Capacity Procurement Mechanism Market Sim Kick-Off. February 8, 2011

Transcription

1 Capacity Procurement Mechanism Market Sim Kick-Off February 8, 2011

2 CPM Market Sim Plan and Key Project Dates Capacity Procurement Mechanism Market Sim Plan Posted: Capacity Procurement Mechanism Project - Upcoming Participant Dates: 2/4 Publish draft BPM changes 2/8 CPM Market Sim Kick-off 2/14 Begin CPM Connectivity Test in MAP Stage 2/22 Begin CPM Market Sim in MAP Stage (for 3 weeks) 4/1 CPM activated in Production Slide 2

3 CPM Policy/Design Overview Capacity Procurement Mechanism (CPM) Project: Project will replace the existing Interim Capacity Procurement Mechanism (ICPM), which expires on March 31, 2011, with a similar but enhanced Capacity Procurement Mechanism (CPM). Under the proposed CPM the ISO may procure capacity for the following needs and purposes: 1. To backstop RA procurement in instances where the aggregate procurement of RA capacity by LSEs is insufficient, either at the system level or in a particular local capacity area; 2. To address unexpected conditions that arise and that could not have been anticipated at the time the RA procurement was done (referred to as Significant Events in the ICPM provisions); 3. To retain and compensate for 30 days any non-ra capacity that was issued an Exceptional Dispatch in the ISO s day-ahead or real-time market (as required by the FERC-approved Exceptional Dispatch provisions); or 4. To financially sustain resources that are in danger of shutting down due to lack of sufficient revenues in the current year and that the ISO has determined through operational studies will be needed the following year. Page 3

4 CPM Policy/Design Overview Notes on Procurement: Categories 1 through 3 above are straightforward carry-overs from the ICPM design. Category 4 is new. In all categories the CPM procurement would be for at least 30 days, and in categories 1 and 4 it may be for up to 12 months. In the case of a multi-month procurement under categories 1 and 4, the ISO will suspend the CPM payment for any month in which the CPM capacity or a portion of it is procured as RA capacity by an LSE. Page 4

5 CPM Market Sim High-Level Overview The CPM Market Simulation will be conducted in the MAP Stage environment. Monday Tuesday Wednesday Thursday Friday February 14, Patches after 3pm Connectivity Testing MAP Stage Environment Patches after 3pm Mini-Month 1 2/22 to 2/28 Holiday Structured Simulation 28 March 1, Structured Simulation Patches after 3pm Mini-Month 2 3/1 to 3/ Structured Simulation 11 Patches after 3pm Mini-Month 3 3/7 to 3/11 Settlement Statements published on T+6B schedule, see payment calendar in Section Page 5

6 CPM Market Sim Environment, Setup and Execution CPM Market Simulations will be conducted on Monday through Fridays of each week. Excludes Monday February 21 - President s Day Holiday Weekend trade dates will not be included in the simulation or settlements. Each of the three weeks will be treated as a mini-monthly for settlements purposes. The normal CPM Monthly term will be adjusted to 4 days during the first week of market simulation and 5 days during the two remaining weeks. [The first week of Market Sim has a Holiday on Monday.] The ISO will provide bids from production for both DA and RT markets. Participants are not required to input bids. DA markets will close at 11am and the results will be published by 2pm on a daily basis throughout market simulation. The DA market bids will be copied from production by 10am, providing a one hour window. Participants have the option to overwrite these if they so choose. RT bids from production will be input 10 minutes prior to the close of the market, providing a 10 minute window for participants to overwrite these if they so choose. Page 6

7 CPM Market Sim Systems The following table provides an overview of the roles of various systems that participants may use while conducting CPM market simulations. System RAAM SLIC SAMC Other Market Systems Usage Participants will be able to review CPM Forced Availability and CPM Planned Availability in RAAM. Availability is expected to be 100% if no outages are entered. If participants wish to observe RAAM Availability calculation results and confirm settlements associated with outages during CPM events, then they must input the outages into SLIC. Participants will be able to review settlement details for Trade Dates that are settled during CPM market simulations. Daily and Monthly Settlement Statements will be produced. SIBR, IFM/RTN, CMRI, OASIS will be available, but no participant actions are required in these systems to support CPM market simulation. Page 7

8 CPM Market Sim SLIC Planned and Forced Outages Forced and Planned Outages The payment amount to CPM resources is affected by Planned and Forced Outages. If no outages are entered, the CPM resource will be successfully settled as 100% available. Forced Outages that impact the availability of CPM capacity will lower the payment to the CPM resource. The ISO will not enter outages on the participants behalf. To observe the RAAM availability calculation and settlement impacts of outages on the CPM resources, participants should plan to enter test outages during market simulation. Page 8

