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Navigating the Swamp
Scott Eiserloh, Forecasting and Model Development Principal Engineer
Aurora Electric Market Forecasting Conference, Skamania, Sept. 19, 2014
My First Computer
The Early Bird – Analog Economic Dispatch and AGC
Proprietary/Confidential – Not to be shared externally or with SPC
CC
OPCO Plant Type
GPC
APC
GULF
MPC
SPC
H Weiss Dam
Total 50,862 MW
Southern Company “Owned”
N
S
Combined Cycle (12,263 MW)
H
CT
PA
Nuclear (4,715 MW)
Steam (21,382 MW)
Combustion Turbine (5,278 MW)
Hydro (2,595 MW)
Power Purchase
Agreements (4,629 MW)
HLay Dam
HMitchell Dam
H Martin Dam
H Yates Dam
H Thurlow Dam
Sinclair Dam
Logan Martin Dam
HNeely Henry Dam
HHolt Dam
HJordan Dam
HBankhead Dam
HBouldin Dam
H Riverview Dam
H Smith Dam
H Harris Dam
HRocky Mountain
HMorgan Falls Dam
H Langdale Dam
H Bartletts Ferry Dam
H Goat Rock Dam
H Oliver Dam
H
North Highlands
Dam
H Flint River Dam
Lloyd Shoals Dam
SPlant McManus
Wallace Dam
H Estatoah Dam
H Burton Dam
H Terrora Dam
H Yonah Dam
HNacoochee Dam
HTugalo Dam
HTallulah Dam
SPlant Gorgas
N Plant Vogtle
S Plant Miller
SPlant Greene County
S Plant Gadsden
SPlant Bowen
SPlant Gaston
SPlant Barry
SPlant Scholz
S Plant Mitchell
S
S Plant Yates
SPlant Scherer
S Plant Hammond
SPlant McIntosh
S
Plant Kraft
S
Plant Smith
SPlant Watson
SPlant Daniel
SPlant Sweatt
S Plant Crist
N Plant Farley
N Plant Hatch
S Plant Branch
CC Washington County
CC
CC
CC Plant Theodore
CC
CCPlant Harris
CCPlant Franklin
Plant WansleyCC
CC
CT Chevron Cogen
CT
CT
CT
Plant Wilson
CT Plant Dahlberg
CT Plant Robins
CT
PA Calhoun
PA Mid-GA Cogen
PA Wash Co.
(Tiger Creek)
H
PA Solar
H
H
H
PA Monroe/Walton Co.
PA Bainbridge
CT Addison
PACentral Alabama
PA Heard Co.
Plant McDonough
CC
CT
CTCleveland County
CT
Rowan County Energy Complex CC
CT
25-MW CCS Demo
“World’s largest carbon capture facility on a fossil-fueled power plant”
Alabama Power
Plant Barry
Absorber
Regenerator
Compressor
Kemper County IGCC Project
Vogtle 3 and 4 Construction
Southern Power Company
Southern Power is an unregulated wholesale energy provider. Southern Power and
its subsidiaries own and operate 17 facilities in eight states, with more than 8,800
megawatts of generating capacity operating in Alabama, California, Florida, Georgia,
Nevada, New Mexico, North Carolina and Texas.
Proprietary/Confidential – Not to be shared externally or with SPC
9
Separation Protocol
• FERC ORDER
• Non-Public retail unit specific or transmission
Information Is NOT ALLOWED to be shared with
Southern Power
• Public Bulletin Board
• SPC Personnel Not Allowed In Retail Work Spaces
– Electronic Security ID Cards
• Term Traders cannot know non-public
transmission information
• Best Practices May Be Shared
How did we get here?
• Legacy models are many in number and are frequently
being stressed
• They include the many in-house developed “tools”
• Comfortable, familiar processes are sometimes called
“ruts”
• But they usually get us where we want to go
Search for Improvement
• Generalization
• Models are developed with a specific problem(s) in mind.
