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Belonged to 161st New England Roundtable Discussion

Belonged to 161st New England Roundtable Discussion

BOSTON-FERC Commissioner Cheryl LaFleur began his farewell tour within the new electrical energy markets in England and the entire nation, Jim Robb, CEO of NERC, shared considerations about gasoline safety, and the panel discussed the challenges. 19659002] The members heard this and more at the roundtable on 161. New England Electrical energy Restructuring organized by Raab Associates on Friday. Listed here are a number of the occasions that we have now discovered through the occasion

NIMC CEO Jim Robb discusses the 161st New England Electricity Restructuring Roundtable on March 22, Boston. © RTO Insider

Characteristics Over Quantity

LaFleur, who announced in January that he was leaving his wage between June 30 and the top of the yr, provided his views on the modifications in the horizon. (See LaFleur publish the FERC.. To exit)

"I've seen a lot of evidence from across the country, organized markets and outside, that the principle of the acquisition and payment of electricity is running on an organized market," he

Cheryl LaFleur © RTO Insider [19659007] “Back on the vertically integrated days… we took it for granted and many times we continue to make energy priced with volume,” LaFleur stated. “In addition to a few additional services that were optimized at a lower price, everything was volumetric, and it worked as long as the cost curves were so. Well, there is plenty of evidence that the cost curves will not look like this in the future. "

Persistently low gas prices, even in New England, are nollamarginaalisia renewable energy sources coming online, and distributed energy and demand-side resources to alter the load curves, the industry can not assume that the resources are making money for the volume, and that the peaks set the prices at which resources are making money , he said.

The markets and areas we see are people … pay for features rather than the energy market, the capacity market, and the ancillary market, "LaFleur said.

"The problem is that the feature is a slippery thing," and it can include all the carbon storage for carbon pricing;

”And it’s also on the capability market the place we’ve paid performance; Capacity performance; seasonal capacity, ”LaFleur stated. "I'm starting to think, if we do not intend to pay by volume, how are we going to pay? And this is essential. … Most of the money is in the energy market. How we pay for energy will find out what we get and how we pay to keep the lights on. "

" The intersection of LaFleur "is a jurisdiction the place the federal authorities does some things and states do others.

”We perceive what’s transnational, and we’ve competence over ISO costs, after which states have the facility, however then listed here are the assets that connect the meter behind the distribution degree that works like a wholesale resource,” he stated [19659005] It is very easy to say, "We should work more with the states," however it’s actually troublesome to learn how it’s accomplished on this place as a result of the system was set up as if we had a difference between the central and wholesale stations [resources] LaFleur stated. "Yes, [there is] has a lot of work, but … I think it is more of a chance than a challenge. It could be, use too much of a word, transformative."

"Lots to Celebrate," however…

About NE's creativity in dealing with gasoline safety, stated Robb, who has been a NERC director virtually a yr after the Western Electricity Coordination Council performed a key position

Jim Robb | "Robb said," The first is in California… the epicenter of things related to the mixing of large-scale photo voltaic power into the system…. Who thought we might have too many generations at the prime? " was to match the rise in solar power capacity and the way t The system was highlighted by the rapidly rising gas-powered crops that pulled the fuel out of the web quicker than they might be replaced, Robb stated.

”One other area is Texas, which actually checks endurance for capability and reserve margins, Robb stated. “They work with a spare margin of about 7-8% in the summer. They strongly believe in the market signals they send to operators and plants online. They did it in a very hot summer last year, so there is something in the cooking that we have come to understand about what kind of margins really are needed. "

The third area is New England and from the" eco-friendly "point of view there is a lot to celebrate, Robb said. “You have shifted your fleet to a much smaller carbon footprint than 20 or 30 years ago to achieve environmental goals, and have managed to keep the lights on.

“Moving away from on-site fuel – high carbon, nuclear energy and oil – to resource-dependent, timely fuel delivery will really change the risk profile,” he stated. “There is no sufficient capacity in this issue; it is one of the sufficiency of energy and above all the adequacy of fuel to serve the load. "

Robb considered the dramatic consumption of oil during the cold cold snap of last winter – when generators burned as much oil within two weeks as normal during the year – and asked what would have happened if the cold chicken had lasted for another day.

Oil intake at New England plants fell rapidly during the two-week cold spell when gas prices rose and two-fuel plants moved to oil, but RTO LNG transfers prevented serious reliability issues. (See FERC, RTO: Grid Performed Better, Jan Cold Snap vs. 2014.)

