AUFLS II Appendix F. Market Options Workshop Summary. Carbon+Energy Partners and Transpower New Zealand Limited. May 2011

Similar documents
Smart electricity meters: How households and the environment can benefit

Submission on the Draft Electricity Demand and Generation Scenarios

Updated SCER Demand Side Participation Program December 2013

PROGRAM. What the Consumer Wants Perfecting the customer experience

Powerco Limited Pricing Guide 2015 ANNUAL REPORT 2015

Summer Training Event Ipswich 16, 17 and 18 June 2015

ENVIRONMENTAL SCRUTINY COMMITTEE: 9 th JUNE 2015 INFRASTRUCTURE BUSINESS MODEL & ALTERNATIVE DELIVERY OPTIONS DRAFT TASK & FINISH REPORT

Workforce Information Technology Procurement Project Executive Steering Committee Conference Call Minutes

BPM Think Tank Agenda 2005 BPM Think Tank, March 1-3, Ocean Point Resort and Spa, Miami, Florida

MIGHTY RIVER POWER SUBMISSION TO THE GAS INDUSTRY CO: CURRENT ISSUES FOR DOMESTIC AND SMALL BUSINESS GAS CONSUMERS 28 OCTOBER 2008

Mentor Training Outlines

IMO Board Room, Level 17, 197 St Georges Terrace, Perth

ACB Management & Leadership Course 12 th 17th July 2015

Summer Training Event Ipswich 16, 17 and 18 June 2015

Head Teacher, Pulteneytown Academy PS Head Teacher South Primary School. A. Sargent South Primary School Parent Council

TRANSPOWER NEW ZEALAND LIMITED. Request for Proposals. Demand Response Programme

Minutes of APUC Board Meeting held at a.m. on Friday 9 January 2009 at 14 New Mart Road, Edinburgh

DISCLOSURE OF ELECTRICITY PRICING METHODOLOGY PURSUANT TO REQUIREMENT 22 OF THE ELECTRICITY INFORMATION DISCLOSURE REQUIREMENTS 2004

Contact comments on the TSW Consulting Ltd report Mass Market Load Control its use and its potential use

2015 State Fleet Manager s Workshop Nashville, Tennessee

THE EXECUTIVE 13 APRIL 2004 JOINT REPORT OF THE DIRECTOR OF LEISURE AND ENVIRONMENTAL SERVICES AND THE DIRECTOR OF CORPORATE STRATEGY

Market Conditions and Costs (IA F) Andrew Wolstenholme, Chief Executive. Audit Conclusion: Well Controlled and Audit Closed

2012 ALGIM Records / Information Management Awards. Guidelines & Information

Mediators Conference October Surfers Paradise Marriott Resort and Spa Gold Coast, Queensland

Submission on the Consumer Law Reform Bill

Business Improvement in Universities

Meeting Record. Brisbane City Council. Lower Oxley Creek and Paradise Wetlands. Local community

Day One: Landerhaven Day Two: Ohio Bureau of Workers Compensation Tickets & Booths Day One Day Two Exhibitor Booths:

Insolvent Retailers Options Paper - Analysis of Submissions. Date issued: 5 March

Commissioning Strategy

Mr Glenn McLaren was welcomed to his first MIAC meeting.

CITY OF KINGSTON. Ontario

Minutes of East Ayrshire Transition Integration Board 3pm, Wednesday 26 March 2014 Council Chambers, Council HQ, London Road, Kilmarnock

Professor Rajesh Chandra Vice-Chancellor & President UNIVERSITY OF THE SOUTH PACIFIC

Minutes. Payments Strategy Forum. Date / Time: 8 th October Ai. 1 Welcomes and introductions

Promoting the long term interests of electricity customers. IPART s submission SCER on network policies and regulation

REVIEW OF FLEET SERVICES - FINAL REPORT OF THE ENVIRONMENT SCRUTINY PANEL

Foreign Affairs, Defence and Trade Committee. Financial Review FY2013/14. for. Vote: Foreign Affairs and Trade Additional Questions

3 THE MINUTES OF THE PREVIOUS MEETING 19 NOVEMBER The minutes of the previous meeting were agreed as an accurate record.

Planning and Operating an Integrated Grid

Financial Literacy and the Retirement Process

Information Services Structure Chart

I NOTES REPORT: The Government s Proposed Genesis Energy Share Offer. Whakamarino Lodge, Tuai, Waikaremoana

MINUTES. 1. A private session between members was held at the start of the meeting.

