June 20, 2007
Clyde Loutan:
Through a market notice issued on June 13, 2007, the California ISO (CAISO) has requested comments regarding the draft white paper entitled “Proposal for Spinning Reserve Certification, June 4, 2007” which, among other things, proposes changes to the Spinning Reserve Certification process. PG&E offers the following comments and plans to participate in the stakeholder discussion scheduled for June 26, 2007. We appreciate the opportunity to comment on this important reliability issue.
PG&E supports CAISO efforts to ensure that it is upholding Western Electric Coordinating Council (WECC) reliability requirements. PG&E recommends that the CAISO communicate, in writing, all proposed requirements, tariff changes and certification steps so that stakeholders can fully understand and comment on the CAISO’s proposals.
PG&E applauds the efforts of the CAISO to identify units that are not fully synchronized, do not meet minimum operating requirements, and/or are otherwise unable to follow dispatch instructions. Furthermore, we encourage the CAISO to continue efforts to identify units or groups of units that do not meet the WECC requirements and therefore, are not able to provide the services that are necessary for reliable operation of the grid. The CAISO should take appropriate actions to remedy any such situations.
As a part of this stakeholder process, the CAISO must identify all contemplated tariff changes, technical requirements for spinning reserve, Operating Procedures for Ancillary Service Procurement, and certification steps. Stakeholders must be given the opportunity to comment on proposed changes before finalizing a proposal and seeking any Governing Board approvals which may be necessary to implement the proposal. Stakeholders addressing this issue could benefit from a more detailed description of how the CAISO currently certifies units for eligibility to provide Spinning Reserves. By clarifying existing certification procedures, the CAISO will enhance stakeholders’ ability to comment on necessary modifications to the certification process. PG&E encourages the CAISO to identify specific changes to the certification process for each type of resource from which the CAISO procures spinning reserves, the costs and benefits of the changes, and any proposed schedule for implementing changes. To the extent any new requirements, certification procedures, or operating procedures require changes to stakeholder facilities or systems, the CAISO’s proposed solution must allow sufficient time for compliance; however, compliance with existing requirements should be pursued expeditiously. Any proposed changes which exceed WECC requirements should be explained and justified.
PG&E provides significant spinning reserve amounts to the CAISO in the current market and plans to continue to provide significant amounts in the MRTU markets and since it serves loads, is a “consumer” of spinning reserves. Hence it is very interested in assuring that stakeholders comply with all WECC reliability and operating standards.
If you have any comments or questions, please contact Brian Hitson (415-973-7720) or John Chiara (415-973-1478).
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