Day Ahead Market Working Group

April 14, 2003

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Agenda

• Discussion of SMD-style DAM

• review questions posed by the DAM WG and Coral regarding the SMD-style DAM

• Discussion of Coral Bid-Ask Trade DAM

• resolution of status

• NYISO Imports/Exports in DAM

• Next Steps -- April 22 Face-to-Face

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NYISO Imports/Exports in DAM

Introduction:

• Reference to NYISO Market Participant Manuals and Technical Bulletins @ http://www.nyiso.com/services/documents.html

• Examine NYISO as potential IMO model

• Consider current RT Intertie procedures relative to DAM

• Unique elements of NYISO

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NYISO Imports/Exports in DAM

Submitting Import/Export Bids:

• All transactions from external control areas are required to be submitted into the NERC ETAG system prior to becoming active schedules

• DAM closes 05:00 – Results posted 11:00

• E-Tag changes can be made before DAM closes, after DAM posts results, but before 22:00 (All times prior day)

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NYISO Imports/Exports in DAM

NYISO Reference Bus:

• External generators and loads submit transaction bids into the NYISO DAM against the Marcy LBMP reference bus - NYISO_LBMP_REFERENCE

• Used to calculate all marginal loss and congestion costs in the system

• External energy sales or purchases are settled on the LBMP (Locational Based Marginal Price)

• LBMP = Reference Bus Energy $ + Losses - Congestion

• For Ontario Zone - source bus (exports to NYISO) or sink bus (imports from NYISO) is - OH_GEN_BRUCE or OH_LOAD_BRUCE

• Additional points for PJM, NE and HQ

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NYISO Imports/Exports in DAM

Scheduling:

• Import/Export bids are approved through SCUC or BME

• Schedules must be coordinated with corresponding control area

• With respect to BME and for economic priority, default price -$1000 assigned for imports

• External transactions scheduled in the Day-Ahead Market (DAM) have economic priority over resources bid competitively in the Hour-Ahead Market (HAM) in the determination of which transactions are permitted to flow in real-time

• Transactions are financially binding in DAM regardless if curtailed

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NYISO Imports/Exports in DAM

Multi-Hour Block Transactions:

• DA firm external transaction bids may be offered, specifying a minimum run-time, and if accepted, awarded a multi-hour block schedule at the bid MW amount

• Evaluated in the Day-Ahead Market relative to alternative offers

• Easier to coordinate scheduled external transactions with corresponding transactions in neighboring control areas

• Checkout process with the neighboring control area confirms each hour of a DAM scheduled multi-hour block transaction independently

• Transaction hours are subject to curtailment in real-time based upon HAM bid parameters

• Minimum run times will only be honoured within a commitment day, i.e., beginning Hour 1 ending Hour 24

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NYISO Imports/Exports in DAM

Pre-Scheduling Transactions:

• MP can preschedule an external import or export transaction with the NYISO up to 18 months prior to the transaction date

• Acceptance is determined by the availability of adequate hourly ramping and transmission capacity related to the affected external interface

• Given an economic priority over other external transactions that are not prescheduled - will be a “price taker” and the entities involved agree to accept the DAM clearing prices in effect for the transaction

• Submission deadline - 2:00 PM two days before transaction date

• Imports/Exports are assigned bid prices of -$1000/+$1000 to ensure priority scheduling in DAM

• Parameters of DAM bids cannot be altered after submission deadline and if withdrawals are not approved then bids are financially binding once scheduled

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NYISO Imports/Exports in DAM

IMO/NYISO Transaction Scheduling:

• Currently IMO and NYISO use a specific transaction scheduling protocol to schedule transactions and ensure fair and efficient use of the IMO/NYISO interface

• Introduction of a DAM in Ontario will likely require a review and modification to this protocol to ensure resolution of new seams issues that may arise

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Discussion Points

• Ramp Capacity or Transfer Capabilities across interties

• Transmission Congestion Costs - TCC’s

• Financial Transmission Rights - FTRs

• Transmission Usage Costs TUCs

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Next Meetings

• April 22 WG Face-to-Face meeting