EXHIBIT 99.526
CALIFORNIA POWER EXCHANGE
PX TO ISO INTERFACE TRAINING
Ancillary Services Bids
Adjustment Bids
Supplemental Energy Bids
January 20, 1998
CALIFORNIA POWER EXCHANGE
Agenda
- - Ancillary Services (AS) Bids
- - Ancillary Services Auction
- - Adjustment Bids
- - AS & Adjustment Bid Interaction
- - Supplemental Energy Bids
- - Real Time Auction
January 31, 1998
CALIFORNIA POWER EXCHANGE
Purpose
- - To ensure an understanding of how to enter
each type of bid in the PX Trade
Application.
- - To provide an understanding of how the
ISO manipulates and uses the bids in its
auctions.
- - To identify any known issues with the
interpretation of the bids at the ISO.
January 31, 1998
CALIFORNIA POWER EXCHANGE
Ancillary Services (AS) Bids
Some components of AS Bids from a Resource:
- Specified by AS type supplied by the resource
- Capacity
- Cost per MW
- Specified once for all AS supplied by the resource
- Operating limits
- Ramp rate
- Energy price curve
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Bids - Physical NOT Effective
- - AS bids specify physical quantities
(measured at the resource site)
- AS bids do NOT specify effective quantities
(measured net of losses at the load center)
- - AS bids differ in this from schedules and
adjustment bids for congestion management
- Schedules and CM adjustment bids give
effective quantities net of losses, NOT physical
measured at the resource site
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Bids - Capacity
Data Requirements (for Spinning, Non-Spinning
& Replacement Reserves):
- Capacity
- $/MW reservation price
- Ramp Rate (MWh/minute)
- Operating Limits (upper, lower)
- Energy price curve
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Bid Default Values
- - The Operating Limits and Ramp Rate will
be defaulted to the values defined for the
resource in the Trade Application register.
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Bids - Capacity
- - Assumptions:
- IPS = 90 MWh (Initial Preferred Schedule --
the effective energy scheduled for resource)
- GMM = 0.90 (Generation Meter Multiplier)
- Unit Capacity = 300 MW (max physical output
measured at resource site, not at load center)
- - The most that the resource can supply to
meet ISO reserve requirements is 200 MW
- Unit Capacity - IPS/GMM or 300-100 = 200
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS BIDS - CAPACITY
- - To bid to serve 200 MW of ISO's Spinning
Reserve requirement
- Enter the maximum level to which the unit will
permit the ISO to dispatch it to supply both the
unit's IPS and the energy from spinning reserve
- - Enter the following into the PX Trade
Application:
- Spin Capacity in Bid + IPS/GMM or
200 + 90/.90 = 300 MW
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Bids - Capacity
[GRAPHIC]
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Bids - Capacity
- - Non-Spinning Reserve capacity and
Replacement Reserve capacity is bid in the
same fashion as Spinning Reserve capacity
- - Additional information is required in Non-
Spinning and Replacement Reserves bids:
- minutes to synch (for generators)
- curtailable duration (for loads)
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Bids - Capacity
[GRAPHIC]
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS BIDS - CAPACITY
- - ISO PERFORMS VALIDITY CHECKS ON AS BIDS.
