EXHIBIT 99.266
SCHEDULING PROTOCOL
SCHEDULING PROTOCOL
TABLE OF CONTENTS
SP 1 OBJECTIVES, DEFINITIONS AND SCOPE
SP 1.1 OBJECTIVES
SP 1.2 DEFINITIONS
SP 1.2.1 MASTER DEFINITIONS SUPPLEMENT
SP 1.2.2 SPECIAL DEFINITIONS FOR THIS PROTOCOL
SP 1.2.3 RULES OF INTERPRETATION
SP 1.3 SCOPE
SP 1.3.1 SCOPE OF APPLICATION TO PARTIES
SP 1.3.2 LIABILITY OF ISO
SP 2 INTERFACE REQUIREMENTS
SP 3 TIME LINES
SP 3.1 BALANCED SCHEDULES
SP 3.1.1 TYPES OF BALANCED SCHEDULES
SP 3.1.2 PREFERRED SCHEDULES
SP 3.1.3 SEVEN-DAY ADVANCE SCHEDULES
SP 3.1.4 SUGGESTED ADJUSTED SCHEDULES
SP 3.1.5 REVISED SCHEDULES
SP 3.1.6 FINAL SCHEDULES
SP 3.2 DAY-AHEAD MARKET
SP 3.2.1 BY 6:00 PM, TWO DAYS AHEAD
SP 3.2.2 BY 6:00 AM, ONE DAY AHEAD
SP 3.2.3 BY 6:30 AM, ONE DAY AHEAD
SP 3.2.4 [UNUSED]
SP 3.2.5 [UNUSED]
SP 3.2.6 BY 10:00 AM, ONE DAY AHEAD
SP 3.2.7 BY 11:00 AM, ONE DAY AHEAD
SP 3.2.8 BY 12:00 NOON, DAY AHEAD
SP 3.2.9 BY 1:00 PM, DAY AHEAD
SP 3.2.10 BY 1:30 PM, DAY AHEAD
SP 3.3 HOUR-AHEAD MARKET
SP 3.3.1 BY TWO HOURS AHEAD
SP 3.3.2 BY ONE HOUR AHEAD
SP 4 TRANSMISSION SYSTEM LOSS MANAGEMENT
SP 4.1 OVERVIEW
SP 4.2 GENERATOR METER MULTIPLIERS (GMMS)
SP 4.2.1 DERIVATION OF GMMS
SP 4.2.2 METHODOLOGY FOR CALCULATING TRANSMISSION LOSSES
SP 4.3 EXISTING CONTRACTS AND TRANSMISSION LOSSES
SP 5 RELIABILITY MUST-RUN GENERATION
SP 5.1 PROCUREMENT OF RELIABILITY MUST-RUN GENERATION BY THE ISO
SP 5.1.1 ANNUAL RELIABILITY MUST-RUN FORECAST - TECHNICAL EVALUATION
SP 5.1.2 ANNUAL RELIABILITY MUST-RUN FORECAST - TECHNICAL STUDIES
SP 5.2 DESIGNATION OF GENERATING UNIT AS RELIABILITY MUST-RUN
SP 5.3 SCHEDULING OF RELIABILITY MUST-RUN GENERATION
SP 5.4 SCHEDULING OF RELIABILITY MUST-RUN ANCILLARY SERVICES
SP 6 [UNUSED]
SP 7 MANAGEMENT OF EXISTING CONTRACTS FOR TRANSMISSION SERVICE
SP 7.1 OBLIGATIONS OF PARTICIPATING TRANSMISSION OWNERS AND SCHEDULING
COORDINATORS
SP 7.1.1 Participating Transmission Owners
SP 7.1.2 SCHEDULING COORDINATORS
SP 7.2 ALLOCATION OF FORECASTED TOTAL TRANSFER CAPABILITIES
SP 7.2.1 CATEGORIES OF TRANSMISSION CAPACITY
SP 7.2.2 PRIORITIZATION OF TRANSMISSION USES
SP 7.2.3 ALLOWABLE EXISTING CONTRACT LINKAGES
SP 7.3 THE DAY-AHEAD PROCESS
SP 7.3.1 VALIDATION
SP 7.3.2 SCHEDULING DEADLINES
SP 7.3.3 RESERVATION OF FIRM TRANSMISSION CAPACITY
SP 7.3.4 ALLOCATION OF INTER-ZONAL INTERFACE CAPACITIES
SP 7.4 THE HOUR-AHEAD PROCESS
SP 7.4.1 VALIDATION
SP 7.4.2 SCHEDULING DEADLINES
SP 7.4.3 ACCEPTANCE OF FIRM TRANSMISSION SCHEDULES
SP 7.4.4 RESERVATION OF FIRM TRANSMISSION CAPACITY
SP 7.4.5 ALLOCATION OF INTER-ZONAL INTERFACE CAPACITIES
SP 7.5 THE ISO'S REAL-TIME PROCESS
SP 7.5.1 INTER-CONTROL AREA CHANGES TO SCHEDULES THAT RELY ON EXISTING
RIGHTS
SP 7.5.2 INTRA-CONTROL AREA CHANGES TO SCHEDULES THAT RELY ON EXISTING
RIGHTS
SP 8 OVERGENERATION MANAGEMENT
SP 8.1 REAL TIME OVERGENERATION MANAGEMENT
SP 9 DAY/HOUR-AHEAD ANCILLARY SERVICES MANAGEMENT
SP 9.1 BID EVALUATION AND SCHEDULING PRINCIPLES
SP 9.2 SEQUENTIAL EVALUATION OF BIDS
SP 9.3 SCHEDULING ANCILLARY SERVICES RESOURCES
SP 9.4 ANCILLARY SERVICE BID EVALUATION AND PRICING TERMINOLOGY
SP 9.5 REGULATION BID EVALUATION AND PRICING
SP 9.5.1 REGULATION BID EVALUATION
SP 9.5.2 REGULATION PRICE DETERMINATION
SP 9.6 SPINNING RESERVES BID EVALUATION AND PRICING
SP 9.6.1 SPINNING RESERVES BID EVALUATION
SP 9.6.2 SPINNING RESERVES PRICE DETERMINATION
SP 9.7 NON-SPINNING RESERVES BID EVALUATION AND PRICING
SP 9.7.1 NON-SPINNING RESERVES BID EVALUATION
SP 9.7.2 NON-SPINNING RESERVES PRICE DETERMINATION
SP 9.8 REPLACEMENT RESERVES BID EVALUATION AND PRICING
SP 9.8.1 REPLACEMENT RESERVES BID EVALUATION
SP 9.8.2 REPLACEMENT RESERVES PRICE DETERMINATION
SP 9.9 EXISTING CONTRACTS - ANCILLARY SERVICES ACCOUNTABILITY
SP 10 DAY/HOUR-AHEAD INTER-ZONAL CONGESTION MANAGEMENT
SP 10.1 CONGESTION MANAGEMENT ASSUMPTIONS
SP 10.2 CONGESTION MANAGEMENT PROCESS
SP 10.3 CONGESTION MANAGEMENT PRICING
SP 11 CREATION OF THE REAL TIME MERIT ORDER STACK
SP 11.1 SOURCES OF IMBALANCE ENERGY
SP 11.2 STACKING OF THE ENERGY BIDS
SP 11.3 USE OF THE MERIT ORDER STACK
SP 12 AMENDMENTS TO THE PROTOCOL
SCHEDULING PROTOCOL (SP)
SP 1 OBJECTIVES, DEFINITIONS AND SCOPE
SP 1.1 OBJECTIVES
The objectives of this Protocol are:
(a) to process the scheduling input data (submitted to
the ISO under the Ancillary Service Requirements
Protocol (ASRP), the Demand Forecasting Protocol
(DFP), and the Schedules and Bids Protocol (SBP)) in
order to develop Final Schedules for the Day-Ahead
and Hour-Ahead Markets (real time management of the
ISO Controlled Grid is addressed in the Dispatch
Protocol (DP));
(b) to provide for the scheduling of the use of
transmission service rights under Existing Contracts;
(c) to assist the ISO in purchasing Ancillary Services;
and
(d) to manage Congestion.
SP 1.2 DEFINITIONS
SP 1.2.1 MASTER DEFINITIONS SUPPLEMENT
Unless the context otherwise requires, any word or expression
defined in the Master Definitions Supplement to the ISO Tariff
shall have the same meaning where used in this Protocol. A
reference to a Section or an Appendix is to a Section or an
Appendix of the ISO Tariff. References to SP are to this
Protocol or to the stated paragraph of this Protocol.
SP 1.2.2 SPECIAL DEFINITIONS FOR THIS PROTOCOL
In this Protocol, the following words and expressions shall
have the meanings set opposite them:
"ISO HOME PAGE" means the ISO internet home page at
http://www.caiso.com/iso or such other internet address as the
ISO shall publish from time to time.
SP 1.2.3 RULES OF INTERPRETATION
(a) Unless the context otherwise requires, if the
provisions of this Protocol and the ISO Tariff
conflict, the ISO Tariff will prevail to the extent
of the inconsistency. If the provisions of this SP
and
an Existing Operating Agreement conflict, the
provisions of the Existing Operating Agreement will
prevail. The provisions of the ISO Tariff have been
summarized or repeated in this Protocol only to aid
understanding.
(b) A reference in this Protocol to a given agreement,
ISO Protocol or instrument shall be a reference to
that agreement or instrument as modified, amended,
supplemented or restated through the date as of which
such reference is made.
(c) The captions and headings in this Protocol are
inserted solely to facilitate reference and shall
have no bearing upon the interpretation of any of the
terms and conditions of this Protocol.
(d) This Protocol shall be effective as of the ISO
Operations Date.
(e) References to time are references to the prevailing
Pacific time.
SP 1.3 SCOPE
SP 1.3.1 SCOPE OF APPLICATION TO PARTIES
The SP applies to the following entities:
(a) Scheduling Coordinators (SCs);
(b) Utility Distribution Companies (UDCs);
(c) Participating Transmission Owners (PTOs);
(d) interfacing Control Area operators in accordance with
Inter-Control Area agreements entered into with the
ISO; and
(e) the Independent System Operator (ISO).
SP 1.3.2 LIABILITY OF ISO
Any liability of the ISO arising out of or in relation to this
Protocol shall be subject to Section 14 of the ISO Tariff as
if references to the ISO Tariff were references to this
Protocol.
SP 2 INTERFACE REQUIREMENTS
The WEnet interface requirements and associated information
requirements are described in the SBP.
SP 3 TIME LINES
(a) The ISO, for reliability purposes or due to error or
delay caused by its inability to meet the timing
requirements, may implement
any temporary variation of timing requirements
contained in this SP (including the omission of any
step) in accordance with Section 2.2.12.1 of the ISO
Tariff. The information will be published on WEnet
and will include the following:
(i) the exact timing requirements affected;
(ii) details of any substituted timing
requirements;
(iii) an estimate of the period for which this
waiver will apply; and
(iv) reasons for the temporary variation.
