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Commercial Reconciliation Technical Advisory Team

June 25, 2002

NEW CHARGE TYPES:

Emergency Demand Response Program

Governing Documents

EDRP Contracts

EDRP Contracts

•Contractual Terms between the IMO and the ASP

•Calculation formula

•Application to Specific delivery points

•Rates

Emergency Demand Response Program

(EDRP)

IMO “Market Rules”

IMO “Market Rules”

•Objectives

•Public/marketplace framework

•Authority for the IMO to contract for EDRP

•Cost recovery framework

Agenda for this Presentation:

1) Sequence of Events

2) Impact on Settlements Charge Types

Emergency Demand Response Program

(EDRP)

PART 1 - Sequence of Events

Emergency Demand Response Program

(EDRP)

Sequence of Events:

Emergency Demand Response Program

(EDRP)

• From a settlements standpoint, the EDRP sequence is identical to that of other Ancillary Services procured by the IMO on behalf of the real-time energy market (e.g. regulation, black start, etc.).

• Follows the real-time energy market billing period (monthly)

• Simultaneous payment to ancillary service providers and cost recovery

Beginning of Billing Period

EDRP Triggering

Event

End of Billing Period

Preliminary Settlement Statement for last trading day

Sequence of Events:

Emergency Demand Response Program

(EDRP)

Corresponding RMS Data

Contractual Calculations

Contractual Terms

Simultaneous Payment and

Cost Recovery

Market Rule Terms

PART 2 - Impact on Settlements Charge Types

Emergency Demand Response Program

(EDRP)

Charge Type Implications:

•With respect to the EDRP, the settlements process must support 2 basic functions:

1) Payments to individual EDRP participants; and,

2) Cost recovery

Emergency Demand Response Program

(EDRP)

Charge Type Implications:

Emergency Demand Response Program

(EDRP)

1) Payments to individual EDRP participants:

This first requirement is met by a NEW charge type:

•NEW charge type ID number: 406

•NEW charge type name: Emergency Demand Response Program Credit

•frequency: monthly (when applicable, and for the last trading day of the billing period)

•scope: only seen by EDRP ancillary service providers

Charge Type Implications:

Emergency Demand Response Program

(EDRP)

1) Payments to individual EDRP participants:

This first requirement is met by a NEW charge type:

•NEW charge type ID number: 406

•NEW charge type name: Emergency Demand Response Program Credit

•FORMAT:

• Manual Entry (Type “MP”) charge type

• Absolute dollar value of contractual settlement amount owing to the Ancillary Service Provider

enrolled in the EDRP

Emergency Demand Response Program

(EDRP)Charge Type Implications:

This second requirement is met by a CURRENT charge type with a REVISED NAME and SCOPE:

•CURRENT charge type ID number: 167 (no change)

•REVISED charge type name: Emergency Energy and EDRP Debit

•frequency: monthly (when applicable, and for the last trading day of the billing period)

•scope: seen by any market participant with an AQEW (domestic load) or SQEW (export) quantity during the

billing period. Now includes EDRP AND Emergency Energy Payments in the

same charge type.

2) Cost recovery:

Emergency Demand Response Program

(EDRP)Charge Type Implications:

This second requirement is met by a CURRENT charge type with a REVISED NAME and SCOPE:

•CURRENT charge type ID number: 167 (no change)

•REVISED charge type name: Emergency Energy and EDRP Debit

•FORMAT:

• Manual Per Unit Allocation (Type “DP”) charge type

• Includes Cost Recovery amount and the underlying AQEW/SQEW quantities that

form the basis of its distribution.

2) Cost recovery:

Emergency Demand Response Program

(EDRP)

1) Technical Interface document: “IMO Charge Types and Equations” (IMP_LST_0001), Issue 8.1

• Currently on the PENDING CHANGES page.

• To be released on the TECHNICAL INTERFACES page as Issue 9.0

• Official listing of charge types 406 and 167

• Includes GST treatment

• Rounding Conventions

Emergency Demand Response Program

(EDRP)

2) Technical Interface document: “File Format Specification for Settlement Statement Files and Data Files” (IMP_SPEC_0005), Issue 7.1

• Currently on the PENDING CHANGES page.

• To be released on the TECHNICAL INTERFACES page as Issue 8.0

• Describes implementation of charge type 406 as a MANUAL LINE ITEM charge type

• Describes implementation of charge type 167 as a MANUAL PER UNIT ALLOCATION charge type

•Anomalous field usage - charge type 167: section 2.2.5