Market Performance and Planning Forum December 19, 2012 Objective: Enable dialogue on implementation planning and market performance issues • Review key market performance topics • Share updates to 2012-2014 release plans, resulting from stakeholders inputs • Provide information on specific initiatives – to support Market Participants in budget and resource planning • Focus on implementation planning; not on policy • Clarify implementation timelines • Discuss external impacts of implementation plans • Launch joint implementation planning process Slide 2 Proposed Meeting Schedule for 2013 • • • • • • February 13 April 10 June 5 July 31 Sept 25 Nov 20 Page 3 Agenda Agenda 10:00- 10:05 Introduction, Agenda Mercy P. Helget 10:05 – 11:20 Market Analysis Mark Rothleder, Nan Liu, 11:20 – 11:40 Outage Management System Guillermo Bautista-Alderete Jami Herguth 11:40 – 12:20 Release Updates Janet Morris 12:20 – 1:00 Lunch 1:00 – 2:00 Technical Updates - Li Zhou, George FERC Order 755 Angelidis 2:00 – 2:20 Policy Updates Delphine Hou 2:20 – 2:50 Valley Electric Association Modeling Justin Wong Note: Agenda is subject to change. Slide 4 Market Performance and Quality Update Market Quality and Renewable Integration Mark Rothleder Nan Liu Guillermo Bautista-Alderete Slide 5 1. Operation Highlights 2. Market Metrics • Price volatility and market convergence • RT energy/congestion imbalance offset • Convergence bidding • Exceptional dispatch • Bid cost recovery • MIP gap • Flex-ramp cost 3. Price Corrections 4. Events and developments Slide 6 Operation highlights: • Improvements across most market metrics: price convergence, exceptional dispatch, BCR, real-time congestion offset. • Real-time congestion offset cost peaked in August, trended lower in the following months but remained at elevated levels. • Lower seasonal load, winter “needle” evening peak and transmission outages present operational challenges in December. • More outages and more constraints modeled in the market continue to challenge operations and market solutions. Slide 7 Nov-12 30 20 Nov-12 Sep-12 Jul-12 May-12 Mar-12 Jan-12 PG&E Nov-11 Sep-11 Jul-11 May-11 RTD Sep-12 20 $/MWh HASP Mar-11 Jan-11 Nov-12 Sep-12 Jul-12 May-12 Mar-12 Jan-12 Nov-11 Sep-11 30 Jul-12 0 Jul-11 IFM May-12 0 May-11 50 Mar-12 10 Mar-11 40 Jan-12 Nov-11 Sep-11 Jul-11 May-11 Mar-11 Jan-11 $/MWh 10 Jan-11 $/MWh DLAP LMP Monthly Average: Price convergence improved in November 50 SCE 40 IFM 30 HASP 20 RTD 60 SDG&E 50 40 IFM HASP 10 RTD 0 Page 8 90 80 70 60 50 40 30 20 10 0 Nov-12 Sep-12 Jul-12 May-12 Mar-12 PG&E Jan-12 0 Nov-11 0 Sep-11 10 Jul-11 10 Nov-12 RTD May-11 50 Sep-12 50 Mar-11 60 Jul-12 Jan-11 60 May-12 HASP $/MWh IFM Mar-12 20 Jan-12 30 Nov-11 Nov-12 Sep-12 Jul-12 May-12 Mar-12 Jan-12 40 Sep-11 Jul-11 May-11 Mar-11 Jan-11 $/MWh Nov-11 Sep-11 Jul-11 May-11 Mar-11 Jan-11 $/MWh DLAP LMP Monthly Average (On Peak) SCE 40 30 IFM 20 HASP RTD SDG&E IFM HASP RTD Page 9 20 10 Nov-12 Sep-12 Jul-12 May-12 Mar-12 PG&E Jan-12 Nov-11 0 Sep-11 0 Jul-11 10 Nov-12 10 May-11 40 Sep-12 40 Mar-11 50 Jul-12 Jan-11 50 May-12 RTD Mar-12 HASP $/MWh IFM Jan-12 20 Nov-11 Nov-12 Sep-12 Jul-12 May-12 Mar-12 Jan-12 30 Sep-11 Jul-11 May-11 Mar-11 Jan-11 $/MWh Nov-11 Sep-11 Jul-11 May-11 Mar-11 Jan-11 $/MWh DLAP LMP Monthly Average (Off Peak) SCE 30 IFM 20 HASP RTD 40 SDG&E 30 IFM HASP RTD 0 Page 10 DLAP LMP Hourly Average in November PG&E SCE IFM 40 HASP 30 $/MWh 50 RTD 20 10 0 1 2 3 4 5 6 7 8 9 101112131415161718192021222324 80 70 60 50 40 30 20 10 0 IFM HASP RTD 1 2 3 4 5 6 7 8 9 101112131415161718192021222324 Hour SDG&E 120 100 $/MWh $/MWh 60 80 IFM 60 HASP 40 RTD 20 0 1 2 3 4 5 6 7 8 9 101112131415161718192021222324 Page 11 Monthly price distributions: price volatility continued to decrease in November. 4.0% Percent of Real Time Intervals 2.0% 0.0% Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 -2.0% -4.0% -6.0% -8.0% -10.0% -$30 to -$5 -$100 to -$30 -$300 to -$100 <-$300 $250 to $500 $500 to $750 $750 to $1000 >$1000 Page 12 Monthly average of RTD intervals with insufficient up ramping capacity declined in November. 180 2.00% 160 1.80% 1.20% 100 1.00% 80 0.80% 60 0.60% 40 0.40% Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 Jun-12 May-12 Apr-12 Mar-12 Feb-12 Jan-12 Dec-11 Nov-11 Oct-11 Sep-11 Aug-11 Jul-11 Jun-11 May-11 0.00% Apr-11 0 Mar-11 0.20% Feb-11 20 Jan-11 Count of Intervals 1.40% 120 Percent of Intervals 1.60% 140 5-minute intervals with insufficient upward ramping capability percent of intervals with insufficient upward ramping capability Page 13 Monthly average of RTD Intervals with insufficient down ramping capacity remained at low level. 5.00% 500 4.50% 4.00% 3.50% 3.00% 300 2.50% 2.00% 200 1.50% 1.00% 100 0.50% Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 Jun-12 May-12 Apr-12 Mar-12 Feb-12 Jan-12 Dec-11 Nov-11 Oct-11 Sep-11 Aug-11 Jul-11 Jun-11 May-11 Apr-11 Mar-11 0.00% Feb-11 0 Jan-11 Number of Intervals 400 5-minute intervals with insufficient downward ramping capability percent of intervals with insufficient downward ramping capability Page 14 Real-time energy offset costs increased in November but remained at relatively low level. Page 15 -10 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 $Millions Real-Time congestion offset costs trended lower in recent months with November concentration of congestion in the San Diego area. 60 50 40 30 20 10 0 Congestion Imbalance Offset Energy Imbalance Offset Slide 16 Exceptional dispatch volume decreased in November, less than one half percent of total dispatch. Total Exceptional Dispatch as Percent of Load 2.50% 2.00% % of Total Load 1.50% 1.00% 0.50% 0.00% Jan Feb Mar Apr May Jun Jul Aug 2009 2010 2011 2012 Sep Oct Nov Dec Page 17 Daily exceptional dispatches in MWh – by reason 40 30 Exceptional dispatch to prepare for post-contingency reduction of SOL per operating procedures. 