Market Operation and Transmission Policy Users Group Scope

Background: Because of the fact that some of the best wind resources are located remote from load and major transmission line routes, new transmission to bring wind energy to market is a critical need. The issues of how to deal with wind forecast uncertainty, who gains access to existing congested lines, who pays for new transmission, and the tariffs for the use of the lines, are all highly contentious. These issues are unresolved in many areas of the country, especially given the level of opposition to the siting of new transmission lines, and the current evolution of the RTOs with regard to tariffs in response to FERC Order 2000 and the delay in implementation of the Standard Market Design (SMD).

Given the regional nature of transmission system planning and wind plant development, and the fact that new practices are developing at different rates in different parts of the country, a mechanism to track the new developments across the country, identify the best practices as related to both wind-energy and utility-system needs, and make them known to members and interested parties, is a critical need. UWIG can provide this tracking and information service for its members, along with a forum for discussion of related issues and, if appropriate, identification of concerns and development of recommendations.

Scope: The scope of the user group will cover the following areas:

    1. Market Operation
    • Energy
    • Capacity
    • Ancillary Services
    • Transmission rights
    • Environmental attributes (e.g., renewable energy credits)
    2. Transmission Policy
    • Transmission planning
    • Interconnection practices
    • Congestion management
    • Tariff issues
      - Rate Pancaking
      - Flexible-firm tariff
      - Imbalance energy settlement

The User Group will operate by maintaining awareness and surveillance of ongoing industry developments, and by tracking new developments in market operation and transmission developments related to wind energy. The AWEA, NREL and its consultants, NWCC, industry contacts, and industry publications and newsletters are all readily available sources of information for this effort. From time to time, User Group and UWIG meetings will include in-depth presentations and discussions on major projects dealing with topics included in the Group's scope of activities. The end product from this effort will be an ongoing compilation of Best Practices in the industry for these areas as they evolve.

Communication and Education: User Group results will be made available by the following methods:

  • User Group web site postings
  • Bibliography with links
  • Focused discussions at regular UWIG meetings
  • Ad hoc meetings of the User Group

User Group Startup: Numerous sources of information are available to support this effort. There is no intention of duplicating the existing efforts, but rather extracting information of value, digesting it, and presenting it in a readily usable fashion for those dealing with the same or similar issues. This will also help determine areas needing more attention in the future. We would like to begin by identifying user group members who would like to make a contribution by identifying sources of information, or providing material that can be analyzed and posted. We especially encourage the participation of utility, ITC, ISO and RTO personnel who are directly involved with the issues.

NREL Participation: The NREL supports a number of efforts related to market operation and transmission services, both internally and through subcontractors. Brian Parsons is the key contact at NREL for this effort. At the conceptualization of this scope, NREL was involved with numerous activities relevant to this User Group, including:

  • Consultant support for Western U.S. transmission operation and planning work by WECC, SSG-WI, BPA, West Wind Wires, and others
  • Technical support for regional transmission planning in the Rocky Mountain area, the Southwest, the Midwest and the mid-Atlantic region

NREL plans to interact closely with this User Group in connection with these activities. AWEA, NWCC, and Brendan Kirby at ORNL, are additional sources of relevant information supported by the DOE-NREL program.

Work to be included in User Group Scope:

  • AWEA Annual Transmission Issues Paper Update
  • NWCC RTO Briefings
  • NWCC Transmission Issue Briefs
  • NWCC Transmission Planning Principles
  • ISO/RTO websites
  • FERC website
  • NYSERDA NYISO Wind Integration Study Best Practices
  • Results of NWCC and other key regional workshops on transmission
  • Results from major ongoing studies of transmission needs and alternatives, such as:
    - Rocky Mountain Area Transmission Study (RMATS)
    - California PIER Program transmission studies
    -Interior West transmission alternatives study
    - MISO-AWEA-NWCC-Wind on the Wires transmission scenarios
    - WAPA wind-transmission evaluations
  • Western Governors Association Clean and Diversified Energy Advisory Committee
  • Results from NWCC work on renewable energy credit (REC) trading and prospective links to emissions reduction credits

For more information, please send e-mail to info@uwig.org

 

| UWIG Home |