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Wind Power and Electricity Markets

A living summary of markets and market rules for wind energy and capacity in North America

Information compiled through October 2011

Compiled by
Jennifer Rogers, Exeter Associates, Inc.
Kevin Porter, Exeter Associates, Inc.


and incorporating review comments from
Ken Schuyler and Glenn Weiss, PJM Interconnection
David Edelson, New York ISO
Joseph Freire, Independent Electric System Operator of Ontario
Dale Osborn, Rao Konidena, Nivad Navid, and Michael McMullen, Midwest ISO
David Maggio, Warren Lasher and Claudia DAnnunizo, ERCOT
Jim Blatchford, California ISO
Doug Johnson, Bart McManus, Scott Winner and Eric King, Bonneville Power Administration
Jacques Duchesne, Alberta Electric System Operator
Jay Caspary and Jason Smith, Southwest Power Pool
Jonathan Lowell and Bill Henson, ISO New England


UWIG plans to update this information as regional electricity markets evolve



Wind Power and Electricity Markets


The following table addresses market rules for wind power purchase in key regions of North America. Table entries are
responses to the following questions:

Energy Market Structure: What type of energy market is in operation?

Scheduling in Energy Markets: How is wind energy scheduled and procured?

Ability of Wind to Bid Day-Ahead and Set Price: Can wind bid into a day-ahead market and set the overall
market price?

Allowance of Negative Price Bidding: Are negative prices, and negative price bidding, permitted?

Dispatch Frequency: At what interval is generation dispatched?

Imbalance Settlement: How are wind energy imbalances settled either through a balancing market or another
settlement procedure?

Ancillary Services Market Structure: How and what type of ancillary serves are procured, and at what time
frame?

Ancillary Services Market and Wind: Can wind plants provide ancillary services?

Impact of Wind on Ancillary Services Requirements: Has wind prompted the utility or RTO to change the
amount, the type and the timing of procuring ancillary services?

Eligibility of Wind to Provide Frequency Response and Inertial Response: Can wind provide frequency
response or inertial response?

Type of Wind Forecasting System: Does wind forecasting play a role, and if so, what type of wind forecasting
system is in place?

Description of Wind Forecasts: What type of wind forecasts are prepared and at what time frame?

Wind Forecast Tools/Techniques: How are wind forecasts prepared, and what tools and techniques are used?

Availability of Ramp Forecast: Is a separate forecast prepared on the potential for wind ramps?

Wind Forecast Cost Allocation: Who pays for the wind forecasts?

Wind Forecast Utilization: How are the wind forecasts used?

Provision of Capacity Adequacy: How is sufficient capacity for reliability determined and obtained?

Capacity Reserve Margin: What is the reserve margin that is determined to ensure reliability?

Capacity Market Structure: How is capacity procured that is needed to ensure reliability?

Determination of Capacity Value for Wind: How is capacity value or capacity credit for wind plants calculated?
Is there a distinction between capacity values for planning reserves (months and years time frame) and operating
reserves (same-day to next-day)? If so, what is it?

Ability of Wind to Contribute to Capacity Adequacy: Can wind bid into capacity markets or be considered as a
capacity resource?

Wind Power Management: Are various restrictions imposed on wind power under certain circumstances, such as
ramping limits or curtailment?

Incorporation of Wind into System Dispatch/AGC: Is wind generation incorporated into system dispatch, and if
so, under what conditions?

As a baseline for the table, FERC Orders 888s and 890s discussion of these questions is summarized here:

Scheduling in Energy Markets: No requirement for centralized energy markets.

Imbalance Settlement: Energy imbalance charges may apply if energy deliveries differ by more than +/- 1.5% from
advance schedules. Under Order 888, actual penalties or payments for underdeliveries/overdeliveries are left to the
discretion of the transmission provider, but they may be substantial. Under Order 890, FERC requires that imbalances of
less than or equal to 1.5% of scheduled energy, or up to 2 MW be netted monthly and settled at the transmission
providers incremental or decremental cost. Imbalances of between 1.5% and 7.5% of scheduled energy, or between 2
and 10 MW (whichever is larger), are settled at 90% of decremental costs and 110% of incremental costs. Imbalances
greater than 7.5% (or 10 megawatts, whichever is larger) would be settled at 75 percent of the system decremental cost
for overscheduling imbalances or 125 percent of the incremental cost for underscheduling imbalances. Intermittent
resources, however, would be settled at 90% of decremental costs and 110% of incremental costs for imbalances greater
than 7.5% or 10 megawatts.

Ancillary Services: Transmission provider required to offer scheduling and billing services and to act as purchasing
agent for transmission customers that need ancillary services.

Wind Forecasting, Wind Power Management and Capacity Calculation and Recognition for wind are not discussed
in Order 890.


In November 2010, FERC released a proposed rule that would require transmission providers to offer intra-hour
transmission schedules; require variable energy generators to provide meteorological and operational data to utilities for
variable energy forecasting; and add a variable generation regulation and frequency response ancillary service into the
Order 890 pro forma transmission tariffs, but only if 15-minute transmission schedules and variable energy forecasting are
in place. FERC has not yet issued a final rule.

Wind Power and RTO/ISO Market Rules
PJM NYISO ISO-NE Midwest ISO
Energy Market
Structure
Real-Time and Day-Ahead
LMP-based energy markets.
Real-Time and Day-Ahead
LMP-based energy markets.
Real-Time and Day-Ahead LMP-
based energy markets.
Real-Time and Day-Ahead
LMP-based energy markets.
Scheduling in
Energy Markets

If a capacity resource, wind
must offer in the day-ahead
market. Wind resources that
are not capacity resources are
permitted, but not required,
to offer into the day-ahead
market. A wind resource
participating only in the real-
time market receives real-
time LMP for energy provided.
Wind bids a price curve that
can include negative price
bids. Required for real-time
and optional for day-ahead. If
the wind resource needs to
limit its output, the price-
quantity offers submitted by
each wind plant will
determine the reduced base
point for each wind plant for
economic dispatch.
Can submit bid curve or self-
schedule into day-ahead market,
but not required to do so.
Resources with a Capacity Supply
Obligation must offer or self-
schedule into real-time market.
If an Intermittent Resource is
designated as a capacity
resource, then it must offer in
the day-ahead market.
Otherwise, the Intermittent
Resource can but has no
obligation to offer into the
day-ahead market.
Intermittent Resources and
Dispatchable Intermittent
Resources (DIRs) can reduce
exposure to Revenue
Sufficiency Guarantee charges
by participating in the day-
ahead market.
Ability of Wind to
Bid Day-Ahead
and Set Price
If a capacity resource, must
bid in day-ahead market, and
is able to update hourly. A
wind generator can set the
market price if selected
economically in the day-ahead
market and is not designated
as must-run. Otherwise,
wind is not required to bid in
the Day-Ahead.
Day-ahead market
participation is optional for
intermittent resources. If
participates, is treated as any
other resource and can set
price if it is the marginal unit
buys shortfall at real-time
price.
Day-ahead market participation
optional. Settle at real-time nodal
price for deviations from day-ahead
schedule. Although wind resources
are permitted to offer into the
market as economically
dispatchable resources, and as such
would be eligible to set price,
current wind resources are offering
in as a non-dispatchable resource
and are therefore ineligible to set
price. ISO-NE software currently
not able to automatically
incorporate sub-hourly changes in
wind production. ISO-NE planning
to incorporate 5-minute telemetry
of wind plants and short-term wind
forecasts that will allow for
economic dispatch of wind plants
and allow wind plants to set price.
If an Intermittent Resource is
designated as a capacity
resource, then it must offer in
the day-ahead market. If a
Must Offer unit is the marginal
unit, it can set the market
price.

