New England s Bulk Electric Power Grid. Mark Babula System Planning ISO New England Inc.

Transcription

1 New England s Bulk Electric Power Grid Mark Babula System Planning ISO New England Inc.

2 ISO New England Overview Private, not-for-profit corporation created in 1997 to oversee New England s deregulated electric power system Regulated by the Federal Energy Regulatory Commission (FERC) Independent of companies doing business in the market Independent Board of Directors, with no financial stake in regional energy firms The ISO operates in accordance with an RTO Tariff, a Participants Agreement with NEPOOL and a Transmission Operating Agreement with the Transmission Owners Approximately 400 employees headquartered in Holyoke, Massachusetts NEDRIX Conference 2

3 New England s Electric Power System November 9, 1965: Northeast Blackout shuts down power for 30 million customers January 1966: Northeast Power Coordinating Council (NPCC) formed to improve regional system reliability 1971: New England Power Pool (NEPOOL) created to establish a central dispatch system and enhance system reliability 1996: FERC Order 888 deregulates the generation portion of the electric power system and implements open access for transmission lines July 1, 1997: ISO New England created to manage the regional bulk power system, develop new wholesale markets and ensure access to transmission systems May 1, 1999: ISO New England begins managing restructured regional wholesale power markets NEDRIX Conference 3

4 New England s Electric Power System 14 million people; 6.5 million households and businesses 350+ generators/power plants 8,000+ miles of transmission lines 12 interconnections to neighboring systems 32,000 megawatts of total supply All-time peak demand: ~26,922 MW on July 22, Energy Pricing Zones Approximately $7.25 billion annual market ISO and Local Control Centers 320 mi. 520 km 400 mi. 650 km NEDRIX Conference 4

5 North American Electric System Western Eastern Quebec 35,000 MW 150,000 MW Texas 55,000 MW 500,000 MW 109 Control Areas Total 740,000 MW NEDRIX Conference 5

6 Centralized Dispatch by ISO-NE Dispatch New England s supplyside resources as a single system to: Maintain reliability throughout the region Minimize cost of electric production Comply with national and regional operating procedures and policies Relies on local control center operated by Transmission Owners for transmission system switching VELCO (2005) NH REMVEC CONVEX Maine NSTAR (2005) NEDRIX Conference 6

7 Power System Operations Responsibilities Ensure both short and long-term reliability Operate the system in a reliable and efficient manner Forecast both short and long-term needs Commit generating, demand response and external purchases to meet expected load and reserve requirements Real time monitoring and control of bulk power system Economic dispatch of generating, demand response and external sales/purchases to meet load and reserve requirements Monitor and control transmission system to conform with established reliability standards (thermal, voltage, stability, etc.) Coordinate and approve generating and transmission facility outage requests to assure reliable system operation NEDRIX Conference 7

8 Annual Needs Assessment for New England s Bulk Power System Regional System Plan (RSP) is a process begun in 1999 A published assessment of New England s bulk transmission system that identifies bottlenecks/constraints such as to attract a market-based response to alleviating them. ISO can order upgrades as final backstop Planning Advisory Committee (PAC) assists with development of RSP Open to any entity including state regulatory agencies, attorneys general, consumer counsels, public interest groups, etc. NEDRIX Conference 8

9 Ingredients of Reliable Power Systems A reliable bulk power system is based on four pillars: Fair and Efficient Market Structure: Sends price signals to promote appropriate investment in supply, transmission, and conservation; guided by fair and transparent rules; market monitoring ensures a level playing field Adequate Power Supply: Power supplies in the right locations to meet demand and growth Reliable Transmission System: Adequate and updated power delivery system Active Demand Participation: Incentives for reduced consumption through Conservation and Demand Response NEDRIX Conference 9

10 Introduction to the Physical Electric System

11 Basic Terms & Concepts Generation: Production of electric energy Transmission: Delivery of electricity through high voltage electric lines (transmission voltage > 69 kv) Distribution: Electricity is distributed to end-users via low voltage electric lines (distribution voltage < 69 kv) NEDRIX Conference 11

12 Operation of the Power System Bulk Power System Designed, built, and operated to reliably meet power needs in accordance with national reliability criteria North American Electric Reliability Council (NERC) Establishment of reliability and performance standards Coordination among ten (10) Regional Reliability Councils New England is part of the Northeast Power Coordinating Council One day in 10-year bulk resource adequacy standard Probability of disconnecting firm customers due to lack of generating resources no more than one day in ten (10) years Operators must meet real-time demand and maintain adequate operating reserves to cover the unexpected loss of facilities NEDRIX Conference 12

13 How the Physical Electric Power System Works 1. Electricity is generated at a power plant 3. Distribution lines deliver electricity to consumers < 69 kv Wholesale Retail 2. Electricity travels through Transmission lines > 69 kv 4. Consumers = Residential, Commercial and Industrial NEDRIX Conference 13

