LMP Base Cases

Presented to:

NEPOOL Markets Committee

November 19, 2001

Robert B. Burke

Agenda Item #411/19&20/01 MC Mtg.

Contents

• LMP Publishing Process

• LMP Overview

• Static Base Case– What was analyzed?

– How it was analyzed

– Summary of Results

• Next Steps

Static Cases

• Purpose:– Demonstrate software development progress

– Provide Participants with samples effects of possible

transmission line outage

– Test new unit dispatch software (EMP, UDS/SPD)

Future Releases

• Purpose:– Provide Participants with snapshot of actual system dispatch

with possible LMP values

– ISO will try to choose a dispatch cycle from the prior month with

congestion

– Test changes to new unit dispatch software (EMP, UDS/SPD)

Participant Input

• Technical session to review static cases– December 5 - Springfield Sheraton

– Register on-line at the ISO web site

• Are there additional “static” cases you would like

to see?– Email by December 14:

cstedu@iso-ne.com

– ISO will review suggestions and release results of those cases

analyzed

What is LMP?

• Locational Marginal Price - cost of supplying the

next MW of load

• When congestion is present, locational marginal

prices may be different by zone

3 Bus Example - 1

Generator-1Capacity = 300 MW$10/MW

Generator-2Capacity = 200 MW$15/MW

Generator-3Capacity = 200 MW$20/MW

Load 2 = 499 MWMarket Clearing Price = $20

Load 1 = 100 MWMarket Clearing Price = $20

100 MW

200 MW

400 MW

99 MW

3 Bus Example - 2

Generator-1Capacity = 300 MW$10/MW

Generator-2Capacity = 200 MW$15/MW

Generator-3Capacity = 200 MW$20/MW

Load 2 = 499 MWLMP = $20

Load 1 = 100 MWLMP = $10

Thermal limit 150 MW

150 MW

100 MW350 MW

149 MW

What is Presented?

• Static base case

• Each Analysis Represents a Separate

Transmission Line Outage

• Resulting LMP values

Static Cases

• Started with secure network

• Actual system from September 4, 2001

• Hour Ending 15

• Load 18,375 MW

Data

• Load

• Generation

• Tie line flow

• Units on-line

• Unit bid data

• UDS/SPD agreed with Couger

How analysis was run

• Transmission Line removed from service

• Contingency analysis performed

• Contingencies identified

• Overload identified (binding constraint)

What’s in & What’s not

We included: • Power Flow Model

• Unit Bid Model

and enforced:

• Unit Capacity Limits

• Unit Ramp Rate Limits

• Generic Constraints

We didn’t include:• Transaction Model

• Inc/Dec Bid Model

• Reserve Model

• Market Power Mitigation

Cases Analyzed

Case Primary Transmission Line Removed1 Golden Hills-Mystic (349XY)2 Quaker Hill-Three Rivers 115 kV (197)3 Scobie-Sandy Pond (326)4 Card St.-Lake Road 345 kV (330)5 Norwalk-Northport 138 kV cable (1385)6 Grand Ave-Elm West (89003B)7 E. Springfld-E.Spring.Jct.-Piper 115 kV(1723)8 Canal-Carver St. 345 kV (322)9 Essex-Williston 115 kV (K23)10 Brayton-W. Farnum 345 kV (315)

PIPER

EASTSPRINGFIELD

FAIRMONTNORTH

BRECKWOODWEST

SPRINGFIELDAGAWAM

77

LINE 1723

SHAWINIGANCHICOPEE

LINE 1322

LINE 1254

LUDLOW

ORCHARD

ELM

POCHASSIC

SILVER

LINE 1433

Line 1723(E. Springfield - E. Springfield Junction - Piper)

PRECONTINGENCY STATELMP = $39.59

PIPER

EASTSPRINGFIELD

FAIRMONTNORTH

BRECKWOODWEST

SPRINGFIELDAGAWAM

LINE 1723

SHAWINIGANCHICOPEE

LINE 1322

LINE 1254

197 (193)

LUDLOW

ORCHARD

ELM

POCHASSIC

SILVER

LINE 1433

Line 1723(E. Springfield - E. Springfield Junction - Piper)

CONTINGENCY STATE

PIPER

EASTSPRINGFIELD

FAIRMONTNORTH

BRECKWOODWEST

SPRINGFIELDAGAWAM

LINE 1723

SHAWINIGANCHICOPEE

LINE 1322

LINE 1254

192 (193)

LUDLOW

ORCHARD

ELM

POCHASSIC

SILVER

LINE 1433

Line 1723(E. Springfield - E. Springfield Junction - Piper)

LMP WCMA Zone = $66.62LMP CT Zone = $39.20LMP other Zone = $38.25

SCOBIE

SEA BROOKSANDY POND

LINE 326

LINE 394

LOAD CENTER

GREGGSGREGGSMERRIMACK

LINE A253

LINE 363

LINE B202

LINE R187LINE C196LINE Q171

Line 326(Scobie - Sandy Pond)

PRECONTINGENCY STATELMP = $39.11

SCOBIE

SEA BROOKSANDY POND

LINE 326

LINE 394

LOAD CENTER

GREGGSGREGGSMERRIMACK

LINE A253 315(305)

LINE 363

LINE B202

LINE R187LINE C196LINE Q171

Line 326(Scobie - Sandy Pond)

CONTINGENCY STATE

SCOBIE

SEA BROOKSANDY POND

LINE 363LINE 326

LINE 394

LOAD CENTER

GREGGSGREGGSMERRIMACK

LINEA253

LINE B202

LINE R187LINE C196LINE Q171

302(305)

Line 326(Scobie - Sandy Pond)

LMP ME Zone = $15.50 LMP NH Zone = $31.28LMP WCMA Zone = $40.41 LMP NEMAB Zone = $41.78LMP other Zones = $40.11

Future Analyzes

• Possible additional studies from this static base

case

• Release LMP values for a dispatch cycle once a

month– Zonal LMP values

– Binding Constraints

Need more information?

• SMD Overview and Locational Marginal Pricing

training session– Sessions last week in November and first week in December

• Register on-line– Customer, Seminars and Training