(b) If, despite the variation of any time requirement or
the omission of any step, the ISO either fails to
receive sufficient Schedules to operate the Day-Ahead
Market or is unable to perform Congestion Management
in the Day-Ahead Market, the ISO may abort the
Day-Ahead Market and require all Schedules to be
submitted, and Congestion Management to be performed,
in the Hour-Ahead Market.
(c) If, despite the variation of any time requirement or
omission of any step, the ISO either fails to receive
sufficient Schedules to operate the Hour-Ahead Market
or is unable to perform Congestion Management in the
Hour-Ahead Market, the ISO may abort the Hour-Ahead
Market and function in real time.
(d) The incorporation of the scheduling of the use of
rights under Existing Contracts into the ISO's
Day-Ahead, Hour-Ahead and real time processes is
additionally described in SP 7 and in the SBP.
SP 3.1 BALANCED SCHEDULES
SP 3.1.1 TYPES OF BALANCED SCHEDULES
A Schedule shall be treated as a Balanced Schedule when the
SC's aggregate Generation and external imports (adjusted for
Transmission Losses) and Inter-Scheduling Coordinator Trades
(whether purchases or sales), equal the SC's aggregate Demand
forecast, including external exports, with respect to all
entities for which the SC schedules. On an interim basis, the
ISO may assist SCs in matching Inter-Scheduling Coordinator
Trades.
SP 3.1.2 PREFERRED SCHEDULES
The Preferred Schedule is the initial Schedule submitted by a
SC in the Day-Ahead Market or Hour-Ahead Market. A Preferred
Schedule shall
be a Balanced Schedule submitted to the ISO by each SC on a
daily and/or hourly basis.
SP 3.1.3 SEVEN-DAY ADVANCE SCHEDULES
SCs may submit Balanced Schedules for up to seven (7) Trading
Days at a time, representing the SC's Preferred Schedule for
each Day-Ahead Market and/or Hour-Ahead Market. These advance
Schedules can be overwritten by new Preferred Schedules at any
time prior to the deadline for submitting Day-Ahead Schedules
and Hour-Ahead Schedules, as described in the SP. If not
overwritten by the SC, a Schedule submitted in advance of this
deadline for submission will become the SC's Preferred
Schedule at the deadline for submitting Day-Ahead Schedules
and/or Hour-Ahead Schedules. There is no validation of
Schedules submitted in advance of the deadline for submitting
Preferred Schedules. As part of the scheduling and validation
process, the ISO will calculate and publish, via WEnet, the
GMMs applicable to the Day-Ahead and Hour-Ahead Markets eight
(8) days ahead of the Trading Day to which they relate, as
described in SP 4.
SP 3.1.4 SUGGESTED ADJUSTED SCHEDULES
If the sum of SCs' Preferred Schedules would cause Congestion
across any Inter-Zonal Interface, the ISO shall issue
Suggested Adjusted Schedules to all SCs in the Day-Ahead
Market only. These Suggested Adjusted Schedules will not apply
to uses of transmission owned by non-participating
transmission owners nor to uses of either Existing Rights or
Non-Converted Rights under Existing Contracts. A modification
flag, set by the ISO, will indicate whether the scheduled
output in a Settlement Period has been modified as a result of
Congestion Management. The ISO will publish as public
information, via the WEnet, estimated Usage Charges for Energy
transfers between Zones.
SP 3.1.5 REVISED SCHEDULES
Following receipt of a Suggested Adjusted Schedule, a SC may
submit to the ISO a Revised Schedule, which shall be a
Balanced Schedule. There are no Revised Schedules in the
Hour-Ahead Market.
SP 3.1.6 FINAL SCHEDULES
If the ISO notifies a SC that there will be no Congestion on
the ISO Controlled Grid based on the Preferred Schedules
submitted by all SCs, the Preferred Schedule shall become that
SC's Final Schedule. If the ISO has adjusted the SC's
Preferred Schedule to match Inter-Scheduling Coordinator
Trades then the adjusted Preferred Schedule
shall become that SC's Final Schedule. If the ISO notifies a
SC that there will be no Congestion on the ISO Controlled Grid
based on the Revised Schedules submitted by all SCs, the
Revised Schedule shall become that SC's Final Schedule. If the
ISO has adjusted the SC's Revised Schedule to match
Inter-Scheduling Coordinator Trades then the adjusted Revised
Schedule shall become that SC's Final Schedule. If there is
Congestion based on the Revised Schedules or mismatches in
Inter-Scheduling Coordinator Trades, the ISO shall adjust the
Revised Schedules and issue Final Schedules. The SCs will be
notified, via WEnet, that their Schedules have become final.
The ISO will also publish a final set of Usage Charges for
Energy transfers between Zones, applicable to all SCs.
SP 3.2 DAY-AHEAD MARKET
The Day-Ahead Market is a forward market for Energy and
Ancillary Services. The Day-Ahead Market operates individually
for each Settlement Period of the Trading Day. The Day-Ahead
Market starts at 6:00 pm two days ahead of the Trading Day and
ends at 1:00 pm on the day ahead of the Trading Day, at which
time the ISO issues the Final Day-Ahead Schedules.
SP 3.2.1 BY 6:00 PM, TWO DAYS AHEAD
By 6:00 pm two days ahead of the Trading Day (for example, by
6:00 pm on Monday for the Wednesday Trading Day), the ISO will
publish, via WEnet, the following information for each
Settlement Period of the Trading Day:
(a) a forecast of conditions on the ISO Controlled Grid,
including transmission line and other transmission
facility Outages;
(b) a forecast of Generation Meter Multipliers (GMMs), as
developed in accordance with SP 4, at each Generator
location and Scheduling Point;
(c) a forecast of system Demands by Zone;
(d) an estimate of the Ancillary Services requirements
for the ISO Control Area (see the ASRP for the
details on these requirements);
(e) a forecast of Loop Flows over interfaces with other
Control Areas;
(f) a forecast of the potential for Congestion
conditions;
(g) a forecast of total and Available Transfer Capacity
over certain rated transmission paths and Inter-Zonal
Interfaces.
SP 3.2.2 BY 6:00 AM, ONE DAY AHEAD
By 6:00 am on the day ahead of the Trading Day (for example,
by 6:00 am on Tuesday for the Wednesday Trading Day), the
following information flows for each Settlement Period of the
Trading Day will be required to take place:
(a) SCs will provide, via WEnet, the ISO with forecasts
of their Direct Access Demand by UDC Service Area;
(b) the ISO will publish, via WEnet, an updated forecast
of system Demands and of the Ancillary Services
requirements; and
(c) the ISO will validate (in accordance with the SBP)
the information submitted above by SCs and UDCs.
SP 3.2.3 BY 6:30 AM, ONE DAY AHEAD
By 6:30 am on the day ahead of the Trading Day (for example,
by 6:30 am on Tuesday for the Wednesday Trading Day) and for
each Settlement Period of the Trading Day the ISO will provide
to UDCs, via WEnet, the sum of the SCs' Direct Access Demand
forecasts by UDC Service Area; and
SP 3.2.4 [UNUSED]
SP 3.2.5 [UNUSED]
SP 3.2.6 BY 10:00 AM, ONE DAY AHEAD
SP 3.2.6.1 ACTIONS BY SCS AND THE ISO
By 10:00 am on the day ahead of the Trading Day (for example,
by 10:00 am on Tuesday for the Wednesday Trading Day) and for
each Settlement Period of that Trading Day (see SP 3.2.6.2 for
information on the pre-validation performed at 10 minutes
prior to the 10:00 am deadline):
(a) SCs will submit their Preferred Day-Ahead Schedules
to the ISO in accordance with the SBP;
(b) SCs will submit, as part of their Preferred Day-Ahead
Schedules, their Adjustment Bids, if any, to the ISO
in accordance with the SBP;
(c) SCs will submit their Ancillary Services bids, if
any, to the ISO in accordance with the SBP and SP 9;
(d) SCs will submit their schedules for self-provided
Ancillary Services, if any, to the ISO in accordance
with the SBP and SP 9;
(e) the ISO will validate (in accordance with the SBP)
all SC submitted Preferred Day-Ahead Schedules for
Energy and Adjustment Bids and may assist SCs to
resolve mismatches in scheduled quantities or
locations for Inter-Scheduling Coordinator Trades in
accordance with the procedure described in SP
3.2.6.4;
(f) the ISO will validate (in accordance with the SBP)
all SC submitted schedules for self-provided
Ancillary Services and Ancillary Services bids which
were part of their Preferred Day-Ahead Schedules;
(g) the ISO will start the first iteration of Inter-Zonal
Congestion Management process as described in SP 10;
(h) the ISO will start the Ancillary Services bid
evaluation process as described in SP 9;
(i) the ISO will notify SCs of any Reliability Must-Run
Units which have not been included in Preferred
Day-Ahead Schedules but which the ISO requires to run
in the Trading Day, except in those instances where a
Reliability Must-Run Unit requires more than one
day's notice, in which case the ISO may notify the
applicable SC more than one day in advance of the
Trading Day; and
(j) the ISO will notify SCs of any Ancillary Services it
requires from specific Reliability Must-Run Units
under their Reliability Must-Run Contracts in the
Trading Day.
SP 3.2.6.2 PRE-VALIDATION
At 10 minutes prior to the deadline for submittal of the
Preferred Day-Ahead Schedules, Adjustment Bids, schedules for
self-provided Ancillary Services, and Ancillary Services bids
(the "submittal"), the ISO shall conduct a pre-validation of
the stage two validation described in the SBP. The purpose of
this is to allow the SCs, particularly those involved in the
Inter-Scheduling Coordinator Trades, to identify and resolve
any validation problems. The ISO will immediately communicate
the results of each SC's pre-validation to that SC via WEnet.
SP 3.2.6.3 INVALIDATION
Invalidation of the submittal for any Settlement Period
results in rejection of the submittal for all Settlement
Periods of the relevant Trading Day. During the initial
operations of the ISO, the ISO may assist SCs to resolve
mismatches in the scheduled quantities or locations for
Inter-Scheduling Coordinator Trades contained in their
Preferred Schedules in accordance with SP 3.2.6.4. SCs may
check at any time prior to 10:00 am whether or not their
submittal will pass the ISO's validation checks at 10:00 am.
It is the responsibility of the SCs to perform such checks
since Preferred Day-Ahead Schedules, Adjustment Bids,
Schedules of self-provided Ancillary Services and Ancillary
Services bids which are invalidated cannot be resubmitted
after 10:00 am for the Day-Ahead Market, except that, during
the initial period of ISO operations, the ISO will allow
resubmission of Preferred Schedules which have mismatches in
the scheduled quantities or locations for Inter-Scheduling
Coordinator Trades. The ISO will immediately communicate the
results of each SC's 10:00 am validation to that SC via WEnet.
