Create mechanism to settle for energy provided and delivered during a system restoration event.
During system restoration events, the transmission system in the isolated or blacked out areas must be re-energized and expanded to create a stable island that can eventually be re-synchronized to the interconnection. In such a scenario, the Transmission Operator is responsible for re-energizing their transmission facilities and identifying the generation and load needed to support system operation. While MISO is able to economically commit and dispatch generation in an interconnected system, the generators in the separated area(s) do not obtain unit dispatch instructions from MISO. A compensation and cost allocation methodology needs to exist to make resource owners whole during island events.
Support Market Participants in making efficient operational and investment decisions
Streamline market administrative processes to reduce transaction costsStreamline
Assessment: Requested by RSC
Comments: Emergency Preparedness/Power System Restoration Working Group (EP/PSRWG) developed whitepaper.
Assessment: RSC endorsement of whitepaper
Assessment: DA/RT Market Clearing
Comments: RT/DA Market, all LSEs and Generation
Assessment: Potentially entire market depending on scope of restoration event.
Assessment: Between $.5M and $1M
Comments: Tariff solution, minimal settlement\ software development.
Assessment: Less than $1M
Comments: Low: Would not impact day-to-day dispatch. Restoration events are rare but widespread.
Comments: Without a mechanism to compensate for restoration energy, some generator operators (particularly IPPs) would have little incentive to assist in a restoration event. This could delay system restoration activities. Since restoration events are very rare, yet very high impact, the process will not come into play often, but will be very important. This is especially true with the integration of the South Region due to the added risk of Hurricane damage causing widespread system damage and blackouts.
Comments: Will likely require an After The Fact settlements process outside normal settlements processes. During a restoration event, Real Time data will likely be unavailable and the MISO State Estimator would be incapacitated. Data may need to be collected over weeks or months to facilitate the final settlement.
Comments: System Restoration Events are by definition not "Normal Operations". Most of the processes/initiatives in MISO are focused on ongoing operations.
Comments: Communicated to Market Subcommittee (MSC) 09/01/2015.
Assessment: Does No Harm
Comments: Comes into play during restoration, and is a settlement mechanism.