THESE INCLUDE:
- FOR SPINNING RESERVES:
(SPINNING RESERVE BID CAPACITY - IPS/GMM) < RAMP RATE * 10
-
- FOR NON-SPINNING RESERVES:
(NON-SPINNING RESERVE BID CAPACITY - IPS/GMM)
< RAMP RATE * (10 - MINUTES TO SYNCH)
-
- FOR REPLACEMENT RESERVES:
(REPLACEMENT RESERVE BID CAPACITY - IPS/GMM)
< RAMP RATE * (60 - MINUTES TO SYNCH)
-
JANUARY 31, 1998
CALIFORNIA POWER EXCHANGE
AS BIDS - REGULATION CAPACITY
ADDITIONAL REQUIRED DATA ELEMENTS:
- RANGE UP
- UPPER LIMIT TO WHICH THE UNIT WILL PERMIT THE ISO TO
DISPATCH THE UNIT FOR REGULATION PURPOSES
- IPS/GMM + ADDITIONAL ENERGY FOR REGULATION
- RANGE DOWN
- LOWER LIMIT TO WHICH THE UNIT WILL PERMIT THE ISO TO
DISPATCH THE UNIT FOR REGULATION PURPOSES
- IPS/GMM - DECREMENTAL ENERGY FOR REGULATION
JANUARY 31, 1998
CALIFORNIA POWER EXCHANGE
AD Bids - Regulation Capacity
- - Assumptions:
- GMM = .90
- IPS Quantity = 90 MWh
- Unit Capacity = 300 MWh
- - Suppose you want to bid the following to the ISO for Regulation:
- MW for Regulation above schedule = 60
- MW for Regulation below schedule = -40
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Bids - Regulation Capacity
- - Enter the following into the PX Trade Application:
- Range Up:
Additional MW + IPS/GMM
= 60 + 90/.90 = 160
- Range Down:
Decremental MW + IPS/GMM
= -40 + 90/.90 = 60
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Bids - Regulation Capacity
[GRAPHIC]
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS BIDS - REGULATION CAPACITY
The ISO pays for the Regulation Range that a unit provides:
Range Up - Range Down
In this example, if the ISO selected the unit's regulation bid, the ISO would
pay it for:
160 - 60 = 100 MW of Regulation Capacity
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS AUCTION
* The AS auctions are held in the order:
- Regulation
- Spinning
- Non-Spinning
- Replacement
* You can bid the same capacity to supply each type of service.
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS AUCTION
Suppose you bid the following:
<Table>
<Caption>
Type Bid Quantity IPS/GMM Cap Bid to AS
Reg Up 250 MW 200 MW 50 MW
Reg Down 150 MW 200 MW -50 MW
Spinning 300 MW 200 MW 100 MW
Non-Spinning 300 MW 200 MW 100 MW
Replacement 300 MW 200 MW 100 MW
</Table>
The ISO treats the regulation bid as a bid to supply 100 MW of capacity for
regulation
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS AUCTION
<Table>
<Caption>
Type Original Cap Won Cap Remain
Bid to AS for AS
Regulation 100 MW 50 MW
Spinning 100 MW 50 MW
Non-Spinning 100 MW 50 MW
Replacement 100 MW 50 MW
</Table>
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS AUCTION
<Table>
<Caption>
TYPE ORIGINAL CAP WON CAP REMAIN
BID TO AS FOR AS
- -------------------------------------------------------------
REGULATION 100 MW 50 MW
SPINNING 100 MW 30 MW
NON-SPINNING 100 MW 20 MW
REPLACEMENT 100 MW 20 MW
</Table>
JANUARY 31, 1998
CALIFORNIA POWER EXCHANGE
As Auction - Issue
- - The ISO uses the Regulation Range
(range up - range down) as the quantity in
the Regulation auction.
- - As a result, more is subtracted from the
quantities available for the other service
types than should be
- the range down can't be used for Spinning,
Non-Spinning, or Replacement reserves.
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Auction - Issue
- - Assume:
- IPS/GMM = 100 (adjusted for GMM)
- Unit capacity = 160
- Range up = 130 and range down = 70
- - In this case, the regulation range is:
130 - 70 = 60.
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Auction
Suppose you bid the following:
<Table>
<Caption>
Type Bid Quantity IPS/GMM Cap Bid to AS
- ------------------------------------------------------------------------------
Reg Up 130 MW 100 MW 30 MW
Reg Down 70 MW 100 MW -30 MW
Spinning 160 MW 100 MW 60 MW
Non-Spinning 160 MW 100 MW 60 MW
Replacement 160 MW 100 MW 60 MW
</Table>
The ISO treats the regulation bid as a bid to supply 60 MW of capacity for
regulation
January 31, 1998
CALIFORNIA POWER EXCHANGE
AS Auction
<Table>
<Caption>
Type Original Cap Won Cap Remain
- ---------------------------------------------------------------------------
Bid to AS for AS
--------------------------------------------------
Regulation 60 MW 60 MW
Spinning 60 MW 0 MW
Non-Spinning 60 MW 0 MW
Replacement 60 MW 0 MW
</Table>
January 31, 1998