AUGUST 7–8, 2012 Markets committee
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Transcript of AUGUST 7–8, 2012 Markets committee
AUGUST 7–8, 2012 MARKETS COMMITTEE
Janine DombrowskiMarket Development
Timeline Adjustments for Clearing the DAM & RAA
Moving the Day Ahead Market & Reserve Adequacy Assessment Clearing Times
Outline – Moving DAM & RAA Timelines
• Background
• Proposal
• Appendix
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BACKGROUND
Background
• June– Initiate a discussion of the issues facing ISO Operations and the ISO’s
proposal to modify the timing of both the day-ahead results posting and RAA commitment notifications
• July– Propose a timeline moving the day-ahead market clearing to two days
ahead and run the RAA earlier on the day prior to the operating day– Provide additional detail about the gas and electricity market
operational challenges – Describe a recent event and provided a follow-up memo – ISO posts draft whitepaper, “Assessing Gas Dependence”
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Background (continued)
• August (today)– Provide and discuss updates to memo– Solicit input and discuss stakeholder options and proposals
• Next Months– Provide additional analysis– Finalize design and provide tariff language
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PROPOSAL
Propose Moving the DAM & RAA Clearing timelines
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• Produce DAM & Initial RAA Results/Schedules by 11:30 AM on the Day Prior to Operating Day (OD)
– 1800 night before (OD-2)– Day-Ahead bidding deadline (currently 1200 OD-1)
– 2200 night before (OD-2) – Day-Ahead clearing deadline (currently 1600 OD-1)
– 0830 (OD-1) – Re-Offer period closes (currently 1800 OD-1)
– 1130 (OD-1) – Initial RAA run is published (currently 2200 OD-1)
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Proposed Timeline
Daily Initial Nomination
Deadline12:30
Evening Nomination Deadline
19:00
11:00 (D-1) - 24:00 (D)Reserve Adequacy AssessmentHourly SchedulingCurrent Operating Plan5-min. Dispatch
10:00 AM 10:00 AM
12:00 AM
Gas Day -1Intra-Day 1 Nomination
11:00
Gas Day -1Intra-Day 2 Nomination
18:00
Gas Day-1 Intra-Day 1 Effective
Flow18:00
Gas Day-1 Intra-Day 2
Effective Flow 22:00
22:00 DAM Clears
08:30 Reoffer Period Closes
18:00 DAM Closes
11:30 RAA Complete
12:00 AM 12:00 AM
Daily Initial & Evening Nomination Effective Flow 10:00
Gas DayIntra-Day 1 Nomination
11:00
Gas Day Intra-Day 1 Effective
Flow18:00
Evening Nomination Deadline
19:00
Daily Initial & Evening Nomination Effective Flow 10:00
Gas Day vs.
Electric Day Timelines
Liquidity of Gas Market
Dries Up 10:00
ISO Proposal: Gas Nomination Opportunities
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Scenario
# of Opportunities to
Nominate Gas using Intra-Day & (Hours of Flow)
# of Opportunities to Nominate Gas using the Daily & Evening & (Hours
of Flow)
Can gas-fired generation fully nominate gas?
(YES or NO)
Current DAM 3 (HE1-10,19-24) 1 (HE 11 – 24) YES
Current RAA 2 (HE 19-24) 0 NO
Earlier DAM 4 (HE1-10,19-24) 2 (HE 11 – 24) YES
Earlier RAA 3 (HE1-10,19-24) 1 (HE 11 – 24) YES
• Results in increased opportunities to procure gas
Results
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• Generators know schedules from both the DAM & initial RAA prior to the 12:30 EST Timely Nomination Deadline– Generators who schedule gas Supply & Delivery during the Timely
Nomination Cycle (12:30 PM deadline) and are confirmed – same gas treatment as Firm Customers
• Better utilize the available capacity of the gas pipelines– ISO provides each pipeline gas withdrawal profile after the RAA
• Earlier notification to ISO Operations of resource unavailability will allow ISO to call on longer lead time replacement generators and commit supplemental units for reliability
• Ensures sufficient capacity available to meet the NE real-time demand requirements – reliable commitment
Ongoing ISO Assessment and Evaluation
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• Timing of FRM Threshold Price calculation and publication
• Timing of Import Capacity Resource Threshold Price calculation and publication
• Applicability of Appendix H
• DAM IBT submission timing and market settlement
• Hourly FTR settlement
• Market Monitoring impacts
Questions & Discussion
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APPENDIX – Q&A
Q: Is there a pattern of resource under-performance?
A: The ISO has not identified any patterns other than the resources are gas-fired.
Q: What are we doing now in terms of unit commitment and dispatch) to avoid the reliability impact?
A: See draft whitepaper for examples.
Q: How is the ISO is defining the problem and the range of potential solutions?
A: See draft whitepaper for examples.
Q: Can you provide the profile of start times for non-gas-fired units available for commitment?
A: See July 20, 2012 Robinson/Dombrowski memo for exhibit.
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Q: Can you provide additional information showing both the proposed electricity modifications and potential changes or actions the gas pipelines or suppliers could take to address this issue?
A: See draft whitepaper for other options. Also, note FERC’s upcoming regional technical conference on gas/electric coordination on August 20, 2012.
Q: Can you provide additional information for the events of July 5-6, 2012 to identify units committed DA and in the RAA? Can you provide information on whether units were dispatched for more MWh than they cleared in DA?
A: See August 1, 2012 update to Robinson/Dombrowski memo.
The ISO is still evaluating other requests for information.
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