DIRs required to participate in
the real-time market. All wind
resources (except for PURPA
QF wind projects and wind
projects installed before April
2005) to transition to DIR by
March 1, 2013. Non-DIR wind
resources considered
Intermittent Resources. See
Incorporation of Wind Into
System Dispatch/AGC.
PJM NYISO ISO-NE Midwest ISO
Allowance of
Negative Price
Bidding
Negative pricing allowed. Negative pricing allowed. Negative pricing not allowed. Negative pricing allowed.
Dispatch
Frequency
5 min. 5 min. 5 min. 5 min.
Imbalance
Settlement
Balancing operating reserve
charges are allocated to wind
and other resources for
deviations in real time from
day-ahead schedules.
Generators can self schedule
at a fixed output or within an
operating range and will not
be assessed balancing
operating reserve charges if
follow PJM dispatch
directions, and actually will be
eligible for operating reserve
credits. A generator can
decide not to follow PJM
dispatch and will not be
assessed balancing operating
reserve charges if real time
output matches day-ahead
schedules but will not be
eligible for operating reserve
credits. Differentials less than
5% or 5 MW incur no
deviation charges.
If scheduling day-ahead, buy
or sell deviations at real-time
LMPs.

Up to 3,300 MW of installed
wind capacity is exempt from
under-generation penalties
when output differs from real-
time schedule during
unconstrained operations.
Penalties may be assessed
during constrained operations
(described below).
Energy deviations between real-
time and day-ahead markets are
settled at real-time LMP. Wind
resources are not assessed a share
of certain uplift costs that are
allocated based on deviations.
Intermittent Resources and
DIRs are subject to Revenue
Sufficiency Guarantee Charges
for positive scheduling
deviations for DIRs for day-
ahead schedules, and for
positive and negative
deviations for Intermittent
Resources. DIRs (but not
Intermittent Resources) can
receive real-time make-whole
credits. DIRs (but not
Intermittent Resources) are
assessed an Excessive or
Deficient Energy Deployment
Change if a 8% tolerance band
is exceeded for four or more
consecutive 5-minute intervals
within an hour. Deviations less
than between 6 MWh and 30
MWh are exempt. Generators
are also exempt during events
beyond their control, such as
wind speed cut-out during high
wind events.
Ancillary Services
Market Structure
Day-Ahead and Real-Time
markets for regulation,
synchronized, and
supplemental reserves.
Ancillary service costs borne
by loads.
Day-Ahead and Real-Time
markets for regulation,
synchronized, 10-minute non-
synchronous and
supplemental reserves.
Ancillary service costs borne
by loads.
Forward (seasonal) and Real-Time
markets for 10 minute
synchronized, 10-minute non-
synchronized, and supplemental
reserves. Real-time market for
regulation. Ancillary service costs
borne by loads.
Includes Day-Ahead and Real-
Time markets for regulation,
spinning reserves, and
supplemental reserves.
Ancillary service costs borne by
load.
PJM NYISO ISO-NE Midwest ISO
Ancillary Services
Market and Wind
Wind is not precluded from
participating in ancillary
service markets if they can
meet the requirements.
Wind is not precluded from
applying but must meet the
eligibility requirements for the
individual ancillary service.
Wind is not able to participate in
ancillary services markets.
Wind cannot supply operating
reserves or other ancillary
services. The MISO is required
to report to FERC by March
2012 whether variable energy
resources can provide
supplemental, spinning or
regulation reserves.
Impact of Wind on
Ancillary Services
Requirements
No impact yet on the level of
ancillary service requirements.
Higher amounts of regulation
will be needed in a 2010
integration study of 8 GW of
wind. No impact on the
amount of operating reserves
for contingency events.
2010 integration study found
additional need for regulation at
higher levels of wind penetration,
although sufficient levels of
regulation capacity may be in place,
assuming no resource attrition.
Higher levels of spinning and non-
spinning reserves may also be
needed. Wind technology can
participate in voltage regulation.

MISO is working with
stakeholders to develop
potential Ramp Capability
product(s) that could access
and pre-position flexible
resources in the real-time
markets.
Eligibility of Wind
to Provide
Frequency
Response and
Inertial Response
Wind does not provide
frequency response or inertial
response.
None. Wind does not provide frequency
response or inertial response.
None.
Eligibility of Wind
to Provide Up or
Down Regulation
Wind is not precluded from
participating in the regulation
market if it can meet the
requirements. PJM does not
have separate Up and Down
regulation markets.
Wind is not precluded from
applying but must meet the
eligibility requirements for the
individual ancillary service.
Not allowed presently. Not allowed presently.
Type of Wind
Forecasting
System
Centralized wind forecasting
since April 2009. Wind plants
must meet technical
requirements and provide
meteorological data.
Centralized wind forecasting
system in place since June
2008; used for individual wind
plant economic dispatch
decisions since May 2009.
Wind plants must meet
technical requirements and
provide meteorological data.
Phase 1 of centralized wind
forecasting system is scheduled to
be in place Q3 of 2012.
Implementation work ongoing.
Centralized wind forecasting
since June 2008.
PJM NYISO ISO-NE Midwest ISO
Description of
Wind Forecasts
Long Term: Provided hourly,
from 48 hours ahead to 168
hours ahead.

Medium Term: Updated from
6 hours ahead to 48 hours
ahead.

Short Term: Updated with
frequency of every 10 min,
forecast interval of 5 min for
next 6 hours.

Forecast on the following
aggregation levels: wind
projects; electrically close
wind farms; Transmission
Owners; Regional West,
Mid-Atlantic; Council RFC or
SERC (currently none in SERC);
PJM RTO
Day-ahead forecasts updated
twice daily, covering next two
operating days at 4 AM and 4
PM.