• All models are predisposed to look at things in a certain way
• This can affect the results
• The modeler has to recognize this and sometimes “manipulate or lie” to the model to
get the results that he “knows” are “better”
• What’s out there that may be “better”
• Faster
• More accurate
• More versatile
• Easier to use
• “Better” is Defined by the User
• To accomplish a large change, it takes:
• Agreement ( buy-in)
• Co-ordinated Effort
• TIME
When Adopting Anything Different, Remember
Aurora Benefits
• Ease of I/O with other analysis tools through Excel
• Versatility
– Zonal
– Nodal
– LT Resource Expansion and Retirement
• Common database and interface
– Common data across uses
– Facilitates training of personnel
– User customizable I/O templates
– Scripting capability
• Commitment to Customer Support and Model Improvement is Real
Our Computer Issues
• IT Justifiably Paranoid
• Many corporate applications and servers
• ~20,000 individual desktops using a common image
• Severely restricted admin privileges
• For Aurora We Choose Workstation Over Server
• System planning computer farm
• “Local” results instead of SQL server
• Plan to test solid state drive
Computing Structure
Remote
Access
System
Planning
Computer
Farm
Gigabit
Network
Corporate
Desktops for Planning
• Windows 7 Enterprise or Ultimate
• i7-3770 3.40GHz quad core
• Hyper threaded
• 12.0GB Ram
• Dual 22” Monitors
The World According to Our Energy Budget
Current Hourly Modeling
• In 2012, over 2,200 Runs
• Avoided Cost Studies
• Unit Retirement Studies
• Renewable Evaluations
• Fuel Projections
• General Budgeting
• Portfolio Analysis
• Coal Inventory Management
• Gas Hedging
• RTP Projections
• Financial Planning
• Emission Projections
• Pool Transaction Projections
• Capital Project Evaluations
• Outage Optimization
LT Modeling Potential Uses
• Retirement Analysis
• Expansion Planning –
Especially Renewables
Nodal Uses
• A group within Southern Company is looking at utilizing the Nodal
Analysis capability in Aurora to apply Production Cost Modeling to
physical transmission markets. This group is currently evaluating
the potential benefits & challenges associated with this analysis
approach.
• Potential benefits include:
– Identifying system losses
– Off-Peak Congestion
– Estimates of Forecasted Re-dispatch Due to Congestion
• Useful Aurora Enhancements
– Automated Contingency Files
– Automatic Constraint Identification Reports
– Ability to Model Resource Loss as Contingencies
Term Traders
• SWE (Southern Wholesale Energy) is exploring the use of
AuroraXmp Nodal for LMP forecasting and congestion analysis to
support various trading strategies in RTOs. The AuroraXmp’s
automated scripts have the ability to retrieve market data and
update the powerflow model’s load forecast, fuel prices, generator
outage periods, and more in several LMP and non-LMP markets. The
simulation run times are very prompt and can provide the following
output:
– Granular Day-Ahead/Real-Time LMP forecast(s) to nodal level
– Flow-gate Constraint Impacts to RTO Hub pricing points
– Additional Risk Analysis for Hedging Strategies
Southern Power Company and AURORA
22
• AURORAxmp is used by Southern Power’s Market Strategy and Assessment
group to support the development of market price forecasts for the company’s
existing and targeted market areas. These forecasts are instrumental in
supporting the company’s business development activities and remarketing
opportunities.
• Southern Power models the Eastern Interconnect and ERCOT with a custom
input database that resides on a SQL Server. The Southern Power base case is a
20 year hourly study.
• Southern Power began evaluating AURORAxmp in 2012 and successfully
published its Annual Market Price Forecast using AURORAxmp in July 2014.
Enhancements of Interest
• Uplift Logic – making units “whole”
• Convergent EFOR
• Script for Examining ALL Data for a Specific Resource
• Commitment and Dispatch
– Which MIP?
– Run Time
• Hydro Scheduling
Convergent EFOR Effects on Dispatch
Input Checking - Single Resource Time Resolution
Call Support for Details
408000
408500
409000
409500
410000
410500
411000
411500
G0.00168
G0.00152
G0.00562
G0.005612
G0.00161
G0.0174
G0.0158
G0.00164
G0.00163
G0.00132
G0.00148
G0.00573
G0.00571
G0.0163
G0.00561
G0.00541
G0.00143
G0.00534
M0.01324
G0.01612
G0.0162
M0.00568
M0.00558
G0.00542
M0.005224
G0.00521
M0.0134
G0.0138
M0.0133
G0.00533
G0.0141
G0.00123
M0.005512
G0.00122
M0.0144
G0.001724
G0.001524
G0.001624
G0.001324
G0.0123
G0.005424
G0.0124
G0.00128
M0.0124
G0.005724
G0.01524
G0.005624
Production Cost Order
G
M
0
10
20
30
40
50
60
24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2
Hoursfor20Years
Hours Sampled
20 Year Est. Run Times With Gurobi
0.01 2
0.01 3
0.01 4
0.01 5
0.01 6
0.01 7
0.005 2
0.005 3
0.005 4
0.005 5
0.005 6
0.005 7
0.001 2
0.001 3
0.001 4
0.001 5
0.001 6
0.001 7
Data missing due
to timing across
midnight.
