Chapter 9 Certified Supplier Guidebook
Certified Supplier Guidebook Chapter 9: Transmission Reservation and Energy Scheduling Overview
This chapter reviews the necessary procedures and requirements for the reservation of transmission service and ancillary services and the scheduling of energy pursuant to the applicable Open Access Transmission Tariff (OATT) and current business practices.
A certified supplier serving end-use customers on Duke Energy’s distribution system will need to arrange for transmission and ancillary services to deliver power and energy through Duke Energy's transmission system for ultimate delivery to end-use customers.
The certified supplier must either arrange for these services under the applicable OATT as the transmission customer or make arrangements with a transmission scheduling agent (TSA) to contract with the transmission provider for transmission services. The TSA is ultimately responsible for all transmission and ancillary services provided on behalf of a certified supplier. In this chapter, the Transmission Customer is referred to as the TSA.
Reservation and scheduling of capacity and energy will be governed by the applicable OATT and rules established by industry groups such as the North American Electric Reliability Council (NERC) and East Central Area Reliability Council (ECAR), as well as regulatory agencies such as the Federal Energy Regulatory Commission (FERC) for transmission reservations, tagging, energy scheduling, ancillary services, loss compensation, and emergency operation. Energy will be scheduled in accordance with the terms and conditions of the applicable OATT. The current OATT is posted on the Midwest ISO's (MISO) Open Access Same-time Information System (OASIS). MISO's current commercial business practices related to transmission reservation and energy scheduling are also posted on the MISO OASIS site and defined in the applicable tariff.
This chapter reviews the following topics:
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Certified Supplier Generation Capacity Obligations for Serving Firm Load
- Transmission Service
- Ancillary Services
- Loss Compensation
- Load Scheduling
- Load Forecasting
The certified supplier undertaking the obligation to serve firm end-use customer load on the Duke Energy system must have sufficient electric generation capacity and/or energy resources, either owned or under contract, to meet the firm requirements of its end-use customers for the duration of its service obligation. The certified supplier must be knowledgeable of and in compliance with the reliability practices, policies, and guides of NERC and ECAR.
Included in these reliability practices, policies, and guides is the requirement to maintain adequate planning and operating reserve for firm load obligation. Consistent with this requirement and as necessary to receive service under the applicable OATT, the certified supplier shall own or have under contract generation capacity resources equivalent to 100% of the firm load (plus losses) it is planning to serve for the term of the service. The certified supplier must communicate these arrangements to its TSA. The TSA must reserve network transmission service with the transmission provider to serve its firm load from its generation capacity resources. Generation capacity resources that are not located in the MISO footprint must also have reserved a firm transmission path for delivery to the MISO border. The TSA must provide verification of its generation capacity resources and firm transmission service arrangements to the transmission provider. The transmission provider may confirm these arrangements via communications with the source and other transmitting RTO's or balancing authorities.
In addition, to meet operating reserve obligations each day, the TSA must make arrangements to have adequate generation capacity resources on-line to meet its expected daily load. The TSA must also have appropriate arrangements for spinning, supplemental, and regulating reserves. The TSA must provide verification of these daily arrangements to the transmission provider.
Generation capacity resources may only be counted toward planning and/or operating reserve requirements for the TSA if the supplying balancing authority treats its capacity obligation to the TSA as a deduction to the capacity it has available to meet its own reserve requirements.
Transmission service is high-voltage, bulk transport of power and energy from generators to load recipients. The arrangements for and use of transmission service on the Duke Energy system is governed by the applicable OATT. The OATT defines the rates terms and conditions associated with network transmission service. The TSA must first sign a transmission service agreement with the transmission provider to initiate service under the OATT. The standard forms of these agreements are included as attachments to the OATT and are also available from the transmission provider's OASIS home page.
In order to serve end-use customers on Duke Energy’s system, a TSA must sign an OATT service agreement and request service on the transmission provider's OASIS for network transmission service. The TSA must reserve firm transmission service (network) from its generating capacity source, which it owns or has under contract, in order to list the designated resources for Network Service. The TSA must also make arrangements for ancillary services when it signs the service agreement.
