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SZAWG Final Report October 5, 2006

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SZAWG MembersAESO Chris Connoly, Peter Wong

AltaLink Paul Lee, Shemin Merali

ATCO Electric Bruce Ramsay, Blair Morton

Encana Marie Gallant, Wynn Trumpour

Department of Energy Kathryn Wood, Bob Deyl

EPCOR Distribution Bob Deyl, Greg Rosychuk

FortisAlberta Angela Corsi

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Mandate

• To provide recommendations that will correct problems contributing to inaccuracies in the settlement zone totals.

• To provide reasonable certainty that all existing errors in settlement zone totals have been found, so that the suspended PFAMs can be released.

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Since the opening of the market in 2001, the market has settled – 252,000 GW.h in energy. (from WSI)– 363 GW.h processed as PFAMs– error rate of approximately 0.14%– Using average Pool Price of $61.62 that’s

$22,368,060

(does not include all amounts re-settled in 2002 through the mandated “Final Final” settlement run)

Importance of System Level Metering

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If we do nothing• continued large errors and adjustments to retailers• inaccurate zone totals leading to inaccurate load

settlement (e.g. NSLS shape for zone is incorrect)• inaccurate zone totals leading to inaccurate

transmission loss allocations• loss of confidence in settlement process and results• inefficient processes in industry• increased retailer risk

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Definition• “system level” is hourly values for

distribution interchange, distributed generation, and border customer consumption that are needed to describe the total hourly energy flow on the AIES at the transmission level and the inputs and outputs to each and every distribution settlement zone for each hour.

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System Level PFAM issues:• Gathers small errors over a long period• Long lag time• No site level detail in final outcome• Coordination with RDS regulation is an issue• Impact not manageable• Undermines market confidence • Causes and consequences of these kinds of

errors affect different parties• Was intended for occasional use only

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Recommendations

Objectives:– Reduce the number of errors made in the

future through improved processes, controls, and testing procedures, and

– Identify and correct errors prior to Final Settlement.

SZAWG did not exhaustively test or vet these across industry as a whole, and expects implementing agencies will gather broader stakeholder feedback on the Final Report.

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Metering AccountabilityLogical Layer

(modeled reality)

Business Elements

Data Improvements Reporting and Market Confidence

M–1 Testing of MeteringPriority: AImpact: Highest

P–1 Roles & responsibilities for meteringPriority: AImpact: Highest

L–1 Energy flow into the transmission system due to large DGPriority: AImpact: Highest

D–1 Meter Data ControlsPriority: BImpact: Highest

R–1 Provincial ReconciliationPriority: AImpact: Highest

M–2 Metering InventoryPriority: B

P–2 MSS integration with SSCPriority: AImpact: Highest

L–2 Verifying MPDR Calculations Priority: A

D–2 VEE Priority: B

R–2 Report CardPriority: B

M–3 Interval Meter Thresholds Priority: D

P–3 MDM Relationship with Meter and MPDRPriority: A

L–3 MPDR Development ProcessPriority: B

D–3 DST Conversion StandardPriority: B

R–3 Non–Load Settlement Meter PointsPriority: D

P–4 Settlement ResponsibilityPriority: A

L–4 Temporary Operating SituationsPriority: C

D–4 Data Restatement TrackingPriority: C

P–5 MPDR DefinitionPriority: B

L–5 Notification of ISD–to–Wire Owner connectivity changesPriority: C

D–5 TAA sign conventionsPriority: C

P–6 Post Final Processing Obligations

Priority: B

L–6 Disallowing Backdating Business ArrangementsPriority D

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M–1 Testing of Metering

Implement standardized end-to-end testing of metering systems on a defined and regular basis.

AESO testingEUB rules

M–2 Metering Inventory

Compile and maintain a complete inventory of all System Level Metering points.

AESO

M–3 Interval Meter Thresholds

Establish thresholds at which interval meters are required for System Level Metering Points.

EUB

Metering

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P–1 Roles & responsibilities for metering

Amend the EUA to identify and assign all of the responsibilities for metering.

DOE

P–2 MSS integration with SSC

Rationalize the SSC and the MSS to cover all System Level Metering Points.

EUB

P–3 MDM Relationship with a Meter and MPDR

Amend the SSC to address the relationships among MDMs, meters and MPDRs.

EUB

P–4 Settlement Responsibility

Amend the SSC to clearly and uniquely assign load settlement responsibility.

EUB

P–5 MPDR Definition Amend the SSC to adopt the MPDRs disciplines for Load Settlement.

EUB

P–6 Post Final Processing Obligations

Amend the SSC to require MDM’s to report all system level data variances by way of the PFAM process.

EUB

Accountability

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L–1 Energy flow into the transmission system due to large DG

Develop a standardized solution for the accommodation of flow into the transmission system due to large Distributed Generation

EUB

L–2 MPDR Calculation Verification

Develop a process that will verify that MPDR calculations are being performed correctly by MDMs.

AESO

L – 3 MPDR Development Process

Implement an approval process for any MPDR used in load settlement that includes review and acceptance by LSA, MDM, and AESO.

EUB

L–4 Temporary Operating Situations

Amend the rules for load settlement to ensure that energy flow during temporary operating situations are accounted for.

EUB

L–5 Notification of ISD-to-Wire Owner connectivity changes

Require Wires Owners and ISDs to notify the AESO of any changes regarding connectivity of ISDs to Wire Owners.

EUB

L–6 Disallowing Backdating Business Arrangements

Adopt an AESO policy that states that business arrangements that impact measurement point data provision are not to be backdated prior to the 1st of the current month.

AESO

Logical Layer

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D–1 Meter Data Controls

Ensure that automated data controls are put in place to confirm that meter data sent by the MDM to other parties is received correctly, to the satisfaction of both the MDM and the receiving parties.

EUB

D–2 Validation, Editing and Estimating

Establish a working group to improve VEE standards. EUB

D–3 Daylight Savings Time (DST) Conversion Standard

Clarify Settlement System Code to address the differing interpretations of the existing wording on DST.

EUB

D–4 Data Restatement Tracking

The process for submitting restated system level data after the initial monthly settlement runs to be enhanced to permit the gathering of metrics.

EUB

D–5 TAA sign conventions

Amend TAA adjustments in the SSC to clarify sign conventions and to make s B.6.6.1 and s B 6.6.3 consistent.

EUB

Data Improvements

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R–1 Provincial Reconciliation

Review and improve Provincial Reconciliation. AESO

R–2 Report Card Develop comprehensive market reporting of load settlement indicators.

AESO

R-3 Non-Load Settlement Meter Points

Review the processes and standards for system level metering and data not involved in load settlement.

AESO

Reporting and Market Confidence

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Micro-Generation Discussion includes related issues and input for DOE policy development

DOE

Status Report Develop a process to keep industry informed of progress on recommendations

EUBAESODOE

Audit Field DSM transaction needs audit tracking field EUB

MPDR Process Same MPDRs to be used in LS and in TA functions

EUB

Other Issues

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Conclusion• These recommendations will:

– reduce error overall,– catch most remaining errors prior to Final

Settlement– reduce PFAM to occasional use – as was

intended.

• No reason, from SZAWG point of view, to continue the PFAM suspension.– Things will get better gradually as

recommendations are implemented

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Next Steps• Written feedback to be provided by

October 19, 2006 to: – peter.wong@aeso.ca– kathryn.wood@gov.ab.ca– fino.tiberi@gov.ab.ca

• Implementing agencies to – accept recommendations,– establish a plan to implement, and– develop a process to measure and report progress.