25 20 15 10 5 0 1-Oct 3-Oct 5-Oct 7-Oct 9-Oct 11-Oct 13-Oct 15-Oct 17-Oct 19-Oct 21-Oct 23-Oct 25-Oct 27-Oct 29-Oct 31-Oct 2-Nov 4-Nov 6-Nov 8-Nov 10-Nov 12-Nov 14-Nov 16-Nov 18-Nov 20-Nov 22-Nov 24-Nov 26-Nov 28-Nov 30-Nov Thousands MWh Per Day 35 Transmission Outage T Procedure System Energy Other Software Limitation Conditions beyond control of the CAISO BA Ramp Rate Page 18 $Millions 20 18 16 14 12 10 8 6 4 2 0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Bid cost recovery (BCR) costs decreased in November and RUC uplifts were still high. IFM RT RUC Page 19 Good MIP gap performance in November. 100,000 October 1 and 2 low quality solution due to timeout of solution 90,000 80,000 60,000 50,000 40,000 30,000 20,000 Daily Dollar 11/1/12 10/1/12 9/1/12 8/1/12 7/1/12 6/1/12 5/1/12 4/1/12 3/1/12 2/1/12 1/1/12 12/1/11 11/1/11 10/1/11 9/1/11 8/1/11 7/1/11 6/1/11 5/1/11 4/1/11 3/1/11 0 2/1/11 10,000 1/1/11 Mip Gap ($) 70,000 30 Day Moving Average Page 20 Price corrections reduced in November. 1.2% Percentage of Nodes Corrected 1.0% Incorrect distribution factors in two weeks of July caused 70% of corrections in July Market Software timed out while searching for the solution 0.8% 0.6% 0.4% 0.2% 0.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2011 Data Input Jul Aug Sep Oct Nov 2012 Software Tariff Process Page 21 Price corrections reduced in November. 1.2% Percentage of Nodes Corrected 1.0% Incorrect distribution factors in two weeks of July caused 70% of corrections in July Market Software timed out while searching for the solution 0.8% 0.6% 0.4% 0.2% 0.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2011 Jul Aug Sep Oct Nov 2012 RTD HASP DA Page 22 Flexi-ramp constraint costs continued the downward trend in November. Monthly Flexi-Ramp Cost 4.5 4 $Millions 3.5 3 2.5 2 1.5 1 0.5 0 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Slide 23 Events and Developments: • CAISO Board approved the proposal to modify the real-time scheduling run transmission constraint relaxation parameter from $5000 to $1500. Significant increase of transmission constraint relaxation in real-time this year over 2011. • Implemented software feature to avoid infeasible manual adjustments in the real-time market. • Based on stakeholder feedback of interest, reversed the plan to stop publishing the monthly market catalog report due to low interests. • Will reduce the redundancy/duplication of exceptional dispatch reports. Slide 24 Release Updates Jami Herguth Director, Business Solutions Slide 25 Outage Management System (OMS) Update • Changes in the landscape • ISO is not staffed to delivery OMS with number of policy changes impacting this area • Turnover in staffing earlier this year led us to reevaluate vendors • Several vendors now have model-aware OMS solutions • Finished Build versus Buy decision pending final vendor negotiation Slide 26 Outage Management System (OMS) Update • Vendor selected for final negotiation is Ventyx/ABB • Two-month vendor engagement on requirements beginning in January • Stakeholder input on generation module received earlier this year • What was communicated as in-scope remains part of the negotiation • Objective is to align ISO processes to out-of-the-box Ventyx/ABB solution as much as possible while meeting tariff and efficiency requirements • This activity will conclude negotiations and runs through the end of March Slide 27 Release Updates Janet Morris Director, Program Office Slide 28 The ISO offers comprehensive training programs Date Training December 20 Welcome to the ISO (webinar) January 8 Introduction to ISO Markets (on-site) January 9, 10 Market Transactions (on-site) January 15 Settlements 101 (on-site) January 16 Settlements 201 (on-site) January 24 Welcome to the ISO (webinar) January 31 Introduction to ISO Markets (Houston) February 1 Settlements 101 (Houston) Training calendar - http://www.caiso.com/participate/Pages/Training/default.aspx Contact us - markettraining@caiso.com Page 29 Release Plan – 2012 • Fall 2012 – deployed and activated • Non-Generator Resources / Regulation Energy Management - Phase 2 • Data Release Phase 3 • 72 Hour RUC • Transmission Reliability Margin • Contingency Dispatch Enhancements (RTDD enhancements not activated) • Regulatory Must Take Generation • Group Constraint enhancement • BAPI, OASIS – UI upgrade (does not impact API) • Replacement Requirement for Scheduled Generation Outages • Year End 2012 • Settlements 9.07 (12/18/12) • DB62 (12/19/12) • Commitment Costs Refinements - Greenhouse Gas Regulation (1/1/13) • City of Colton activation (1/1/13) • Valley Electric Association activation (1/3/13) Page 30 Release Plan – 2013 • Spring 2013 • MSG Phase 3 deployment • FERC Order 755 – Pay for Performance • LMPM Enhancements Phase 2 • Exceptional Dispatch Mitigation in Real Time • Post Emergency Filing BCR changes / Mandatory MSG • Flexible Capacity and Local Reliability Resource Retention • Price Inconsistency Market Enhancements (not including bid floor cap) • DRS API deployment • Master File Enhancements Phase 2 (tentative) • FERC Order 745: Changes to the DR Compensation for PDR • Access and Identity Management • CMRI UI upgrade (does not impact API) • Fall 2013 • RIMPR-Phase 1 / BCR Mitigation Measures / Bid Floor Cap • Circular Scheduling • Commitment Cost Refinements (remaining scope) • Ancillary Services Buy-Back Page 31 Release Plan – 2014 (proposed) • Spring 2014 • FERC Order 764 Compliance / 15 Minute Market • Dynamic Transfers • Fall 2014 • Flexible