august 6 , 2014 | nepool markets committee

A U G U S T 6 , 2 0 1 4 | N E P O O L M A R K E T S C O M M I T T E E

Jay DwyerI S O N E W E N G L A N D

Conforming Changes to Manuals for Energy Market Offer Flexibility and Re-Write of Manual M-11

Energy Market Offer Flexibility Conforming Manual Changes

Background on Manual M-11 Revisions

• Two Projects with two objectives:• When ISO began looking at M-11 for Energy

Market Offer Flexibility (EMOF) revisions it was already engaged in an internal review of M-11 to bring it up to date and reflect current policy on Manuals;• After internal review, the ISO incorporated some

of the up-date project into the EMOF effort.

2

NCPC Payments Conforming Manual Changes

• Some of these Manuals also need to be revised to conform to NCPC Payments changes also being presented today;

• In some cases, a judgment call has been made as to which set of changes (EMOF or NCPC) would include specific revisions; and

• The NCPC red-lines are made to this set of Manuals with all proposed EMOF changes accepted.

3

Proposed Stakeholder Schedule• Today: Review the actual red-lined Manuals

and summaries of changes with the MC;• September: Present the Manuals for the

second time to the MC;• September: MC Vote on Manuals;• September/October: PC Vote on Manuals.

4

5

MANUAL M-11 Revisions

• SUMMARY of Revisions

Manual M-11 Revisions (1 0f 36)

6

Section Change Reason Category

Throughout Capitalize “Block” Defined term revised. Clean Up

Throughout Review NCPC references

Deleted where part of larger change or irrelevant. Other instances deferred to NCPC Payments

EMOF & Clean Up.

Throughout Delete refs to Market Participant 7-day forecasts

Reflects change to III.1.10.1A(f)

EMOF

Throughout Make section refs consistent through Manual

Consistency and avoid confusion with defined term “Section” in I.2.2

Clean-up

Throughout Replaced Self-Scheduled with fixed for External Transactions

Reflect changed definition of Self-Scheduled MW

EMOF


7


About Revised to reflect new language used in other manuals

Streamline Manuals & reflect current practice

New Manual Approach

1.1 Deleted “or portion of” from description of two types of Resource

In this context cannot be CSO and Non-CSO Resource simultaneously

Correction

1.1 Deleted requirement for Supply Offers

Duplicates MR-1 language and two later sections of the Manual

Clean-up

1.1 Moved language on dispatch above Self-Scheduled MW to another section

Part of streamlining restructuring of M-11

New Manual Approach

1.1 Delete description of ISO actions in Dispatch

Reflects new approach to Manuals. See discussion under Section 1.2.3

New Manual Approach


8


1.2.1 & 1.2.2

Delete references to Section 5 Reflect proposed deletion of Section 5

New Manual Approach

1.2.2 Moved existing language from 1.2.1 to 1.2.2. Revised description of RAA. Added a provision on treatment of gas-fired unit Start-Ups

Move RAA to Real-Time and honor commitment to add Start-Up language

Added clarification committed to at prior NMC.

1.2.2 Hourly scheduling of External Transactions moved to this section

Part of restructuring/ streamlining of M-11

New Manual Approach

1.2.3 Deleted/Moved ISO activities deleted. RAA description combined with earlier section.

New Manual Approach


9


1.3.1 Add language on Demand Bids and requirements for DARD Demand Bids

Moved from later in Manual

New Manual Approach

1.3.1(1) Limit these hourly schedules for Self-Scheduled Resources to DARDs

With Self-Schedule changes, only applies to DARDs.

EMOF

1.3.1(2) Add modifications to Demand Bids from DARDs as described in III.1.10.9(a) and (e)

MR-1 now provides more opportunity to revise bids.