Transmission Scheduling Agent (TSA)
If a certified supplier is not eligible to be a transmission customer or chooses not to interact directly with the transmission provider for scheduling purposes, the certified supplier shall enter into a business arrangement with another party that will act as a transmission scheduling agent (TSA) for that certified supplier. All actions of the TSA that relate to one of its certified suppliers are binding on, and attributable to, the certified supplier.
Designation or Change of a Transmission Scheduling AgentTo designate or change a TSA, a certified supplier must provide to Duke Energy a completed TSA Designation Agreement fully executed by the certified supplier and the TSA.
TSA Scheduling and SettlementWhole Megawatts (MWs): For any hour when the entity acting as a TSA supplies electric energy to its end-use customer, it must submit a schedule. Scheduling shall be done in whole MW amounts. Scheduling of ones and zeros will be permitted for loads of less than one MW.
Certified Suppliers using a TSA cannot submit schedules or propose schedule changes. The TSA is responsible for submitting all schedules and changes to the transmission provider. The TSA will be the sole point of contact with the transmission provider in regards to all scheduling and settlement activities.
Termination of the Certified Supplier/TSA Relationship
If notice is provided to Duke Energy that the certified supplier/TSA relationship is terminated, Duke Energy shall be the back-up supplier of energy. The certified supplier shall either designate another TSA or assume the TSA function itself (if eligible) within five business days of such occurrence. The new entity acting as the TSA shall begin scheduling power within 10 business days after designation by the certified supplier.
The certified supplier shall pay Duke Energy the charges defined in the Back-up Generation (Rate BUG) in the Certified Supplier Tariff until the new TSA's services are active. The certified supplier's failure to comply with these requirements shall render it in default as described in Section XX of the Certified Supplier Tariff.
Termination of a Certified Supplier
In the event Duke Energy terminates a certified supplier as described in Section XX of the Certified Supplier Tariff, the certified supplier's end-use customers shall be returned to Duke Energy's standard service offer, effective on each end-use customer's next scheduled meter reading date after the date of termination.
During the period of time between the certified supplier's termination and the next meter reading dates for each of its end-use customers, Duke Energy shall serve the certified supplier's end-use customers and shall charge the certified supplier Duke Energy's out-of-pocket cost paid for electric energy during that period, including transmission, distribution, and all other applicable charges. Section XX of the Certified Supplier Tariff provides a complete description regarding default, suspension, and termination of a certified supplier.
Network Integration Transmission Service
Network Integration Transmission Service (NITS) is used to deliver capacity and energy from designated network resources to serve network loads. NITS is equivalent to firm transmission service.
Transmission Reservations
Once the TSA has completed the transmission provider registration requirements and has signed one or more transmission service agreements, the TSA may begin requesting transmission service reservations on the transmission provider's OASIS node. The transmission provider will review each service request and evaluate it to determine whether or not there is available transmission capacity to approve the request. The transmission provider may charge a fee to pay for system studies or assessments. The transmission provider may also indicate that transmission system enhancements are needed to provide the requested service.
Ancillary Services
Ancillary Services Overview
Ancillary Services are those services necessary to support the transmission of capacity and energy from resources to load while maintaining reliable operation of the transmission system. There are six ancillary services defined and available under the applicable tariff. These are listed below by Service Schedule number and name:
- Schedule 1 – Scheduling, System Control, and Dispatch Service
- Schedule 2 – Reactive Supply and Voltage Control
- Schedule 3 – Regulation and Frequency Response
- Schedule 5 – Spinning Reserve
- Schedule 6 – Supplemental Reserve
The following must be purchased from the transmission provider:
- Schedule 1 (Scheduling, System Control, and Dispatch Service)
- Schedule 2 (Reactive Supply and Voltage Control)
The TSA must make arrangements with the transmission provider to supply or purchase the following ancillary services:
- Schedule 3 (Regulation and Frequency Response)
- Schedule 5 (Spinning Reserve)
- Schedule 6 (Supplemental Reserve)
If the TSA can demonstrate it has acquired the necessary ancillary services from another source, the TSA does not have to purchase them from the transmission provider. Telemetry and communication equipment may be required to make this demonstration. The TSA must list in its OATT service agreement which ancillary services it will purchase from the transmission provider.