Ramping Product • iDAM (simultaneous IFM and RUC) • Subject to further release planning: • Outage Management System (Scoping phase to start January 22, 2013)) • Enterprise Model Management System • Subset of Hours • Flexible Resource Adequacy Criteria and Must Offer Obligation Page 32 2012 Release Plan http://www.caiso.com/Documents/2012ReleasePlan.pdf 2013 Release Plan http://www.caiso.com/Documents/2013ReleasePlan.pdf Page 34 BPM Change Management Enhancement Replacement Milestone Date Application Software Changes BPM: The purpose of this project is to replace the existing Business Practice Manual (BPM) Change Management system to improve usability, increase stakeholder participation, redesign the system architecture and enhance functionality by leveraging existing SharePoint functionality BPM Changes None Business Process Changes Not Applicable Board Approval Not Applicable External Training December 12, 2012 Tariff Not Applicable Production Activation January 7, 2013 Page 35 Fall 2012 Release Deployment Dates The new deployment and activation dates are as follows: Drop DEPLOYMENT ACTIVATION Revised Revised Settlements fall release for November MRI Settlements Application deployment Congestive Revenue Rights (CRR) RRSGO - IRR 11-01-2012 11-05-2012 11-12-2012 11-12-2012 RRSGO - RAAM 11-27-2012 11-27-2012 1 Master File (MF) and Application Integration Layer 11-20-2012 11-20-2012 2 Application Upgrade Deployment – part 1 FERC 745 Application Upgrade Deployment – part 2 CDE RTCD Group Constraints 12-03-2012 12-03-2012 12-03-2012 12-04-2012 Application Upgrade Deployment – part 3 • Open Access Same-Time Information System (OASIS) – MRI • Market Participant Portal (MPP) 12-13-2012 See project slides 3 Description http://www.caiso.com/Documents/Fall%202012%20release%20-%20plans Page 36 Fall 2012 Release – SIBR Business Rules Revision Summary Milestone Associated project(s) Date SIBR BR v5.0 NGR rules Posted SIBR BR v5.1 RMT on/off peak self-schedule quantity Posted SIBR BR v5.2 MSG Enhancements modifications Posted SIBR BR v5.3* 72h RUC modifications Posted SIBR BR v5.4* Green house gas and MSG group constraints Posted * Note: SIBR BR sets 5.3 and 5.4 may be revised beyond June 29, pending review with software vendor and stakeholders Page 37 Fall 2012 Release – RDT and API Versioning RDT/API Versioning Generator GRDT 6.5 (and 6.5 in second row of RDT XLS file) Intertie IRDT 4 (and 4.1 in second row of RDT XLS file) SLIC SLIC API 4.4.1 Detailed in Technical Specifications to be posted July 23, 2012 Page 38 • Fall 2012 Release – Web Service Changes ADS • • • OASIS • • • • • • • New API version 3.10.1 available, URL is not changing. (Data Release Phase 3) Update to OASISReport / API Web Service to accommodate query of “Wind and Solar Forecasting Data” data (Data Release Phase 3) New OASISCRRPublicBid / API Web Service to accommodate query of “CRR Public Bid Data” data (Data Release Phase 3) Update to OASIS OASISReport / API Web Service to accommodate query of “Aggregated Generation Outage” data (Greenhouse Gas) Update to OASIS OASISReport / API Web Service to accommodate query of “GHG Allowance Index Price” data (TRM) Update to OASIS OASISReport / API Web Service to accommodate query of the Transmission-related reports (Current Transmission Usage, Transmission Interface Usage, ATC) SLIC • • • • New API version 5.1 available; version 3.1 will be deprecated. (Contingency Dispatch) Update to ADS APIWebService Web Service / API to accommodate new data elements (contingencyType & pathExclusion) New API version ID 4.4.1available API versions 4.0, 3.0 and 2.0 also supported (NGR-REM) Update to SLIC API External Web Services to accommodate updates/queries of “NGR-REM” data MFRD • • • • (RMTG) Update to MFRD GeneratorRDT Web Service / API to accommodate updates/queries of “Regulatory must take maximum (RMTMax)” data -- GeneratorRDT_v20121001 (MLCA) Update to MFRD IntertieRDT Web Service / API to accommodate updates/queries of “Marginal Loss Cost Adjustment” data -- IntertieRDT_v20121001 (GHG) Update to MFRD GeneratorRDT Web Service / API to accommodate updates/queries of “Green House Gas” data -- GeneratorRDT_v20121001 (NGR-REM) Update to MFRD GeneratorRDT Web Service / API to accommodate updates/queries of “NGR-REM” data -- GeneratorRDT_v20121001 Page 39 Fall 2012 Release – NGR Phase II: Non-Rem Milestone Date SIBR: NGR as a generation resource Application Software Changes DAM/RTM: Model NGR with an negative to positive power injection Settlements - Settle the NGR energy and AS similar as generator; Master File: Define NGR resource characteristics and REM flag SLIC: Support NGR register outage or de-rate ramp rates OASIS: Include NGR for publishing T+90 bids, EMS: Model NGR with supply range of negative to positive BPM Changes Manage Full Network Model Market Instruments Settlements & Billing Market Operations Outage Management Compliance Monitoring Business Process Changes May 31, 2012 - Expected Energy Calculations –PRR 563 External Business Requirements Update June 8, 2012 Technical specifications July 19, 2012 Market Simulation registration conference call July 23, 2012 Configuration Guides Aug 1, 2012 ISO delivery of Market Simulation RDT 6.5 to Market Participant Aug 17, 2012 Market Simulation RDT August 27th, 2012- Please submit to MarketSim@caiso.com NGR-REM workshop Aug 30, 2012, 10-4pm Updated BPM Sep 2012 Market Simulation Sep 11 – 28, 2012 Production Activation Dec 1, 2012 Page 40 Fall 2012 – Data Release (Phase 3) Milestone Date Application Software Changes MPP: Load Distribution Factors (DA), Shift Factors (DA, HASP, RTD), Transmission Limits (DA, HASP, RTD) OASIS: Aggregated Generation Outages, Wind