SP 3.2.6.4 INTER-SCHEDULING COORDINATOR TRADES - MISMATCHES
During the initial period of ISO operations, if the ISO
detects a mismatch in the scheduled quantities or locations
for Inter-Scheduling Coordinator Trades, the ISO will promptly
notify both the receiving and sending SCs that a mismatch
exists and will specify the time, which will allow them
approximately one half-hour, by which they may submit modified
Schedules which resolve the mismatch. If the SCs are unable to
resolve the mismatch as to quantities in the allotted time and
provided there is no dispute as to whether the trade occurred
or over its location, then the ISO may adjust the SCs'
Schedules in accordance with the following procedure:
(a) The ISO will determine which Schedule contains the
higher scheduled quantity of Energy for the
Inter-Scheduling Coordinator Trade and will reduce it
so that it is equal to the lower scheduled quantity.
However, if the Schedule specifying the higher
scheduled quantity of Energy contains only
Inter-Scheduling Coordinator Trades, the ISO will
increase the Schedule specifying the lower quantity
of Energy so that it is equal to the higher scheduled
quantity of Energy.
(b) If there is a dispute between the SCs as to whether
the trade occurred or over its location, the ISO will
remove the disputed trade from the Schedules in which
it appears.
(c) As a consequence of the adjustments under (a) or (b)
above, the SCs whose Schedules have been adjusted
will no longer have a Balanced Schedule. The ISO will
adjust their resources based on the following
priority: Demands, exports, imports, Generation, and
other Inter-Scheduling Coordinator Trades.
(d) The adjustments to each SC's portfolio will be based
on the Adjustment Bids provided by the SC.
(e) The ISO will notify each SC whose Schedule has been
adjusted as to the adjustment in its Schedule.
SP 3.2.7 BY 11:00 AM, ONE DAY AHEAD
By 11:00 am on the day ahead of the Trading Day (for example,
by 11:00 am on Tuesday for the Wednesday Trading Day) and for
each Settlement Period of that Trading Day:
(a) the ISO will complete the first iteration of the
Inter-Zonal Congestion Management process described
in SP 10 (if Inter-Zonal Congestion does not exist in
any Settlement Period of the Trading Day, the
scheduling process will continue with the steps at SP
3.2.9);
(b) the ISO will provide, via WEnet, Suggested Adjusted
Day-Ahead Schedules for Energy to all SCs which
submitted Preferred Day-Ahead Schedules at 10:00 am,
including the SCs which it is proposed should, as a
result of Inter-Zonal Congestion Management, have
their Preferred Day-Ahead Schedules modified;
(c) the ISO will publish on WEnet the estimated Day-Ahead
Usage Charge rate (in $/MWh of scheduled flow) for
Energy transfers between Zones; and
(d) the ISO will provide, via WEnet, along with the
Suggested Adjusted Day-Ahead Schedules, schedules for
Ancillary Services to the SCs which either:
(i) submitted Ancillary Services bids and which,
as a result, are proposed to supply
Ancillary Services; or
(ii) submitted schedules to self-provide
Ancillary Services and which schedules have
been accepted by the ISO.
SP 3.2.8 BY 12:00 NOON, DAY AHEAD
By 12:00 noon on the day ahead of the Trading Day (for
example, by 12:00 noon on Tuesday for the Wednesday Trading
Day) and for each Settlement Period of that Trading Day
(except where Inter-Zonal Congestion does not exist, in which
case, the scheduling process will omit this step):
SP 3.2.8.1 ACTIONS BY SCS AND THE ISO
(a) SCs will submit Revised Day-Ahead Schedules to the
ISO, in response to the ISO's Suggested Adjusted
Day-Ahead Schedules, in accordance with the SBP;
(b) SCs will submit, as part of their Revised Day-Ahead
Schedules, revised Adjustment Bids (allowing the
range of usage to change, but not the prices), if
any, to the ISO in accordance with the SBP;
(c) SCs will submit revised Ancillary Services bids, if
any, to the ISO in accordance with the SBP and SP 9;
(d) SCs will submit their schedules for self-provided
Ancillary Services, if any, to the ISO in accordance
with the SBP and SP 9;
(e) the ISO will validate (in accordance with the SBP)
all SC submitted Revised Day-Ahead Schedules for
Energy and Adjustment Bids and may assist SCs to
resolve mismatches in scheduled quantities or
locations for Inter-Scheduling Coordinator Trades in
accordance with the same procedure described in SP
3.2.8.4;
(f) the ISO will validate (in accordance with the SBP)
all SC submitted schedules for self-provided
Ancillary Services and Ancillary Services bids which
were part of their Revised Day-Ahead Schedules;
(g) the ISO will start the second (and final) iteration
of the Inter-Zonal Congestion Management process as
described in SP 10;
(h) the ISO will start the second (and final) iteration
of the Ancillary Services bid evaluation process as
described in SP 9; and
(i) the ISO will use the SC's Preferred Day-Ahead
Schedule in the event the SC does not submit a
Revised Day-Ahead Schedule. If a SC desires to revise
only part of its Preferred Day-Ahead Schedule, those
portions of the Revised Day-Ahead Schedule must be
submitted, including both the removal of any
resources in the Preferred Day-Ahead Schedule which
are not to be included in the Revised Day-Ahead
Schedule and the addition of any resources that were
not included in the Preferred Day-Ahead Schedule but
that are to be included in the Revised Day-Ahead
Schedule. A SC's failure to remove such resources
will cause the Revised Schedule to be unbalanced, and
rejected as such in the ISO's validation process.
SP 3.2.8.2 PRE-VALIDATION
At 10 minutes prior to the deadline for submittal of the
Revised Day-Ahead Schedules, Adjustment Bids, schedules for
self-provided Ancillary Services, and Ancillary Services bids
(the "submittal"), the ISO shall conduct a pre-validation of
the stage two validation
described in the SBP. The purpose of this is to allow the SCs,
particularly those involved in Inter-Scheduling Coordinator
Trades, to identify and resolve any validation problems. The
ISO will immediately communicate the results of the
pre-validation of each SC's submittal to that SC via WEnet.
SP 3.2.8.3 INVALIDATION
Invalidation of the submittal for any Settlement Period
results in rejection of the submittal for all Settlement
Periods of the relevant Trading Day. During the initial
operations of the ISO, the ISO may assist SCs to resolve
mismatches in the scheduled quantities or locations for
Inter-Scheduling Coordinator Trades in accordance with
3.2.8.4. SCs may check at any time prior to 12:00 noon whether
or not their submittal will pass the ISO's validation checks
(which are undertaken at 12:00 noon). It is the responsibility
of the SCs to perform such checks since Revised Day-Ahead
Schedules, Adjustment Bids, schedules of self-provided
Ancillary Services and Ancillary Services bids which are
invalidated cannot be resubmitted after 12:00 noon for the
Day-Ahead Market, except that during the initial period of
operations, the ISO will allow resubmission of Schedules to
resolve mismatches in the scheduled quantities and locations
for Inter-Scheduling Coordinator Trades. The ISO will
immediately communicate the results of each SC's 12:00 noon
validation to that SC via WEnet.
SP 3.2.8.4 INTER-SCHEDULING COORDINATOR TRADES - MISMATCHES
During the initial period of ISO operations, if the ISO
detects a mismatch in the scheduled quantities or locations
for Inter-Scheduling Coordinator Trades, the ISO will promptly
notify both the receiving and sending SCs that a mismatch
exists and will specify the time, which will allow them
approximately one half-hour, by which they may submit modified
Schedules which resolve the mismatch. If the SCs are unable to
resolve the mismatch as to quantities in the allotted time and
provided there is no dispute as to whether the trade occurred
or over its location, the ISO may adjust the SCs' Schedules in
accordance with the following procedure:
(a) The ISO will determine which Schedule contains the
higher scheduled quantity of Energy for the
Inter-Scheduling Coordinator Trade and will reduce it
so that it is equal to the lower scheduled quantity.
However, if the Schedule specifying the higher
scheduled quantity of Energy contains only
Inter-Scheduling Coordinator Trades, the ISO will
increase the
Schedule specifying the lower quantity of Energy so
that it is equal to the higher scheduled quantity of
Energy.
(b) If there is a dispute between the SCs as to whether
the trade occurred or over its location, the ISO will
remove the disputed trade from the Schedules in which
it appears.
(c) As a consequence of the adjustments under (a) or (b)
above, the SCs whose Schedules have been adjusted
will no longer have a Balanced Schedule. The ISO will
adjust their resources based on the following
priority: Demands, exports, imports, Generation, and
other Inter-Scheduling Coordinator Trades.
(d) The adjustments to each SC's portfolio will be based
on the Adjustment Bids provided by the SC.
(e) The ISO will notify each SC whose Schedule has been
adjusted as to the adjustment in its Schedule.
SP 3.2.9 BY 1:00 PM, DAY AHEAD
By 1:00 pm on the day ahead of the Trading Day (for example,
by 1:00 pm on Tuesday for the Wednesday Trading Day) and for
each Settlement Period of that Trading Day:
(a) the ISO will complete the second iteration, if
necessary, of the Inter-Zonal Congestion Management
process described in SP 10;
(b) the ISO will provide, via WEnet, Final Day-Ahead
Schedules to all SCs which, depending on the
existence of Inter-Zonal Congestion, could be:
(i) the Preferred Day-Ahead Schedules (when no
Congestion was found at 11:00 am and no
mismatched Inter-Scheduling Coordinator
Trades);
(ii) the Revised Day-Ahead Schedules (when no
Congestion was found at 1:00 pm and no
mismatched Inter-Scheduling Coordinator
Trades);
(iii) modified Revised Day-Ahead Schedules for
those SCs which had their Revised Day-Ahead
Schedules for Energy modified for
Inter-Zonal Congestion or mismatches in
Inter-Scheduling Coordinator Trades; or
(iv) modified Preferred Day-Ahead Schedules for
those SCs which had their Preferred Schedule
for Energy modified for Inter-Scheduling
Coordinator Trade mismatches;
(c) the ISO will publish on WEnet the Day-Ahead Usage
Charge rate (in $/MWh of scheduled flow) for Energy
transfer between Zones, if any;
(d) the ISO will provide, via WEnet, as part of the Final
Day-Ahead Schedules, schedules for Ancillary Services
to the SCs which either:
(i) submitted Ancillary Services bids and which,
as a result, have been selected to supply
Ancillary Services; or
(ii) submitted schedules to self-provide
Ancillary Services and which schedules have
been validated by the ISO; and
(e) the ISO will coordinate with adjacent Control Areas
on the net schedules between the ISO Control Area and
such other Control Areas. If the ISO and the operator
of an adjacent Control Area have different records
with respect to the net schedules, individual SC
intertie schedules will be examined. If the other
Control Area's records are determined to be correct,
the ISO will notify the affected SC. The affected SC
is required to correct its schedule in the Hour-Ahead
Market.
SP 3.2.10 BY 1:30 PM, DAY AHEAD
By 1:30 pm on the day ahead of the Trading Day (for example,
by 1:30 pm on Tuesday for the Wednesday Trading Day) and for
each Settlement Period of the Trading Day the ISO will
publish, via WEnet, an updated forecast of system Demands.