Evaluation of the 2009 interchange and credit card settlements

TasNetworks Regulatory Proposal Expenditure Forecasting Methodology

(1) To approve the proposals set out in paragraphs to ensure greater transparency of partnership board activity; and

ASB Bank Limited. Bank of New Zealand. Centrix Group Limited. Dun & Bradstreet (New Zealand) Limited. Fisher & Paykel Finance Holdings Limited

Administrative Staff

New Faculty Orientation. The GRADUATE SCHOOL. August 20, Kern Graduate Building

Brokers Expand your Horizon

TOP 10 THINGS TO KNOW ABOUT DOING BUSINESS IN INDIA

Development of a Knowledge Base for geospatial information Management

Minutes of the 1st meeting of the Scotland CAN DO Innovation Forum University of Edinburgh Business School, 20 May 2015

Energy & Utility Skills The Sector Skills Council for the electricity, gas, waste management and water industries.

CUSTOMER-FACING PERFORMANCE MEASURES

KILLERMONT PRIMARY PARENT COUNCIL AGM. Minutes 15 September 2014

Developing a system for the appraisal of Council Members

Page 97. Executive Head of Asset Planning, Management and Capital Delivery

Revised Government Policy Statement on Electricity Governance

1. Associate Director of Health Informatics Andrew Izon

E-COMMERCE - TOWARD AN INTERNATIONAL DEFINITION AND INTERNATIONALLY COMPARABLE STATISTICAL INDICATORS

EAST RIDING OF YORKSHIRE COUNCIL

Consultation Report. Students at the Heart: Stakeholder Reactions to the MPHEC s Proposed Approach to Quality Assurance at Maritime Universities

MIS 373/OM IT for Supply Chains Spring 2012

Capability maturity model for maintenance management

DIVISION OF EVALUATION AND ACCOUNTABILITY

TEC Capital Asset Management Standard January 2011

Economic and Social Council

ROAD ASSET MANAGEMENT WORKSHOP. Recent Trends in Road Asset Management and Case Studies November 2013 ADB Headquarters, Manila, Philippines

Minutes of the Canobolas Four Wheel Drive Club General Monthly Meeting held on Sunday 13 November 2011 Toperi Park, Borenore.

FINAL BOARD MEETING PUBLIC SESSION. 1. The Chair welcomed Members and attendees to the eighth meeting of the Press Recognition Panel Board.

Off-peak: it s like a sale!

The Chair called the meeting to order and the opening exercises were observed. The agenda was approved as recommended by the Superintendent.

U & D COAL LIMITED A.C.N BOARD CHARTER

INFORMATION MANAGEMENT AND TECHNOLOGY (IM&T) STRATEGY

FTR Consultation on Daily Settlement Price Methodology

Stamford Bridge Chelsea, London Thursday 17 June 2010

New Zealand Search and Rescue Council & Consultative Committee Meeting

MASTER SCHEDULE GUIDING PRINCIPLES, PRIORITIES, MILESTONES & METRICS

Restriction on Hours of Trade for Alcohol Licensees in Auckland

Request for Proposals AAA Regional Meetings

FACULTY COUNCIL MEETING 21 - MINUTES Wednesday, August 17, 2011, 4:00 5:30p. m. EST

Directors and Senior Management

Executive Summary DRAFT. Martin Luther King, Jr. Elementary School

Implementation of the Performance Data Warehouse (IA 13_615 /F) Mike Brown, Managing Director, Rail and Underground. Audit Conclusion: Audit Closed

BBA submission on the HM Treasury (HMT) Consultation Competition in banking: improving access to SME credit data