0
100
200
300
400
500
600
1
201
401
601
801
1001
1201
1401
1601
1801
2001
2201
2401
2601
2801
3001
3201
3401
3601
3801
4001
4201
4401
4601
4801
5001
5201
5401
5601
5801
6001
6201
6401
6601
6801
7001
7201
7401
7601
7801
8001
8201
8401
8601
Run-Of-River Hydro
Output
Capacity
Set Energy Shift
Method = 0 To Get
Fixed Output
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
0
200
400
600
800
1000
1200
1400
1600
1800 1
19
37
55
73
91
109
127
145
163
181
199
217
235
253
271
289
307
325
343
361
379
397
415
433
451
469
487
505
523
541
559
577
595
613
631
649
667
685
703
721
739
Weekly
Monthly
Demand
Peak Shaving Hydro Example
Retirement Analysis
• Appears to meet our needs, but has not been sufficiently explored
– Dilemma – what is fixed and what is variable?
– Must appropriately structure the data to fit Aurora
– Some important items affecting resource retirement decisions
are not directly quantifiable
• Personnel
• Local economy impacts
– Method and results must meet scrutiny of PSC.
Current Approach for LT Expansion Planning
Area 1
Area 2
Unlimited Flows
Retail Only Expansion
• DSO’s – Resource; 100% @ Peak, But Always on Maintenance
• Purchase Transactions Modeled as Resources
• Some resources which are obligated to third parties are not
accounted for in the expansion plan.
• A plan may be “profitable”, but can it also be least cost to retail
• Stop on least cost option is not the same as least production cost
LT Issues Continued
• Can over-build relative to annual reserve margin requirements be
least cost?
– Might this result in a lower total production cost?
– Even if it does, there could be near term rate impacts.
– New option to “minimize reserve margin” may address this issue.
– Can we get comfortable with the different way end effects are handled
– Are the solutions “close enough” compared to what we are used to?
CONCLUSION
• EPIS Commitment to Customer Support and Model
Improvement is Real
QUESTIONS?
Proprietary/Confidential – Not to be shared externally or with SPC
37
Nacogdoches Generating Facility – 100 MW
Proprietary/Confidential – Not to be shared externally or with SPC
38
CIMARRON SOLAR FACILITY – 30 MW
Lloyd Shoals Dam – 14 MW Capacity – 6 Units Martin Dam – 186 MW Capacity – 4 Units
Wallace Dam 321.3 MW – 6 Units, 4 Reversible for PSH Rock Mountain PSH Facility – 1095 MW with 613 Foot Head

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Southern Company History and Usage of AURORAxmp

  • 1. Navigating the Swamp Scott Eiserloh, Forecasting and Model Development Principal Engineer Aurora Electric Market Forecasting Conference, Skamania, Sept. 19, 2014
  • 3. The Early Bird – Analog Economic Dispatch and AGC
  • 4. Proprietary/Confidential – Not to be shared externally or with SPC CC OPCO Plant Type GPC APC GULF MPC SPC H Weiss Dam Total 50,862 MW Southern Company “Owned” N S Combined Cycle (12,263 MW) H CT PA Nuclear (4,715 MW) Steam (21,382 MW) Combustion Turbine (5,278 MW) Hydro (2,595 MW) Power Purchase Agreements (4,629 MW) HLay Dam HMitchell Dam H Martin Dam H Yates Dam H Thurlow Dam Sinclair Dam Logan Martin Dam HNeely Henry Dam HHolt Dam HJordan Dam HBankhead Dam HBouldin Dam H Riverview Dam H Smith Dam H Harris Dam HRocky Mountain HMorgan Falls Dam H Langdale Dam H Bartletts Ferry Dam H Goat Rock Dam H Oliver Dam H North Highlands Dam H Flint River Dam Lloyd Shoals Dam SPlant McManus Wallace Dam H Estatoah Dam H Burton Dam H Terrora Dam H Yonah Dam HNacoochee Dam HTugalo Dam HTallulah Dam SPlant Gorgas N Plant Vogtle S Plant Miller SPlant Greene County S Plant Gadsden SPlant Bowen SPlant Gaston SPlant Barry SPlant Scholz S Plant Mitchell S S Plant Yates SPlant Scherer S Plant Hammond SPlant McIntosh S Plant Kraft S Plant Smith SPlant Watson SPlant Daniel SPlant Sweatt S Plant Crist N Plant Farley N Plant Hatch S Plant Branch CC Washington County CC CC CC Plant Theodore CC CCPlant Harris CCPlant Franklin Plant WansleyCC CC CT Chevron Cogen CT CT CT Plant Wilson CT Plant Dahlberg CT Plant Robins CT PA Calhoun PA Mid-GA Cogen PA Wash Co. (Tiger Creek) H PA Solar H H H PA Monroe/Walton Co. PA Bainbridge CT Addison PACentral Alabama PA Heard Co. Plant McDonough CC CT CTCleveland County CT Rowan County Energy Complex CC CT