Real-time forecasts updated
every 15 minutes on a 15-
minute interval basis, covering
an 8 hour time horizon.
Real-time forecast is blended
with persistence forecast to
develop wind plant schedules
in real-time commitment
(which looks ahead in 15-
minute intervals for 2.5 hours)
and real-time dispatch, which
looks ahead in 5 to 15-minute
intervals for 60 minutes. 100%
persistence used in very short-
term.
No centralized wind forecasting yet. 5 minute granular forecasts for
each Commercial Pricing (CP)
node (100+), and updates
every 5 minutes are provided
for the next 6 hours. The MISO
also receives hourly updated
forecasts from Energy &
Meteo for each hour beyond
6 hours for the next 6 days,
for the same CP nodes.

Energy & Meteo provides
forecasts at 4 levels: CP nodes,
zones, regions and all of MISO.
Three different Numerical
Weather Prediction (NWP)
models are used for each of
these levels.

Dispatchable Intermittent
Resources also receive a
separate 5 minute forecast
(See Incorporation of Wind
into System Dispatch/AGC).
Integrating the two 5 minute
forecasts is under
consideration.
PJM NYISO ISO-NE Midwest ISO
Wind Forecast
Tools/Techniques
Physical model that uses NWP
forecasts as input. Energy &
Meteo uses NWP input, a
combination of three
numerical weather models
weighted according to the
weather situation and
historical performance; site-
specific power curves based
on historical data, and a
shorter-term model (0-10
hours) based on wind power
measurements and NWPs.
Uses ensemble forecasts and
statistical analysis to prepare
wind power forecast. Uses the
following inputs: grid point
output from regional-scale
and global-scale NWP models;
measurement data from
several meteorological
sensors; high-resolution
geographical data; and
meteorological and
generation data from wind
projects.
No centralized wind forecasting. Physical model that uses NWP
forecasts as input. Energy &
Meteo uses NWP input, a
combination of three
numerical weather models
weighted according to the
weather situation and
historical performance; site-
specific power curves based on
historical data, and a shorter-
term model (0-10 hours) based
on wind power measurements
and NWP input.
Availability of
Ramp Forecast
Updated every 10 minutes at
5-min intervals for next 6
hours. Currently under
evaluation for potential use in
operations.
No ramp forecast; under
consideration.
No centralized wind forecasting. No ramp forecast; under
consideration.
Wind Forecast
Cost Allocation
PJM pays for the central wind
power forecasting service.
Fee assessed to each wind
project. Charge includes the
sum of a monthly fee of $500
and a separate monthly fee of
$7.50 per MW of nameplate
capacity. Fees are subject to
change as more wind projects
are added.
No centralized wind forecasting. MISO pays for the central wind
power forecasting service.
Wind Forecast
Utilization
Used to determine whether
there is sufficient generation
scheduled within PJM to meet
expected load, transaction
schedules, and reserve
requirements.

Used in determining if enough
generation is committed day-
ahead to serve forecasted
load. Real-time wind forecast
integrated into real-time
commitment and dispatch.

Phase 1 will incorporate wind
power forecast into the day-ahead
scheduling and commitment
process and also the scheduling and
commitment update process that
occurs periodically within the
operating day. Phase 1 will also
include displays and alarms to
enhance operator situational
awareness.
MISO uses the wind forecast to
inform their reliability unit
commitment, for transmission
outage coordination,
transmission security and peak
load analysis and potential
impact of wind ramps on
flowgates.

Refer to Incorporation of Wind
into Dispatch and AGC.
PJM NYISO ISO-NE Midwest ISO
Provision of
Capacity Adequacy
3-year Forward Capacity
market. Incremental auctions
if necessary, as determined by
PJM.
Capacity Market. Separate
auctions for capability period,
monthly and spot market.
3-year Forward Capacity Market.
ISO-NE also conducts annual and
monthly reconfiguration auctions.
Monthly Voluntary Capacity
Auction.

In July 2011, MISO filed a
proposal with FERC for a one-
year Forward Capacity Market
for the 2013 planning period.
Would be mandatory, with the
exception that Load Serving
Entities would be allowed to
opt-out.
Capacity Reserve
Margin
15.6% recommended Installed
Reserve Margin (IRM) for the
2012/2013 Delivery Year, and
a 15.4% IRM for the
2013/2014, 2014/2015, and
2015/2016 Delivery Years.
15.5% for the 2011 Capability
Year is under base case
conditions.
~ 14% for the 2014/2015 capacity
auction period, including benefits of
ties with Hydro Quebec; ~17%.
Otherwise, 14.4% for the 2014/15
Capability Year.
2011 Planning Reserve Margin
is 17.4%, while 2012 Planning
Reserve Margin is 16.7%.
Capacity Market
Structure
3-year forward market for
capacity through the
Reliability Pricing Model
(RPM); with up to three
supplemental annual auctions
as needed. LSEs can also self-
supply or procure capacity
through bilateral contracts.
LSEs may self supply, purchase
bilaterally, or purchase
capacity in monthly auctions
or biennial six-month capacity
auctions.
Three-year Forward Capacity
Market (FCM). LSEs can also self-
supply or procure capacity through
bilateral contracts. Five FCM
Auctions have taken place for
delivery periods out through
2014/15.
Bilateral contracting, self-
supply, and a voluntary
centralized monthly capacity
auction. In July 2011, MISO
filed a proposal with FERC for a
one-year Forward Capacity
Market for the 2013 planning
period (June 2013 - May 2014).
Would be mandatory, with the
exception that Load Serving
Entities would be allowed to
opt-out.
PJM NYISO ISO-NE Midwest ISO
Determination of
Capacity Value for
Wind
3-year rolling average of
capacity factor of wind plant
between 2 pm and 6 pm (local
time), 6/1 through 8/31.
Default value: class average of
13% of nameplate capacity
until operating data becomes
available. Wind capacity
resources must bid into day-
ahead energy market to
participate in the RPM.
Capacity factor of wind plant
between 2 pm and 6 pm from
June through August and 4 pm
through 8 pm from December
through February. Default
summer capacity value: 10%
of nameplate capacity until
operating data becomes
available for onshore wind;
38% for offshore wind.
Default winter capacity value:
30% of nameplate capacity
until operating data becomes
available for onshore wind;
38% for offshore wind.
Intermittent resources not
required to participate in day-
ahead market to receive
capacity revenues.
Summer capacity credit is the 5 year
rolling average from 1pm 6pm
from June to September. Winter
capacity credit is the 5 year rolling
average from 5 pm 7 pm from
October to May.