9 CPM Market Sim Scenarios General Setup of CPM events for Market Simulation: The ISO chose generation resources for each of the SC s which own generation. For some generation owners there was a very small population of generators to choose from. In order to provide a CPM settlement experience to as broad of a participant pool as possible, some CPM eligibility requirements and logic were suspended. In some cases the generators chosen may not make logical or even legal sense. Attempted to utilize every resource that historically experienced a CPM call however, some of those resources had no capacity available for CPM (Based on Feb-2011 RA). The ISO will create CPM events and assign them to these generators In some cases the MW s available for CPM were very large, or very small. For this Market Sim, the ISO considered the MW s between Pmax and Pmin not obligated to RA as available for CPM. February 2011 RA values will be utilized through the entire Market Sim. (RA Values will NOT change on March 1 st.) CPM MW s per resource range between 1 and 30 MW s. Where possible round values were utilized. The MW s assigned were arbitrary within the bounds of MW s available for CPM. Page 9

10 CPM Market Sim Scenarios General Setup of CPM events for Market Simulation (Cont): Total of 133 CPM events will be entered over the 3 week Market Sim period. Six Types of CPM s will be executed. Some of the types are expected to be exceptionally rare in Production and are therefore executed in fewer scenarios. The six types of CPM s, in order of expected Production occurrence are: Expected Production Occurrence CPM Type Number of Market Sim Events High Exceptional Dispatch 94 Low Significant Event 24 Low Risk of Retirement 6 Very Low Local Deficiency 3 Very Low Insufficient Resource Adequacy 3 Very Low Collective Deficiency 3 Exceptional Dispatch is historically the only CPM event which has been activated. Page 10

11 CPM Market Sim Scenarios CPM Settlement Allocation amounts will be significantly higher than expected in Production: There will be 133 CPM events called over the 3 week period this is necessary to ensure that all generation owners have ample opportunity to observe a CPM payment. This is ~100 times as many CPM s as would be expected in production in any given period (Historically never more than one active in any given period.) Therefore the CPM allocation amounts in Settlement statements will be extreme. (Accurate for the scenarios, but extreme when compared to expected Production settlements.) CPM MW s were purposely kept low to partially mitigate these effects. Page 11

12 Capacity Procurement Mechanism (CPM) Settlement Calendar Calendar Day Day Final RAAM and Outage Data T+2B Publish Initial Settlement Statement T+6B 21-Feb-11 Monday HOLIDAY 22-Feb-11 Tuesday 02/17/11 11/29/10 23-Feb-11 Wednesday 02/18/11 02/14/11 24-Feb-11 Thursday 02/22/11 02/15/11 25-Feb-11 Friday 02/23/11 02/16/11 26-Feb-11 Saturday 27-Feb-11 Sunday Publish Market Invoice 28-Feb-11 Monday 02/24/11 02/17/11 01-Mar-11 Tuesday 02/25/11 02/18/11 2/14-2/18 Mini Monthly 02-Mar-11 Wednesday 02/28/11 02/22/11 03-Mar-11 Thursday 03/01/11 02/23/11 04-Mar-11 Friday 03/02/11 02/24/11 05-Mar-11 Saturday 06-Mar-11 Sunday 07-Mar-11 Monday 03/03/11 02/25/11 08-Mar-11 Tuesday 03/04/11 02/28/11 2/22 to 2/28 Mini Monthly 09-Mar-11 Wednesday 03/07/11 03/01/11 10-Mar-11 Thursday 03/08/11 03/02/11 11-Mar-11 Friday 03/09/11 03/03/11 12-Mar-11 Saturday 13-Mar-11 Sunday 14-Mar-11 Monday 03/10/11 03/04/11 15-Mar-11 Tuesday 03/11/11 03/07/11 3/1 to 3/4 Mini Monthly 16-Mar-11 Wednesday 03/08/11 17-Mar-11 Thursday 03/15/11 03/09/11 18-Mar-11 Friday 03/16/11 03/10/11 19-Mar-11 Saturday 20-Mar-11 Sunday 21-Mar-11 Monday 03/17/11 03/11/11 22-Mar-11 Tuesday 03/18/11 3/7 to 3/11 Mini Monthly Meter Data Submission is not required could be submitted by T+2B if desired. Slide 12

13 CPM Scenario Adjustments The ISO will work with individual participants to adjust the CPM Resources, MW s or CPM Event types where reasonably possible. The ISO will post a grid with all of the CPM information. After reviewing the grid, participants can request changes to that grid. Change or remove a resource Change a CPM MW Change a CPM Type The ISO will work to adjust the data entry where reasonably possible. Submit requested changes via to: Jeff Fruit: jfruit@caiso.com Page 13