and Solar Forecasts, CRR Public Bids BPM Changes Market Instruments Business Process Changes None Board Approval May 17, 2011 External Business Requirements March 19, 2012 NDAs/AARFs NDA posted October 25, 2012 NDAs/AARFs must be returned by December 3, 2012 OASIS/ CMRI Technical Specifications July 19, 2012 Updated BPMs Posted on October 11, 2012; Publish by November 30, 2012 Market Simulation Sept 24 – Oct 5, 2012 (OASIS), Oct 1 – Oct 5, 2012 (MPP) Tariff Tariff filed October 5, 2012 Approval received December 10, 2012 Production Activation Trade Date 12/11/12; consistent with our tariff, provision of 30 days to post this data, data will be posted back to 12/11/12 upon deployment Page 41 Fall 2012 – 72 Hour RUC Milestone Date Application Software Changes CMRI : Existing reports will publish extra long start unit binding startup instructions / initial condition BPM Changes Market Operations Market Instruments Business Process Changes Not Applicable External Business Requirements September 23, 2010 and September 1, 2011 (BPM synch revision) Technical Specifications Not Applicable Updated BPMs October 28, 2011 Market Simulation scenarios July 30, 2012 Market Simulation September 18-21 Production Activation Trade Date TBD Page 42 Fall 2012 – Transmission Reliability Margin Milestone Date Application Software Changes OASIS –Three TRM component line items added. BPM Changes Market Instruments, Market Operations, Full Network Model, Reliability Requirements, Congestion Revenue Rights, Acronyms and Definitions Business Process Changes Manage Real-Time Interchange Scheduling Board Approval March 22, 2012 External Business Requirements April 9, 2012 Technical Specifications July 19, 2012 Updated BPMs July 31, 2012 Market Simulation September 24-28, 2012 Tariff Filed April 2012 Approved June 2012 Production Activation 12-17-2012 Page 43 Fall 2012 – Commitment Cost Refinements - GHG Milestone Date Application Software Changes Master File: Two new modifiable fields in the Generator RDT. • A yes / no flag to indicate whether a resource has a Greenhouse gas (GHG) compliance obligation • GHG emission rate / factor for resources that have a GHG compliance obligation SIBR: (CAISO internal) Changes to calculation of Generated Bids, Startup (SU) and Minimum Load (ML) Costs for resources that have a GHG compliance obligation. OASIS: A new report to show the GHG Allowance index price used in the calculation of proxy SU and ML costs as well in the default energy bids and generated bids. BPM Changes Market Instruments – 11/9/12 Business Process Changes Manage Reliability Requirements Board Approval May, 2012 External Business Requirements June 29, 2012 Market Simulation RDT August 27th, 2012- Please submit to MarketSim@caiso.com Market Simulation September 24–October 12, 2012 Technical Specifications July 23, 2012 (Master File Generator Data API, OASIS Report GHG Allowance Price) Tariff Filing – 10/29/12 RDT Submission The RDT contains the GHG_COMPLIANCE_OBLIG flag and the EMISSION_RATE field. MPs will update the flag to Y and provide an emission rate for their covered resources and submit the RDT RDTs must be submitted by Dec 21 to have their updates in for 1/1. Anything after 12/21 will be accepted just not available on 1/1. If the GHG_COMPLIANCE_OBLIG flag is set and the EMISSION_RATE is not submitted the RDT will be rejected. Production Activation Trade Date January 1, 2013 Page 44 Fall 2012 Release – DR Net Benefits Test FERC Order 745 Compliance – DR compensation in organized wholesale Markets Milestone Date Application Software Changes Demand Response System (DRS): 6/26 - No longer impacted. Settlements • Automation of the calculation of the Monthly Demand Response DR Net Benefits test (NBT) Threshold Prices. • Change Settlement Charge Codes (RT Energy Pre-Calc, CC6806, CC6475, CC6477) to comply with guidance issued in FERC order 745 BPM Changes Market Operations, Settlement Configuration Guides, Definitions and Acronyms External Business Requirement Specification May 2, 2012 Configuration Guides Aug 27, 2012 – CC6806, CC6475, CC6477, RT Energy Pre-Calculation [Please attend SaMC User Group meeting for more information regarding charge code changes.] Market Simulation September 27, 2012 Production Deployment Spring release 2013 Production Activation May 1, 2013 Retroactive settlement dating back to effective trade date Dec 15, 2011 Page 45 Fall 2012 – Contingency Dispatch Enhancements Milestone Date Application Software Changes RTM: Prioritize Operating reserves dispatch over energy-only during Disturbance Control Standard (DCS) event ADS: • Always broadcast the Dispatch when it is coming from Real-Time Contingency Dispatch (RTCD). • Two new fields to indicate RTCD was a Disturbance Dispatch (Prioritized Operating Reserves over energy-only bids) Incrementing the Northern Ties was skipped Incrementing Southern Ties was skipped BPM Changes Market Operations Business Process Changes Manage Real-Time Contingency Dispatch Board Approval May 16, 2012 External Business Requirements May 8, 2012 Updated BPMs RTCD-6/15/12 (Complete), RTDD-8/17/12 (Complete) Tariff Filed October 10, 2012 Requesting FERC approval by Dec 2012 Technical Specifications July 20, 2012 (ADS.caiso.com API) Note: Will include ADS screen-shots Market Simulation September 20, 2012 – October 5, 2012 Production Activation RTCD-12/04/12 RTDD- subject to FERC response Page 46 Fall 2012 – Regulatory Must Take Generation Milestone Description/Date Application Software Changes Master File: Allow SCs of Combined Heat and Power (CHP) resources to view On-peak and off-peak regulatory must take maximum (RMTmax) values along with their expiration dates via