Dynamic Signal WorkshopJanuary 14, 2016

APA Office

Phoenix, Arizona

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What is a Dynamic Signal?

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Dynamic Signal

• Unilateral Signal• This form of dynamic scheduling is used to replace static or manual scheduling for load and

generating resources, typically base loaded generation such as Four Corners, Navajo, and Palo Verde.

• Bi-lateral Signal• Dynamic Scheduling (Bi-directional) occurs when two Control Areas’ AGC are electronically

linked, allowing them to request and acknowledge desired schedule changes and the ability to cause or change the level of energy flow between them, when

1) The AGC calls for a change in the level of its remote generation or a portion of the receiving Control Area's Area Control Error (ACE) is allocated to its remote generation. ACE is defined as the instantaneous difference between actual and scheduled interchange, taking into account the effects of frequency bias. Examples are the mid-Columbia hydro plants and Hoover Dam.

2) A Control Area is providing regulation service to another Control Area or non-Control Area entity.

• Car Cruise Control

3

Western Area Power Administration

HooverDynamic

Signal

Mead 230kV bus

SRP AEPCO APS TEP

APA Customer Loads

Zero to Maximum

WAPA

4

SVERI Resources and Loads(Southwest Variable Energy Resource Initiative)

(https://sveri.uaren.org)

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Option 1 (Agree to Value-Extend 10 years)

Pending an agreed upon price for the dynamic signal,renew the current SRP contract (the agreement wouldautomatically extend for 10 years). This may require anRFP to establish a current market value for the dynamicsignal. Assume that the CAWCD arrangement would berenewed for ten years.

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Option 2(Issue RFP to Establish Value-SRP Renewal)

Put out an RFP to establish a potential value for thedynamic signal at various levels (suggest 25%, 50%,75%, 100% of the maximum available capacity). Usethese values to discuss with SRP the renewal of theScheduling Entity/Dynamic Signal agreement.

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Option 3(Issue RFP-Dynamic Signal to Highest Bid)

Put out an RFP to establish a potential value for thedynamic signal at various levels (suggest 25%, 50%,75%, 100% of the maximum available capacity). Selectthe entity or entities offering the highest value for thedynamic signal and providing Scheduling Entityservices.

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Option 4(Extend SRP/CAWCD for 2 Years)

Due to vast and extensive changes forecast for theelectric industry, delay a long term commitment andsimply extend the contract with SRP for two yearssubject to successful renegotiation of the SRP paymentto APA for the dynamic signal ($5.4M today). This mayrequire an RFP to establish a current market value forthe dynamic signal. Assume that the CAWCDarrangement would be extended for two years.

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Option 5(Allocate Signal to APA Customers)

Allocate the dynamic signal to APA customers andthose entities able to establish a dynamic signal withWAPA. This could involve one or more customers andthe dynamic signal between entities may be limited toBalancing Authorities (APS, SRP, TEP, AEPCO, andWAPA).

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Working Examples of Option 5

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Salt River ProjectScheduling Entity