SP 3.3 HOUR-AHEAD MARKET
(a) The Hour-Ahead Market is a "deviations" market in
that it represents changes from the Day-Ahead Market
commitments already made for each Settlement Period
in the Trading Day. The SCs do not schedule these
deviations. Instead, these deviations are calculated
by the ISO as the difference between the Final
Hour-Ahead Schedules (reflecting updated forecasts of
Generation, Demand, external imports/exports and
Inter-Scheduling Coordinator Trades) and the Final
Day-Ahead Schedules. If a SC does not submit a valid
Preferred Hour-Ahead Schedule, its Final Day-Ahead
Schedule will be deemed to be its Preferred
Hour-Ahead Schedule.
(b) The Hour-Ahead Markets for each Settlement Period of
each Trading Day open when the Day-Ahead Market
commitments are made for the same Trading Day.
Hour-Ahead Market commitments are made one hour ahead
of the start of the
applicable Settlement Period, at which time the ISO
issues the Final Hour-Ahead Schedules. There is an
option in the bid submittal process for a SC to
submit a Schedule or bid for one Settlement Period of
the Trading Day or a set of Schedules and bids for
all Settlement Periods of the Trading Day (but only
between 1:00 pm and 12:00 midnight the day before).
SP 3.3.1 BY TWO HOURS AHEAD
By two hours ahead of the Settlement Period (for example, by
10:00 am for the Settlement Period starting at 12:00 noon [or
hour ending 1300]) and with respect to that Settlement Period:
SP 3.3.1.1 ACTIONS BY SCS AND THE ISO
(a) SCs will submit their Preferred Hour-Ahead Schedules
to the ISO in accordance with the SBP;
(b) SCs will submit, as part of their Preferred
Hour-Ahead Schedules, their Adjustment Bids, if any,
to the ISO in accordance with the SBP;
(c) SCs will submit their Ancillary Services bids, if
any, to the ISO in accordance with the SBP and SP 9;
(d) SCs will submit their Schedules for self-provided
Ancillary Services, if any, to the ISO in accordance
with the SBP and SP 9;
(e) the ISO will validate (in accordance with the SBP)
all SC submitted Preferred Hour-Ahead Schedules for
Energy and Adjustment Bids;
(f) the ISO will validate (in accordance with the SBP)
all SC submitted Schedules for self-provided
Ancillary Services and Ancillary Services bids which
were part of their Preferred Hour-Ahead Schedules;
(g) the ISO will start the Inter-Zonal Congestion
Management process as described in SP 10; and
(h) the ISO will start the Ancillary Services bid
evaluation process as described in SP 9.
SP 3.3.1.2 PRE-VALIDATION
At 10 minutes prior to the deadline for submittal of the
Preferred Hour-Ahead Schedules, Adjustment Bids, schedules for
self-provided Ancillary Services, and Ancillary Services bids
(the "submittal"), the ISO shall conduct a pre-validation of
the stage two validation
described in the SBP. The purpose of this is to allow the SCs,
particularly those involved in the Inter-Scheduling
Coordinator Trades, to identify and resolve any validation
problems. The ISO will immediately communicate the results of
the pre-validation of each SC's submittal to that SC via
WEnet.
SP 3.3.1.3 INVALIDATION
Invalidation of the submittal results in rejection of the
submittal. SCs may check at any time prior to two hours ahead
of the relevant Settlement Period whether or not their
submittals will pass the ISO's validation checks (which are
undertaken at two hours ahead of the Settlement Period). It is
the responsibility of SCs to perform such checks since
Preferred Hour-Ahead Schedules, Adjustment Bids, schedules of
self-provided Ancillary Services and Ancillary Services bids
which are invalidated cannot be resubmitted for the Hour-Ahead
Market after two hours ahead of the relevant Settlement
Period. The ISO will immediately communicate the results of
each SC's two hour ahead validation to that SC via WEnet.
SP 3.3.2 BY ONE HOUR AHEAD
By one hour ahead of the Settlement Period (for example, by
11:00 am for the Settlement Period starting at 12:00 noon [or
hour ending 1300]) and in respect of that Settlement Period:
(a) The ISO will use the SC's Final Day-Ahead Schedule,
without any Day-Ahead Adjustment Bids or Day-Ahead
Ancillary Service bids, in the event the SC's
Preferred Hour-Ahead Schedule fails validation. If a
SC desires to submit an Hour-Ahead Schedule that is
different than its Final Day-Ahead Schedule the SC
must submit the Hour-Ahead Schedule including the
addition or removal of any resources (i.e., for those
resources to be removed, a zero value for the hourly
MW quantity) in its Final Day-Ahead Schedule that are
to be added, or that are not to be included, in the
Hour-Ahead Schedule. A SC's failure to add or remove
such resources will cause the Hour-Ahead Schedule to
be unbalanced, and rejected as such in the ISO's
validation process.
(b) the ISO will complete, if necessary, the Inter-Zonal
Congestion Management process described in SP 10;
(c) the ISO will provide, via WEnet, Final Hour-Ahead
Schedules for Energy to the ISO's real time
dispatchers for use under the DP and to all SCs
which, depending on the existence of Inter-Zonal
Congestion, could be:
(i) the Preferred Hour-Ahead Schedules (when no
Congestion was found at one hour ahead); or
(ii) modified Preferred Hour-Ahead Schedules for
those SCs which had their Preferred
Hour-Ahead Schedules for Energy modified for
Inter-Zonal Congestion; and
(d) the ISO will publish on WEnet the Hour-Ahead Usage
Charge rate (in $/MWh of scheduled flow) for Energy
transfers between Zones, if any;
(e) the ISO will provide, via WEnet, as part of the Final
Hour-Ahead Schedules, schedules for Ancillary
Services to the ISO's real time dispatchers for use
under the DP and to the SCs which either:
(i) submitted Ancillary Services bids and which,
as a result, have been selected to supply
Ancillary Services; or
(ii) submitted schedules to self-provide
Ancillary Services and which schedules have
been validated by the ISO; and
(f) each SC will provide the ISO, via a form and by means
of communication specified by the ISO, resource
specific information for all Generating Units and
Curtailable Demands constituting its System Unit, if
any, scheduled or bid into the ISO's Day-Ahead Market
and/or Hour-Ahead Market for Ancillary Services.
(g) the ISO will coordinate with adjacent Control Areas
on the net schedules between the ISO Control Area and
such other Control Areas. If the ISO and the operator
of an adjacent Control Area have different records
with respect to the net schedules, individual SC
intertie schedules will be examined. If the other
Control Area operator's records were in error, no
changes will be required by the ISO or SCs. If the
other Control Area operator's records are determined
to be correct, the ISO will notify the affected SC.
The ISO will manually adjust the affected SC's
schedule to conform with the other Control Area
operator's net schedule, in real time, and the
affected SC will be responsible for managing any
resulting Energy imbalance.
SP 4 TRANSMISSION SYSTEM LOSS MANAGEMENT
SP 4.1 OVERVIEW
(a) A SC must ensure that each Schedule it submits to the
ISO is a Balanced Schedule in which aggregate
Generation and external
imports (adjusted for Transmission Losses) and
Inter-Scheduling Coordinator Trades equals the
aggregate Forecast Demand and external exports. The
ISO will, for this purpose, specify GMMs for each
Energy supply source (Generating Units and external
imports at Scheduling Points) to account for the
Energy lost in transmitting power from Generating
Units and/or Scheduling Points to Load.
Inter-Scheduling Coordinator Trades will not be
subject to such adjustments, beyond the impact of
GMMs on the respective SC's Generation and external
imports. The ISO will, in accordance with this SP 4,
derive a location specific GMM for each Generating
Unit and external import on the ISO Controlled Grid.
(b) At all times, the ISO will make available GMMs for
the seven Trading Days starting with the Trading Day
after the next Trading Day. Each day, at 6:00 pm, the
ISO will calculate and publish, via WEnet, the GMMs
applicable to the Day-Ahead Markets and the
Hour-Ahead Markets for the eighth (8th) Trading Day
forward. In other words, if the current Trading Day
is day 0, the ISO will publish at 6:00 pm today, via
WEnet, the GMMs for Trading Days 2 through 8. On
Trading Day 1, at 6:00 pm, the ISO will drop the GMMs
for Trading Day 1 and add the newly calculated GMMs
for Trading Day 9, with the GMMs for Trading Days 3
through 8 remaining the same.
SP 4.2 GENERATOR METER MULTIPLIERS (GMMS)
SP 4.2.1 DERIVATION OF GMMS
(a) The ISO will utilize the Power Flow Model to
determine the GMMs which will be used to allocate, to
each Generating Unit and external import, scheduled
and re-estimated Transmission Losses.
(b) For each Settlement Period, the GMMs will be first
calculated before SCs submit Day-Ahead Preferred
Schedules. Prior to the time when SCs are required to
submit their Day-Ahead Preferred Schedules, the ISO
will forecast the total Control Area Demand. This
forecast, along with the ISO forecast of Generation
and Demand patterns throughout the ISO Control Area,
will be used to develop estimated GMMs for each
Generating Unit and each external import. The ISO
will calculate and publish (in accordance with SP
3.2.1) GMMs for each Settlement Period to reflect
different expected Generation and Demand patterns and
expected operations and maintenance requirements,
such as line
Outages, which could affect Transmission Loss
determination and allocation.
(c) After determination of the Final Schedules in the
Hour-Ahead Market, the ISO will utilize the Power
Flow Model to calculate revised GMMs to allocate
re-estimated Transmission Losses to each Generating
Unit and each external import. This run of the Power
Flow Model will use Generation and Demand from the
Final Hour-Ahead Schedule. Any difference between
scheduled and re-estimated Transmission Losses will
be considered as an Imbalance Energy deviation and
will be purchased or sold in the Real Time Market at
the Hourly Ex Post Price.
SP 4.2.2 METHODOLOGY FOR CALCULATING TRANSMISSION LOSSES
(a) The ISO Power Flow Model will be utilized to
calculate the effects on total Transmission Losses at
each Generating Unit and Scheduling Point by
calculating the sensitivity of injecting Energy at
each Generating Unit bus or Scheduling Point to serve
an increment of Demand distributed proportionately
throughout the ISO Control Area. This will produce
the Full Marginal Loss Rate at each Generating Unit
and Scheduling Point.
(b) The ISO will then determine the ratio of expected
Transmission Losses to the total Transmission Losses
that would be collected if Full Marginal Loss Rates
were utilized to determine Transmission Losses. This
ratio is referred to as the Loss Scale Factor.
(c) The ISO will then multiply the Loss Scale Factor by
the Full Marginal Loss Rate at each Generating Unit
or Scheduling Point to determine each Generating
Unit's or external import's Scaled Marginal Loss
Rate. The GMM is calculated by subtracting the Scaled
Marginal Loss Rate from unity.