New facilities determine capacity
credit based on 1 year of on-site
data.
Uses the ELCC method of
calculation. Capacity credit
currently 12.9% of rated
capacity in 2011 and 14.9% in
2012.
Ability of Wind to
Contribute to
Capacity Adequacy
Wind can bid into RPM
auctions.
Wind can participate as a
capacity resource.
Can participate as a capacity
resource in Forward Capacity
Market. Wind resources are not
penalized for lack of availability,
including during shortage events. If
actual performance significantly
below obligation, must cover or
submit restoration plan.
Payments received in bilateral
market for capacity if
designated as a Network
Resource in MISO. As a
designated Network Resource,
must offer capacity into the
Day-Ahead Market.
Must be deliverable to qualify.
PJM NYISO ISO-NE Midwest ISO
Wind Power
Management
Wind included in procedures
for Transmission Constraints
and Light Load Events. Wind
curtailed along with other
generation based on $/MW
effect for transmission
constraints and economic bids
for Light Load Events. Wind
would normally have an
emergency minimum of zero,
but can submit a greater
value. Generators must be
able to adjust their output
level when operating in the
range between the economic
minimum and Maximum
Facility Output (MFO).
Resources may not submit an
economic minimum in the
real-time energy market that
exceeds the greater of the
resources physical minimum
operating level or the level of
its Capacity Interconnection
Rights (CIR). For wind plants
the CIRs are typically equal to
thirteen percent of the MFO.
PJM does not currently
impose any limitations on
wind ramp rates.
Wind Power Management is
handled automatically via
economic dispatch. Wind
plants must be able to accept
electronic basepoint signals.
During constrained
operations, wind plants must
follow the re-dispatch signal
and meet the basepoint
output limit within 5 minutes.
Penalties for non-compliance
equal to MW above basepoint
multiplied by the regulation
clearing price. A 3% error is
allowed.
Under development. Will curtail variable and other
generation during Minimum
Generation Events after using
the emergency range
(between energy minimum
and energy maximum) of
conventional generation.
Intermittent Resources are
curtailed out of market for
transmission congestion and
minimum generation events.
Order of curtailment based on
the impact on the transmission
constraint and priority of
transmission service. During
normal operation, DIRs with
lower offer price than market
clearing price dispatched to
maximum level, and to
minimum level if offer price
higher than market clearing
price. If there is transmission
congestion, DIR projects with
higher offer price will be
curtailed first.

PJM NYISO ISO-NE Midwest ISO
Incorporation of
Wind into System
Dispatch/AGC
Wind plants must be able to
accept dispatch instructions.
During constrained
operations, PJM will
redispatch all resources
according to each resources
bid curve. PJM will send wind
plants a desired MW
basepoint and any
curtailments should be
achieved within 15 minutes or
PJM needs to be notified if
that is not achievable.
Real-time economic dispatch,
with centralized forecast used
as the upper limit. If
dispatched down, over-
generation charges may apply.
Wind is exempt from under-
generation charges.
Proposal to require wind to follow
dispatch procedures and to submit
bid curves is under consideration.
All wind resources in operation
after April 1, 2005, and not
totally delivered under
network or long-term point to
point service must register as a
Dispatchable Intermittent
Resource (DIR) by March 1,
2013. Wind QFs under PURPA
are exempt. In the real-time
market, DIRs must submit 5-
minute CP node level wind
forecast, or accept the MISOs
default wind forecast. The
MISO default wind forecast is
also used if the DIRs forecast
is over 30 minutes old or
exceeds the feasibility limit of
the wind plant. DIR forecasts
up to 110% of the feasibility
limit are accepted. DIRs can
update their forecast
maximum limit up to 10
minutes before each
scheduling interval (i.e., up to
15 minutes ahead). If DIR
chooses to use the MISO
provided 5-min wind
generation forecast values on
its CP Node, this forecast value
will be used as economical
maximum limit for the wind
plant in the dispatch function.


SPP ERCOT CAISO Alberta ESO
Energy Market
Structure
LMP-based (real-time) market
for energy imbalances only.
Additional Day-Ahead LMP-
based energy markets
scheduled to be implemented
in March 2014.
Day-Ahead and Real-Time
LMP-based energy market.
Day-Ahead and Real-Time LMP-
based energy markets.
Real-Time market based on a
Province-wide clearing price for
energy.
Scheduling in
Energy Markets

No centralized energy market,
except for energy imbalances.
Transactions are done on a
bilateral basis.
All generation resources,
including wind resources, are
given individual dispatch
instructions by ERCOT,
generally at a 5-minute
frequency. This dispatch is
primarily based on real-time
telemetry from the Resources,
Resources offers, and current
system conditions.
Wind generators can sell into the
real-time market if willing to
accept the real-time market price.
The energy will still be scheduled
hour ahead (defined as 75 minutes
ahead) but it will be a price taker.
Generators in the Participating
Intermittent Resources Program
(PIRP) are not allowed to submit
economic bids.
Wind generators do not submit
offers into the energy market
and are price takers.
Ability of Wind to
Bid Day-Ahead
and Set Price
Not applicable. Wind resources are permitted
to bid in the Day-Ahead
market on a voluntary basis.
Wind is permitted to bid day-
ahead, but there is no protection if
they do not deliver. No wind
generator has bid day-ahead and
set the price to date.

Proposing to require new variable
energy generators to submit
economic bids.
Generators submit day-ahead
supply curve offers; used to
create energy market merit
order. Wind generation is a
price taker in the market and
receives market price for the
MW generated/supplied.
Allowance of
Negative Price
Bidding
Negative pricing allowed. Offer
Curve price minimum/floor set
at negative $1,000.
Negative pricing allowed. Negative pricing allowed.
Proposing to lower the energy bid
floor from negative $30/MWh to
$150/MWh, then to negative
$300/MWh.
Negative pricing not allowed.
Dispatch
Frequency
5 min. 5 min. 5 min. As required. No minimum or
maximum time.
SPP ERCOT CAISO Alberta ESO
Imbalance
Settlement
Has a real-time energy
imbalance market, which is an
offer-based market, and
locational prices will be based
on the resource offers
submitted to SPP. Wind is not
subject to uninstructed
deviation charges.
All generation resources are
settled in real-time based on
their Real-Time Settlement
Point Price (RTSPP) and their
net injection at the generation
resources settlement point.
The settlement intervals are 15
minutes and the RTSPPs are
calculated using the Nodal
LMPs. Generation resources
may be charged a penalty for
deviating from their real-time
Base Point instructions. For
wind resources, penalties are
determined by examining
periods when they have been
given an economic dispatch
below their high dispatch limit
(or capability). During these
periods, if a wind resource is
generating more than 10%
above its expected base point,
it will be charged for the
deviation based on real-time
prices.
If participating in PIRP, then hourly
deviations are settled at a monthly
weighted market-clearing price
and accumulated for monthly
average of energy imbalances.
Proposed that monthly imbalance
charges from PIRP facilities be
allocated to the scheduling
coordinators of LSEs buying the
energy from PIRP facilities instead
of being uplifted across the entire
CAISO. If not participating in wind
forecasting, then subject to 10-
minute imbalance energy charges.
No penalties.
Ancillary Services
Market Structure
SPP does not offer ancillary
services directly, since SPP is
not a control area operator.
SPP can act as the
transmission customers agent
to procure some ancillary
services.

