Following up on part of Rick Cowles assessment of the recent NERC to DOE Y2K Report, here are some mentions of concerns about Independent Power Producers (IPPs) from NERC Workshop summaries.

Beginning in the October 6-7, 1998 Y2K Workshop, Breakout Session B3 was about "Involving Independent Power Producers". Concerns were expressed that "With competitive electricity markets, independent producers do not always have an obligation to coordinate with system operating entities on technical issues such as Y2K." [That's the polite way of saying that IPPs are not legally obligated to tell anybody squat about their Y2K status if they don't want to.]

As of last year the industry was batting around, "What strategies are appropriate for assuring independent power producers are available to deliver electricity during key Y2K transition periods?"

Fast forward to August 6 of this year, just ten days ago. It's a deja-vue replay. In the Powerpoint summaries of this most recent NERC Y2K Workshop, we have Breakout Session 2D, "Market Operations During Y2K". If you can access Powerpoint files, this can be found at:

ftp://ftp.nerc.com/pub/sys/all_updl/docs/y2k

Look for the link to Y2K Workshop Breakout Session 2D Summary 8-6-99

Since I've come to realize that many readers can not access Powerpoint files, I will reproduce one of the pages I am speaking of. The context of this Market Operations Workshop Session is to explore "Steps to Minimize Market Operations Impact and Assure Reliability". In other words, they were trying to figure out where any problem areas might be. Here's the IPP and Power Marketer info:

"What Is Needed To Make Sure IPPs & Power Marketers are Y2K Ready?"

--Some IPPs report to NERC directly

--Other IPPs over 50 MW report through utility or ISO

--Some IPPs don't report at all on Y2K status

--Needs to be more interaction between IPPs, utilities, ISOs, and power pools! [Exclamation point is theirs, not mine.]

--Contracts create adverse relationships

--No national trade association for power marketers???

--No known Y2k reporting, other than individual basis, for power marketers

Some snips from other pages of this Marketing Session include:

--Reliability must take precedence over market [I really LIKED this statement! Y2K concerns HAVE made a dent in deregulation money-saving strategies.]

--Do all the marketers know about January 1, 2000 market constraints?

--Use OASIS [Keep in mind this statement, because there's more on the OASIS issue I'm putting in a separate post next.]

-- Anonymous, August 16, 1999

Answers

Maybe I'm mistaken, but these would appear to be facts, as of August 6, 1999.

Just an observation....

-- Anonymous, August 17, 1999

Bonnie,

This is the key:

Reliability must take precedence over market

When reliability is in danger who is responsible ?

Is it possible to disconnect those uncorporate of the grid ?

-- Anonymous, August 17, 1999

Bonnie,

One more try:

The next sentence is the key:

Reliability must take precedence over market

When reliability is in danger who is responsible ?

Is it possible to disconnect those uncorporate IPP's of the grid ?

-- Anonymous, August 17, 1999

IPPs as their name implies are independent, non-regulated generation companies. The correct question to ask is, can they be required to be online at rollover? My guess is no. It's a business decision for them as to whether any percieved y2k risk they may have is greater than the loss in revenue they will experience if they aren't online and selling at rollover. Also those IPP units that operate as peakers probably wouldn't be online at this time of day anyway.

Real time reliability is the responsibility of the regional security coordinator. Next day reliability is the responsibility of the regional capacity coordinator.

Jim

-- Anonymous, August 22, 1999