SP 4.3 EXISTING CONTRACTS AND TRANSMISSION LOSSES
Certain Existing Contracts may have requirements for
Transmission Loss accountability which differ from the
provisions of this SP 4. Each PTO will be responsible for
recovering any deficits or crediting any surpluses, associated
with differences in assignment of Transmission Loss
requirements, through its bilateral arrangements or its
Transmission Owner's Tariff. The ISO will not undertake the
settlement or billing of any such differences under any
Existing Contract.
SP 5 RELIABILITY MUST-RUN GENERATION
SP 5.1 PROCUREMENT OF RELIABILITY MUST-RUN GENERATION BY THE ISO
SP 5.1.1 ANNUAL RELIABILITY MUST-RUN FORECAST - TECHNICAL EVALUATION
On an annual basis, the ISO will carry out technical
evaluations based upon historic patterns of the operation of
the ISO Controlled Grid and the ISO's forecast requirements
for maintaining the reliability of the ISO Controlled Grid in
the next year. The ISO will then determine which Generating
Units it requires to continue to be Reliability Must-Run
Units, which Generating Units it no longer requires to be
Reliability Must-Run Units and which Generating Units it
requires to become the subject of a Reliability Must-Run
Contract which had not previously been so contracted to the
ISO. None of the Generating Units owned by Local Publicly
Owned Electric Utilities are planned to be designated as
Reliability Must-Run Units by the ISO as of the ISO Operations
Date but are expected to be operated in such a way as to
maintain the safe and reliable operation of the interconnected
transmission system comprising the ISO Control Area. However,
in the future, Local Publicly Owned Electric Utilities may
contract with the ISO to provide Reliability Must-Run
Generation.
SP 5.1.2 ANNUAL RELIABILITY MUST-RUN FORECAST - TECHNICAL STUDIES
The ISO will perform off-line technical studies, adopt
existing procedures developed by PTOs and/or develop new
operating procedures to identify the Reliability Must-Run
requirements for various levels of system Demand.
SP 5.2 DESIGNATION OF GENERATING UNIT AS RELIABILITY MUST-RUN
The ISO will have the right at any time based upon ISO
Controlled Grid technical analyses and studies to designate or
disqualify a Generating Unit as a Reliability Must-Run Unit.
SP 5.3 SCHEDULING OF RELIABILITY MUST-RUN GENERATION
The ISO will notify SCs of any Reliability Must-Run Units not
included in the Preferred Day-Ahead Schedules but which the
ISO requires to run at 10 am on the day ahead of the Trading
Day, as described in SP 3.2.6. The ISO will decrement SCs'
scheduled Generation to accommodate the output of these
Reliability Must-Run Units as part of the real time
Intra-Zonal Congestion Management process described in DP 7.4.
SP 5.4 SCHEDULING OF RELIABILITY MUST-RUN ANCILLARY SERVICES
The ISO will notify SCs of any Ancillary Services it requires
from Reliability Must-Run Units under their Reliability
Must-Run Contracts at 10 am on the day ahead of the Trading
Day, as described in SP 3.2.6.
SP 6 [UNUSED]
SP 7 MANAGEMENT OF EXISTING CONTRACTS FOR TRANSMISSION SERVICE
SP 7.1 OBLIGATIONS OF PARTICIPATING TRANSMISSION OWNERS AND
SCHEDULING COORDINATORS
SP 7.1.1 Participating Transmission Owners
Prior to the ISO accepting Schedules which include the use of
Existing Rights or Non-Converted Rights under Existing
Contracts, the Responsible PTO (as defined in the SBP) must
have provided the ISO with the information required in the
Transmission Control Agreement and the SBP, including
transmission rights/curtailment instructions ("instructions")
supplied in a form and by means of communication specified by
the ISO.
SP 7.1.2 SCHEDULING COORDINATORS
The ISO will accept valid Schedules from a Responsible PTO
that is the SC for the Existing Contract rights holders, or
from Existing Contract rights holders that are SCs, or that
are represented by a SC other than the Responsible PTO.
Schedules submitted by SCs to the ISO which include the use of
Existing Rights or Non-Converted Rights under Existing
Contracts must be submitted in accordance with the SBP and
this SP.
SP 7.2 ALLOCATION OF FORECASTED TOTAL TRANSFER CAPABILITIES
SP 7.2.1 CATEGORIES OF TRANSMISSION CAPACITY
As used in this SP, references to new firm uses shall mean any
use of ISO transmission service, except for uses associated
with Existing Rights and Non-Converted Rights under Existing
Contracts. Prior to the start of the Day-Ahead scheduling
process, for each Inter-Zonal Interface, the ISO will allocate
the forecasted total transfer capability of the Interface to
four categories. This allocation will represent the ISO's best
estimates at the time, and is not intended to affect any
rights provided under Existing Contracts, except as provided
in SP 7.4. The ISO's forecast of total transfer capability for
each Inter-Zonal Interface will depend on prevailing
conditions for the relevant Trading Day, including, but not
limited to, the effects of parallel path (unscheduled) flows
and/or other limiting operational conditions. This information
will be posted on WEnet by the ISO in accordance with SP
3.2.1. In accordance with Section 2.4.4.5.1.4 of the ISO
Tariff, the four categories are as follows:
(a) transmission capacity that must be reserved for firm
Existing Rights and firm Non-Converted Rights;
(b) transmission capacity that may be allocated for use
as ISO transmission service (i.e., "new firm uses");
(c) transmission capacity that may be allocated by the
ISO for conditional firm Existing Rights and
conditional firm Non-Converted Rights; and
(d) transmission capacity that may remain for any other
uses, such as non-firm Existing Rights and non-firm
Non-Converted Rights for which the Responsible PTO
has no discretion over whether or not to provide such
non-firm service.
SP 7.2.2 PRIORITIZATION OF TRANSMISSION USES
The following rules are designed to enable the ISO to honor
Existing Contracts in accordance with Sections 2.4.3 and 2.4.4
of the ISO Tariff, except as may be limited by the operation
of SP 7.4. Regardless of the success of the application of
such rules, it is intended that the rights under Existing
Contracts will be honored as contemplated by the ISO Tariff
except as may be limited by the operation of SP 7.4. In each
of the categories described in SP 7.2.1, the terms and
conditions of service may differ among transmission contracts.
These differences will be described by each Responsible PTO in
the instructions submitted to the ISO in advance of the
scheduling process in accordance with the SBP. In addition,
Generation, Inter-Scheduling Coordinator Trade imports or
external imports in one Zone must be matched by an equal
magnitude of Demand, Inter-Scheduling Coordinator Trade
exports or external exports in an adjacent Zone (see SP 7.2.3
for a summary of allowable linkages). Scheduling and
curtailment priorities associated with each category will be
defined by SCs through the use of Adjustment Bids submitted as
part of their Schedules as described in the following (see the
SBP for a more general description of the use of Adjustment
Bids to establish priorities within Existing Contracts and to
establish priorities for Reliability Must-Run Generation):
(a) Transmission capacity for Schedules will be made
available to holders of firm Existing Rights and firm
Non-Converted Rights in accordance with this SP and
the terms and conditions of their Existing Contracts.
In the event that the firm uses of these rights must
be curtailed, they will be curtailed on the basis of
"high priced Adjustment Bids". So as not to be
curtailed before any other scheduled use of Congested
Inter-Zonal Interface capacity, these high priced
Adjustment Bids must fall within a range to be
specified by the ISO (for example, a difference of
$9,000/MWh to $10,000/MWh for Demand or external
exports and a difference of -$9,000/MWh to
-$10,000/MWh for Generation or external imports).
This range will be reserved strictly for use in
association with the prioritization of firm Existing
Rights and firm Non-Converted Rights to use available
Inter-Zonal Interface transmission capacity. These
high priced Adjustment Bids are only for the ISO's
use, in the context of Congestion Management, in
recognizing the various levels of priority that may
exist among the scheduled uses of firm transmission
service. These high priced Adjustment Bids will not
affect any other rights under Existing Contracts. To
the extent that the MW amount exceeds the MW amount
specified in the Existing Contract, the excess
scheduled amount will be treated as a new firm use of
ISO transmission services as described in (b) below.
Note that, in some instances, for a particular
Inter-Zonal Interface, there may be multiple SCs
submitting Schedules under several different Existing
Contracts on behalf of several Existing Contract
rights holders. In these circumstances, and to the
extent the rights holders desire to coordinate the
prioritization of their firm uses of the Inter-Zonal
Interface (i.e., attribute high priced Adjustment
Bids, within the specified range, to each Schedule),
their SCs will make the arrangements among themselves
ahead of the ISO's scheduling process. In the absence
of an Adjustment Bid, the ISO will treat the
scheduled use of transmission service as a
"price-taker" of ISO transmission service subject to
Usage Charges.
(b) ISO transmission service (i.e., "new firm uses") will
be priced in accordance with the ISO Tariff. Usage
Charges associated with the ISO's Congestion
Management procedures, as described in SP 10, will be
based on Adjustment Bids which do not fall within
either of the ranges specified in (a) above or (c)
below. In the absence of an Adjustment Bid, the ISO
will treat the
scheduled "new firm use" of ISO transmission service
as a price taker paying the Usage Charge established
by the highest valued use of transmission capacity
between the relevant Zones.
(c) Transmission capacity will be made available to
holders of conditional firm Existing Rights and
conditional firm Non-Converted Rights in a manner
similar to that done prior to the ISO Operations
Date; that is, allocated, as available, based on the
agreed priority. The levels of priority will be
expressed in the Schedules in terms of "near-zero
priced Adjustment Bids". Adjustment Bids with the
lowest near-zero price will be treated with the
lowest priority. These near-zero priced Adjustment
Bids must fall within a range to be specified by the
ISO (for example, a difference of $0.001/MWh to
$0.009/MWh). This range will be reserved strictly for
use in association with the prioritization of
conditional firm Existing Rights and conditional firm
Non-Converted Rights to use available Inter-Zonal
Interface transmission capacity. These near-zero
priced Adjustment Bids are only for the ISO's use, in
the context of Congestion Management, in recognizing
the various levels of priority that may exist among
the scheduled uses of conditional firm transmission
service. These near-zero priced Adjustment Bids are
not intended to affect any other rights under
Existing Contracts, nor are they intended to
subordinate the ISO's scheduling of firm uses. To the
extent that the MW amount exceeds the MW amount
specified in the Existing Contract, the excess
scheduled amount will be treated as a new firm use of
ISO transmission services as described in (b) above.
Note that, in some instances, for a particular
Inter-Zonal Interface, there may be multiple SCs
submitting Schedules under several different Existing
Contracts on behalf of several Existing Contract
rights holders. In these circumstances, and to the
extent the rights holders desire to coordinate the
prioritization of their conditional firm uses of the
Inter-Zonal Interface (i.e., attribute near-zero
priced Adjustment Bids, within the specified range,
to each Schedule), their SCs will make the
arrangements among themselves ahead of the ISO's
scheduling process. In the absence of an Adjustment
Bid, the ISO will treat the scheduled use of
transmission service as a "price-taker" of ISO
transmission services subject to Usage Charges.