generator Resource data template (GRDT). For CHP resources, RMTMax values must be within Pmin and Pmax and must be renewed at least once every 12 months. SIBR: Change validation rules to only allow self-scheduling priority up to the resource’s RMTMax value for on-peak and off-peak hours. Current validation is to allow self-schedule priority up to Pmax. BPM Changes Market Operations and Market Instruments to be posted on 9/27/12 Business Process Changes Potential new business process to • Manage contracts and approval of a CHP resource for RMT External Business Requirements April 30, 2012 (updated June 26, 2012) Market Simulation RDT August 27th, 2012- Please submit to MarketSim@caiso.com Board Approval May 16, 2012 Technical Specifications July 23, 2012 (Master File Generator Data API) Tariff Re-Post Final Draft FERC Filing Market Simulation September 18-28, 2012 RMTG Value Letter and Registration Process October 23, 2012 Production Activation September 10, 2012 September 17, 2012 Trade Date 12/11/12 Page 47 Fall 2012 – Group Constraints - (Recognition of Order of Startups between Grouped Resources Enhancement) Milestone Date Application Software Changes Database Model: In order to distinguish the resources with different priority levels within the same group, a new column will be introduced into EMM_SCUC_IMM_GROUP_MEMBERS. New rows will be added to existing tables EMM_SCUC_IMM_GROUP_CONSTRAINTS and potentially EMM_SCUC_INPUT_GR_CNSTR_STATUS. Master File: Population from Masterfile will be modified to account for two new constraint types populated to EMM_SCUC_IMM_GROUP_CONSTRAINTS Technical Bulletin May 2012 Business Process Changes N/A Production Activation 12/04/2012 Page 48 Fall 2012 – Replacement Requirements for Scheduled Generation Outages Milestone Date Application Software Changes IRR and RAAM BPM Changes BPM Posting October 2012: Outage Management & Reliability Requirements Settlements BPM Posting November 2012: Not applicable due to FERC Ruling Settlements (2 new charge codes): Not applicable due to FERC Ruling Manage Generation Outages: Business Process Changes • RA Outage Management Process (new) Manage Reliability Requirements: • Annual Monthly RA Process (new) Settlements NA Board Approval July 12, 2012 External Business Requirements July 16, 2012 Templates September 20, 2012 New template posted September 24, 2012 Call about use of new template Training October 19, 2012 December 14, 2012 Market Simulation November 5, 2012 Tariff September 20, 2012 Tariff Filed; order received Compliance Filing December 19, 2012 Production Activation November 12, 2012 Open for submittals November 21, 2012 (T-41 Deadline for January 2013 submittals) RAAM is deployed on November 27, 2012 February 2013 T-45 RA Plans and Supply Plans due Dec 18, 2012 RA Resubmittals of Cures Required December 20, 2012 Page 49 2012 Year End Activation City of Colton Milestone Date Application Software Changes N/A BPM Changes N/A Board Approval September 11, 2012 Market Simulation N/A Production Activation January 1, 2013 Valley Electric Association Milestone Date Application Software Changes N/A BPM Changes N/A Board Approval September 11, 2012 Market Simulation December 10 - 14, 2012 Production Activation January 3, 2013 Page 50 Spring 2013 Release – RDT and API Versioning Alert RDT Generator V7.0 IRDT Versioning The ISO will deprecate the current production version of the GRDT with the 2013 Spring Release and will only support a single version which includes CERT_REG_DOWN and CERT_REG_UP, no longer supporting CERT_REG. The ISO will only be supporting v7.0 (previously v6.5) of the GRDT UI and V1 (previously v20121001) of the GRDT API. The ISO will continue to support 2 versions of the IRDT which is not being affected by the Spring Release. Page 51 Spring 2013 - Flexible Capacity and Local Reliability Resource Retention Milestone Date Application Software Changes The Flexible Capacity and Local Reliability Resource Retention (FLRR) will allow the ISO to pursue tariff changes that will ensure the ISO has sufficient backstop procurement authority to address capacity at risk of retirement that the ISO identifies as needed up to five years in the future to maintain system flexibility or local reliability. MasterFile: Designate FLRR resources and input/store the going-forward costs; Define FLRR cost allocation Areas. Settlements: New Charge Codes for FLRR payments and allocations. POTOMAC/RLC: Energy: LMP – Default Energy Bid, Start up and Minimum Load Costs, Ancillary Services Costs BPM Changes Reliability Requirements, Settlements & Billing Business Process Changes Manage Entity & Resource Maintenance Updates (MMR LII), Manage Long Term Transmission Planning (DI LII), Manage Market Billing & Settlements (MOS LII) Board Approval September 2012 External Business Requirements January 2013 Updated BPMs January 2013 Market Simulation February 2013 Tariff Filing December 12, 2012 Production Activation FLRR Designation – April 1, 2013 Settlements, Master File, RLC – April 1, 2013 Page 52 Spring 2013 – MSG Enhancements (Phase 3) Milestone Date Application Software Changes Master File: System must be extended to allow the registration of minimum up time (MUT) or minimum down time (MDT) on a group of MSG configurations. Registrations would be submitted to the ISO via a separate registration form. DAM/RTM: System must be able to recognize the MUT and MDT constraints on a group of configurations (as registered in the Master File) during the optimization. BPM Changes Market Instruments, Market Operations Business Process Changes Not Applicable Board Approval Not Applicable External Business Requirements June 15, 2012 (updates made to