EMOF

1.3.1(3) Replace description of submission Ext Transaction (sales) with MR-1 reference

Avoids restating Tariff language (III.1.10.7 & III.1.10.9(c))

Clean-up


10


1.3.2 Section restructured and provisions from other sections moved here

Part of restructuring of M-11

New Manual Approach

1.3.2 Added submission of INCs Consistency with list above. Clean-up

1.3.2 Delete language on submission of FRM assignments to FR Resources & Supplemental Availability Bilaterals .

FR assignments dealt with in M-36. Supplemental Availability Bilaterals covered in Tariff and M-20

New Manual Approach

1.3.2 Delete subsection on required self-scheduling for Resources that don’t clear DA or don’t have EDC.

Dealt with elsewhere in Manual by clarifying we won’t commit Non-CSO Resources not committed in DAM

EMOF/ Clean-up


11


1.3.2(1) Revise submission of hourly schedules to refer to III.1.10.3 & III.1.10.9

Reflects changes to Self-Scheduling in MR-1

EMOF

1.3.2(2) Revise language on submission of External Transactions to refer to III.1.10.7 & III.1.10.9(c)

Corrects error re III.1.10.9(c) and avoids restating long MR-1 provision (III.1.10.7) in Manual

Correction/ Clean-up

1.3.2(3) Revise to state the exceptions to the must offer rule & add footnote explaining DR exclusion

Demand Resources not within definition of Resource until 2017

Clean-Up

1.3.2(4) Deleted. Section re-used for Ext Transactions (deleted from 1.3.2(5))

Restatement of a MR-1 provision (III.1.10.1A). Parallel to 1.3.1.

Clean-up


12


1.3.2(5) Add provision that offers may be modified or requests to Self Schedule made during and after Re-Offer Period.

Reflects changes to self-scheduling and eliminates a restatement of MR-1 language.

EMOF

1.3.2(5) (a) & (b)

Deleted Included in change made to 1.3.2(5), above

EMOF

1.3.2(7) Deleted Supplemental Availability Bilaterals covered in MR-1 and M-20

Clean-up

New 1.3.2(7) –(11)

Provisions moved from other sections

Generating Resource Supply Offers and External Transactions.

New Manual Approach

1.3.3 Simplification of language. Deletes introductory language for numbered list of one item

Clean-Up


13


1.3.4.1 Added MR-1 references to data requirement (III.13.6.1.5.5 & III.13.6.1.5.6)

Refers to Tariff language on requirement.

Clean-Up

1.3.4.2 Change reference from Appendix III.E to Appendix III.E1Section moved to Business Rules.

Correct Section reference & clarify applies to PRD transition.

Clean-up/ correction

1.3.4.2 Move first and third paragraphs

Delete second paragraph

Restructure Manual. Not Market Participant responsibilitiesA more complete version of the same provision is in paragraph 3

Clean-up


14


1.4.1 Replaced “outside the Energy Market” with “outside the New England Control Area”. Combined with 1.4.

Submission of External Transaction for wheeling across the Control AreaIntro of list of one item.

Clean-up

2.1 – 2.3 Some moved up to Section 1.3 (with revisions for EMOF), renumbered and re-ordered as noted above.

Eliminates repetition. Re-organizes sections

New Manual Approach


15


2.4 (now 2.1)

First paragraph: Revised first sentence deleted the rest;

Second paragraph: Revised to say all other load priced at Load Zone and modeled as described in 2.5.2 of this manual;Paragraphs 3-7 deleted;

Table 2.2 deleted

Paragraphs 8 &9 retained

General background material in training materials (WEM 101; 201; 301);Avoids restating the modeling treatment;

Descriptions are in Tariff and training materials. Paragraph 6 just a reference to M-36.Change deferred from earlier project. Nearly identical list is in MR-1.P-Node example retained because we found no publicly accessible discussion of this elsewhere.

Clean-up/New Manual Approach


16


2.5 (now 2.2)

Bidding and Operations Timeline: Delete first sentence

Repeats MR-1 provision (II.1.10.1A)

Clean-up

2.2.1 10:00AM: Delete External Transaction specs

Covered in MR-1 (III.1.10.7) Clean-Up

2.2.1 10:00AM: Delete description of scheduling and commitment in DAM and language on designation of Supplemental Availability Bilaterals

Covered in Tariff and discussed in training materialsSuppl. Availability Bilaterals addressed in M-20 Not really an Energy Markets subject.