"You're a day out of strain," Robb said

Getting Late

Dan Dolan | © RTO Insider

If the CEO of NERC sees the area as being half empty, Dan Dolan, chairman of the New England Power Generators Association, said he would argue that we have passed the stress test [and]. serious cold snap 100 years with gas at the end of the system. "

" The open market has been exceptionally successful in sending small-scale resources, "Dolan said.

However, he pointed out the growing trend of countries that procure energy supplies and estimate that state-funded resources account for more than half of the region's energy production by 2027.

Dolan referred to Joe Cavicch's study of Compass Lexecon, which NEPGA-commissioned New England is very much in need of – resources require capital investment – and that producers believe that the market situation is mixed with half the state-controlled market.

Jonathan Raab | © RTO Insider

From Jonathan Raab Raab Associates, who asked a round table about whether the wholesale market is in the top spot, and if so, how New England can prepare for the world 10 years ago.

later than you think, ”stated Katie Dykes, Commissioner for Power and Environmental Protection at Connecticut.

“We hear from those who have been in this market for some time, that there is a lot of volatility, uncertainty, marginal income and even [perspective of the] status quo, it is not a market where many people feel comfortable investing further”, Dykes stated.

“Our failure to proactively [for natural gas supply constraints]… has revealed the use of market power by generators with the ability to provide fuel-safe resources,” he stated. (See Guidelines for Enhancing Profitability to Promote Exelo Legal guidelines.)

Katie Dykes | © RTO Insider

The federal withdrawal from the battle towards climate change has elevated uncertainty for many who would really like to transfer ahead with market-based approaches to decreasing CO2 emissions, he stated.

Connecticut has long-standing or sudden agreements for 52 % of the state's power needs, together with 13 % of non-nuclear power wanted to meet the standard of the renewable portfolio, Dykes stated.

“If we pay the capacity fee for resources because of availability All year long, because we know that the resources we know do not have gas pipeline to be able to travel all year round, I still need to clarify what that market is designed to get,” Dykes stated.

To the extent that states seek to obtain their CO2-related planning objectives, the extra profit they will have when it comes to resource availability and gasoline security


”We’ve got our capability market close to the counting point, the place we’d like to clarify precisely what assets we’d like to continue to build up,” stated Mark Karl, Government Vice President, Market Improvement at ISO-NE.

Mark Karl | © RTO Insider

As of December, Karl stated that RTO's long-term answer to safety of power supply is threefold: a multi-stage market, a brand new ancillary service that’s built-in into these markets and a new voluntary auction. (See Give attention to Gasoline Safety at the ISO-NE Shopper Contact Meeting.)

”It will be clear that this is not just a gasoline; it is about power safety, Karl stated.

Enhanced RTO storage rules will come into pressure on April 1, and the second part will begin in the second half of this yr, and employees will work in the third part, he stated. (See FERC approves the revision of the ISO-NE storage tariff.)

In addition, RTO drew up an interim proposal to exchange the gasoline safety turbines that it intends to provide this month to FERC with or with out stakeholder approval. (See the ISO-NE flat gasoline plan despite NEPOOL Rebuff.)

Paul Hibbard, former chairman of the Massachusetts Division of Public Utilities, stated that the will to scale back CO2 emissions within the power sector is the most important think about all markets.

The introduction of national insurance policies "how does the market provide the necessary resources to maintain reliability, especially in the winter months?" Hibbard asked. “It makes this so incredibly difficult.

Paul Hibbard © RTO Insider

“There are very few resources available to earn enough income in the energy market when you look at five or ten years, but we still need to maintain reliability in these winter months,” he stated.

The Pilgrim Nuclear Power Plant and the remaining oil and coal models will retire, the system will turn out to be a "much more peaceful" fuel supply, he stated. “It actually modifications right here that the consumption of natural fuel in energy peaks in winter… so it really increases the reliability of LNG, particularly within the reliability of the power sector through the 25 or 50 coldest days of the yr. "

More electrification and" issues get actually scary, as a result of now pipelines can't even fill the whole fuel demand for more than 100 days a yr, "Hibbard said. "This is the mixture that states try to obtain so as to meet their CO2 discount targets and the suggestions on the electricity system, which makes the challenges so extremely essential once we contemplate this transition over the subsequent 10 years." [19659056] – Michael Kuser