document) Registration Form Draft Available 7/13/12 (subject to change before Market Simulation) Market Simulation February 11-15, 2013 Tariff Not Applicable Production Activation May 1, 2013 Page 53 Spring 2013 – FERC Order 755 pay for performance Milestone Description/Date Application Software Changes SLIC – Provide a regulation outage flag CMRI : provide DA and RT regulation up/down mileage price and awards DAM/RTM: include mileage bids and requirements into the optimization and generate mileage price and awards Master File: regulation certification based on 10 min ramping capability OASIS: provide DA regulation up/down mileage price, system mileage multipliers, system mileage requirement, actual system mileage, historical mileage bids, historical resource mileage multipliers Settlements : calculate mileage payment, mileage cost allocation and GMC for mileage bids SIBR: receive and validate regulation up/down mileage bid BPM Changes Market Operations Settlements & Billing Business Process Changes Maintain Master File, Day Ahead Process, Manage Billing and Settlements, Manage Analysis Dispute and Resolution, Market Performance (MAD),Market Performance (DMM), Manage AS Certification and Testing Board Approval March 23, 2012 External Business Requirements June 7, 2012 December 10, 2012 (update) Technical Specifications Nov 16, 2012- MasterFile technical specifications, SIBR rules, charge code list Dec 21, 2012 – OASIS, CMRI and SLIC, technical Specifications Jan 8, 2013 – Settlements configuration guides External Training Jan 23, 2013 Market Simulation Feb 5, 2013 registration deadline Dec 19, 2012 Product Activation May 1, 2013 (Extension approved by FERC 12/3/2012) Market Instruments Definitions & Acronyms Page 54 Spring 2013 – LMPM Enhancements (Phase 2) Milestone Date Application Software Changes Real-Time Market: MPM for 15 min. DCPA for HASP and 15 min. OASIS: Display LMPM-related components for nomogram & intertie shadow prices, and competitive paths for real-time CMRI : Display real-time mitigated bid curve [Note: Mitigation for Exceptional Dispatch in Real Time will be added] BPM Changes Market Operations Market Instruments Business Process Changes Real Time Market & Grid Manage Real Time Market- After Close of Market Manage Real Time Operations- Generation Dispatch Board Approval July 14, 2011 External Business Requirements November 1, 2012 OASIS/ CMRI Technical Specifications December 21, 2012 Updated BPMs March 2013 Market Simulation February 2013 Tariff Post Draft Tariff December 18, 2012 Stakeholder Comments and Call January 2013 FERC filing targeted for February 2013 Production Activation Spring Release 2013 (May 1, 2013) Page 55 Spring 2013 – Mitigation for Exceptional Dispatch in Real Time (Combined with LMPM P2) Milestone Application Software Changes Date IFM/RTM: • A default competitive constraint list will be calculated based on the most recent 60 days in the RTUC run where DCPA is calculated and deemed competitive 75% or more of the instances where the constraint was binding; unless they meet the competitive criteria with exception to path 15 and path 26. The frequency of update will be based on ISO specified parameter. • Will use the default competitive constraint list as “back-up” in the event that DCPA within the real time market fails to produce valid set of path designations. • Will compare the constraint received for the exceptional dispatch with the default competitive constraint list to determine the type to mitigate pricing. BPM Changes Market Operations Business Process Changes Manage MQS Board Approval December 14 , 2012 External Business Requirements TBD Updated BPMs March 2013 Market Simulation February 2013 Tariff Post Draft Tariff December 18, 2012 Stakeholder Comments and Call January 2013 FERC filing targeted for February 2013 Production Activation Spring Release 2013 (May 1, 2013) Page 56 Spring 2013 - Post Emergency BCR Filing / Mandatory MSG Milestone Application Software Changes BPM Changes Date Master File: Additional MSG Configuration registrations need to completed by Spring Release 2013. Reporting: Monthly Market Reports incorporating greater granularity in reporting BCR components have been made available. SAMC: Requires a tune-up on formulas to determine the ON criteria for resources, and the eligibility for Bid Cost Recovery. Market Instruments; Settlements & Billing Business Process Changes N/A Board Approval Feb 16, 2012 External Business Requirements Dec 19, 2012 Updated BPMs TBD Market Simulation TBD Tariff TBD Production Activation Spring 2013 Page 57 Spring 2013 – Price Inconsistency Market Enhancements Milestone Date IFM/RTM: Application Software Changes - Use both MW awards and clearing prices from the pricing run Use ANode prices for settlements of bids at default load aggregate points and trading hubs, contingent upon the ISO ability to generate an Anode for the real-time markets. BPM Changes Market Instruments; Market Operations Business Process Changes N/A Board Approval November 1, 2012 External Business Requirements December 2013 Updated BPMs March 2013 Market Simulation February 2013 Tariff TBD Production Activation Spring 2013 Release Page 58 Spring 2013 – Access and Identity Management (AIM) Milestone Date Application Software Changes The goal of the AIM project is to improve upon the existing approach for establishing, updating and terminating access to applications as well as providing visibility (transparency), ease of use and self-service where appropriate to POCs (Points of Contact), internal ISO users, business units and IT to manage this process from end to end. AIM: New system with UI and workflow BPM Changes Congestion Revenue