14 Power System Operational Control One of the most important power system control objectives is to keep continuous balance between demand, supply and frequency Frequency: Rate in cycles per second (Hertz) at which voltage and current oscillate in electrical power systems (60 Hz in North America) At any moment, the sum of all generation must meet all loads, losses, and scheduled net interchange Three processes that achieve this goal under normal operations: Automatic Generation Control (AGC), Load Following, and Optimal/Economic Dispatch NEDRIX Conference 14

15 Continuous Energy Balance Load Losses Interchange Power Generated DEMAND Area Control Error MW 0 GENERATION NEDRIX Conference 15

16 Generation Conversion of mechanical energy into electrical energy is the most popular method of producing electricity Prime mover is used to convert an energy source to mechanical movement. Examples of a prime mover are water wheel, turbine, and gas engine. Natural & man-made energy sources drive prime movers Falling Water & Wind Heat (Thermal) from Fossil Fuels & Nuclear Capacity = The measure of the ability to produce electricity (watt / kilowatt / megawatt) Energy = Production of electricity over time (kilowatthours / megawatt-hours) NEDRIX Conference 16

17 Transmission Transfer or delivery of electrical energy from the generators to where it will be used High voltage lines are used because they can move more power over greater distances with less losses than low voltage lines > 69kv Common high voltage lines 345Kv, 230Kv, 115Kv, 69Kv NEDRIX Conference 17

18 Distribution Transfer of electricity from high voltage lines to lower voltage lines < 69 kv Power lines that you see along roads in your neighborhood and connect to your home Distribution level outages, primarily due to weather impacts, are the largest factor in loss of electric service to customers. NEDRIX Conference 18

19 Introduction to Electric Markets

20 Changes Brought by Industry Restructuring Federal Jurisdiction Wholesale Retail State Jurisdiction Facility Siting, Distribution, Retail Rates NEDRIX Conference 20

21 Oversight of Electricity Markets Federal Regulation (FERC) State Regulation (DPUC, DTE) Retail Market NEDRIX Conference 21

22 Financial Wholesale-to-Retail Connection Generator Marketer Generator End-Users Demand Response Supplier Generator Aggregator Physical Transmission Distribution Generator Electric Demand NEDRIX Conference 22

23 New England s Wholesale Electric Markets

24 New England s Wholesale Markets Energy Markets: Day-Ahead & Real-Time Ancillary Services Market Regulation Market Forward Reserves Market Capacity Market Financial Transmission Rights Demand Response NEDRIX Conference 24

25 Benefits of New England s Wholesale Electric Markets New England is ahead of the rest of the nation in terms of its restructuring efforts High levels of generation divestiture Generation investment risk shifted from consumers Proper correlation of price with supply and demand Continuous studies have shown markets workably competitive Facilitated significant bilateral contracting Over 200+ wholesale Market Participants NEDRIX Conference 25

26 Load Zones and Pricing Hub NEDRIX Conference 26

27 ISO New England s Business Continuity

28 Preparation for the uncertainties in our business s future is not merely Emergency Management/Disaster Recovery anymore NEDRIX Conference 28

29 Pre September 11, 2001 May 1998 Presidential Decision Directive #63: Protecting America s Critical Infrastructure June 2001 North American Electric Reliability Council (NERC) issues report: Approach to Action For Electric Sector-Working Group Forum on Critical Protection. NEDRIX Conference 29

30 Post 9/11 Federal Energy Regulatory Commission (FERC) enlists NERC to develop Industry Sector Security Guidelines May 2002 NERC issues white paper The Electricity Sector Response to Critical Infrastructure Protection Challenges June 2002 NERC issues Security Guidelines for Utility Sector (Version 1) August 2003 NERC issues U/A Standard 1200 Cyber Security May 2004 NERC issues Compliance Template, Emergency Operations/Loss of Primary Control Facility June 2004 NERC issues Standard 1300 Cyber Security (Draft) ((CIP-002 through CIP-009)) April NERC issues PSO/IT Guidelines NEDRIX Conference 30

31 ISO Business Continuity Plan Overview Business Continuity Steering Committee ISO New England Governance Working Groups Department Plan Owners BCP Organization to meet ISO s needs Incident Management Team Plan System Operations and IT Recovery Plans Business Continuity Plan Business Department Recover Plans Administration Manual NEDRIX Conference 31

32 BCP Components ISO-NE has Detailed Departmental Business Continuity Plans for every department in the company ISO-NE has a Record Retention program that utilizes Offsite Data Storage ISO-NE has a Backup Control Center (BCC) to ensure control over six-state regional power grid BCC located in a separate, secure, off-site facility BCC has all the functionality of the Master Control Center In addition, there are Local Control Centers scattered throughout New England NEDRIX Conference 32

33 Questions Contact: Market Support Services at (413) , fax: (413) , or NEDRIX Conference 33