Market for regulation, spinning
and supplemental reserves (a
30-minute Non-spinning
Reserve Service and a 10-
minute Responsive Reserve
Service). All ancillary service
costs are borne by loads.
The day-ahead market accepts bids
for ancillary services. CAISO
currently procures 100% of its
ancillary service requirements in
the day-ahead market, with
incremental ancillary services
procures as needed in the real-
time market. The services
procured include: regulation up,
regulation down reserve, spinning
reserve, and non-spinning reserve.
Day-ahead market for
regulation, spinning, and
supplemental reserves.

SPP ERCOT CAISO Alberta ESO
Ancillary Services
Market and Wind
Wind may provide ancillary
services if their ability to
provide them is not inhibited
by their ability to maintain
their schedules or follow
dispatch instructions.
Wind resources do not
participate in the ancillary
services market.
Participation in PIRP specifically
excludes the wind generator from
taking part in the ancillary services
market.
Wind resources do not
participate in the ancillary
services market.
Impact of Wind
on Ancillary
Services
Requirements
According to a SPP wind
integration study, published in
January 2010, increased wind
penetration results in a need
for increased regulation
capacity, which accelerates as
wind penetration increases.
Regulation needs are time-
dependant. Regulation-up and
regulation-down requirements
are not symmetric and may
differ.
Wind forecasts are taken into
account when determining the
amount of non-spinning
reserve requirements.
Regulation requirements
consider historical 5-minute
variations in wind generation
and account for any increases
in installed wind capacity.
Are now differentiating regulation
purchases by season, and are thus
impacted by high wind seasons.
Expect to need more regulation
and load following in the future.
Level of operating reserves
unchanged with present level of
wind capacity, but that may
change with higher levels of
wind capacity. Considering
developing a ramping service for
wind, load and interties; adding
regulation for the long term,
and/or allowing wind to provide
ramping down service.
Eligibility of Wind
to Provide
Frequency
Response and
Inertial Response
No market based mechanism
exists for Frequency Response
in SPP.
Wind resources with Standard
Generation Interconnection
Agreements (SGIAs) signed
after 1/1/10 are required to
provide Primary Frequency
Response.

Resources are not paid to
provide Frequency or Inertial
Response in the ERCOT
Market.
CAISO does not have an inertial
response or frequency response
market.
New rule, effective December 1,
2011, requires non-exempt wind
projects to comply with
frequency response
requirements. The AESO does
not foresee inertia response
problems at current level of
wind penetration but will be
continuously evaluate if there is
a system need for inertia
response.
Eligibility of Wind
to Provide Up or
Down Regulation
Wind could be eligible to
provide Down Regulation
based on their ability to follow
a dispatch instruction.
Wind resources are not
prohibited from providing
regulation.
While wind is permitted to provide
up and down regulation, a unit
must be telemetered and tested
for the product in order to provide
it. CAISO has had no wind unit test
to date.
Wind does not participate in
ancillary service markets or
provide regulation.
SPP ERCOT CAISO Alberta ESO
Type of Wind
Forecasting
System
Centralized forecasting since
January 2011.
Centralized wind forecasting
since July 2008.
Centralized wind forecasting since
2004 (PIRP). All intermittent
generator, whether in PIRP or not,
pay $0.10/MWh. Exports out of
CAISO subject to export fee. Wind
generators must provide
meteorological data. Solar
generators must provide solar
insolation date. Variable energy
generation from dynamic transfers
eligible for PIRP by November
2012.

Centralized wind forecasting
since January 2010. Currently
rolling out real time (10 minute)
site specific data. Wind
generators must provide wind
speed, wind direction,
temperature and pressure every
10 minutes. Power data
including turbine availability, net
to grid and power limit are also
required.
Description of
Wind Forecasts
5-minute forecast for two
hours ahead, updated every 5
minutes.

Hourly forecast for the
upcoming 24-hour period,
updated hourly.

Hourly forecast for each hour
beginning 25 hours in the
future, updated every 4-6
hours.
Short-Term Wind Power
Forecast (STWPF): Hourly 50%
probability of exceedance
forecast for an upcoming 48-
hour period, updated hourly
and delivered 15 minutes past
the hour. Similarly, an 80%
probability of exceedance
forecast is also provided.
Next day: production (MW) for
each hour of next calendar day,
delivered by 5:30 AM.

Next hour: production (MW) for
each of the next 7 hours, delivered
by 15 minutes after each hour and
at least 1 hour and 45 minutes
before real time.

For hour-ahead and day-ahead
forecasts, AWS Truepower also
applies 80% and 20% MW
probability of exceedance values.

Expanding forecast for intermittent
dynamic transfers for intra-hour
instead of hourly.

Developing interval forecasting
tool for sub-hourly and two hours
ahead.
Day-ahead forecast up to 6 days
(144 hours), updated every 24
hours. Will begin short-term
hourly forecast and ramp
forecast in December 2011 and
it will be updated every 10
minutes.
SPP ERCOT CAISO Alberta ESO
Wind Forecast
Tools/Techniques
Three different NWP models
are used, with one that is run
every 6 hours, and two that
are run every 12 hours. Wind
power forecast is generated
with individual power curves
per generation resource and
weather model. Higher level
forecasts are optimized to
reflect influence between all
underlying generation
resources. Forecasts are
combined using statistical
methods to analyze forecast
performance and calculate
dynamic factors for specific
weather regimes for each
generation resource as well as
for all higher level forecasts in
real-time. Very short term
forecast (0 - 6 hours) on all
levels is performed using a
very short term module taking
current generation into
account.
AWS Truepower uses an
integrated forecast system
based on physical and
statistical models.

-Days ahead: Uses an
ensemble composite of
statistically adjusted Numerical
Weather Prediction (NWP)
Forecasts.

-Hours ahead: Uses time series
methods, feature detection
algorithms, and a rapid update
NWP in addition to the
ensemble composite above.