Clean-Up/New Manual Approach

2.2.1 Upon Completion of DAM: Revised to add that changes may be made in accordance with III.1.10.9

Replaces current re-offer language with reference to revised MR-1

EMOF


17


2.2.1 Replace “2:00PM” with “Close of the Real-Time Re-Offer Period”;Delete statement on the purpose of RAA;

Examples of OP-4 actions deleted

Make parallel with earlier section and avoid the need for “normally”Two inconsistent descriptions have been replaced by one that appears earlier in this ManualIn keeping with elimination of examples for re-structuring/ streamlining Manual. Already says ISO will take needed actions of OP-4. Listing some of them here serves no purpose.

Clean-Up

Clean-Up/New Manual Approach


18


2.2.1 5:00PM: Delete “the RAA results are published” and change “populates” to provides by posting on a secure site

Clarification on how results are communicated (especially for jointly owned Resources)

Clean-Up

2.2.1 Throughout the Operating Day: Revised to delete “for non-fast Start Resources, ..” and “under circumstances described in OP-4 Action 7” Re-phrased to avoid “portion of” language

Information now provided to all Resources in the same way. References to specific Actions by number have been a problem in the past and it’s the MR-1 provision (III.13.6.4), not OP-4, that authorizes these requests.

EMOF/ Clean-Up


19


2.5.2 (now 2.2.2)

Re-organized to separate by offer/bid types. Some provisions moved from other Manual sections

Part of restructuring/ streamlining of Manual M-11

New Manual Approach

2.2.2A(1)[was 2.5.2(1)])

Delete sentence on implementation and citations to other Manuals

Adds nothing to the statement preceding it.

Clean-Up

2.2.2A(2)[was 2.5.2(2)]

Replaced by provision moved from earlier in Manual.

Manual restructuring and more complete statement of Demand Bid “rule”

EMOF/New Manual Approach

2.5.2(3) & (4)

Moved to another section of the Manual

Restructuring/ streamlining New Manual Approach

2.2.2A(3) [was 2.5.2(5)]

Revised to limit to Demand Bids

Reflects division of section into sub-sections

New Manual Approach


20


2.5.2(6-8) Moved Restructuring/ streamlining

New Manual Approach

2.2.2 A(5) Apply Offer Cap and Offer Floor to price sensitive Demand Bids

New defined terms and bid/offer flexibility changes

EMOF

2.2.2A (6) [was 2.5.2(10)]

Re-phrased to replace Day-Ahead Demand Bid information” with Demand Bid into the DAM for load not associated with an ARD

Clarification Clean-up

2.2.2A(7)[was 2.5.2(11)]

Revise to reflect exception to offers carrying over

Reflects exception in MR-1 EMOF

2.2.2A(8-11)

DARD bidding provisions Moved from another section

New Manual Approach


21


2.2.2A(12) [was 2.5.2(12)])

Add “seven day rolling average” and that Load Zone list is posted on ISO web site.

Moved from earlier section

New Manual Approach

2.2.2B(1) ) [was 2.5.2(16)]

List of Hub. Load Zone, or Node replaced by Location

More consistent with MR-1 provision

Clean-up

2.2.2B(4) [was 2.5.2(17)]

Replace $1000 and zero with new defined terms Offer Cap and Offer Floor.

New defined terms part of offer flexibility changes to MR-1.

EMOF

2.5.2(18-20)

Revised and then moved up into 2.2.2A.

Reorganization of Manual, See 2.2.2A for revisions.

EMOF/Clean-up


22


2.2.2C(1)-(6)

Moved from elsewhere and (5) split into two subsections

Moved to reflect new structure (5) split to clarify.

New Manual Approach

2.2.2C(7)[was 2.5.2(21)]

Replace description of Export Transactions with reference to III.1.10.7(g)

Avoid restating Tariff language

Clean-up

2.2.3 [was 2.5.3]

Restructured to move provisions from other sections and re-organize by Resource type

General restructuring of M-11; Eliminate duplication.