14 CPM Scenario Resource Grid Sample CPM Scenario Resource Grid SCID Resource ID CPM MW Scenario # CPM1 Start Date CPM1 End Date CPM2 Start Date CPM2 End Date A /24/2011 3/1/2011 3/3/2011 3/9/2011 B /22/2011 2/25/2011 3/7/2011 3/11/2011 B /24/2011 3/1/2011 3/3/2011 3/9/2011 C /22/2011 2/25/2011 3/7/2011 3/11/2011 SC s Client Reps will supply the SCID and Resource ID decode information Page 14

15 CPM Market Sim Scenario 1 Scenario 1 - Scheduling coordinator fails to show sufficient local capacity area resources in an annual or monthly RA plan. Very Rare CPM Event Allocation is based on LCA RA Insufficiency MW ratio share only RA insufficient LSE s pay. ISO will supply the RA Insufficiency data points required for allocation. Resource Payment is same as other CPM events Scenario Number CPM Structured Scenarios Description ISO Actions CPM Issued due to: A scheduling coordinator fails to show sufficient local capacity area resources in an annual or monthly RA plan 1. ISO to issue a CPM, due to scheduling coordinator failing to show sufficient local capacity area resources in an annual or monthly RA plan. 1 SC Actions 1. SC may introduce planned and/or forced outages in conjunction with the CPM. 2. Use RAAM tool to view availability calculations associated with any outages introduced by the ISO. 3. Review settlements charges and/or payments. Expected Outcome Anticipated Settlement Outcome 1. CPM charges and payments are made in accordance with tariff provisions, reflecting availability of unit during CPM period. 1. Charge Code CG CC 7874, Monthly CPM Insufficient Local Capacity Area Resources Settlement used to pay SC providing CPM MW. 2. Charge Code CG CC 7875 Monthly Insufficient Local Capacity Area Resources Allocation charged to pay for the CPM. Page 15

16 CPM Market Sim Scenario 2 Scenario 2 Correct a scheduling coordinator s failure to show sufficient RA resources in an annual or monthly RA plan to comply with each LSE s annual and monthly demand and reserve margin requirements. Very Rare CPM Event Allocation is based on LCA RA Insufficiency MW ratio share only RA insufficient LSE s pay. ISO will supply the RA Insufficiency data points required for allocation. Resource Payment is same as other CPM events Scenario Number CPM Structured Scenarios Description CPM issued to correct a scheduling coordinator s failure to show sufficient RA resources in an annual or monthly RA plan to comply with each LSE s annual and monthly demand and reserve margin requirements. ISO Actions 1. ISO to issue a CPM to correct a collective deficiency in local capacity area resources in the annual RA plans of applicable scheduling coordinators after the opportunity to cure the deficiency has been exhausted. 2 SC Actions Expected Outcome Anticipated Settlement Outcome 1. SC may introduce planned and/or forced outages in conjunction with the CPM. 2. Use RAAM tool to view availability calculations associated with any outages introduced by the ISO. 3. Review settlements charges and/or payments. 1. CPM charges and payments are made in accordance with tariff provisions, reflecting availability of unit during CPM period. 1. Charge Code CG CC 7884, Monthly CPM Insufficient Adequacy Resources Settlement used to pay SC providing CPM MW. 2. Charge Code CG CC 7885 Monthly Insufficient Resource Adequacy Allocation charged to pay for the CPM. Page 16

17 CPM Market Sim Scenario 3 Scenario 3 - Correct a collective deficiency in local capacity area resources in the annual RA plans of applicable scheduling coordinators after the opportunity to cure the deficiency has been exhausted. Very Rare CPM Event Allocation is based on LCA RA Insufficiency MW ratio share only RA insufficient LSE s pay. ISO will supply the RA Insufficiency data points required for allocation. Resource Payment is same as other CPM events Scenario Number CPM Structured Scenarios Description CPM Issued to correct a collective deficiency in local capacity area resources in the annual RA plans of applicable scheduling coordinators after the opportunity to cure the deficiency has been exhausted. ISO Actions 1. ISO to issue a CPM, due to scheduling coordinator failing to show sufficient RA resources in an annual or monthly RA plan to comply with each LSE's annual and monthly demand and reserve margin requirements. 3 SC Actions Expected Outcome Anticipated Settlement Outcome 1. SC may introduce planned and/or forced outages in conjunction with the CPM. 2. Use RAAM tool to view availability calculations associated with any outages introduced by the ISO. 3. Review settlements charges and/or payments. 1. CPM charges and payments are made in accordance with tariff provisions, reflecting availability of unit during CPM period. 1. Charge Code CG CC 7876, CPM Collective Deficiency Settlement used to pay SC providing CPM MW. 2. Charge Code CG CC 7877 CPM Collective Deficiency Allocation charged to pay for the CPM. Page 17