Join us to make SmarterDecisions New Zealand Intergraph Users Community Conference 2013

Employment Conditions Committee: 16 January 2006

Seven Challenges Facing The Public Sector Procurement Community

Independent Private Money Broker Certification Program. A helpful guide for those entering real estate brokering

National Refugee Resettlement Forum

GB 14/167 Information Governance, Management & Technology Committee Terms of Reference

Keeping New Zealand s Economy Cyber Secure

Roanoke River Basin Bi-State Commission DRAFT Meeting Summary Wednesday, October 14, 2015 New College Institute, Martinsville, Virginia

Regulation of Electricity Lines Businesses, Analysis of Lines Business Performance

Overview of the UK Demand Response Market

The Art of the Law Firm Merger

New Zealand's Distribution Pricing Strategies

AGENDA ACTION RELEVANT ATTACHMENTS REPORTING ORDER OF BUSINESS. Welcome& Introductions:

Transcription:

AUFLS II Appendix F Market Options Workshop Summary Carbon+Energy Partners and Transpower New Zealand Limited May 2011

AUFLS Market Options Workshop Summary Page 2 of 6 TABLE OF CONTENTS 1 Background... 3 2 Objective... 3 3 AUFLS Provision... 3 4 AUFLS & IL Feeder Sharing... 4 5 Commercial AUFLS Arrangements... 4 5.1 Status Quo... 4 5.2 Cap and Trade... 4 5.3 Dynamic Procurement... 4 6 Conclusion... 5 7 Appendix... 5 7.1 Agenda... 5 7.2 Attendees... 6 7.3 PowerPoint Slides... 6 7.4 Discussion Paper... 6

AUFLS Market Options Workshop Summary Page 3 of 6 1 Background An AUFLS workshop was planned to enable early discussion with industry and to better understand various industry participants perspectives on AUFLS market development options and ultimately find a way to progress towards an optimal AUFLS arrangement for New Zealand. The workshop was held on Thursday 14 April 2011 and was attended by a range of parties with varying interest in the development of commercial mechanisms. The attendees in the meeting included the following broad groupings in addition to Transpower participants: Network/Distribution Generator/Retailers Major Users Service Providers (e.g. Aggregators) During the workshop a brief overview of the current AUFLS review and an introduction to the technical workstream being undertaken were presented to the group. An interactive session was then held on the potential methods to commercially enable the effective provision of AUFLS. These methods ranged from the status quo through to the dynamic procurement of AUFLS. 2 Objective The summary paper provides a brief overview of the industry perspectives discussed at the workshop. Industry perspectives on the following topics are outlined in this paper: AUFLS Provision AUFLS & IL Feeder Sharing Market Options The paper is intended to be circulated to participants in order to ensure perspectives have been adequately captured and to progress the discussion of commercial arrangements as the technical work stream continues. 3 AUFLS Provision The starting point for the Network Companies tended to be built on a belief that there should be mandated obligation to provide AUFLS. Some Network Companies viewed the provision of AUFLS as a static activity, hard wired relays left armed for emergency events. This differed from some of the Major Users and the Aggregators who believe there should be the ability to institute a property right around provision (with associated payment) to adequately prepare for the future market. The movement from an unpaid (but not costless) obligation to the establishment of a property right to load which requires payment for it to be returned for IL or AUFLS seems not to be supported at the current time by Network companies.

