BPM CM - View PRR Details

Proposed Revision Request Detail

PRR Life Cycle

Closed

PRR Details

PRR #

718

Title

FERC 764

Date Submitted

2/7/2014 2:26 PM

PRR Category

Priority

Normal

Owner

Batakji, Jamal (CAISO)

Status

Closed

Status End Date

5/12/2014 12:00 AM

Related BPM

Market Instruments

BPM Section

Various

Existing Language

Please see attached redline document for the existing and revised language

Proposed Language

Please see attached redline document for the existing and revised language

Reason For Revision

Note the changes affect the Market Instruments BPM document.

Contains changes required to implement the FERC 764 initiative. Please see the following link for more information:

http://www.caiso.com/informed/Pages/StakeholderProcesses/FERCOrderNo764MarketChanges.aspx

Click here to view the Recommendation Details for this PRR

Click here to view the Final Decision for this PRR

Announcements

Proposed Revision Requests (PRRs) related to Spring Release market simulation will remain in open recommendation comment period status until April 18, 2014 to allow additional time for comments and to address any potential changes prior to the new May 1, 2014 market simulation effective date. The related PRRs will also be discussed in the April 22, 2014 BPM web conference. All other PRRs will continue through the normal process timeline.

Posted On - 3/13/2014 1:43 PM

ISO provided attachment 12.2. in PRR attachment Section, by Jamal Batakji

Posted On - 2/20/2014 2:28 PM

Impact Analysis

PRR Impact Analysis FERC 764 MI.doc

Notes:

Initial Comments

PG&E SMES have reviewed PRR with following comments:

Section 12.2 Transmission

The BPM introduces the seemingly new concepts of "Market Available Transfer Capacity" and "Market Transfer Capability".

PG&E notes:
1) is this needed?
2) the concept or definition is not established in tariff or BPM
3) it is not clear how it will be used, if in fact this is different than ATC
4) the equation "Market Transfer Capability = Seasonal TTC - TRM - Constraint" is malformed; either with term "TRM - Constraint" which is confusing because of the dash "-" or with an undefined term "Constraint" that would impact the left hand side of equation but with no definition (or tariff support) of what this is or how it would be established.

2/25/2014 6:09 AM

Logged By - Martin Koogler (Energy Procurement - Short Term Electric Supply)

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1) is this needed?
Market Transfer Capability is a placeholder term representing a middle point in the ATC calculation. It is used to make the ATC calculation easier to read. However the ATC calculation itself does not change. Regarding the term Market Available Transfer Capacity, it is an existing report. It is not a new concept.

2) the concept or definition is not established in tariff or BPM.
That is correct. It is intended only to make the report easier to read. It is not intended to be used for operational/scheduling purposes. We can make the term non-capitalized if that helps avoid confusion.

3) it is not clear how it will be used, if in fact this is different than ATC .
See answers 1 and 2 above.

4) the equation "Market Transfer Capability = Seasonal TTC - TRM - Constraint" is malformed; either with term "TRM - Constraint" which is confusing because of the dash "-" or with an undefined term "Constraint" that would impact the left hand side of equation but with no definition (or tariff support) of what this is or how it would be established.
To be clear, market transfer capability is defined as the Seasonal TTC, minus total TRM, minus constraints (outages). The term constraint is used elsewhere in this section, however it is not capitalized. The term Costraint should be replaced with ‘constraint’ (will correct the spelling error and remove capitalization). Removing the capitalization should make it clear this is not a tariff term.

4/17/2014 1:54 PM

Responded By - Batakji, Jamal (CAISO)

PG&E SMEs have reviewed PRR with following comments:

Section 11.1 ADS Instruction Cycle

Operation in the Hour-Ahead Schedule Process (HASP)

For Intertie System Resources, if user does not respond to ADS dispatch then "forcibly accepted" by ADS. This is different than today as it is "forcibly declined".

PG&E agrees that "forcibly accepted" is the preferred method.

Section 11.3 ADS DOT Breakdown

3. DOT Breakdown for Generation Resources and Dynamic System Resources

The calculation for SUPP for EIRs is not correct. This will be used to trigger when a RT RPS bid into the RTM would have to curtail. PG&E recommends the verbiage should be as follows: For EIR, the difference between DOT and SCHED calculated by (DOT - FORECAST).

Example 3.2, the 5 MWs for dispatched out of Spin and Non-spin are part of the SUPP as the incremental amount. Besides the 5 MWs from Spin and Non-spin, it implies the 20-5-5=10MW as the market energy dispatch component. This is different from the current ADS in production in which the SUPP is exclusive from the Spin and Non-spin amount.

The statement in the BPM "different from the current ADS in production" is the same as the current BPM and is NOT an accurate statement. The descriptor of different from current ADS refers back to pre-MRTU ADS. PG&E recommends to remove this statement from the BPM.

