EXHIBIT 99.319
SCHEDULING PROTOCOL
Page No. 597
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
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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
Page No. 599
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
Page No. 600
SP 12 AMENDMENTS TO THE PROTOCOL
Page No. 601
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 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 .
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 conflict, the will
prevail to the extent of the inconsistency. If the provisions
of this SP and
Page No. 602
an Existing Operating Agreement conflict, the provisions of
the Existing Operating Agreement will prevail. The provisions
of the 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 as if references to
the 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
Page No. 603
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 . 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
Page No. 604
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
Page No. 605
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.
Page No. 606
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;
Page No. 607
(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
Page No. 608
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.
Page No. 609
(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;
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(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
Page No. 611
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
Page No. 612
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;
Page No. 613
(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
Page No. 614
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
Page No. 615
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:
Page No. 616
(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
Page No. 617
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
Page No. 618
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.
Page No. 619
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.
Page No. 620
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
Page No. 621
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 , 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 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):
Page No. 622
(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 . 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
Page No. 623
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.
Page No. 624
(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-
Page No. 625
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
Page No. 626
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
Page No. 627
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
Page No. 628
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.
Page No. 629
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
Page No. 630
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.
Page No. 631
(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 .
(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
Page No. 632
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:
CapRes(ijt) = the Ancillary Service reserve reservation bid price (in
$/MW).
Cap(ijt)max = 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).
Cap(ij) = 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 (Cap(ijt) < or equal to Cap(ijt)max).
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
Page No. 633
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.,
Page No. 634
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]
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
Page No. 635
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:
Page No. 636
[FORMULA 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
Page No. 637
(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:
[FORMULA 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.
Page No. 638
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
Page No. 639
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 .
(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.
Page No. 640
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.
Page No. 641
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.