  • 5. 25-MW CCS Demo “World’s largest carbon capture facility on a fossil-fueled power plant” Alabama Power Plant Barry Absorber Regenerator Compressor
  • 7. Vogtle 3 and 4 Construction
  • 8. Southern Power Company Southern Power is an unregulated wholesale energy provider. Southern Power and its subsidiaries own and operate 17 facilities in eight states, with more than 8,800 megawatts of generating capacity operating in Alabama, California, Florida, Georgia, Nevada, New Mexico, North Carolina and Texas.
  • 9. Proprietary/Confidential – Not to be shared externally or with SPC 9 Separation Protocol • FERC ORDER • Non-Public retail unit specific or transmission Information Is NOT ALLOWED to be shared with Southern Power • Public Bulletin Board • SPC Personnel Not Allowed In Retail Work Spaces – Electronic Security ID Cards • Term Traders cannot know non-public transmission information • Best Practices May Be Shared
  • 10. How did we get here? • Legacy models are many in number and are frequently being stressed • They include the many in-house developed “tools” • Comfortable, familiar processes are sometimes called “ruts” • But they usually get us where we want to go
  • 11. Search for Improvement • Generalization • Models are developed with a specific problem(s) in mind. • All models are predisposed to look at things in a certain way • This can affect the results • The modeler has to recognize this and sometimes “manipulate or lie” to the model to get the results that he “knows” are “better” • What’s out there that may be “better” • Faster • More accurate • More versatile • Easier to use • “Better” is Defined by the User
  • 12. • To accomplish a large change, it takes: • Agreement ( buy-in) • Co-ordinated Effort • TIME When Adopting Anything Different, Remember
  • 13. Aurora Benefits • Ease of I/O with other analysis tools through Excel • Versatility – Zonal – Nodal – LT Resource Expansion and Retirement • Common database and interface – Common data across uses – Facilitates training of personnel – User customizable I/O templates – Scripting capability • Commitment to Customer Support and Model Improvement is Real
  • 14. Our Computer Issues • IT Justifiably Paranoid • Many corporate applications and servers • ~20,000 individual desktops using a common image • Severely restricted admin privileges • For Aurora We Choose Workstation Over Server • System planning computer farm • “Local” results instead of SQL server • Plan to test solid state drive
  • 16. Desktops for Planning • Windows 7 Enterprise or Ultimate • i7-3770 3.40GHz quad core • Hyper threaded • 12.0GB Ram • Dual 22” Monitors
  • 17. The World According to Our Energy Budget
  • 18. Current Hourly Modeling • In 2012, over 2,200 Runs • Avoided Cost Studies • Unit Retirement Studies • Renewable Evaluations • Fuel Projections • General Budgeting • Portfolio Analysis • Coal Inventory Management • Gas Hedging • RTP Projections • Financial Planning • Emission Projections • Pool Transaction Projections • Capital Project Evaluations • Outage Optimization
  • 19. LT Modeling Potential Uses • Retirement Analysis • Expansion Planning – Especially Renewables
  • 20. Nodal Uses • A group within Southern Company is looking at utilizing the Nodal Analysis capability in Aurora to apply Production Cost Modeling to physical transmission markets. This group is currently evaluating the potential benefits & challenges associated with this analysis approach. • Potential benefits include: – Identifying system losses – Off-Peak Congestion – Estimates of Forecasted Re-dispatch Due to Congestion • Useful Aurora Enhancements – Automated Contingency Files – Automatic Constraint Identification Reports – Ability to Model Resource Loss as Contingencies
