Exhibit 99.379
During Susan Schneider's comments at the client meeting tomorrow, she will be
seeking your inputs and recommendations on prioritization of activities for
1998. Most of these projects, in addition to resource requirements at the ISO,
will need in-depth client resources for development and review of these
projects. Between the ISO and our clients, there are not enough resources to
complete all of the activities identified in 1998.
We will solicit your inputs tomorrow, review internally, and hold a broader
stakeholder meeting in April before making a recommendation to the Governing
Board for a re-prioritization. So your input is vital to get this process
started. The key issues as we know them:
A. HIGH PRIORITY ISSUES IDENTIFIED DURING START-UP
SOFTWARE VARIANCES
- How many UNRESOLVED critical variances are there left and in what
areas?
- Do we know whether these will impact PX prices (congetion/ex-post)
and quantities?
- What is the time table for resolving existing variances?
- Are there workarounds for these variances; and if yes does any of
these workarounds need to be handled by PX.
MANUAL WORK-AROUNDS
- When will we get informed of these
- are these related to missing functionalities or variances?
- What is the procedure for designing these workarounds?
SIMPLIFICATION EFFORTS
BEEP REVISIONS
- Some of these revisions are major
- will they be in place by 3/31? - Are we designing workarounds in
BEEP revisions do not go into effect?
- What is the impact on data interfaces to and from the ISO?
B. TOPICS VISIBLE AT FERC
GMC UNBUNDLING STUDY
TRANSMISSION RIGHTS STUDY
TRANSMISSION ACCESS CHARGE MODIFICATIONS.
C. MARKET DRIVEN TOPICS
INTER-SC TRADE ADJUSTMENT BIDS
- When will this implemented?
- Who will provide, "selling" SC or "buying" SC?
- How can we avoid gaming?
- What the default values today?
PORTFOLIO BIDDING
OTHERS?
- Cap on Congestion Prices and its impact on PX's Zonal MCPs
- Strategies to deal with known possibilities for gaming
D. STAGING PLAN TOPICS:
1. IMBALANCE ENERGY SETTLEMENT PERIOD - (5-MINUTE INTERVAL)
Real-Time Imbalance Energy charges will be calculated on a 5-minute
interval
Based on energy bids for A/S and Supplemental Energy.
- What is the latest implementation strategy?
- Is implementation identical to current protocols?
2. CALCULATION OF GENERATOR METER MULTIPLIERS
Based on ex-post GMMs derived from actual metered quantities.
- Will FERC allow ex-post GMMs?
3. ALLOCATION OF REPLACEMENT RESERVE COSTS
Allocate dispatched cost based on deviations between SC scheduled/actual
demand Prorate undispatched costs based on SCs actual demand
- Shouldn't only those SCs be charged if their actual demand is
larger than their scheduled value
- only when SC under-schedules?
- Will ISO modify its protocols to increase or decrease the amount
of replacement reserved procured based on market results?
- Will ISO software be modified to "schedule/dipatch" replacement
reserve in the Hour-Ahead and Real-time markets?
4. ACCESS TO MDAS
SCs, ISO Metered Entities, and authorized users able to request data from
ISO's MDAS
- When?
- What will be the mechanism? Will there be API's?
- Security of access?
5. PROFILED METER DATA
Allows for verification by the ISO of Approved Load Profiles
- Could SCs dispute/correct?
- How do we ensure synchronization with hourly metered data?
6. REAL-TIME OPERATIONS - MONITORING AND CONTROL
ISO will monitor and control the grid, including regulation units,
directly with ISO's EMS system.
7. TRANSMISSION ASSESSMENT TOOLS
Transmission capability assessment will be done on-line, using an A/C
Optimal Power Flow model.
- Are we ready for AC OPF anytime soon
- both data and resources?
- Are we ready to deal with strange results of the AC OPF? Need to
establish workarounds now.
8. INTRAZONAL CONGESTION MANAGEMMENT
Day-Ahead and Hour-ahead intra-zonal congestion management will be
performed and charges and adjustments will be made using the on-line AC
Optimal Power flow model.
- Are we ready for AC OPF anytime soon
- both data and resources?
- Are we ready to deal with strange results of the AC OPF? Need to
establish workarounds now.
9. ARCHIVING TOOLS
Bidding, price and schedule data stored in permanent historical storage
system.
- Has ISO established the technologies for storage and access?
- Have we defined turn around time for data requests?
- Who can request to audit data and what securities are in place?
10. STANDING SCHEDULES
ISO provides for the use of Standing Schedules by Scheduling Coordinators.
- I do not see the value of this for PX.
11. A/S BID EVALUATION AND PRICING ALGORITHM
Bid evaluation and pricing of A/S will take into account applicable usage
charges.
12. BIDDING INTO ISO A/S AUCTION FROM OUTSIDE THE ISO CONTROL AREA
A/S can be bid into ISO auctions or self-provided from resources outside
the control area
- How do we monitor compliance? Unless we can monitor compliance, we
will end up with additional UFEs that will mainly impact PX and
its customers.
13. ISO PROVISION OF OPERATING RESERVES FOR INTERRUPTIBLE IMPORTS AND ON-DEMAND
OBLIGATIONS
SCs can self-provide or purchase from ISO the operating reserves required
for interruptible imports and on-demand obligations.
14. A/S SELF-PROVISION AND BIDDING FROM THE SAME RESOURCE
SCs can self-provide and bid the same A/S from the same resource.
- Can the same capacity be assigned to both bid and self provision?
If yes, what is the protocol if wining the bid? If no, where will
the schedule/bid be validated?
- Can SC bid in A/S capacity in the Preferred schedule cycle, and
then pull back and self-provide in the Day-Ahead iteration?
15. ACQUISITION OF BLACK START SERVICES
ISO will procure Black Start competitively
- Is the market geographically deep enough for this?
16. ACQUISITION OF VOLTAGE SUPPORT SERVICES
The ISO will procure additional Voltage Support competitively
- Is the market geographically deep enough for this?
17. NON-SPINNING RESERVE AND REPLACEMENT RESERVE BIDS
Adjusts the relationship between capacity bid and ramp rates.
- Could help with some of the errors in the existing requirements?
18. CONGESTION MANAGEMENT - FINAL SCHEDULE SELECTION
ISO selects either the Preferred or Revised Schedules based on which
provides the lower total Usage charge revenues to the ISO.
- Potential for gaming is there specially for those who could gain
from Preferred Market Results?
19. ISO PUBLISHING RESULTS OF COMPARATIVE CONGESTION COSTS
Congestion Management adjustments made with constraint that SC's schedules
remain balanced, but will calculate and publish the cost of congestion
with this constraint relieved.
- Current ISO protocols for balancing schedules need to be addressed
by experts. It can impact PX's zonal price calculation process and
will allow gaming.