(d) Transmission capacity will be made available to
holders of non-firm Existing Rights and non-firm
Non-Converted Rights in a manner similar to that done
prior to the ISO Operations Date; that is, treated as
the lowest valued use of available transmission
capacity. Non-firm uses of transmission capacity
under Existing Contracts will be indicated in
Schedules submitted by SCs as $0.00/MWh Adjustment
Bids.
SP 7.2.3 ALLOWABLE EXISTING CONTRACT LINKAGES
As indicated in SP 7.2.2, Generation, Inter-Scheduling
Coordinator Trade imports or external imports in one Zone must
be matched by an equal magnitude of Demand, Inter-Scheduling
Coordinator Trade exports or external exports in the same Zone
or in an adjacent Zone. The table below summarizes the
allowable linkages.
------------------------------------- -----------------------------------
Generation Demand
------------------------------------- -----------------------------------
Generation External Export
------------------------------------- -----------------------------------
Generation Inter-SC Trade Export
------------------------------------- -----------------------------------
External Import Demand
------------------------------------- -----------------------------------
External Import External Export
------------------------------------- -----------------------------------
External Import Inter-SC Trade Export
------------------------------------- -----------------------------------
Inter-SC Trade Export Demand
------------------------------------- -----------------------------------
Inter-SC Trade Export External Export
------------------------------------- -----------------------------------
Inter-SC Trade Export Inter-SC Trade Export
------------------------------------- -----------------------------------
SP 7.3 THE DAY-AHEAD PROCESS
SP 7.3.1 VALIDATION
The ISO will coordinate the scheduling of the use of Existing
Rights and Non-Converted Rights with new firm uses in the
Day-Ahead process. The ISO will validate the Schedules
submitted by SCs on behalf of the rights holders for
conformity with the instructions previously provided by the
Responsible PTO in accordance with the SBP. Invalid Schedules
will be rejected and the ISO will immediately communicate the
results of each SC's validation to that SC via WEnet.
SP 7.3.2 SCHEDULING DEADLINES
Those Existing Contract rights holders who must schedule the
use of their rights by the deadline for the submission of
Schedules in the Day-
Ahead Market must do so. After this time, the ISO will release
these unused rights as available for new firm uses (not
subject to recall).
SP 7.3.3 RESERVATION OF FIRM TRANSMISSION CAPACITY
As an initial step in performing its Day-Ahead Congestion
Management analysis, the ISO will determine the amount of
transmission capacity that is available and subject to its
Protocols by subtracting, from the total transfer capability
of the Inter-Zonal Interface, the unused portions of capacity
applicable to firm Existing Rights and firm Non-Converted
Rights. For purposes of Congestion Management, the total
transfer capability of the Inter-Zonal Interface is therefore
adjusted downward by an amount equal to the unused portions of
firm Existing Rights and firm Non-Converted Rights. By
reserving these blocks of unused transmission capacity,
Existing Contracts rights holders are able to schedule the use
of their transmission service on the timelines provided in
their Existing Contracts after the deadline of the ISO's
Day-Ahead scheduling process (in other words, after 1:00 pm on
the day preceding the Trading Day), but prior to the deadline
of the ISO's Hour-Ahead scheduling process (in other words,
two hours ahead of the Settlement Period).
SP 7.3.4 ALLOCATION OF INTER-ZONAL INTERFACE CAPACITIES
In the ISO's Congestion Management analysis of the Day-Ahead
Market, for each Inter-Zonal Interface:
(a) if all scheduled uses of transmission service fit
within the adjusted total transfer capability, all
are accepted (in other words, there is no
Congestion);
(b) if all scheduled uses of transmission service do not
fit within the adjusted total transfer capability,
scheduled uses of non-firm Existing Rights and
non-firm Non-Converted Rights will be curtailed, pro
rata, to the extent necessary. If the remaining
scheduled uses of transmission service still do not
fit within the adjusted total transfer capability,
uses of conditional firm Existing Rights and
conditional firm Non-Converted Rights will be
curtailed (based upon the levels of priority
expressed in the Schedules in terms of near-zero
priced Adjustment Bids as described in SP 7.2.2 (c))
to the extent necessary;
(c) if Congestion still exists after curtailing all
non-firm and conditional firm uses of transmission
service under Existing Contracts, the remaining
transmission capacity (that is not already reserved
as firm Existing Rights and firm Non-Converted
Rights) is priced based upon Adjustment Bids. To the
extent
there are insufficient Adjustment Bids to fully
mitigate the remaining Congestion, the default Usage
Charge will apply and the ISO will curtail ISO
transmission service (in other words, new firm uses),
pro rata, to the extent necessary; and
(d) if Congestion still exists after curtailing ISO new
firm uses, scheduled uses of firm Existing Rights and
firm Non-Converted Rights are then curtailed (based
upon the priorities expressed in the Schedules in
terms of high priced Adjustment Bids as described in
SP 7.2.2 (a)) to the extent necessary.
SP 7.4 THE HOUR-AHEAD PROCESS
SP 7.4.1 VALIDATION
The ISO will coordinate the scheduling of the use of Existing
Rights and Non-Converted Rights with new firm uses, in the
Hour-Ahead process. The ISO will validate the submitted
Schedules for conformity with the instructions provided by the
Responsible PTOs, in accordance with the SBP. Invalid
schedules will be rejected and the ISO will immediately
communicate the results of each SC's validation to that SC via
WEnet.
SP 7.4.2 SCHEDULING DEADLINES
Those rights holders who must schedule the use of their rights
by the deadline for the submission of Schedules in the
Hour-Ahead Market must do so. After this time, the ISO will
release these unused rights as available for new firm uses
(not subject to recall).
SP 7.4.3 ACCEPTANCE OF FIRM TRANSMISSION SCHEDULES
Before allocating any remaining transmission capacity under
the following provisions of this SP 7, the ISO will accept
Schedules associated with firm Existing Rights and firm
Non-Converted Rights (subject to validation under SP 7.4.1),
allocating transmission capacity for use by these rights
holders.
SP 7.4.4 RESERVATION OF FIRM TRANSMISSION CAPACITY
The ISO will adjust the total transfer capabilities of
Inter-Zonal Interfaces with respect to firm Existing Rights
and firm Non-Converted Rights as it does in its Day-Ahead
process described in this SP 7.3.3. Therefore, holders of
Existing Rights and Non-Converted Rights are still able to
exercise whatever scheduling flexibility they may have under
their Existing Contracts after the Schedules and bids
submittal
deadline of the ISO's Hour-Ahead scheduling process, as
described further in SP 7.5.
SP 7.4.5 ALLOCATION OF INTER-ZONAL INTERFACE CAPACITIES
In the ISO's Congestion Management analysis of the Hour-Ahead
Market, for each Inter-Zonal Interface:
(a) if all scheduled uses of transmission service fit
within the total transfer capability, all are
accepted (in other words, there is no Congestion);
(b) if all scheduled uses of transmission service do not
fit within the total transfer capability, scheduled
uses of non-firm Existing Rights and non-firm
Non-Converted Rights will be curtailed, pro rata, to
the extent necessary. If the remaining scheduled uses
of transmission service still do not fit within the
total transfer capability, scheduled uses of
conditional firm Existing Rights and conditional firm
Non-Converted Rights will be curtailed (based upon
the levels of priority expressed in the Schedules in
terms of near-zero priced Adjustment Bids as
described in SP 7.2.2 (c)) to the extent necessary;
(c) if Congestion still exists after curtailing all
non-firm and conditional firm uses of transmission
service under Existing Contracts, the remaining
transmission capacity (that is not the subject of
firm Existing Rights and firm Non-Converted Rights)
is priced based upon Adjustment Bids. To the extent
there are insufficient Adjustment Bids to fully
mitigate the remaining Congestion, the default Usage
Charge will apply and the ISO will curtail ISO
transmission service (in other words, new firm uses),
pro rata, to the extent necessary; and
(d) if Congestion still exists after curtailing ISO new
firm uses, scheduled uses of firm Existing Rights and
firm Non-Converted Rights will be curtailed (based
upon the priorities expressed in the Schedules in
terms of high priced Adjustment Bids as described in
SP 7.2.2 (a)) to the extent necessary.
SP 7.5 THE ISO'S REAL-TIME PROCESS
Consistent with SP 7.4.4, the ISO will honor those scheduling
flexibilities that may be exercised by holders of Existing
Rights and Non-Converted Rights through their respective SCs
during the ISO's real-time processes to the extent that such
flexibilities do not interfere with or jeopardize the safe and
reliable operation of the ISO Controlled Grid or Control Area
operations. The real-time processes described in
SP 7.5.1 and SP 7.5.2 will occur during the three hours
following the ISO's receipt of Preferred Hour-Ahead Schedules
(that is, from two hours ahead of the start of the Settlement
Period through the end of such Settlement Period).
SP 7.5.1 INTER-CONTROL AREA CHANGES TO SCHEDULES THAT RELY ON EXISTING
RIGHTS
Changes to Schedules that occur during the ISO's real-time
processes that involve changes to ISO Control Area imports or
exports with other Control Areas (that is, inter-Control Area
changes to Schedules) will be allowed and will be recorded by
the ISO based upon notification received from the SC
representing the holder of the Existing Rights or
Non-Converted Rights. The ISO must be notified of any such
changes to external import/export schedules. The ISO will
receive notification of real time changes to external
import/export schedules, by telephone, from the SC
representing the holder of the Existing Rights or
Non-Converted Rights. The timing and content of any such
notification must be consistent with the instructions
previously submitted to the ISO by the Responsible PTO in
accordance with the SBP. The ISO will manually adjust the SC's
schedule to conform with the other Control Area's net schedule
in real time, and the notifying SC will be responsible for and
manage any resulting Energy imbalance. These Imbalance Energy
deviations will be priced and accounted to the SC representing
the holder of Existing Rights or Non-Converted Rights in
accordance with the SABP.
SP 7.5.2 INTRA-CONTROL AREA CHANGES TO SCHEDULES THAT RELY ON EXISTING
RIGHTS
Changes to Schedules that occur during the ISO's real-time
processes that do not involve changes to ISO Control Area
imports or exports with other Control Areas (that is,
intra-Control Area changes to Schedules) will be allowed and
will give rise to Imbalance Energy deviations. These Imbalance
Energy deviations will be priced and accounted to the SC
representing the holder of Existing Rights or Non-Converted
Rights in accordance with the SABP.
SP 8 OVERGENERATION MANAGEMENT
SP 8.1 REAL TIME OVERGENERATION MANAGEMENT
Overgeneration management in real time will be conducted in
accordance with the DP.
