E3_EDT_Phase2_Methodology_and_Sensitivities_2011-04-22

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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
Phase 2 Simulation OutputsOutput to be provided• Full Gridview database for case simulations• Spreadsheet results of unit-specific hourly output data, nodalmarginal pricing• Production costs• Zonal flows• Spilled resourcesAfter simulation runs: could estimatecost of renewable resource curtailment• MWh of spilled resources in simulation* $/MWh proxy estimate of net value of lost renewable energy25
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 16 and 17: 2. Modified conventional reservereq
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 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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