18 CPM Market Sim Scenario 4 Scenario 4 Correct a significant event occurring during a RA compliance year that creates a need to supplement the already-established RA requirements. Rare CPM Event Allocation based on Load Ratio Share of the TAC Area Resource Payment is same as other CPM events Scenario Number CPM Structured Scenarios Description ISO Actions CPM Issued due to: A significant event occurring during a RA compliance year that creates a need to supplement the already-established RA requirements. 1. ISO to issue a CPM, due to a significant event occurring during a RA compliance year that creates a need to supplement the already-established RA requirements. 4 SC Actions Expected Outcome Anticipated Settlement Outcome 1. SC may introduce planned and/or forced outages in conjunction with the CPM. 2. Use RAAM tool to view availability calculations associated with any outages introduced by the ISO. 3. Review settlements charges and/or payments. 1. CPM charges and payments are made in accordance with tariff provisions, reflecting availability of unit during CPM period. 1. Charge Code CG CC 7872, Monthly CPM Significant Event Settlement, used to pay SC providing CPM MW. 2. Charge Code CG CC 7873, Monthly CPM Significant Event Allocation charged to pay for the CPM. Page 18

19 CPM Market Sim Scenario 5 Scenario 5 Resources are issued an exceptional dispatch CPM. Most common CPM Event Allocation based on Load Ratio Share of the TAC Area Resource Payment is same as other CPM events Scenario Number CPM Structured Scenarios 5 Description ISO Actions SC Actions Expected Outcome Anticipated Settlement Outcome CPM Issued due to: Resources are issued an exceptional dispatch for CPM. 1. ISO to create the ED CPM which would have occurred due to an exceptional dispatch. 1. SC may introduce planned and/or forced outages in conjunction with the CPM. 2. Use RAAM tool to view availability calculations associated with any outages introduced by the ISO. 3. Review settlements charges and/or payments. 1. CPM charges and payments are made in accordance with tariff provisions, reflecting availability of unit during CPM period. 1. Charge Code CG CC 7880, Monthly CPM Exceptional Dispatch Settlement used to pay SC providing CPM MW. 2. Charge Code CG CC 7881, Monthly CPM Exceptional Dispatch Allocation charged for the CPM. Page 19

20 CPM Market Sim Scenario 6 Scenario 6 CPM issued to cover a resource identified as being a Risk of Retirement, when an RA shortfall is anticipated in the next year. Rare CPM Event Allocation based on Load Ratio Share of the TAC Area Resource Payment is same as other CPM events Scenario Number CPM Structured Scenarios 6 Description ISO Actions SC Actions Expected Outcome Anticipated Settlement Outcome CPM issued to cover a resource identified as being a Risk of Retirement, when an RA shortfall is anticipated in the next year. 1. ISO to issue a CPM to cover a resource identified as being a Risk of Retirement when an RA shortfall is anticipated in the next year. 2. ISO may introduce planned and/or forced outages in conjunction with the CPM. 1. May introduce planned and/or forced outages in conjunction with the CPM. 2. Use RAAM tool to view availability calculations associated with any outages introduced by the ISO. 3. Review settlements charges and/or payments. 1. CPM charges and payments are made in accordance with tariff provisions, reflecting availability of unit during CPM period. 1. Charge Code CG CC 7882, Monthly CPM Capacity at Risk of Retirement Settlement used to pay SC providing CPM MW. 2. Charge Code CG CC 7883, Monthly CPM Capacity at Risk of Retirement Allocation charged for the CPM. Page 20

21 Capacity Procurement Mechanism (CPM) Scheduled Communications Teleconference Purpose Tuesday Call (For Holiday) Weekly Monday Status Calls Weekly Thursday Status Calls Tuesday, February 22, 2011 Mondays, from February 28, through March 14, 2011 Thursdays, from February 17 through March 10, 2011 (as needed) Day Time Call-in Information 1:00 2:00pm (Pacific) 1:00 2:00pm (Pacific) 1:00-2:00pm (Pacific) Domestic International Access Code: N/A Domestic International Access Code: N/A Domestic International Access Code: N/A

22 Capacity Procurement Mechanism (CPM) Scheduled Training Class Module Capacity Procurement Mechanism Initiative Capacity Procurement Mechanism Initiative Training Date and Location Thursday, March 3, :00 11:00 a.m. Folsom Thursday, March 24, :00 3:00 p.m. Folsom Instructor J. Pedersen J. Pedersen

23 Contact Information and Links CPM Market Sim Plan CPM Scenario Resource Grid (will be posted to the Release Planning page under the CPM heading): CPM Market Sim Questions Contact Jeff Fruit Page 23