AUFLS Market Options Workshop Summary Page 4 of 6 4 AUFLS & IL Feeder Sharing Network Companies seemed to be in support of the ability to offer IL from behind an AUFLS feeder. However the issue of how IL and AUFLS feeder sharing is managed when an aggregator or a retailer has rights to the load for IL purposes then the and Distributors will need to be addressed to manage AUFLS obligations. The aggregators make the point that the development of the Smart Grid that they envisage requires all classes of consumers of electricity to have the property rights over load (including for AUFLS). It seems that the thinking is the granularity of control (more parties able to be subject to AUFLS through the use of new technology) will enable consumers to have choice about whether they want to be included in AUFLS. 5 Commercial AUFLS Arrangements The discussion of an optimal contracting mechanism started with a description of the three potential mechanisms and the conversation was opened for other mechanisms to be suggested by participants. No additional AUFLS market options were suggested however there was a suggestion for a faster interruptible load product. This section outlines the various perspectives on each market option discussed. 5.1 Status Quo The simple obligation method is effectively the current obligations for providing AUFLS. Network companies highlighted the challenge of separating critical and non-critical customers when network diversity is low (i.e. critical load such as hospitals and emergency services end up in AUFLS blocks). Another network company shared that the arrangement of their network requires them to have an AUFLS relay connected to all of their feeders, excluding supply to a dairy factory, to meet the current obligations. 5.2 Cap and Trade The ability to contract out AUFLS obligations provides a slight extension to the Status Quo option. This option was generally seen by the workshop participants as a useful enhancement. One participant did point out that such an arrangement could be accommodated under the existing rules - but it was generally thought that it hadn t been utilised due to lack of sufficient detail. It was emphasized by some distribution companies that the ability to trade obligations would most likely be sought out as a means to ensure supply to critical load and not on the basis of commercial incentives. 5.3 Dynamic Procurement A further extension of the Cap and Trade system was an active and dynamic trading environment. This was not supported at all by Network companies, but found some support with proponents of the Smart Grid. One distribution company shared that their company had little to no interest in seeking commercial incentives for AUFLS provision. The debate is actually around Obligations and Property/Rights, with the Status Quo and Cap and Trade being systems to support an Obligation based regime, whereas more dynamism is required to support a Property Rights based regime.

AUFLS Market Options Workshop Summary Page 5 of 6 6 Conclusion Although it is difficult to establish a general mood of the meeting, there appeared to be more support of the Cap and Trade based models as they presented an improvement over the status quo. An important outcome of the workshop was the need to develop a means to prevent critical load from being placed on AUFLS. Further work is required on the principles and process through which parties can trade AUFLS provision. The co-habitation of IL and AUFLS was supported by the participants. The discussion also highlighted the need for greater transparency to the Network/Distribution companies and the of any downstream commercial arrangements that may impact on the ability to call upon AUFLS. 7 Appendix 7.1 Agenda Time Item 10:00 Morning Tea 10:10 Welcome & Overview 10:15 UFM Overview 10:25 Background (Previous AUFLS work) 10:35 Overview of Known Issues 10:45 AUFLS Market Options Intro 11:00 Round Table Option Discussion 12:30 Lunch 1:00 Discussion cont. - Transaction cost - Implementation 2:00 Conclude discussion

AUFLS Market Options Workshop Summary Page 6 of 6 7.2 Attendees Name James Moulder Brent Thomas Derek Todd Darryl Renner Dean Gowans Robert Derks Vince Smart Derek Caudwell Allan Neilson Ralph Matthes Rebecca Osborne Terrance Currie Grant Crawshay Andrew Collier Dick Whitelaw Fred Staples Mike Smith Robert Gaskin Tahmina Tariq Andrew Twaddle Gari Bickers John Cambell Mike Phethean Nicki Lao Young Kevin Small Steven Nutt Cheryl Frankis Tony Smallman Keith Gilby Scott Finlay Nigel Brown Bas van Esch Lee Goddard Andy Wilson Geoff Douch Graham Petrie Company Carbon+Energy Partners (Chair) Contact Energy Counties Power Limited Electricity Authority Energy Intellect Ferranti Consulting Genesis Energy Horizon Energy Kiwirail Major Electricity Users' Group Meridian Energy MEUG Mighty River Power Ltd Northpower NZ Steel Pan Pac Powerco Powerco PowerCo (Presenter) (Presenter) The Lines Company Top Energy Top Energy Limited Transpower Unison Networks Ltd Vector Waipa Networks Limited Wellington Electricity Wellington Electricity Wellington Electricity Note the above list was compiled from those that RSVP d for the workshop; some may have not been in attendance on the day. 7.3 PowerPoint Slides The PowerPoint slides used during the workshop can be requested. 7.4 Discussion Paper The discussion paper for the workshop can be requested.