2/24/2014 6:28 AM

Logged By - Martin Koogler (Energy Procurement - Short Term Electric Supply)

---------------------------------------------

Section 11.3 ADS DOT Breakdown

3. DOT Breakdown for Generation Resources and Dynamic System Resources

The calculation for SUPP for EIRs is not correct. This will be used to trigger when a RT RPS bid into the RTM would have to curtail. PG&E recommends the verbiage should be as follows: For EIR, the difference between DOT and SCHED calculated by (DOT - FORECAST).

Answer: This was a feature added late and did not get incorporated into the BPM. Will change to the suggested language.

Example 3.2, the 5 MWs for dispatched out of Spin and Non-spin are part of the SUPP as the incremental amount. Besides the 5 MWs from Spin and Non-spin, it implies the 20-5-5=10MW as the market energy dispatch component. This is different from the current ADS in production in which the SUPP is exclusive from the Spin and Non-spin amount.

Answer: Pending an ADS SME review. If change is required, it will be considered for future PRR since this is not related to 764 implementation.

The statement in the BPM "different from the current ADS in production" is the same as the current BPM and is NOT an accurate statement. The descriptor of different from current ADS refers back to pre-MRTU ADS. PG&E recommends to remove this statement from the BPM.

Answer: Agree this sentence will be removed.

4/17/2014 2:05 PM

Responded By - Batakji, Jamal (CAISO)

Recommendation Comments

Masooma Tirmazi, Southern California Edison 626-302-1769
Questions/comments from reading the most recent redline from the BPM Change Management site:

1) Page 35 - Definition of Capacity Limit: Why can't the limit be lower than the highest energy bid if that part of the bid curve is non-RA MWs? If we have set bid curves upto PMAX of a unit and want to limit the awards by using the Capacity Limit it would defeat the purpose if we had to go in and lower our energy bid to the level we need.

2) Page 41 - Definition of System Resource (an Import Resource): The language "and a flag to allow a single curtailment for the remainder of the hour for accepted block schedules" should read "and a flag to allow a single intra-hou economic re-dispatch for the remainder of the hour for accepted block schedules"

3) Page 139 - Operation in the Hour-Ahead Scheduling Process (HASP) - The last sentence in the 2nd paragraph states: "The CAISO dispatcher may modify the response up until the close of the instruction cycle at 45-min after the hour." The question I have is that after the start of the hour so for
HE1 it would be 12:45am or is it 45 min after the end of the hour, which would be 1:45 am for HE1.

4) Page 143 - 2.1 ADS Decline Functionality For Non-Dynamic System Resource Instruction - There is redline language that states: "It is CAISO's policy that any portion of the dispatch may be accepted, partially accepted, or fully declined. However, the SCHED MW component cannot be changed after the HASP or FMM runs." The question I have is that this is contradicting the language on page 139 under "Operation in the Fifteen Minute Market (FMM) section where it states "ADS automatically obtains an acknowledgement per instruction once it reaches the corresponding ADS client. For these resources, there is no opportunity to accept or decline the instruction through ADS, although the Scheduling Coordinator can change the FMM schedule to the extent possible through submission of an updated energy profile in its E-tag".

So...

1) Can we still accept, partially accept, or fully decline any of the intertie options (that are not dynamic or VER)?

2) It sounds like we should still be able to modify the SUPP component after the HASP and FMM runs based on the language above, is that accurate?

My understanding is that the policy changed to only allow hourly block bids to accept, decline, or partially accept within the 5-min window after HASP results are published, but the language above can be interpreted differently, and would like some clarification.

5) Page 148 - Definition of FMM Locational Marginal Prices (LMP) - It says it "posts hourly". Is that true? During market simulation it is being published every 15-min.

4/10/2014 12:49 PM

Logged By - Payton, Julia (CAISO)

---------------------------------------------

1) Page 35 - Definition of Capacity Limit: Why can't the limit be lower than the highest energy bid if that part of the bid curve is non-RA MWs? If we have set bid curves upto PMAX of a unit and want to limit the awards by using the Capacity Limit it would defeat the purpose if we had to go in and lower our energy bid to the level we need.

Answer: The purpose of this limit is to prevent awards for partial RA resources that exceed the economic bid amount, which can happen today. It was not intended to make it easier for SC’s to change effective economic bid limits. With that said, it is not a bad idea. We recommend working with your client rep to propose this as a future enhancement.

2) Page 41 - Definition of System Resource (an Import Resource): The language "and a flag to allow a single curtailment for the remainder of the hour for accepted block schedules" should read "and a flag to allow a single intra-hou economic re-dispatch for the remainder of the hour for accepted block schedules"

Answer: We can consider this change, pending legal approval.

3) Page 139 - Operation in the Hour-Ahead Scheduling Process (HASP) - The last sentence in the 2nd paragraph states: "The CAISO dispatcher may modify the response up until the close of the instruction cycle at 45-min after the hour." The question I have is that after the start of the hour so for
HE1 it would be 12:45am or is it 45 min after the end of the hour, which would be 1:45 am for HE1.