SP 9 DAY/HOUR-AHEAD ANCILLARY SERVICES MANAGEMENT
SP 9.1 BID EVALUATION AND SCHEDULING PRINCIPLES
The ISO will evaluate Ancillary Services bids based on the
following principles:
(a) the ISO will not differentiate between bidders other
than through reserve (Regulation and Operating
Reserves) price and capability to provide the reserve
service, and the required locational mix of services;
(b) to minimize the costs to users of the ISO Controlled
Grid, the ISO will select the bidders with lowest
bids for reserve which meet its technical
requirements, including location and operating
capability;
(c) the ISO will (to the extent available) procure
sufficient Ancillary Services to meet its technical
requirements as defined in the ASRP;
(d) the ISO will evaluate and price only those Ancillary
Services bids received in accordance with the SBP;
(e) the ISO will require SCs to honor their Day-Ahead
Ancillary Services schedules and/or bids when
submitting their Hour-Ahead Ancillary Services
schedules and/or bids (i.e., if a SC bids (or,
conversely, self-provides) a specific Ancillary
Service in a Settlement Period in the Day-Ahead
Market, that SC will not be allowed to self-provide
(or, conversely, bid) the same Ancillary Service in
the same Settlement Period in the Hour-Ahead Market,
except for any difference between its Day-Ahead and
Hour-Ahead requirements for the same Ancillary
Service for the same Settlement Period, in which case
if the capacity which the SC wishes to bid or self
provide is greater in the Hour-Ahead Market than in
the Day-Ahead Markets, the difference can be either
bid or self-provided. If capacity which the SC wishes
to provide in the Hour-Ahead Market is less than the
capacity which it sold to the ISO in the Day-Ahead
Market the SC may buy back the difference from the
ISO in the Hour-Ahead Market at the Hour-Ahead Market
Clearing Price for the same Settlement Period for the
Ancillary Service capacity concerned);
(f) due to the design of the ISO's scheduling software,
the ISO will not take into account Usage Charges in
the evaluation of Ancillary Services bids or in price
determination and, in the event of Congestion in the
Day-Ahead Market or Hour-Ahead
Market, Ancillary Services will be procured and
priced on a Zonal basis; and
(g) due to the design of the ISO's scheduling system, any
specific resource can bid to supply a specific
Ancillary Service or can self-provide such Ancillary
Service but cannot do both in the same Settlement
Period.
SP 9.2 SEQUENTIAL EVALUATION OF BIDS
(a) When SCs bid into the Regulation, Spinning Reserve,
Non-Spinning Reserve and Replacement Reserve markets,
the same resource capacity may be offered into more
than one of these Ancillary Services markets at the
same time. The ISO will evaluate bids in the reserve
markets for Regulation, Spinning Reserve,
Non-Spinning Reserve and Replacement Reserve
sequentially and separately in the following order:
(i) Regulation
(ii) Spinning Reserve
(iii) Non-Spinning Reserve
(iv) Replacement Reserve
(b) SCs are allowed to specify different reserve prices
and different Energy prices for each Ancillary
Service they bid. SCs can bid the same resource
capacity into any one or all of the Ancillary Service
markets they desire. Any resource capacity accepted
by the ISO in one of these reserve markets will be
deducted from the resource capacity bid into the
other reserve markets.
SP 9.3 SCHEDULING ANCILLARY SERVICES RESOURCES
(a) SCs are allowed to self-provide all or a portion of
the following Ancillary Services to satisfy their
obligations to the ISO:
(i) Regulation;
(ii) Spinning Reserve;
(iii) Non-Spinning Reserve; and
(iv) Replacement Reserve.
(b) The ISO will reduce the quantity of Ancillary
Services it competitively procures by the
corresponding amount of the Ancillary Services that
SCs self-provide.
(c) The ISO shall prepare supplier schedules for
Ancillary Services (both self-provided and purchased
by the ISO) for the Day-Ahead Market and the
Hour-Ahead Market.
(d) The Ancillary Services schedules shall contain the
information set out in the SBP for each Settlement
Period of the following Trading Day in the case of
the Day-Ahead schedules or for a specific Settlement
Period in the case of Hour-Ahead schedules.
(e) Once the ISO has given SCs notice of the Day-Ahead
and Hour-Ahead schedules, these schedules represent
binding commitments made in the reserve markets
between the ISO and the SCs concerned. However:
(i) a Scheduling Coordinator who has sold
Regulation, Spinning Reserve, Non-Spinning
Reserve or Replacement Reserve capacity to
the ISO in the Day-Ahead Market may buy back
that capacity in whole or in part from the
ISO in the Hour-Ahead Market at the Zonal
Market Clearing Price for the Ancillary
Service for the Settlement Period concerned
for the Zone in which the Generating Unit or
other resources on behalf of which the
Scheduling Coordinator buys back the
capacity, are located. The ISO will purchase
the Ancillary Service concerned from another
Scheduling Coordinator in the Hour-Ahead
Market in accordance with the provisions of
the ISO Tariff.
(ii) a Scheduling Coordinator whose
non-self-provided obligation for Regulation,
Spinning Reserve, Non-Spinning Reserve or
Replacement Reserve for any Zone reduces
between the Day-Ahead and Hour-Ahead Market
may sell back to the ISO in the Hour-Ahead
Market the amount of such Ancillary Service
in whole or in part which is in excess of
its non-self-provided obligation in the
Hour-Ahead Market. Provided that the ISO has
a market for the sale of the Ancillary
Service concerned to other Scheduling
Coordinators, the price for such a sale back
shall be the hourly user rate for the
Ancillary Service for the Settlement Period
for the Zone concerned in the Hour-Ahead
Market. If the ISO has no market for the
sale of the Ancillary Service concerned to
other Scheduling Coordinators, the price for
the sale back shall be zero.
(f) Any minimum Energy output associated with Regulation
and Spinning Reserve services shall be the
responsibility of the SC, as the ISO's auction does
not compensate the SC for the
minimum Energy output of its Generating Units or
System Unit, if any, bidding to provide these
services. Accordingly, the SCs shall adjust their
Balanced Schedules to accommodate the minimum Energy
outputs required by the Generating Units or System
Units, if any, included in the Ancillary Services
schedules.
(g) SCs providing one or more of the Ancillary Services
cannot change the identification of the Generating
Units or System Units, if any, or Curtailable Demands
offered in the Day-Ahead Market, in the Hour-Ahead
Market, or in the Real Time Market (except with
respect to System Units, if any, in which case SCs
are required to identify and disclose the resource
specific information for all Generating Units and
Curtailable Demands constituting the System Unit
scheduled or bid into the ISO's Day-Ahead Market and
Hour-Ahead Market as required in SP 3.3.2(e)).
SP 9.4 ANCILLARY SERVICE BID EVALUATION AND PRICING TERMINOLOGY
Unless otherwise specifically described herein, the following
terminology will apply:
CapResijt = the Ancillary Service reserve reservation bid
price (in $/MW).
Capijtmax = the maximum amount of reserve that can be
scheduled by the ISO with respect to a SC's bid of
that resource to supply Ancillary Services
(in MW).
Capij = that portion of an Ancillary Services bid (in MW),
identified in the ISO's evaluation process, that
may be used to meet the ISO's Requirement for a
particular Ancillary Service (Capijt < Capijtmax).
Requirement = the total amount of reserve that must be
scheduled for a particular Ancillary Service
required by the ISO in a Settlement Period
(in MW).
i, j, t = Generating Unit i, Scheduling Coordinator j,
Settlement Period t.
SP 9.5 REGULATION BID EVALUATION AND PRICING
SP 9.5.1 REGULATION BID EVALUATION
(a) Based on the quantity and location of the system
requirements, the ISO will select Generating Units
and System Units with the
Regulation bids which minimize the sum of the total
Regulation bids of the Generating Units and System
Units selected subject to two constraints:
(i) the sum of the selected amounts of
Regulation bid must be greater than or equal
to the required amount of Regulation; and
(ii) the amount of Regulation bid for each
Generating Unit or System Unit must be less
than or equal to that Generating Unit's or
System Unit's ramp rate times 10 minutes.
(b) The total Regulation bid for each Generating Unit or
System Unit is calculated by multiplying the reserve
reservation bid price by the amount of Regulation
bid. Subject to any locational requirements, the ISO
will accept winning Regulation bids in accordance
with the following criteria:
[FORMULA OMITTED]
where:
TotalBid(ijt) = Cap(ijt) (*) CapRes(ijt)
Requirement = Amount of upward and downward movement
(Regulation) required by the ISO.
SP 9.5.2 REGULATION PRICE DETERMINATION
The price payable to SCs for Regulation made available for
upward and downward movement in accordance with the ISO's
Ancillary Services schedules will, for each Generating Unit
and System Unit concerned, be the zonal Market Clearing Price
for Regulation calculated as follows:
Pagc(ijt) = MCP(xt)
where:
the zonal Market Clearing Price (MCP(xt)) for
Regulation is the highest priced winning reservation
bid of a Generating Unit or System Unit serving
Demand in Zone X based on the reservation bid price
(i.e.,
MCP(xt) = Max (CapRes(ijt)) in Zone X for Settlement
Period t). In the absence of Inter-Zonal Congestion,
the zonal Market Clearing Prices will be equal.
SP 9.6 SPINNING RESERVES BID EVALUATION AND PRICING
SP 9.6.1 SPINNING RESERVES BID EVALUATION
(a) Based on the quantity and location of the system
requirements, the ISO will select the Generating
Units and System Units with the Spinning Reserve bids
which minimize the sum of the total Spinning Reserve
bids of the Generating Units and System Units
selected subject to two constraints:
(i) the sum of the selected amounts of Spinning
Reserve bid must be greater than or equal to
the required amount of Spinning Reserve; and
(ii) the amount of Spinning Reserve bid for each
Generating Unit or System Unit must be less
than or equal to that Generating Unit's or
System Unit's ramp rate times 10 minutes.
(b) The total Spinning Reserve bid for each Generating
Unit or System Unit is calculated by multiplying the
reserve reservation bid price by the amount of
Spinning Reserve bid. Subject to any locational
requirements, the ISO will select the winning
Spinning Reserve bids in accordance with the
following criteria:
[FORMULA OMITTED]
and
Cap(ijt) <= Cap(ijt)max
where:
TotalBid(ijt) = Cap(ijt) * CapRes(ijt)
Requirement = Amount of Spinning Reserve
required by the ISO.
SP 9.6.2 SPINNING RESERVES PRICE DETERMINATION
The price payable to SCs for Spinning Reserve made available
in accordance with the ISO's Ancillary Services schedules
shall, for each
Generating Unit and System Unit concerned, be the zonal Market
Clearing Price for Spinning Reserve calculated as follows:
Psp(ijt) = MCP(xt)
where:
the zonal Market Clearing Price (MCP(xt)) for
Spinning Reserve is the highest priced winning
reservation bid of a Generating Unit or System Unit
serving Demand in Zone X based on the reservation bid
price (i.e., MCP(xt) = Max(CapRes(ijt)) in Zone X for
Settlement Period t). In the absence of Inter-Zonal
Congestion, the zonal Market Clearing Prices will be
equal.
