1 / 11

Manual 11 Revisions

Manual 11 Revisions. David LaPlante Vice President, Markets Development. Some Lessons from Market Trial 2. Demand bidding permitted at Hub in violation of rules Demand Bids greatly exceeding Zonal Load Obligation and Zonal Load caused serious market disruption

creola
Download Presentation

Manual 11 Revisions

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Manual 11 Revisions David LaPlante Vice President, Markets Development

  2. Some Lessons from Market Trial 2 • Demand bidding permitted at Hub in violation of rules • Demand Bids greatly exceeding Zonal Load Obligation and Zonal Load caused serious market disruption • Inc and Dec bidding at Hub may cause unstable Hub pricing

  3. Demand Bidding at Hub in Violation of Rules • Rules do not permit demand bidding at Hub • Software should not have allowed such bidding • Software has been corrected for EMT3

  4. Inc and Dec Bidding at Hub Causing Unstable Hub Pricing in Day Ahead Market • Inc/Dec bids at hub in day ahead market are distributed to hub and physically met in DAM clearing • Inc/Dec bids are distributed only to 32 nodes • Inc/Dec network distribution not representative of physical transmission operation • Creates Hub congestion occurring Day-Ahead where none occurs in Real-Time

  5. Proposed solution: Inc/Dec Hub Bidding Change • Remove ability to bid Inc/Dec and external transactions at Hub • No changes to the following: • Inc/Dec bidding at zones and location • FTR bidding for position at the Hub • Bi-lateral contract at Hub

  6. Rationale for Change • Assures stable pricing at Hub • Assures consistency between Day-Ahead and Real-Time Hub pricing • Opportunities to use Hub as a trading point exist through bilateral arrangements. • Energy can be sold from generator to hub through financial bi-lateral in Day Ahead Market • Energy can then be sold from hub to load through financial bi-lateral in Day Ahead Market • Virtual bids/offers still fully supported through bidding at zones to hedge between day ahead and real time

  7. Issues • Are there other problems/implications of not permitting inc/decs at hub in day ahead market ?

  8. Bids Exceeding Expected Load Obligation • External Market Trial 2 demonstrated that large demand bids submitted in error could create serious market disruption and adversely impact all market participants • Manual 11 requires that demand bids be associated with a physical load asset • Additional language needed to provide a process to assure that demand bids do not significantly exceed real-time load obligation • Need a process to correct large, erroneous bids inconsistent with real-time load obligation • Need to assure that large demand bids that could disrupt the market are not intentionally submitted

  9. Proposed Approach in Manual 11 • Objective is to assure that incorrect demand bids do not cause market disruption • Explicitly state that: • Demand bids (MW) consistent with Real-Time load obligation • ISO to review demand bids for: • Consistency with expected RTLO • ISO may contact bidder upon detection of inconsistency • Upon agreement that bidding error occurred • Market re-opened to all for bidding correction • Upon refusal to change and unsupported justification of bid ISO may reduce bid (MW) to be consistent with real-time load obligation

  10. Possible Approaches • Large errors/inconsistent bids should be easy to identify, e.g. a bid of 6,000 MW when a bid of 600 MW was intended. • One approach is to review sum of zonal demand bids for consistency with real-time load obligation and only if this is inconsistent, look more closely at individual demand bids • A second approach is to review all bids that exceed expected real time load obligation by a threshold percentage (e.g. 20%)

  11. Inc/Dec Bidding review • Inc/Dec Bids will be monitored to identify what appear to be large erroneous bids • If a possible bidding error detected, • ISO to contact bidder • Upon agreement of error, market re-opened to all

More Related