Portland General Electric Day-Ahead Market Benefits Studies: Comparative Benefits for PGE of Joining EDAM vs Markets+

brattle.com | 36 MONET reflects the key elements of trading in EDAM Although our model is more detailed, MONET align Assumption Area MONET Brattle EDAM Model Model treats purchases and sales largely how they would PGE system dispatch WECC-wide unit Optimization scope and trades to/from commitment and be treated in the EDAM, specifically: Mid-C dispatch Hurdle-free trading between PGE and the mar. [...] – Transmission outages are not modeled, which would magnify the benefit of SCED-based congestion management in EDAM and M+ compared to the BAU Normalized loads and fuel prices: the model uses weather-normalized loads and averaged monthly natural gas prices without daily volatility – Challenging market conditions (beyond the included heat wave and cold snap), such during as the 2022 gas price spi. [...] In the EDAM case, there would be no hurdle rates between EDAM participants in any of the cycles, allowing the model to optimize both unit commitment and dispatch in the market footprint on both a day-ahead and real-time basis. [...] brattle.com | 52 Benefits Metrics Benefit Metric: Adjusted Production Cost Adjusted Production Cost (APC) is a standard metric used to capture the direct variable energy-related costs from a customer impact perspective The APC is calculated for the BAU Case and the RTO case to determine the RTO-related reduction in APC By using the generation price of the exporter and load price of the importer. [...] o $5/MWh of congestion revenue is allocated to the seller ($30 on their side of the intertie less $25 internal gen price) o $8/MWh of congestion revenue is allocated to the buyer ($45 internal load price less $37 on their side of the intertie) o $7/MWh of transfer revenue is split 50/50 between the buyer and seller ($37 on the buyer side of the intertie less $30 on the seller side) Tie point $25 E.