SP 9.7 NON-SPINNING RESERVES BID EVALUATION AND PRICING
SP 9.7.1 NON-SPINNING RESERVES BID EVALUATION
(a) Based on the quantity and location of the system
requirements, the ISO shall select the Generating
Units, System Units and Curtailable Demands with the
Non-Spinning Reserve bids which minimize the sum of
the total Non-Spinning Reserve bids of the Generating
Units, System Units and Curtailable Demands selected
subject to two constraints:
(i) the sum of the selected amounts of
Non-Spinning Reserve bid must be greater
than or equal to the required amount of
Non-Spinning Reserve; and
(ii) the amount of Non-Spinning Reserve bid for
each Generating Unit, System Unit, or
Curtailable Demand amount of Non-Spinning
Reserve bid must be less than or equal to
that Generating Unit's, System Unit's, or
Curtailable Demand's Non-Spinning Reserve
available (or available for reduction) in 10
minutes.
(b) The total Non-Spinning Reserve bid for each
Generating Unit, System Unit or Curtailable Demand is
calculated by multiplying the reserve reservation bid
price by the amount of Non-Spinning Reserve bid.
Subject to any locational requirements, the ISO will
accept the winning Non-Spinning Reserve bids in
accordance with the following criteria:
[GRAPHIC OMITTED][GRAPHIC OMITTED]
where:
TotalBid(ijt) = Cap(ijt) * CapRes(ijt)
Requirement = Amount of Non-Spinning Reserve required
by the ISO.
SP 9.7.2 NON-SPINNING RESERVES PRICE DETERMINATION
The price payable to SCs for Non-Spinning Reserve made
available in accordance with the ISO's Ancillary Services
schedules shall, for each Generating Unit, System Unit or
Curtailable Demand concerned, be the zonal Market Clearing
Price for Non-Spinning Reserve calculated as follows:
Pnonsp(ijt) = MCP(xt)
where:
the zonal Market Clearing Price (MCP(xt)) for
Non-Spinning Reserve is the highest priced winning
reservation bid of a Generating Unit, System Unit or
Curtailable Demand serving Demand in Zone X based on
the reservation bid (i.e., MCP(xt) = Max(CapRes(ijt))
in Zone X for Settlement Period t). In the absence of
Inter-Zonal Congestion, the zonal Market Clearing
Prices will be equal.
SP 9.8 REPLACEMENT RESERVES BID EVALUATION AND PRICING
SP 9.8.1 REPLACEMENT RESERVES BID EVALUATION
(a) Based on the quantity and location of the system
requirements, the ISO shall select the Generating
Units, System Units and Curtailable Demands with the
Replacement Reserve bids which minimize the sum of
the total Replacement Reserve bids of the Generating
Units, System Units and Curtailable Demands selected
subject to two constraints:
(i) the sum of the selected amounts of
Replacement Reserve bid must be greater than
or equal to the required amount of
Replacement Reserve; and
(ii) the amount of Replacement Reserve bid for
each Generating Unit, System Unit or
Curtailable Demand must be less than or
equal to that Generating Unit's, System
Unit's or Curtailable Demand's Replacement
Reserve available (or available for
reduction) in 60 minutes.
(b) The total Replacement Reserve bid for each Generating
Unit, System Unit or Curtailable Demand is calculated
by multiplying the reserve reservation bid price by
the amount of Replacement Reserve bid. Subject to any
locational requirements, the ISO will select the
winning Replacement Reserve bids in accordance with
the following criteria:
[GRAPHIC OMITTED]
where:
TotalBid(ijt) = Cap(ijt) * CapRes(ijt)
Requirement = Amount of Replacement
Reserve required by the ISO.
SP 9.8.2 REPLACEMENT RESERVES PRICE DETERMINATION
The price payable to SCs for Replacement Reserve made
available in accordance with the ISO's Ancillary Services
schedules shall, for each Generating Unit, System Unit or
Curtailable Demand concerned, be the zonal Market Clearing
Price for Replacement Reserve calculated as follows:
Prepres(ijt) = MCP(xt)
where:
the zonal Market Clearing Price (MCP(xt)) for
Replacement Reserve is the highest priced winning
reservation bid of a Generating Unit, System Unit or
Curtailable Demand serving Demand in Zone X based on
the reservation bid price (i.e., MCP(xt) =
Max(CapRes(ijt)) in Zone X for Settlement Period t).
In the absence of Inter-Zonal Congestion, the zonal
Market Clearing Prices will be equal.
SP 9.9 EXISTING CONTRACTS - ANCILLARY SERVICES ACCOUNTABILITY
Certain Existing Contracts may have requirements for Ancillary
Services which differ from the requirements of this SP 9. Each
PTO will be responsible for recovering any deficits or
crediting any surpluses associated with differences in
assignment of Ancillary Services requirements, through its
bilateral arrangements or its Transmission Owner's Tariff. The
ISO will not undertake the settlement or billing of any such
differences under any Existing Contract.
SP 10 DAY/HOUR-AHEAD INTER-ZONAL CONGESTION MANAGEMENT
SP 10.1 CONGESTION MANAGEMENT ASSUMPTIONS
The Inter-Zonal Congestion Management process is based upon
the following assumptions:
(a) Inter-Zonal Congestion Management will ignore
Intra-Zonal Congestion. Intra-Zonal Congestion will
be managed in real time;
(b) Inter-Zonal Congestion Management will use a DC
optimal power flow (OPF) program that uses linear
optimization techniques with active power (MW)
controls only; and
(c) transmission capacity reserved under Existing
Contracts will not be subject to the ISO's Congestion
Management procedures.
SP 10.2 CONGESTION MANAGEMENT PROCESS
(a) Inter-Zonal Congestion Management will involve
adjusting Schedules to remove potential violations of
Inter-Zonal Interface constraints, minimizing the
redispatch cost, as determined by the submitted
Adjustment Bids that accompany the submitted
Schedules. See the SBP for a general description of
the use of Adjustment Bids to establish priorities.
(b) Inter-Zonal Congestion Management will not involve
arranging or modifying trades between SCs. Each SC's
portfolio will be kept in balance (i.e., its
Generation plus external imports, as adjusted for
Transmission Losses, and Inter-Scheduling Coordinator
Trades (whether purchases or sales) will still match
its Demand plus external exports) after the
adjustments. Market Participants will have the
opportunity to trade with one another and to revise
their Schedules during the first Congestion
Management iteration in the Day-Ahead Market, and
between the Day-Ahead Market and Hour-Ahead Market.
(c) Inter-Zonal Congestion Management will also not
involve the optimization of SC portfolios within
Zones (where such apparently non-optimal Schedules
are submitted by SCs). Adjustments to individual SC
portfolios within a Zone will be either incremental
(i.e., an increase in Generation and external imports
and a decrease in Demand and external exports) or
decremental (i.e., a decrease in Generation and
external imports and an increase in Demand and
external exports), but not both.
(d) If Adjustment Bids are exhausted before Congestion is
eliminated, the remaining Schedules will be adjusted
pro rata except for those uses of transmission
service under Existing Contracts, which are curtailed
in accordance with SP 7.3 and SP 7.4.
SP 10.3 CONGESTION MANAGEMENT PRICING
(a) The Adjustment Bids that the SCs submit constitute
implicit bids for transmission between Zones on
either side of a Congested Inter-Zonal Interface. The
ISO's Inter-Zonal Congestion Management process will
allocate Congested transmission to those users who
value it the most and will charge all SCs for their
allocated usage of Congested Inter-Zonal Interfaces
on a comparable basis. All SCs within a Zone will see
the same price for transmitting Energy across a
Congested Inter-Zonal Interface, irrespective of the
particular locations of their Generators, Demands and
external imports/exports.
(b) The ISO will determine the prices for the use of
Congested Inter-Zonal Interfaces using the Adjustment
Bids. The ISO will collect Usage Charges from SCs for
their Scheduled use of Congested Inter-Zonal
Interfaces. If Adjustment Bids are exhausted and
Schedules are adjusted pro rata, the ISO will apply a
default Usage Charge calculated in accordance with
Section 7.3.1.3 of the ISO Tariff.
(c) The ISO will rebate the Congestion revenues collected
through the Usage Charges to the PTOs which own the
Congested Inter-Zonal Interface in proportion to
their respective ownership rights.
SP 11 CREATION OF THE REAL TIME MERIT ORDER STACK
SP 11.1 SOURCES OF IMBALANCE ENERGY
The following Energy Bids will be considered in the creation
of the real time merit order stack for Imbalance Energy:
(a) Supplemental Energy bids submitted in accordance with
the SBP;
(b) Ancillary Services Energy bids (except for
Regulation) submitted for specific Ancillary Services
in accordance with the SBP for those resources which
have been selected in the ISO's Ancillary Services
auction to supply such specific Ancillary Services;
and
(c) Ancillary Services Energy bids (except for
Regulation) submitted for specific Ancillary Services
in accordance with the SBP for those resources which
SCs have elected to use to self-provide such specific
Ancillary Services and for which the ISO has accepted
such self-provision.
SP 11.2 STACKING OF THE ENERGY BIDS
The sources of Imbalance Energy described in SP 11.1 will be
arranged in order of increasing Energy bid prices, without
regard to the source of the Energy bid, to create a merit
order stack for use in accordance with the DP. In the event of
Inter-Zonal Congestion, separate merit order stacks will be
created for each Zone. The information in the merit order
stack shall be provided to the real time dispatcher through
the BEEP (Balancing Energy and Ex-Post Pricing) software.
Where, in any Settlement Period, the highest decremental
Energy Bid in the merit order stack is higher than the lowest
incremental Energy Bid, the BEEP software will eliminate the
overlap by determining a target price for all those
incremental and decremental bids which fall within the
overlap. All decremental Energy Bids higher than the target
price will be decreased to the target price. All incremental
Energy Bids lower than the target price will be increased to
the target price.
References to incremental Energy Bids include references to
Demand reduction bids, and for the purpose of applying this
algorithm a reduction in Demand shall be treated as an
equivalent increase in Generation.
SP 11.3 USE OF THE MERIT ORDER STACK
The merit order stack, consisting of all of the Supplemental
Energy and Ancillary Services Energy bids described in SP
11.1, can be used to supply Energy for:
(a) satisfying needs for Imbalance Energy (differences
between actual and scheduled Generation, Demand and
external imports/exports) in real time;
(b) managing Inter-Zonal Congestion in real time;
(c) supplying Energy necessary to allow resources
providing Regulation service to return to the base
point of their regulating ranges in real time;
(d) recovering Operating Reserves utilized in real time;
(e) procuring additional Voltage Support required from
resources beyond their power factor ranges in real
time; and
(f) managing Intra-Zonal Congestion in real time after
use of available Adjustment Bids.
SP 12 AMENDMENTS TO THE PROTOCOL
If the ISO determines a need for an amendment to this
Protocol, the ISO will follow the requirements as set forth in
Section 16 of the ISO Tariff.