The rates, terms, and conditions of the ancillary services are described in the applicable tariff. The five ancillary services are also described below:
Schedule 1 – Scheduling, System Control, and Dispatch
This service is required to schedule the movement of power through, out of, within, or into a Balancing Authority and to maintain the balance of scheduled and actual interchanges.
Schedule 2 – Reactive Supply and Voltage Control
This service is required in order to maintain transmission voltages on the transmission system facilities within acceptable limits. Generation facilities in Duke Energy’s Control Area are operated to produce (or absorb) reactive power.
Schedule 3 – Regulation and Frequency Response
Regulation and frequency response service is necessary to provide for the continuous balancing of resources (generation and interchange) with load and for maintaining scheduled interconnection frequency at 60 cycles per second (60 Hz). Regulation and frequency response service is accomplished by committing on-line generation whose output is raised or lowered (predominantly through the use of automatic generating control equipment) as necessary to follow the moment-by-moment changes in load.
Schedule 5 – Spinning Reserve
Spinning reserve service is that part of operating reserve which is on-line and available to serve load immediately in the event of a system contingency, such as a loss of a generating unit or loss of a transmission path. Spinning reserve service may be provided by generating units that are on-line and loaded at less than maximum output.
Schedule 6 – Supplemental Reserve
Supplemental Reserve Service is that part of operating reserve needed to serve load in the event of a system contingency; but may not be available immediately to serve load, but rather within a short period of time. Supplemental reserve service may be provided by generating units that are on-line but unloaded, by quick-start generation or by interruptible load.
Capacity and energy losses occur when electricity is delivered through the transmission system. The transmission customer is required to supply capacity and energy to compensate the transmission provider for losses. The certified supplier’s end-use customers’ meter readings are adjusted by applying distribution loss factors to account for transmission distribution system losses. The transmission system loss factors can be referenced on the MISO OASIS loss matrix. The loss matrix is available on the MISO OASIS homepage at http://oasis.midwestiso.org/OASIS/MISO.
Once transmission service is reserved, the TSA is responsible for providing schedules of energy and NERC tags to the transmission provider or the tag authority to deliver power and energy to the certified supplier end-use customers.
Certified Suppliers Using a TSA
The entity acting as TSA is required to submit daily schedules as described below in Submission of Schedules.
Transmission and Distribution Losses
The hourly schedule must include transmission and distribution losses.
Accumulation to Whole Megawatts (MWs)
Scheduling must be done in whole megawatt (MW) amounts. For any hour when the entity acting as a TSA supplies electric energy to its end-use customer, it must submit a schedule. Scheduling shall be done in whole MW amounts. Scheduling of ones and zeros is permitted for loads of less than one MW.
Submission of Schedules
The entity acting as TSA shall submit daily schedules one business day before the delivery of power by the time specified in the MISO OATT. All schedules must be submitted in compliance with NERC tagging guidelines. Schedules may also be communicated via a dynamic schedule. Arrangements for dynamic scheduling must be made under a separate agreement with the transmission provider.
Schedule Changes
Schedule changes may occur as described in business practices posted to OASIS, the OATT, and NERC policy.
The certified supplier or its designated TSA is responsible for preparing its own hourly load forecast.
The TSA must first forecast the hour-by-hour load of its end-use customers for a given day. The forecast should be adjusted to reflect the transmission and distribution loss factors so that the load forecast represents load at the transmission voltage level. The certified supplier may acquire historical data on customer usage to assist in forecasting, as described in Chapter 4: Obtaining End-Use Customer Historical Usage of this guidebook.
Certified Supplier Daily Forecasting Process
For real-time load following, including end-use customers having interruptible contracts with their certified suppliers, a certified supplier or its designated TSA will have special obligations with respect to the transmission operator that must be addressed on an end-use customer by end-use customer basis to ensure operational integrity. A certified supplier or its designated TSA, and the transmission operator will work cooperatively to address the technical and operational issues posed by real-time load following as the need arises. The loads of end-use customers using real-time load will not be incorporated into a certified supplier’s hourly load forecasts except as required for transmission purposes. A certified supplier or its designated TSA must supply specific information regarding the generation resources committed to following the certified supplier’s load. The certified supplier or its designated TSA must arrange for the cooperative involvement of any other parties necessary to institute such dynamic scheduling.