New Manual Approach

2.2.3A(1) Simplify language requiring generator to be a registered Generator Asset

Current language restates some of the registration requirements

Clean-up


23


2.2.3A(2) & (3)

Relocated size limits and application of Energy Offer Cap and Floor

Part of restructuring Manual and use of newly defined terms

EMOF & New Manual Approach

2.5.3(2) Deleted as re-phrasing of MR-1 provision

Relying on Tariff language. Not clear this description is complete or accurate.

Clean-up

2.5.3(3) Some language moved. The rest deleted

Part of restructuring of Manual M-11

New Manual Approach

2.5.3(4) Moved into Market Participant Responsibilities


New Manual Approach

2.5.3(5) Deleted Seven-day forecast no longer required

EMOF


24


2.2.3A(4) [was 2.5.3(6)]

Deleted refs to prior method of submitting Self-Schedules; Added reference to III.1.10.1A(g); Deleted “as listed below” and (a) through (c).

Reflect new Self-Scheduling provisions

EMOF

2.2.3A(5) [was 2.5.3(7)]]

Replaced with language describing ability to revise Supply Offers or request Self-Schedule under III.1.10.9

Reflects new Self-Scheduling provisions

EMOF

2.2.3A(6) and (7)

Provisions for Fast Start Gens and Self-Scheduled generators added

Moved from other sections

New Manual Approach


25

Section Change Reason Category2.2.3A(8) Revised to use new

defined term “Minimum Run Time”

Reflects newly defined term

EMOF

2.5.3(9) Moved to 2.2.3A(13) Moves treatment of special case so it follows the general rule

New Manual Approach

2.5.3(10) Deleted Major parameters already listed later in Manual (2.2.6) and this lists only a few

New Manual Approach

2.2.3A(7) Replace generator offer timing with ref to III.1.10.9

Reflects changes without restating Tariff provision

EMOF


26


2.2.3A(8) Replace refs to max amounts of off-line 10 and 30 minute reserve with CLAIM10 and CLAIM 30Replaced “shall” with “may”

Use of defined term. Offered CLAIM 10/30 doesn’t apply to DARDs;Submission of CLAIM 10/30 not mandatory

Clean-up

Correction

2.5.3(13) Deleted Repeats statements made elsewhere in Manual. Tariff already says there can only be one Supply Offer into DAM

Clean-up

2.2.3A(9) Replace “in the Real-Time Re-Offer Period” with pursuant to III.1.10.9;Add to list of exemptions

Reflects changed Tariff provision without paraphrasing;Reflect prior Tariff revision

EMOF

Correction


27

Section Change Reason Category2.2.3A(10) Replace “may be submitted

into the Real-Time Energy Market” with “is in effect at any given time”

Reflects new concept of “effective offer” Multiple Supply Offers are allowed (sequentially) but only one can be in effect at any time.

EMOF

2.2.3A(11) Revised to include new defined terms; Clarify provisions that apply only to generators; subsection (f) deleted.

New terms from conforming changes to be filed; Subsection (f) restates a former tariff provision on Self-Scheduling. The new provisions are in MR-1 & difficult to restate here.

EMOF


28


2.2.3B(1) &(2) [was 2.5.3(17)

Replaced “Hub, Node, or Load Zone” with “Location” and “block” with “Block”

Block defined in conforming changes.Use of Location avoids need to re-write when LMPs calculated at new locations (e.g. Dispatch Zones in 2017)

EMOF & Clean-up

2.5.3(18) Deleted Restates 2.5.3(16) above New Manual Approach

2.2.3C(1) [was 2.5.3(19)]

Moved from another section and revised subsections to make parallel with an earlier section.


New Manual Approach

2.2.3C(2-8) Requirements for submitting External Transactions moved from another section and revised (see above).


New Manual Approach


29


2.2.3C(9) [was 2.5.3(26)]

Replace $1000 and zero with Energy Offer Cap/Floor

Use of new defined terms EMOF

2.2.3C(10) New location for size limit on External Transactions

Part of Manual M-11 restructuring

New Manual Approach

2.2.3D New section for DR. Moved some provisions here from Market Participant Responsibilities

Part of Manual M-11 restructuring

New Manual Approach

2.5.3(27) Deleted Covered by III.1.10.9 as revised.