Wind plant output models are
also used to transform
predictions of meteorological
variables to power output
forecasts.
Uses ensemble forecasts and
statistical analysis to prepare wind
power forecast. Uses the following
inputs: grid point output from
regional-scale and global-scale
NWP models; measurement data
from several meteorological
sensors; high-resolution
geographical data; and
meteorological and generation
data from wind projects. Solar
insolation data requested from
solar projects.
WEPROG uses a short-range
ensemble prediction system
based on a multi-scheme
approach, which is an integrated
weather forecasting system that
uses 75 individual forecasts to
replicate weather uncertainty
for the next six days. Each
ensemble member is based on a
single NWP kernel, where the
ensemble members are
generated by varying dynamic
and physical processes within
the NWP model.


SPP ERCOT CAISO Alberta ESO
Availability of
Ramp Forecast
Forecast probabilistic ramping
events with predefined
confidence ranges per site,
including event duration and
magnitude.
AWS Truepower provides the
ERCOT Large Ramp Alert
System (ELRAS) which
forecasts probabilistic ramping
events of predefined
magnitude and duration.
ELRAS generates 15-minute
regional and system-wide
forecasts for the upcoming 6
hours, updating every 15
minutes. At the present, the
ramp forecasts provided by
ELRAS are only used by
ERCOTs System Operators for
situational awareness.
Currently investigating a wind
ramp tool similar to the ERCOT
ELRAS tool, which does forecasting
of ramps using a probabilistic
algorithm.
Ramp forecast will begin in
December 2011.
Wind Forecast
Cost Allocation
SPP pays for the central wind
power forecasting system.
ERCOT pays for the central
wind power forecasting
system.
Fee assessed on all eligible
intermittent resources of
$0.10/MWh, and the CAISO covers
about $0.03/MWh from within its
operating budget. The CAISO also
charges an export fee for energy
from PIRP facilities exported
outside the CAISO balancing area.
A $/MWh charge to wind
generators, and reconciling the
differences between wind
power forecast costs and
revenue from the surcharge
annually.
SPP ERCOT CAISO Alberta ESO
Wind Forecast
Utilization
Wind forecast is currently used
for reliability capacity and next
day planning. With
implementation of SPPs Day-
Ahead and Ancillary Services
Market in 2014, the wind
forecast will be used to
determine validity of
day-ahead offers and
commitment.
Qualified Scheduling Entities
(QSE) representing wind
resources must use the most
recently provided Short-Term
Wind Power Forecast (STWPF)
in their Current Operating
Plans (COP). The COPs are then
used in both the Day-Ahead
and Hour-Ahead Reliability
Unit Commitment Studies
which ensure that an adequate
amount of capacity is available
to reliably operate the system.
QSEs shall adjust the provided
forecasts for any unreported
unavailability.

Wind forecasts are also used in
determining monthly
requirements of non-spinning
reserves.
The wind generation forecast is
used as the energy schedule for
real-time operations. Day-ahead
forecasts advisory.

AESO uses wind forecast to
project their need for next day
operating reserves and
procurement, as well as real-
time operation for energy
market dispatch, short-term
adequacy and Available Transfer
Capability (ATC). Expect to
incorporate wind forecast into
energy management system in
near future, perhaps as soon as
2012.
Provision of
Capacity
Adequacy
Self-supply and bilateral
contracting.
Self-supply and bilateral
contracting.
Forward capacity requirement
from CPUC, but no centralized
capacity market. CAISO bilaterally
procures capacity deficiencies.
Self-supply and bilateral
contracting.
Capacity Reserve
Margin
Target of 12%. (9% if the Load
Serving Members capacity is
comprised of at least 75%
hydro based generation)
Target minimum of 13.75%. 15%. Information not provided.
Capacity Market
Structure
No capacity market. No capacity market. No capacity market. In
collaboration with the CAISO, the
California PUC annually sets
capacity requirements for 10 areas
within California, plus a planning
reserve margin (now 15%).
No capacity market.
SPP ERCOT CAISO Alberta ESO
Determination of
Capacity Value
for Wind
Output level that wind plant
equals or exceeds during 85%
of period defined by top 10%
of load hours.
Wind generation is included in
the planning reserve margin
calculations at 8.7% of
nameplate capacity, based on
stochastic analysis of effective
load-carrying capability.
For three years, plant output that
equals or exceeds 70% of period
between 4:00 and 9:00 p.m. for
Jan-March, and Nov. and Dec.; and
between 1:00 and 6:00 p.m. from
April through October. Wind
projects assigned to one of six
wind areas (Tehachapi, San
Gorgonio, Altamont, Solano,
Pacheco Pass, and San Diego).
Diversity benefit adder if wind area
capacity credit higher than
individual wind project. Various
adjustments if wind project
operating less than three years.
The capacity value for wind
power has been given a 20%
value until further studies
determine a better value or
method.
Ability of Wind to
Contribute to
Capacity
Adequacy
SPP does not operate a
capacity market. Capacity
demonstration is the
responsibility of the entity
owning, operating, and/or
contracted for wind farm
capacity.
ERCOT does not operate a
capacity market.
No payments received for
capacityjust credit toward
overall system reliability through
reserve margins.
AESO excludes wind in
determining their available
reserve margin.
SPP ERCOT CAISO Alberta ESO
Wind Power
Management
Real-time or forecast system
overloads or other reliability
issues may require localized
curtailment or constraints on
output from generation
resources, including wind.
Unless exempted, wind
resources must limit their
ramp rate to 10% per minute
when responding to or when
being released from an ERCOT
deployment, except:
- during Force Majeure events,
- if there is a demonstrated
decrease in available wind
resources or,
- if a wind resource is
operating under a Special
Protection Scheme (SPS) and is
decreasing its output to avoid
an SPS activation.

ERCOT can also request wind
resources to ignore the
ramping limit requirement if
necessary to maintain system
reliability.
The CAISO does not currently
require intermittent resources to
respond to real-time curtailment
requests except for transmission
overload issues.

CAISO will rely on economic bids
from variable generators, which
must follow economic dispatch
instructions.
Effective December 1, 2011,
AESO will temporarily limit real
power production from wind
plants when system conditions
are such that the total amount
of available real wind power
cannot be accommodated and
all other control methods have
been exhausted. AESO has over-
frequency control, power
limiting, and up-ramp limits.
Ramp rate controls must limit
up ramps to between 5% and
20% of maximum authorized
power. Also, if directed by
AESO, wind generators must
limit one-minute power output
from exceeding 2% of maximum
authorized power.
Incorporation of
Wind into System
Dispatch/AGC
Market System Dispatch is
simply an echo of current
output. No modifications to
wind resource dispatch
instructions by AGC/Market
System at this time. Directives
are issued in the case of real-
time reliability issues to limit
output to specific levels.
Wind not subject to
Uninstructed Deviation
Charges.
Wind resources are
incorporated into the
Economic Dispatch like all
other generation resources.
However, wind resources are
only required to respond to
electronic signals setting
dispatched generation base-
points when needed for
congestion or when the
resource appears not to be
economical.
Wind generation is not
dispatchable and does not
submit offers into the market.


