Day Ahead Market Working Group

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Day Ahead Market Working Group

• April 14, 2003

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Agenda

• Discussion of SMD-style DAM
• review questions posed by the DAM WG and Coral
  regarding the SMD-style DAM
• Discussion of Coral Bid-Ask Trade DAM
• resolution of status
• NYISO Imports/Exports in DAM
• Next Steps -- April 22 Face-to-Face

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NYISO Imports/Exports in DAM

• Introduction
• Reference to NYISO Market Participant Manuals and
  Technical Bulletins _at_ http//www.nyiso.com/service
  s/documents.html
• Examine NYISO as potential IMO model
• Consider current RT Intertie procedures relative
  to DAM
• Unique elements of NYISO

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NYISO Imports/Exports in DAM

• Submitting Import/Export Bids
• All transactions from external control areas are
  required to be submitted into the NERC ETAG
  system prior to becoming active schedules
• DAM closes 0500 Results posted 1100
• E-Tag changes can be made before DAM closes,
  after DAM posts results, but before 2200 (All
  times prior day)

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NYISO Imports/Exports in DAM

• NYISO Reference Bus
• External generators and loads submit transaction
  bids into the NYISO DAM against the Marcy LBMP
  reference bus - NYISO_LBMP_REFERENCE
• Used to calculate all marginal loss and
  congestion costs in the system
• External energy sales or purchases are settled on
  the LBMP (Locational Based Marginal Price)
• LBMP Reference Bus Energy Losses -
  Congestion
• For Ontario Zone - source bus (exports to NYISO)
  or sink bus (imports from NYISO) is -
  OH_GEN_BRUCE or OH_LOAD_BRUCE
• Additional points for PJM, NE and HQ

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NYISO Imports/Exports in DAM

• Scheduling
• Import/Export bids are approved through SCUC or
  BME
• Schedules must be coordinated with corresponding
  control area
• With respect to BME and for economic priority,
  default price -1000 assigned for imports
• External transactions scheduled in the Day-Ahead
  Market (DAM) have economic priority over
  resources bid competitively in the Hour-Ahead
  Market (HAM) in the determination of which
  transactions are permitted to flow in real-time
• Transactions are financially binding in DAM
  regardless if curtailed

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NYISO Imports/Exports in DAM

• Multi-Hour Block Transactions
• DA firm external transaction bids may be offered,
  specifying a minimum run-time, and if accepted,
  awarded a multi-hour block schedule at the bid MW
  amount
• Evaluated in the Day-Ahead Market relative to
  alternative offers
• Easier to coordinate scheduled external
  transactions with corresponding transactions in
  neighboring control areas
• Checkout process with the neighboring control
  area confirms each hour of a DAM scheduled
  multi-hour block transaction independently
• Transaction hours are subject to curtailment in
  real-time based upon HAM bid parameters
• Minimum run times will only be honoured within a
  commitment day, i.e., beginning Hour 1 ending
  Hour 24

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NYISO Imports/Exports in DAM

• Pre-Scheduling Transactions
• MP can preschedule an external import or export
  transaction with the NYISO up to 18 months prior
  to the transaction date
• Acceptance is determined by the availability of
  adequate hourly ramping and transmission capacity
  related to the affected external interface
• Given an economic priority over other external
  transactions that are not prescheduled - will be
  a price taker and the entities involved agree
  to accept the DAM clearing prices in effect for
  the transaction
• Submission deadline - 200 PM two days before
  transaction date
• Imports/Exports are assigned bid prices of
  -1000/1000 to ensure priority scheduling in
  DAM
• Parameters of DAM bids cannot be altered after
  submission deadline and if withdrawals are not
  approved then bids are financially binding once
  scheduled

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NYISO Imports/Exports in DAM

• IMO/NYISO Transaction Scheduling
• Currently IMO and NYISO use a specific
  transaction scheduling protocol to schedule
  transactions and ensure fair and efficient use of
  the IMO/NYISO interface
• Introduction of a DAM in Ontario will likely
  require a review and modification to this
  protocol to ensure resolution of new seams issues
  that may arise

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Discussion Points

• Ramp Capacity or Transfer Capabilities across
  interties
• Transmission Congestion Costs - TCCs
• Financial Transmission Rights - FTRs
• Transmission Usage Costs TUCs

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Next Meetings

• April 22 WG Face-to-Face meeting