Home Stakeholder Engagement Issue Tracking Compensation for Restoration Energy

Issue Tracking Details

Compensation for Restoration Energy (IR039)

Last Modified - 04/04/2019
2019 2020 2018
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
E
CD
B
I
V
F

Create mechanism to settle for energy provided and delivered during a system restoration event.

Purpose

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.  

Phase

E

Next Update

01/17/2019

Status

Active

Priority

Low

Topics

Energy Markets
Settlements

Advisory Committee Priority

Preserve & enhance reliability
Improve market efficiency

Guiding Principles

Support Market Participants in making efficient operational and investment decisions

Focus Area

Streamline market administrative processes to reduce transaction costsStreamline

Driver

Assessment: Requested by RSC

Comments: Emergency Preparedness/Power System Restoration Working Group (EP/PSRWG) developed whitepaper.

Support

Assessment: RSC endorsement of whitepaper

Comments:

Which market products or systems does this impact?

Assessment: DA/RT Market Clearing

Comments: RT/DA Market, all LSEs and Generation

How Many Megawatts Are Directly Affected?

Assessment: Potentially entire market depending on scope of restoration event.

Comments:

Implementation costs and other costs

Assessment: Between $.5M and $1M

Comments: Tariff solution, minimal settlement\ software development.

Production Cost Savings

Assessment: Less than $1M

Comments: Low: Would not impact day-to-day dispatch. Restoration events are rare but widespread.

Other Benefits

Assessment:

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.

Complexity/Risks

Assessment: Medium/High

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.

Relationship to Other Initiatives

Assessment: Low

Comments: System Restoration Events are by definition not "Normal Operations". Most of the processes/initiatives in MISO are focused on ongoing operations.

Potential Fast-Track Project

Assessment: No

Comments: Communicated to Market Subcommittee (MSC) 09/01/2015.

Reliability Due Diligence

Assessment: Does No Harm

Comments: Comes into play during restoration, and is a settlement mechanism.

Updates

01/23/2019

Current phase updated to Evaluate.

11/08/2018

Overview presentation delivered to Market Subcommittee (MSC) framing the issue and considerations for next steps. A Restoration Energy Whitepaper was previously developed with a means for cost recovery and allocation. Working sessions will be schedule for early 2019 to develop framework for eventual Tariff filing.

08/09/2018

Issue introduced to MSC for input; pending acceptance for active engagement. A feedback request was opened through August 23 for stakeholders to send comments or potential approaches. This will be discussed with the MSC again in September 2018.

07/25/2018

Issue brought to the Steering Committee for reassignment from Reliability Subcommittee (RSC) to Market Subcommittee (MSC). Steering Committee agreed with recommendation. The MSC will discuss a path forward.

11/17/2015

Added to the Market Roadmap.

08/18/2015

The liaison to the Emergency Preparedness/Power System Restoration Working Group (EPPSRWG) reported that a whitepaper was developed by a task team. A MISO Operations Evaluation determined that more extensive enhancements were required, and the topic was added to the Market Roadmap for further evaluation. The project was ranked in the middle priority for the Roadmap: this topic should be considered "on hold" until the Market Roadmap process is complete. If the issue is not included in the 2015 cycle, it will be considered as a candidate for the 2016 Market Roadmap process.

04/30/2013

MISO reported to the Market Subcommittee (MSC) that it included incremental adjustments to the pricing mechanism to allow market settlements to be factored into compensation for restoration.

02/05/2013

MISO reviewed draft concept with Market Subcommittee (MSC). MISO will return to MSC in April with updates based on feedback received.

09/04/2012

MISO to develop draft concept for DA Market Implications of the compensation of restoration energy.

08/07/2012

Draft whitepaper reviewed by Market Subcommittee (MSC).