  • 21. Term Traders • SWE (Southern Wholesale Energy) is exploring the use of AuroraXmp Nodal for LMP forecasting and congestion analysis to support various trading strategies in RTOs. The AuroraXmp’s automated scripts have the ability to retrieve market data and update the powerflow model’s load forecast, fuel prices, generator outage periods, and more in several LMP and non-LMP markets. The simulation run times are very prompt and can provide the following output: – Granular Day-Ahead/Real-Time LMP forecast(s) to nodal level – Flow-gate Constraint Impacts to RTO Hub pricing points – Additional Risk Analysis for Hedging Strategies
  • 22. Southern Power Company and AURORA 22 • AURORAxmp is used by Southern Power’s Market Strategy and Assessment group to support the development of market price forecasts for the company’s existing and targeted market areas. These forecasts are instrumental in supporting the company’s business development activities and remarketing opportunities. • Southern Power models the Eastern Interconnect and ERCOT with a custom input database that resides on a SQL Server. The Southern Power base case is a 20 year hourly study. • Southern Power began evaluating AURORAxmp in 2012 and successfully published its Annual Market Price Forecast using AURORAxmp in July 2014.
  • 23. Enhancements of Interest • Uplift Logic – making units “whole” • Convergent EFOR • Script for Examining ALL Data for a Specific Resource • Commitment and Dispatch – Which MIP? – Run Time • Hydro Scheduling
  • 24. Convergent EFOR Effects on Dispatch
  • 25. Input Checking - Single Resource Time Resolution Call Support for Details
  • 27. 0 10 20 30 40 50 60 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 24 8 3 1 12 4 2 Hoursfor20Years Hours Sampled 20 Year Est. Run Times With Gurobi 0.01 2 0.01 3 0.01 4 0.01 5 0.01 6 0.01 7 0.005 2 0.005 3 0.005 4 0.005 5 0.005 6 0.005 7 0.001 2 0.001 3 0.001 4 0.001 5 0.001 6 0.001 7 Data missing due to timing across midnight.
  • 29.
  • 31. Retirement Analysis • Appears to meet our needs, but has not been sufficiently explored – Dilemma – what is fixed and what is variable? – Must appropriately structure the data to fit Aurora – Some important items affecting resource retirement decisions are not directly quantifiable • Personnel • Local economy impacts – Method and results must meet scrutiny of PSC.
  • 32. Current Approach for LT Expansion Planning Area 1 Area 2 Unlimited Flows
  • 33. Retail Only Expansion • DSO’s – Resource; 100% @ Peak, But Always on Maintenance • Purchase Transactions Modeled as Resources • Some resources which are obligated to third parties are not accounted for in the expansion plan. • A plan may be “profitable”, but can it also be least cost to retail • Stop on least cost option is not the same as least production cost
  • 34. LT Issues Continued • Can over-build relative to annual reserve margin requirements be least cost? – Might this result in a lower total production cost? – Even if it does, there could be near term rate impacts. – New option to “minimize reserve margin” may address this issue. – Can we get comfortable with the different way end effects are handled – Are the solutions “close enough” compared to what we are used to?
  • 35. CONCLUSION • EPIS Commitment to Customer Support and Model Improvement is Real
  • 37. Proprietary/Confidential – Not to be shared externally or with SPC 37 Nacogdoches Generating Facility – 100 MW
  • 38. Proprietary/Confidential – Not to be shared externally or with SPC 38 CIMARRON SOLAR FACILITY – 30 MW
  • 39. Lloyd Shoals Dam – 14 MW Capacity – 6 Units Martin Dam – 186 MW Capacity – 4 Units Wallace Dam 321.3 MW – 6 Units, 4 Reversible for PSH Rock Mountain PSH Facility – 1095 MW with 613 Foot Head