Methodology to Shift Resources From and to Zones A,C,D,J, and K.

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1 Methodology to Shift Resources From and to Zones,C,D,J, and K. The following is an example of the recommended methodology to add, remove, and shift resources from/to zones, C, and D when using the MOD-MDMW table in the GE-MRS model for the IRM calculations. These calculations do not include the impact of external resources or firm contracts into these areas: Definitions: If external contracts are modeled as external contracts: Weighted verage Forced Outage Rate (FOR) = G1 FOR1+ G2 FOR2 + K+ G FOR + SCRs FOR + ExternalContracts FOR G G G SCRs ExternalContracts n n SCRs contracts K+ n G i = Total Resources in Zone i = Generation i + SCRsi + ExternalContractsi Note: UDRs are treated as local generation. If external contracts are modeled by derating the ties: Weighted verage Forced Outage Rate (FOR) = G1 FOR1+ G2 FOR2 + K+ G FOR + SCRs FOR G1+ G2 + K+ G + SCRs n n SCRs n G i = Total Resources in Zone i = Generation i + SCRsi SCRs and external contracts are also included since they are part of the mix of resources that count towards the IRM calculation. 2) FOR = Weighted verage Forced Outage Rate in Zone i i 3) Zonal Perfect Excess Capacity = GL = G (1 FOR ) Load GL 5)Zonal Excess Ratio for Zone = GL + GL + GL The zonal excess ratio needs to be calculated in terms of perfect capacity (UCP) because it is not possible to remove large amounts of capacity from? a zone that has a large average FOR (like in the case of wind), since there is not enough effective excess to remove before the zone becomes resource deficient.

2 I.e. If 1000 MW of wind are installed in Zone D, thus the maximum amount of perfect generation that can be remove from this zone increases by approximately 100 MW or 10% of 1000 MW. 6) Example of adding or removing MW amount of real generation in the MOD-MDMW table for zones, C, and D: Let p = mount of the Perfect Generation (UCP) that needs to be added to or removed from zones, C & D, then = p + Cp + Dp Where p = mount of Perfect Gen. (UCP) that needs to be added to or removed from Zone Cp = mount of Perfect Gen. (UCP) that needs to be added to or removed from Zone C Dp = mount of Perfect Gen. (UCP) that needs to be added to or removed from Zone D p = p R Cp = p R C Dp = p R D Let = mount of Real Generation (ICP) that needs to be added or removed = mount of Real Generation (ICP) that needs to be added to or removed from Zone C = mount of Real Generation (ICP) that needs to be added to or removed from Zone C D = mount of Real Generation (ICP) that needs to be added to or removed from Zone D Where = + C + D p Cp Dp = (1 EFOR ) (1 EFOR ) (1 EFOR ) pr p p = (1 EFOR ) (1 EFOR ) (1 EFOR ) = p (1 EFOR) (1 EFO) (1 EFO) Therefore p = (1 EFOR) (1 EFO) (1 EFO)

3 This equation provides the conversion between the UCP amount and the ICP amount of capacity to be added to or removed.from zones, C and D. Since p = p R p Cp Dp (1 EFOR) (1 EFO) (1 EFO) (1 EFOR) (1 EFO) (1 EFO) (1 EFOR) (1 EFO) (1 EFO) p, Cp, and Dp are the amount of Perfect Capacity to be inputed to the MDMW table. Two examples (with zone D having 1000MW and 10000MW of wind generation) are provided below to determine the amount of perfect capacities (equivalent to 1000MW ICP) to be inputed in the MDMW table for zones, C and D Example 1: Zone D generation (with 1000MW of wind generation) C D ** Zone D has a very high EFORd because it was assumed that out of the 2271MW generation in zone D, 1000MW is wind generation (with a EFORd = 0.9) and the remaining 1271MW generation is traditional generation with an EFORd = Example 2: Zone D generation (with 10000MWof wind generation) If 1000MW (ICP) is to be removed from zones, C and D, then the amount of perfect capacities for, C, and D to be inputted to the MDMW table can be calculated using the above equations: Zonal Perfect Excess Capacity = GL = G (1 FOR ) Load

4 For example, for zone, GL = G (1 FOR ) Load Example 1: (Zone D with 1000MW wind generation) GL D = 2271 ( ) 754 = 551 GL+ GLC + GLD = = 5965 R GL 2015 = = = 33.78% GL + GL + GL 5965 Example 2: (Zone D with 10000MW wind generation) GL D = ( ) 754 = 1451 GL+ GLC + GLD = = 6865 R GL 2015 = = = 29.35% GL + GL + GL 6865 Therefore the amount of p to be inputted to the MDMW table when removing a 1000 MW of generation in zones, C, and D is: (these amount should be negative as it is supposed to decrease the generation or increase the load) p (1 EFOR) (1 EFO) (1 EFO)

5 Example 1: Zone D (with 1000MW wind generation) 1000 p = ( ) = ( ) ( ) ( ) Total UCP removed from, C and D = = MW Example 2: Zone D (with 10000MW wind generation) 1000 p = ( ) = ( ) ( ) ( ) Total UCP removed from, C and D = = MW The total UCP removed is less than that in Example 1 because the Weighted FOR is much higher due to the large amount of wind generation with high FOR (0.9) Zone D EFOR increases from (for 1000MW of wind generation) to (for 10000MW of wind generation). Note that in example 2, in order to removed the same UCP amount as example 1 the amount of ICP generation need to be greater. Procedure to Shift MW of real (ICP) generation from Zone J to Zones, C, and D using the MOD-MDMW table in MRS: 1) Subtract ( 1 FOR j ) to the MOD-MDMW table in Zone J (positive value to reflect an increase in generation in the MOD-MDMW table) 2) Calculate the UCP split for zones, C and D using the method described above for the amount of ICP removed from Zone J, these amount should be positive 3) dd these amount (positive amount) to the amounts for, C and D in the MOD-MDMW Generally, the generation in, C and D should have been removed to ensure that the State has the required IRM, therefore the values in the MOD-MDMW table for, C and D after that operation

6 should be negative; adding the amount calculated from step (2) will therefore reduce the negative values of these entries.

7 PPENDI Checking the examples above: Zonal ICP removed: Example 1: (Zone D with 1000MW wind generation) = p (1 EFOR ) = ( ) = Total ICP removed = = 1000 MW, which is exactly equal to the total ICP to be removed. Example 2: (Zone D with 10000MW wind generation) = p (1 EFOR ) = ( ) = Total ICP removed = = 1000 MW, which is exactly equal to the total ICP to be removed.

= 1 EFOR 1 EFOR 1 EFOR A C D. EFORd. ; i = A, C or D

= 1 EFOR 1 EFOR 1 EFOR A C D. EFORd. ; i = A, C or D Methodology to Shift esources from ad to Zoes, C,, J ad K Example: If 000MW wid capacity (@90% EFOd) is added to a zoe, the maximum amout of perfect geeratio that ca be removed would be icreased oly by

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