P1259109025nSpJk

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Market Pricing Issues
John MacKenzie
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Outline of Presentation

• Proposal to make permanent the removal of the 4-2
  hour restricted window for revisions to dispatch
  data
• Outline of integrated proposal of pricing issues
  initiatives

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4-2 Hour Restricted Window

• Trial initiated mid-November to allow
  unrestricted changes to dispatch data up to 2
  hours ahead of dispatch hour
• Qualitative Results
• IMO observed no adverse impact on reliability
• MPs like additional flexibility
• Quantitative Results
• Pre-Dispatch and Real-Time prices have greater
  convergence
• Failure rate of intertie transactions reducing
• Many other factors influence these results

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Pre-Dispatch and Real-Time Price Convergence
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Pre-Dispatch Price Convergence
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Proposal

• Allow unrestricted revisions to dispatch data up
  to 2 hours ahead of dispatch hour with some
  exceptions
• Only allow following revisions up to 2 hours and
  15 minutes before dispatch hour
• addition of new dispatch data
• removal of existing dispatch data
• new price-quantity pairs within exiting dispatch
  data
• Market rule amendments initiated to effect this

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Integrated Proposal

• Market Participants have indicated that an
  integrated proposal is necessary in order to
  allow meaningful assessment and advice
• Integrated proposal should identify all the
  initiatives, their impact on the pricing issues
  their inter-relationships and timing

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Integrated Proposal - Content

• Seven pricing initiatives
• Eliminate 4-2 hour restricted window
• Hour-ahead dispatchable load
• Additional generation on-line
• Additional supply e.g. return to service of
  nuclear units
• Reduce rate of Intertie Transaction Failure
• Additional Market Information
• Include Out-of-Market Sources of Operating
  Reserve in the market

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Integrated Proposal - Going Forward

• Developing analysis of impacts of each initiative
  on the pricing issues
• Developing inter-relationships of the initiatives
• Tabling the integrated proposal at next MOSC
  meeting for discussion