Ontario IESO BPA Xcel Energy (PSCo)
Energy Market
Structure
Real-Time market based on a Province-
wide clearing price for energy. Energy
suppliers can commit resources in day-
ahead commitment process; market
clearing prices and dispatch still set in real-
time market.
Bilateral market. Vertically integrated utility. At wholesale,
bilateral energy market under FERC Order
890.
Scheduling in
Energy Markets

Market participant wind generators are
defined as those wind generators that
participate in the IESO market. All grid
connected wind generators must be
market participants while wind farms
embedded within a distribution system
can elect to be market participants or stay
as embedded facilities within the host
local distribution companies. Small
facilities within local distribution
companies are generally not visible to
IESO.

Currently, wind generators are required to
submit energy forecasts. Energy from
variable renewable energy generation is
accepted as generated unless it impacts
system reliability.



Hourly scheduling but experimenting with
several intra-hour scheduling pilots.

Running a Committed Intra-Hour
Scheduling pilot, in which wind projects
commit to submit half-hourly schedules.
Half-hourly scheduling is currently
voluntary. Wind generators that
participate are eligible for a 34% reduction
in the wind integration rate. Also running a
pilot where BPA can purchase or
transmission customers can self-supply
non-federal supplemental reserves to limit
curtailments.

BPA is also expanding an existing intra-hour
scheduling pilot from increases in non-firm
schedules to intra-hour schedules increases
and decreases for firm and non-firm
service.

BPA also starting a one-year intra-hour
scheduling pilot with the California ISO on
the California-Oregon Intertie through
October 2012. BPA also a participant in the
Joint Initiatives half-hour transmission
scheduling initiative and the Intra-Hour
Transaction Accelerator platform. BPA also
is offering dynamic transfer capacity on
some transmission paths and is a
participant in the Joint Initiatives Dynamic
Scheduling System.
Follows scheduling protocols under Order
890.
Ontario IESO BPA Xcel Energy (PSCo)
Ability of Wind to
Bid Day-Ahead
and Set Price
None currently. With the implementation
of centralized forecasting, market
participant wind generators will be able to
offer into day-ahead markets.
Not applicable. Not applicable.
Allowance of
Negative Price
Bidding
Price can be zero or negative, but not less
than the marginal clearing price.
Dispatchable resources can submit offers
from -$2000 to $2000.

Currently, wind generators are typically
classified as self-scheduling or intermittent
generation and do not submit offers they
are price takers.
Negative pricing not permitted. Not applicable.
Dispatch
Frequency
5 minutes for dispatchable facilities.
Currently, wind generators are not
classified as dispatchable and do not
receive regular dispatch instructions.
With the implementation of centralized
forecasting and changes to dispatch
obligations, market participant wind
generators will be dispatched on a five-
minute economic basis.

Hourly, but experimenting with several
intra-hour scheduling pilots.
Externalhourly schedules. WECC looking at
going to 30-minute schedules with proposed
FERC variable generation rule.

Internalreal-time with merit order
dispatch. Add plants to AGC as needed.
Ontario IESO BPA Xcel Energy (PSCo)
Imbalance
Settlement
Currently, no penalties for settlement
imbalances but penalties can be assessed
for not meeting wind forecasting
obligations. When central forecasting is
implemented, market participant wind
generators will be required to operate
within a compliance dead-band when
ambient conditions offer sufficient wind
(to be determined).
For wind and solar projects of 200 kW or
more, BPA imposes a Variable Energy
Resource Balancing Service charge of
$1.23/kW-month on wind generators and
$0.21/kW-month on solar generators.
Persistent deviation penalties applied for
positive and negative schedule deviations
that exceed both 15% of schedule and 20
MW in an hour for four consecutive hours.
On January 1, 2012, this will be reduced to
three consecutive hours. Over-deliveries
are not paid, while BPAs under-deliveries
are charged the greater of BPAs highest
incremental cost or 100 mills/kWh.
Variable energy generators that meet or
beat a 30-minute persistence schedule are
exempt. BPA, at its discretion, may waive
part or all of the persistence deviation
charge for extraordinary circumstances or if
customers acted to avoid or minimize the
deviation.

Follows Order 890 protocols.

Ancillary Services
Market Structure
Real-Time markets for regulation,
synchronized (spinning) reserve available
within 10 minutes, non-synchronized
reserve available within 10-minutes, and
30-minute reserve (synchronized and non-
synchronized) available within 30 minutes,
and supplemental reserves.
Additional ancillary services for regulation,
reactive, and reliability-must-run are
procured via contract. Ancillary service
costs are borne by loads.
No centralized ancillary services market.
Provide FERC-required ancillary services
under Order 890.

Also running a pilot where BPA can
purchase or transmission customers can
self-supply non-federal balancing reserves
to limit curtailments. Pilot program in
place where BPA purchases non-federal
down reserves to balance increases in wind
generation.
Provide FERC-required ancillary services
under Order 890. Participates in Rocky
Mountain Reserves Sharing Group that shares
contingency reserves with multiple balancing
authorities.
Ancillary Services
Market and Wind
Wind can provide voltage control and
reactive support, but no other ancillary
services. The IESO will consider the
integration of wind resources in ancillary
markets where technically feasible in the
future.
BPA began generation imbalance pilot in
June 2010, whereby Iberdrola Renewables
self-provides generation imbalance
reserves for 1,390 MW of wind capacity.
Four wind plants in Colorado are equipped to
provide regulation-down and will expand to
six by end of 2011. See Eligibility of Wind to
Provide Up or Down Regulation.
Ontario IESO BPA Xcel Energy (PSCo)
Impact of Wind
on Ancillary
Services
Requirements
No impacts currently but are engaged in
studying and monitoring.
Integration impacts of wind handled
through integration charge. See Imbalance
Settlement for additional details.
Instituted guideline for 30 minute non-
spinning reserve to replace wind in case of
ramp-down of wind power. Under
evaluation.
Eligibility of Wind
to Provide
Frequency
Response And
Inertial Response
The IESO will consider the integration of
wind resources in ancillary markets where
technically feasible in the future.
Proposed requirement: All new wind
projects must have frequency responsive
capability. Wind projects >20MW provide
over- and under-frequency control in the
control systems, and may be required to
feather for over-frequency, or if able to
feather wind generation in advance, to
increase generation for an under-frequency
event.
Not eligible.
Eligibility of Wind
to Provide Up or
Down Regulation
Not eligible. The IESO will consider the
integration of wind resources in ancillary
markets where technically feasible in the
future.
None. Wind can provide down regulation. Xcel
equipped four wind plants in Colorado with
AGC in June 2011. Xcels Energy Management
System will send a dispatch to AGC-equipped
wind projects if the operating range of other
generating resources is exhausted.