EMOF

2.2.4 [was 2.5.4]

Revised to apply to Non-Market Participants only. Up To Congestion limits moved. Energy Offer Cap/Floor

Restructured Manual covers Market Participants in earlier sections.New defined terms.

New Manual Approach & EMOF


30


2.2.5 [was 2.5.5]

Re-titled and revised to Designation of Operating Reserve and Declaration of LEG Status

Reflect deletion/ movement of earlier sections

New Manual Approach

2.5.5 (1) – (4)

Deleted Restates ISO obligations stated elsewhere (II.1.10.1A; III.1.10.8; III.2.5; III.2.7A; III.2.9A; Appendix III.A.; & M-28.

New Manual Approach

2.2.5(1) [was 2.5.5(6)

Revised to focus on Mkt. Part actions and clarify voluntary pumping load reductions treatment

Reflects current approach to Manuals and improves documentation of existing practice

New Manual Approach & Clean-up.


31


2.2.5(3) [was 2.5.5(7)]

Simplified description of LEG process and added changes allowed up to 30 min before hour

Restructuring of M-11 New Manual Approach

2.5.5(8) & (9)

Deleted List of ISO actions provided for in Tariff. Mitigation supposed to be solely in III.A not Manuals

New Manual Approach

2.5.6(4) Deleted As written ISO can choose to do or not do this. These actions are seldom taken & there is no ISO obligation and no Market Participant action.

New Manual Approach


32


2.2.7 [was 2.5.7]

Most deleted Describes software and modeling and repeats Users Guide. Table 2.3 duplicated in M-28. Software descriptions in WEM 101, 201 and 301

New Manual Approach

2.5.8 Deleted Covered in M-28 New Manual Approach

2.5.9 Deleted Subject covered in Tariff and training materials

New Manual Approach

2.2.8 [was 2.5.9.2(1)]

Deleted language focused on ISO internal mechanical processes and software descriptions

WEM 101, 201, 301 all describe software & are more frequently reviewed. Inconsistent with focus on Market Participant actions

New Manual Approach


33


2.2.8(1) & (2)[were 2.5.9.2(2) & (3)]

Replace determinations for following Dispatch Instructions with refs to III.2.4; III.3.2.2; III.2.4. and revise eligibility to set Dispatch Rate and LMP with

Eliminates restatements of tariff provisions

Clean-up

2.2.8(3)[was 2.5.9.2(5)]

First sentence deleted; “Supply Offer” deleted from second sentence

First sentence restates III.2.7A; Applies to all Resources so Supply Offer not appropriate.

Clean-up

2.2.8(4) [was 2.5.9.2(6)]

First sentence deleted;(a) “in which case” and reference to examples deleted “defined” with “described”

In Tariff (III.2.7A);Grammar and refers to examples being deleted.

New Manual Approach


34


2.5.9.3 & 2.5.9.4

Deleted. Examples and illustrations.

Not Market Participant actions. Most addressed in training materials. Infrequently reviewed.

New Manual Approach

2.2.9 [was 2.5.10]

Second sentence and 2.5.10(1) deleted

Reflect deletion of (1). Subsection (1) deleted as overly detailed description of an ISO internal business process. The limitation to corrections within the same hour is unnecessarily restrictive.

Clean-up

2.5.11 Deleted No need for a section consisting entirely of a reference to M-28

New Manual Approach


35


2.5.12 Moved to another section M-11 reorganization New Manual Approach

2.5.12 Deleted Duplicate III.2.6(b), III.2.6(c) & III.7.6.

New Manual Approach

2.2.10.2 [was 2.2.13.2]

Replace language on declaring Eco-Min with reference to III.2.5(c).Replace zero with Energy Offer Floor

Avoids restating Tariff provision.

Apply new defined term. EMOF

2.2.10.2(2) Replace “Resource types” with “generation or External Transaction purchases”

Clarifies reference Clean-up

2.2.10.2(4) Delete last sentence dealing with cancellation

Repeats Tariff provision Clean-up


36


2.2.10.2 (after (4))

Revise language to provide Dispatch Instructions from Emergency-Min to Eco-Min

Reflect software fix that will issue instructions to dispatchable Resources

Clean-up

3 through 5 Deleted Sections 3 and 4 currently “Reserved”; Section 5 focuses on ISO actions/ philosophy all provided for elsewhere

New Manual Approach

6.1 and Exhibit 6.1

Deleted Changes to Self-Scheduling make the chart and introductory language much less useful with move from redeclaring Eco-Min to self-commit/ self dispatch model.