Balancing Authority64,248kw Total

59,234kw A4,014kw D11,000kw D2

Town of Gilbert

1,000kw D2

San Tan ID520kw A

City of Chandler676kw D1

Fort McDowell338kw D1SRPMIC

3,000kw D1

SRP38,782kw A

Customer Point of Delivery

Queen Creek ID

1,770kw A

Chandler Heights930kw A

ED6 Pinal8,358kw A

Ocotillo WCD

2,115kw A

Roosevelt WCD

6,759kw A

Mead 230kV

Hoover Dam

Post-2017

WAPADynamic Signal0 to 64MW

Point of Delivery

Transmission Reservation

AEPCO/CAWCDSub-metered under WAPA

Scheduling Entity174,973kw Total

161,600kw CAWCD3,024kw A3,161kw B

7,188kw D15.004kw D2

Graham County Elec312kw D1

1000kw D2

Sulfur Springs VEC2731kw D11000kw D2 Mohave

Electric Co.1145kw D11000kw D2

TRICO Elec Coop

3000kw D11000kw D2

Avra Water Co-op

100kw D2

Duncan Valley Elect700kw D2

City of Safford

2101kw B

City of Sierra Vista204kw D2

Town of Thatcher1060kw B

Mead 230kV

Hoover Dam

CAWCD161,600kw

B

Avra I&DD630kw A

St David IDSulfur Spr

81kw A

SilverbellI&DD

710kw A

Franklin IrrDistrict

Duncan Vly303kw A

Gila Vly IDGraham Cy

910kw A

Mohave Valley I&DD

390kw A

Post-2017

Customer Point of Delivery

WAPADynamic Signal0 to 175MW

Point of Delivery

Transmission Reservation

Arizona Public ServiceBalancing Authority

82,971kw Total49,509kw A22,450kw B7,405kw D13,607kw D2

HyderValley Irrig

District100kw A

Maricopa Co. Mun.

WCD8838kw A

Roosevelt ID

3219kw A

McMullen Valley

3,800kw A5342kw B

Tonopah Irrigation District

1549kw A

Aguila IrrigDistrict

2449kw A 3878kw B

Customer Point of Delivery

HarquahalaValley Power

2490kw A

Buckeye Water Cons

District2979kw A ED7

Maricopa10498kw A

ED-8 Maricopa

13,387kw A10917kw B

Markham Irrig and

WCD100kw A

Mead 230kV

Hoover Dam

SilvercreekIrrig Dist100kw A City of

Avondale547kw D2

City of Buckeye

670kw D2

City of Flagstaff

201kw D1172kw D2

City of Glendale426kw D1

City of Globe

115kw D1113kw D2

City of Payson

119kw D1173kw D2

City of Peoria

691kw D1

City of Phoenix

3000kw D1

City of Sedona

111kw D2

City of Scottsdale2366kw D1

City of Tempe

241kw D1

Town of Wickenburg

2313kw B

City of Williams

825kw D2

Northern AZ IDPP

246kw D1

Post-2017

ED-3 Pinal (ED-1)

15896kw A

Point of Delivery

WAPADynamic Signal0 to 83MW

Transmission Reservation

Tucson Electric PowerBalancing Authority

8,069kw Total6,439kw A

1,427kw D1203kw D2

CortaroMarana ID6439kw A

Customer Point of Delivery

Town of Oro Valley203kw D2

City of Tucson

Water Dep.1248kw D1

Metro Domestic Water ID179kw D1

Mead 230kV

Hoover Dam

Post-2017

WAPADynamic Signal0 to 8MW

Point of Delivery

Transmission Reservation

Western Area Power AdministrationBalancing Authority

69,952kw Total56,667kw A2,649kw B

9,901kw D1735kw D2

Town of Oro Valley203kw D2

Hohokam Irrigation &

Drainage100kw A

Town of Fredonia

100kw D2

Ak-Chin Indian Comm

102kw BCity of Mesa

1497kw B

ED 219445kw A

Customer Point of Delivery

Wellton Mohawk2910kw A

ED4 Pinal19445kw A

ED-5 Pinal14767kw A

Page Utility1050kw B

Mead 230kV

Hoover Dam

Kaibab Band of Paiute

124kw D1

Hualapai Indian Tri381kw D1100kw D2

Gila River Indian Com

3,000kw D1

Aha MacavIndian Comm

332kw D2

Tohono O’odham2,709kw

D1

Pascua Yaqui Tribe437kw D1

Navajo Tribal Util.3000kw D1 Tonto

Apache Tribe

250kw D1

Post-2017

Point of Delivery

WAPADynamic Signal0 to 70MW

Transmission Reservation

Need to Establish Criteria to Assign the Scheduling Entity Role to One or More Parties(Should this tie to the dynamic signal allocation?)

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Pricing Example Reflecting the Value of Hoover Dam’s Dynamic Signal

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APA400,000kw x 12 months=

$4,800,000

SRP64MW

AEPCO175MW

APS83MW

TEP8MW

APA Customers (Pro-rata $4,800,000)

Value of Dynamic Signal

Pay $1.00/kW/Month

Credit $1.00/kW/Month

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WAPA70MW