Rights; SC Certification and Termination; Candidate CRR Holder; Definitions and Acronyms Business Process Changes IT Access Mgmt. - Certificate based application access; Metering systems access Board Approval N/A External Business Requirements December 2012 Updated BPMs TBD Market Simulation TBD Tariff N/A Production Activation Spring 2013 Release (Tentative) Page 59 Fall 2013 – RIMPR Phase 1 / BCR Mitigation / Bid Floor Milestone Date Application Software Changes IFM/RTM: Energy Bid Floor to -$150/MWh MQS: • Modify MLC calculation and cost allocation rules. • Change DA MLC determination • Program PUIE calculation (may need to change MQS energy algorithm) • Split netting between DA and RT markets. Settlements: • Modify and build up to 12 charge codes to implement new BCR netting rules and MLC. • Program PUIE (persistent UIE) calculation. • Program new RT PM (performance metric) calculation. • Offset DA MLC by MLE revenues. SIBR: • SIBR rule changes will be needed to change the bid floor from -$30 (soft) to -$150 (hard). BPM Changes Settlements & Billing, Market Operation Business Process Changes Manage Billing and Settlements, Market Performance Board Approval Bid Floor and BCR netting: December 15-16, 2011 BCR Mitigation Measures: December, 2012 External Business Requirements TBD Updated BPMs TBD Market Simulation TBD Tariff TBD Production Activation Fall 2013 Page 60 Fall 2013 – Circular Scheduling Milestone Date Application Software Changes CAS: Identify the circular schedules MW, import/export resource IDs for the single e-tag, with source/sink at the same BAA; the BAA could be CAISO or other BAA; Exclude dynamic, DC segment, open intertie, Wheeling through for load. CRR Claw Back/MQS: Identify the SC’s affiliation for single SC and circular schedule MW. Build new rule of calculate value the claw-back CRR in dollars. Settlement: Identify the SC’s affiliation for single SC. Identify the circular schedule Import applicable IFM and HASP scheduled MW. Build Settlement rule the settle the import schedule at lower LMP of Import/export. Circular schedule is not eligible for BCR for the interval. BPM Changes Market Operations, Market Instruments, Settlements & Billing Business Process Changes Manage Interchange Scheduling, Manage MQS, Manage Billing and Settlements Board Approval March 22, 2012 External Business Requirements TBD Updated BPMs TBD Market Simulation TBD Tariff TBD Production Activation Fall 2013 Page 61 Fall 2013 – Commitment Cost Refinement Milestone Date Application Software Changes Masterfile: Creation of new field to capture resource specific characteristics. Settlements: Operational Flow Orders, NOx, and Sox penalties must be submitted ex post under circumstances attributable to exceptional dispatch and real-time commitments. These costs will be included in a re-evaluation of the real-time BCR calculation for that day with the Operational Flow Orders (OFO) costs added into the calculation of the generator’s net shortfall or surplus over that day. Must establish an interface in which Market Participants can enter data to flow directly to Settlements. BPM Changes Market Instruments Billing & Settlements Business Process Changes Manage Reliability Requirements Board Approval May 2012 External Business Requirements TBD Updated BPMs TBD Market Simulation TBD Tariff TBD Production Activation Fall 2013 Release Page 62 Fall 2013 – AS Buy Back Milestone Description/Date Application Software Changes SLIC: Operators have the ability to manually force a buy back due to resource or transmission constraints. These manually forced buy backs will be compiled in a new SLIC log which shall include the modified AS quantity, interval that the buy back is applied and reason for manual buy back. . Settlements: Settlement will need to map to the new SLIC payload. Impacted 14 Charge Codes related ancillary services. BPM Changes Settlements & Billing; Business Process Changes Manage Billing and Settlements Board Approval July 13, 2012 External Business Requirements TBD Technical Specifications TBD Market Simulation Fall 2013 Production Activation Fall 2013 Release Page 63 Spring 2014 – Dynamic Transfers Milestone Description/Date Application Software Changes SIBR: Pass the 5-min-2-hour rolling forward forecast to Real-Time Market, including bidding capability and relevant validation rules for the TRC. ALFS : Create the ISO forecast for the intermittent DT CAS: e-tag DS/PTG that mapped to multi-ITGs CMRI : Report Transmission Reservation (TRC) DAM/RTM: Include TRC, incorporate forecast value, model multi-tie services, model primary/alternative tie under open tie Master File: Define TRC, multi-tie group OASIS: Show aggregated TRC Settlements: Settle TRC as shadow price of Intertie constraint in market, exclude congestion cost in RTD for the resources that have TRC. BPM Changes Market Operations; Market Instruments; Settlements & Billing; Definitions & Acronyms Business Process Changes Maintain Master File, Day Ahead Process, Real Time Process, Manage Billing and Settlements, Manage Interchange Scheduling Board Approval May 19, 2011 External Business Requirements June 8, 2012 Technical Specifications TBD Market Simulation Spring 2014 Production Activation Spring 2014 Release Page 64 Spring 2014 – FERC Order 764 / 15 Minute Market Milestone Description/Date Application Software Changes TBD BPM Changes TBD Business Process Changes TBD External Business Requirements TBD Technical Specifications TBD Board Approval May 2013 Market Simulation TBD Production Activation Spring 2014 Release Page 65 Fall 2014 – Flexible Ramping Product Milestone Description/Date Application Software Changes ADS: Send Flexible Ramping Up/Down