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CHANGES IN IRP IN MARKET TRANSITIONS: WHERE HAS IT HAPPENED?

Daniel Peaco, Principal ConsultantEUCI 16th Annual Integrated Resource Planning Conference MARCH 22, 2016

“What Changes in the resource planning process occur with the transition from a non‐market to a market structure?”

Observations from the front‐ Other markets have made or are making transitions

Instructive examples of IRP in market transitions‐ Where are some good places to look for examples?

Market Transitions Experiences 

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Market Transitions‐ CAISO Energy Imbalance Market expansion

Planning Transitions‐ CA SB 350 IRP Process‐ Expanding RPS and GHG emission reduction goals‐ Changes resulting from market transformation

Western Market Transitions As Context 

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IRP – The Early Years   (~1980 to 1992)‐ Vertically integrated utilities w/QFs & DSM

Transition to Open Access  (~1993 – 2000)

Organized Wholesale Markets (1998 on)

Public Policy/Market Mix Renewal(~2005 on)

IRP Has Been Working Through Transitions for Years

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IRP Is In Use in Many Jurisdictions and Market Types

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Source: RAP/Synapse 2013

An Array of Market Environments For IRP

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Competitive wholesale & retailUnbundled G, T, D

Competitive wholesale &

retail

Competitive wholesale,

VIUs

Source: FERC

Non-RTO

Transitions at different points in time

A range of market/market change contexts

A range of utility types & structures

A Rich Array of IRP/Market Transitions Examples

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SPP‐ RTO  2004‐ Imbalance Service2006‐ Day 2 Market 2014

Examples‐ OG&E; PSO/SWEPCO‐ Nebraska  2008‐ WAPA, Basin  2015

Instructive IRP examples – SPP

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MISO‐ RTO 2002‐ Energy Market 2005

Examples‐ Entergy

• Dissolve System Agreement• Join MISO 2013

‐ Manitoba Hydro• Coordination with MISO• Plans for Hydro Export

Instructive IRP examples – MISO

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Entergy Region

Manitoba Hydro

ISO‐New England‐ RTO 1997‐ Energy Market 1999‐ LMP 2003‐ FCM 2008

Examples‐ Vermont ‐ VIUs‐ Connecticut

• Unbundled Utilities• Renewed IRP 

Instructive IRP examples – New England

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No RTO‐ VIEU‐ Southern Co SA

Example‐ Georgia Power

• Purchases/interchange with market systems

Instructive IRP examples – Southeast

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Planning moves from Physical toward Financial

Changes in the Resource Options‐ Access to resources and exchanges off‐system‐ QF Obligation changes

Reliability Changes‐ Reserves Sharing

Planning Models‐ Increased consideration of neighboring systems

Some Observations on IRP Changes

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Thank youLet’s continue the conversation

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Dan Peaco

(207) 347‐3144

DPeaco@DaymarkEA.com

www.DaymarkEA.com

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