates between a 24 of smaller zones,rather than the 13 Ph. 1 zones.2. Ph.2 EIM Case will not allow full sharingof reserves across EIM footprint3. Ph.2 will add new flexibility reserverequirements by BA to meet changingrenewable generation and loads, and willallow EIM-wide sharing to satisfy needs.4. Ph.2 will seek to use day ahead forecastof wind generation in unit commitmentcycle to account for effect of uncertainty5. Ph.2 will seek to use HTC-based hydrodispatch but will not change PLF to followEIM-wide footprint6. Ph.2 will not change hurdle rates in unitcommitment cycle of EIM case, onlydispatch (except for Gas CTs)Impacton EIMBenefitsPositiveMediumNegativeHighPositiveMediumPositiveLowPositiveLowNegativeLowDiscussionMore hurdle rates betweenzones will reflect more basecase friction which EIM couldaddressFewer savings from reducedunit commitment & startupEIM will allow for lower totalflexibility reserve needs,partially offsetting reservesharing issue in row aboveMay cause potential loadcurtailment & EIMimprovementHydro will become partiallyprice responsive, and mayreshape based on EIM pricesAdditional generators will notcommit for export under EIM24