Awards to Market Participants. CMRI : Report Flex Ramp Up/Down Awards to Market Participants. DAM/RTM: Co-optimize Energy Ancillary Services and Flexible Ramping up/down. This optimization is subject to Flexible Ramping requirements and existing constraints. OASIS: Show aggregated Flexible Ramping capacity awards, requirements and marginal prices. Settlements: Settle Flexible Ramping payment at marginal price in Day Ahead and Real Time markets Add no pay and cost allocation for Flexible Ramping. SIBR: Include Flexible Ramping bidding capability and relevant validation rules of bid cap, self provision. BPM Changes Market Operations; Market Instruments; Settlements & Billing; Definitions & Acronyms. Business Process Changes Maintain Day Ahead Process, Real Time Process, Manage Billing and Settlements External Business Requirements TBD Technical Specifications TBD Board Approval Fall 2013 Market Simulation TBD Production Activation Fall 2014 Release Page 66 Fall 2014 – iDAM (simultaneous IFM and RUC) Milestone Description/Date Application Software Changes TBD BPM Changes TBD Business Process Changes TBD External Business Requirements TBD Technical Specifications TBD Board Approval TBD Market Simulation TBD Production Activation Fall 2014 Release Page 67 Technical Updates Li Zhou, Senior Advisor George Angelidis, Principal Power Systems Technology Development Page 68 Mandatory MSG Transition • To facilitate a smooth transition from non MSG to MSG, CAISO proposes, – When applicable, use a Spring outage maintenance period and convert in the middle of period. Page 69 Questions/Answers • CAISO has presented NGR market simulation results and FERC order 755 examples in last MPPF meeting – Questions/Answers • Questions/Answers for Fall 2012 and Spring 2013 projects Page 70 Policy Update Delphine Hou Market Design and Regulatory Policy Slide 71 Market initiatives going to the Board for approval Initiative Board Presentation FERC Order 1000 (Inter-regional) March Administrative Pricing Rules May FERC Order 764 Market Changes May Page 72 Market design initiatives coming soon (slide 1 of 2) • Flexible RA Resource Criteria and Must Offer Requirements – Phase I starting tomorrow – Phase II targeted to start Q2 2013 • Marginal Loss Surplus Allocation – Targeted to start Q1 2013 • Expanding Metering and Telemetry Options – Targeted to start Q1 2013 • Multi-Stage Generator Bid Cost Recovery – Targeted to start Q1 2013 Page 73 Market design initiatives coming soon (slide 2 of 2) • Generator Interconnection Procedures (GIP 3) − Targeted to start Q1 2013 • Load Granularity Refinements − Targeted to start Q2 2013 Page 74 Additional initiatives being considered: • Priorities from Stakeholder Initiatives Catalog process: − Address transient price spikes, real-time imbalance energy offset / real-time congestion offset − Additional constraints, processes or products to address exceptional dispatch (30 minute reserve capacity) − Multi-year forward reliability capacity pricing mechanism − Use-limited must offer requirements and standard capacity product enhancements − Extended pricing mechanism Page 75 Valley Electric Association Modeling Information Justin Wong Market Settlement Design Analyst, Market Settlement Design and Configuration Valley Electric Association Transition • VEA system integrated into CAISO BAA – January 3rd, 2013 • Four new lines of interconnection – Amargosa – Sandy – Jackass Flats – Lathrop – Northwest – Dessert View – Mead – Pahrump • Two new scheduling points – AMARGO – NWEST VEA Market Constraints New Constraints 1) AMARGO_MSL: • +/-25 MW limit for AMARGOSA-SANDY. 4) VEA_MSL: • Limits schedules to not exceed the entitlement transmission capacity of the Mead-Pahrump line. • The limit shall be dynamic depending on VEA’s hourly load forecast. • Operating limits: 2) NWEST_MSL: • +/-315 MW limit for JACKASS FLATSLATHROP and NORTHWEST-DESERT VIEW aggregate scheduling point. 3) MEADVEA_BG: • +/- 159 MW limit for MEAD-PAHRUMP. Import: 159 MW + VEA load forecast. Export: 159 MW – VEA load forecast. VEA Market Constraints Modified Constraints MEAD_MSL ADLANTOVICTVL-SP_MSL. Currently the MEAD_MSL consists of four lines with limits as follows: • Camino-Mead 1&2 230 kV +/- 320 • Eldorado-Mead 1&2 230 kV +/- 1,140 New WALC intertie: • New Mead-Pahrump 230 kV +/- 159 Currently the ADLANTOVICTVL-SP_MSL is made up of the following lines • Sylmar-AC 230 kV +/- 1600 • Victorville-Lugo 500 kV + 2,400/-900 • Camino-Mead 1&2 230 kV +/- 320 • Eldorado-Mead 1&2 kV +/-1,140 New WALC intertie: • New Mead-Pahrump 230 kV +/- 159 New MEAD_MSL (sum of 5 lines) Limit +/-1619 New ADLANTOVICTVL-SP_MSL Limit +5,219/-3,719 VEA Diagram Legend Substation Voltage level (TNAME) Substation Voltage level CAISO Boundary MSL – Market Scheduling Limit Connection of Substations BG – Branch Group VEA Market Model Diagram NV Energy Balancing Authority WALC Balancing Authority AMARGO_MSL -25/+25 NWEST_MSL -315/+315 NWEST 230 kV (NWEST) VEA_MSL Import = 159 + VEA Load Forecast Export = 159 – VEA Load Forecast Jackass F 138 kV (NWEST) Amargosa 138 kV (AMARGO) Mead S 230 kV (MEAD230) MEAD_MSL -1,619/+1,619 ADLANTOVCTVL-SP_MSL -5,219/+3,719 MEADVEA_BG -159 / +159 Mead 230 kV Psuedo Bus CAISO Balancing Authority MEADELDORD_BG -1,140 / +1,140 VEA Pahrump 230 kV Camino 230kv Camino 230kv New Scheduling Points Special tagging for scheduling purposes only. Schedule’s (import/export) at a VEA scheduling point (NWEST or AMARGO), shall tag their energy schedule through MEAD. • Import path: NEVP(NWEST/AMARGO) - SP15 - MEAD(WALC) – SP15 • Export path: SP15 – MEAD(WALC) – SP15 – NEVP(NWEST/AMARGO) http://www.caiso.com/Documents/CaliforniaISOTaggingTemplates.xls