Answer: Neither. It would be 11:45 PM. The purpose of this is to respond on behalf of the SC when the SC is unable to connect to ADS; or to modify the response, for example if the SC initially accepts the dispatch but is no longer able to fulfil the dispatch requirement. Realistically this can only happen before the tagging deadline ends, i.e. 20 minutes before the start of the hour or 11:40 PM in this example.

4) Page 143 - 2.1 ADS Decline Functionality For Non-Dynamic System Resource Instruction - There is redline language that states: "It is CAISO's policy that any portion of the dispatch may be accepted, partially accepted, or fully declined. However, the SCHED MW component cannot be changed after the HASP or FMM runs." The question I have is that this is contradicting the language on page 139 under "Operation in the Fifteen Minute Market (FMM) section where it states "ADS automatically obtains an acknowledgement per instruction once it reaches the corresponding ADS client. For these resources, there is no opportunity to accept or decline the instruction through ADS, although the Scheduling Coordinator can change the FMM schedule to the extent possible through submission of an updated energy profile in its E-tag".

So...

1) Can we still accept, partially accept, or fully decline any of the intertie options (that are not dynamic or VER)?

Answer: You can explicitly do that in ADS for the HASP dispatches. For FMM, you can implicitly do that by updating the energy profile in the E-tag.

2) It sounds like we should still be able to modify the SUPP component after the HASP and FMM runs based on the language above, is that accurate?

Answer: The total amount can be modified. Since the SCHED remains the same, the SUPP would be the difference between the total and the SCHED value.

My understanding is that the policy changed to only allow hourly block bids to accept, decline, or partially accept within the 5-min window after HASP results are published, but the language above can be interpreted differently, and would like some clarification.

Answer: All ties may be accepted, partially accepted, or declined.

5) Page 148 - Definition of FMM Locational Marginal Prices (LMP) - It says it "posts hourly". Is that true? During market simulation it is being published every 15-min.

Answer: This is a typo. The first sentence should be corrected to read as follows: Posts on a 15-minute basis, the 15-minute financially binding Locational Marginal Prices in $/MWh, for the FMM market process.

4/17/2014 2:30 PM

Responded By - Batakji, Jamal (CAISO)

Market Instrument Price correction_TIMELINE_20140320.docx

3/26/2014 7:04 AM

Logged By - Batakji, Jamal (CAISO)

3/25/14 Nino Mijares, APX 888-896-8629   It was brought to my attention, internally here at APX based on a CAISO conference call, the deadline for DAM ISTs was changing from 1200PT to 1100PT. The attached document “Market Instruments BPM 764_20140207.doc” has the following statement:
9.1.1      Timeline
Inter-SC Trades for the Day-Ahead Market may be submitted beginning seven days prior to the Trading Day up to 1200 hours the day prior to the Trading Day. Inter-SC Trades for the Real-Time Market may be submitted beginning at midnight the day prior to the Trading Hour up to 45 minute prior to the Trading Hour.

Perhaps the statement should be changed to below:
9.1.1      Timeline
Inter-SC Trades for the Day-Ahead Market may be submitted beginning seven days prior to the Trading Day up to 1100 hours the day prior to the Trading Day. Inter-SC Trades for the Real-Time Market may be submitted beginning at midnight the day prior to the Trading Hour up to 45 minute prior to the Trading Hour.
And changed within Exhibit 9-1: Timeline of Inter-SC Trades, Stage 2 - Between 0600 hours and 1200 1100 hours of the day prior to the Trading Day. Also changed in the paragraph right after Exhibit 9-1:
During the Day-Ahead IST Trading period (which closes at 1200 1100 hours), CAISO notifies SCs if their submitted IST does not have a counterparty. At 1200 1100 hours, CAISO rejects any ISTs for the Day-Ahead Market that do not have a matching counterparty. For PHYs, CAISO adjusts the quantity of ISTs if necessary, based on the Generating Unit Bid in the DAM, on which the PHY is dependent. (Note: For Multi-Stage Generating Resources that may be used in a PHY Trade as the location, the maximum quantity of the Energy Curve or Self-Schedule on the highest Configuration will be used in the validation for the PHY Trade).

While the difference is only an hour, this change is noteworthy especially for those SCIDs who engage in trades.

Please keep in mind that while it was discussed on a CAISO conference call pertaining to Spring Release or FERC 764, there is no documentation I’ve been able to find to update this. However if there, could you please direct me to the appropriate documentation?

Please advise. Thank you.

3/25/2014 4:03 PM

Logged By - Payton, Julia (CAISO)

Please send an email to jpayton@caiso.com, if you submit a comment and provide the PRR number.

3/13/2014 1:44 PM

Logged By - Payton, Julia (CAISO)

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Business Practice Manual Change Management