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RampCapabilityProductCostBenefitAnalysis

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June2013

NivadNavid,GaryRosenwald,ScottHarvey,RyanSuttonandCongcongWang

TheMISOisexpectedtorequireadditionalflexibilityindispatchablegenerationtoaddressincreasing

volatilityinthenetload(loadminusnetinterchange minusintermittentresourceoutput)thatmustbe

metwithdispatchableMISOgeneration.Thevolatility

mayarisefrombusinessrulechangessuchas

shorterleadtimeforinterchangescheduling(ormoregranularinterchangescheduling)and/orchanges

intheloadorgenerationfleetsuchasanincreasingproportionofintermittentresources.Someofthe

impactsofthisincreasingvolatilityinnetloadonenergyand ancillaryservice

marketswillincludethe

dispatchofhighcostgenerationresources,instancesofreservescarcity,andincreaseduseof

regulation,whichwillbereflectedinpricespikes.

WithintheMISOmarketdesign,theintroductionoframpcapabilityproductscanprovideanattractive

approachtoobtainingneededoperationalflexibilityatalower

costthanotheralternatives,providing

bothmarketandreliability benefits.Benefitstothemarketincludethefollowing:

 Reducedfrequencyofres erveshortagesortransmissionviolations,

 Lessneedtodispatchhighcostresources;

 AvoidedcostofuneconomicCTcommitmentstoprovideramp

 Reducedneedforadhocoperator

actionssuchasRTadjustmentsintheUDSOffsetMWandCT

commitmentprovidingincreasedconsistencyofmarketresults

 Transparentpricingandincentivesforthesupplyoframpcapability

 

Rampproductsalsoprovidebenefitsfor systemreliability:

 Systematicmechanismtospecifyandprocuretherampcapabilityneeded

torespondtonear

real‐timechangesinsystemrequirements

 Provideenhancedincentivesforresourcestoproviderampcapability

 Avoidedand/orreducedcostofreserveshortages(orpotentiallytransmissionviolations)

 Reducedneedforoperatorinterventioninroutinereal‐timemarketoperations,freeing

operatortimetofocuson

otherissues

Thispaperfocusesonquantifyingthemonetaryimpactsoftherampproducts.Aseriesofexamplesand

simulationcasesillustratedifferentsourcesofpotentialsavings.Someexamplesusesmalldatasetsto

illustratethewayinwhichtherampproductsareintendedtoworkwhileothersreporttheresults

of

simulationscarriedoutdispatchinggenerationovertheentireMISOfootprinttosimulatetheoperation

oftherampproductsoveranhistoricaloperatingday.Theexamplesaredesignedtoillustratespecific

sourcesofthepotentialsavingsandnoneofthemfullycoverthealloftheimpactsinasingle

example.

Tohelpdescribetheimpactinvestigatedintheexamples,themonetaryimpactsarebrokendowninto

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