Type of Wind
Forecasting
System
Wind operators provide forecasts.
Forecasts must be provided by 11 a.m.,
covering every hour of the remainder of
that day and the next day. Wind
operators must provide updates if actual
output is reasonably expected to differ
from the forecast by 2% or 10 MW,
whichever is greater. Penalty can be
assessed for not meeting wind forecasting
obligations.

Centralized forecasting to be implemented
in 2012 for distribution-connected wind
generators with an installed capacity of
5MW or greater, and all wind resources
directly connected to the IESO-controlled
grid.
Began wind forecasting in December 2009.
BPA moving towards a blended wind power
forecasting model. Included is BPAs
internal automated forecasting system and
external forecasting subscription services.

The internal forecasting system is the
bench mark for external vendor
performance.
Centralized wind forecasting since October
2009.
Ontario IESO BPA Xcel Energy (PSCo)
Description of
Wind Forecasts
Currently, market participant wind
generators submit forecasts containing an
expected output value or quantity for
each dispatch hour.

Real-time scheduling done on a 5-minute
basis, relying on a telemetry snapshot of
wind output from 10 minutes prior to
setting the schedule in real time.

With the implementation of centralized
forecasting, market participant wind
generators will have their forecasts
provided via a central forecast.

Hourly forecast for next three days,
updated hourly. Forecast done on plant-
by-plant basis, then rolled up to BPAs
balancing area. Persistence forecast
updated every minute and sent to internal
and external forecast. Forecast
performance evaluated within a forecast
prediction interval, and how often forecast
is outside that interval.
Receive two forecasts every 15 minutes. One
is week-ahead with hourly granularity and
updated every 15 minutes. The second is a
three-hour forecast with 15-minute
granularity. Xcel applies a 75% confidence
interval around expected forecast.

Wind Forecast
Tools/Techniques
Currently operating a decentralized
forecasting system, where wind
generators submit a forecast of expected
generation output. Forecast accuracy is
subject to compliance requirements; wind
generators required to provide updates if
actual output is reasonably expected to
differ from original forecasts by 2% or 10
MW, whichever is greater.

Decentralized forecasting will eventually
be replaced by centralized wind power
forecasting in 2012.
Moving towards blend of the three
forecasts. BPAs internal forecast mostly
automated and pulls in NOAA, weather and
wind production data. Aggregate wind
forecast posted on BPAs web site. BPA also
uses data from 20 BPA-owned met towers,
also posted on BPAs web site.

Uses mix of public and private weather
forecasts to produce wind forecasts.
Forecast is weighed by past performance.

Availability of
Ramp Forecast
None. No specific ramp forecast; expect ramp
prediction to be part of regular forecast.
Ramp forecast under research and
development but not using ramp forecast
now.
Wind Forecast
Cost Allocation
A monthly charge will be assessed to all
withdrawals (mostly load) from the IESO
grid to pay the centralized forecasting
service provider when centralized
forecasting is in place.
BPA paying for wind forecasts currently,
but will incorporate wind forecasting costs
into the variable generation rate for the
next BPA rate case for 2014.

Xcel Energy pays for the wind forecasting
services and R&D.
Ontario IESO BPA Xcel Energy (PSCo)
Wind Forecast
Utilization
Day-ahead forecasts aid assessment of
expected system conditions leading up to
real-time. Forecasts are included in pre-
dispatch every hour; results used to aid
decisions on day-ahead unit commitment,
spare generation on-line, and intertie
transaction scheduling.

Real-time scheduling uses persistence
wind forecasts. Will use centralized wind
forecast for dispatch in 5-minute
increments.
Used for forecasting small amount of wind
that serves BPA load (about 20%); for
determining amount of balancing reserves
that is needed, both up and down; real-
time situational awareness; short-term
planning, and wind event alerts.
Forecasts used for day-ahead planning,
including need for day-ahead natural gas
purchases. Also used in real-time by system
operators for short-term commitment and
dispatch but not integrated into EMS.

Provision of
Capacity
Adequacy
No capacity market. No capacity market. No capacity market.
Capacity Reserve
Margin
21.3% in 2011
21.8% in 2012
18.7% in 2013
18.7% in 2014
19.8% in 2015

Note: The figures are based on a 2010
reserve margin study. Updated numbers
will be available by end of 2011 for 2012
to 2016.
Information not provided. Information not provided.
Capacity Market
Structure
No capacity market. No capacity market. No capacity market.
Ontario IESO BPA Xcel Energy (PSCo)
Determination of
Capacity Value
for Wind
Model considers simulated and actual
wind data, selecting the lesser value of the
two data sets for each winter/summer
season and shoulder period month, for
the top five contiguous daily peak demand
hours. Applied deterministically and/or
probabilistically as needed, and
distributions are used as inputs into the
GE-MARS model, which randomly
generates a probability value to determine
wind capacity contribution to the forecast
daily peak demand.
Zero value set for wind for both winter and
summer.
PSCO uses a 12.5% capacity credit for wind in
planning process.
Ability of Wind to
Contribute to
Capacity
Adequacy
No capacity market. None. Counts wind as 12.5% in integrated resource
planning process.
Wind Power
Management
IESO operator must have contact with
wind plant operator at all times.
Wind plant operator must follow requests
within 5 minutes of notification
Must keep production schedules as up to
date as possible.
BPA requires wind generators to reduce
actual output to the scheduled amount plus
their reserve allocation, once 90% of dec
balancing reserves have been utilized. BPA
curtails wind schedules to the wind
generators actual output plus reserve
allocation once 90% of inc balancing
reserves have been utilized.

Requirement: All new wind projects
>20 MW must have ramp rate limitation
capability and governor response
capability.

In certain power purchase agreements, Xcel
holds the ability to curtail wind a particular
number of hours per year. Beyond that, it will
compensate for lost energy and the lost value
of the production tax credit.
Incorporation of
Wind into System
Dispatch/AGC
Upon its implementation, will use
centralized wind forecast for dispatching
wind in 5-minute increments.
Not applicable, other than the wind power
management explained above.
Four wind plants in Colorado equipped with
AGC and can be dispatched down. Will
expand to six wind plants by end of 2011.