EMOF


37


6.3.1 Deleted Covered by Section 2.5.2 of M-28 and in OP-8 and OP-19

New Manual Approach

6.3.2 [3.1.1]

Delete first paragraph Repeats III.2.6 New Manual Approach

6.3.4 Deleted Better to rely on MR-1 language and Market Participant Responsibilities above than to try to restate self dispatch concept in MR-1 revisions here.

EMOF

Exhibit 6.3 Deleted Does not adequately address Self-Scheduling with revised MR-1. New concept difficult to illustrate with a bar chart.

EMOF


38


6.3.5 [3.1.4]

Replaced “during the Re-Offer Period” with “as provided in Market Rule 1 Section III.1.10.9”

Reflects new offer flexibility for DARDs

EMOF

6.3.6 & 6.3.9

Deleted Restate MR-1 provisions New Manual Approach

6.4 Deleted Covered in Tariff Manual and OPs (III.1.7.17; Op-8; M-36) for 6.4.3 what does “current” mean?

Clean-up

3.2 [was 6.5]

Revised to eliminate details dealt with earlier in this Manual

Avoid repetition in Manual where possible.

Clean-up


39


3.2.1(3) [was 6.5.1(3)]

Submission by DAM deadline replaced with refs to III.1.10.7 & III.1.10.9(c)

Correction and avoid restating Tariff provisions.

Clean-up

6.5.1(4) & (5)

Eliminate details dealt with earlier See above

Covered in the Tariff language cited.

Clean-up

6.5.2 (2) Replace “section titled Ramps” with section number(3) Delete everything after first sentence;(6) Deleted

(2) Clean-up;(3) Eliminates long exposition on something covered in OP-9;(6) All of this is said elsewhere & has nothing to do with ISO review.

Clean-up

Manual M-11 Revisions (35 of 36)

40


6.5.4 [now 3.2.4.2]

Revised table to use defined terms

A few newly defined terms the rest clean-up.

Clean-up

6.5.5 [now 3.2.5]

Replaced list of tasks with generic reference to automated validity and manual verification tests; delete refs to 6.5.7; correct Manual section reference.

Overly detailed and mostly covered in OP-9. Describes specific ISO tasks and software functions not really appropriate for a manual focused on Mkt. Part actions.

New Manual Approach

6.5.6 Deleted No need to cite Tariff provisions here.

Clean-up

6.5.7 Deleted Check-Out in Real-Time covered in OP-9. There is no DA check-out.

New Manual Approach


41


6.5.8 Correct section refs; use defined term Energy Offer Cap; delete sections on Emergency Energy purchases.

Correction; Use of new defined term; EE purchases covered in MR-1 and OP-9.

Clean-up

6.5.9 Deleted Currently “Reserved”. Clean-up

6.5.10 [now 3.2.7]

Security Energy changed to New Brunswick Security Energy

Use of defined term Correction

7 Delete OASIS postings covered by OATT and dealt with in OP-9.

New Manual Approach

8.1 Moved LEG provision to another section and deleted the rest.

All of this is now in the Market Rule and has changed.

EMOF & M-11 Revamp.

Manual M-20 Revisions

42


43


2.5 line 5 [III.13.5.3)

Replace current language with “no later than the deadline for …the first day of the indicated term.”

Current language is not fully consistent with MR-1

Correction

2.6 (Rights & Obligations)

Line 1 (II.13.6.1.1.1), Line 2, Line 12, & Line 19 Delete references to M-11 Section 8

Reflect deletion of Section 8 from M-11

Clean-up

2.6 Line 20 Delete restatement of old MR-1 provision and ref to M-11 Section 8

Restatement no longer correct. Reflect deletion of M-11 Section 8

Correction/ Clean-Up


44


2.7 (Performance Payments & Charges)

Delete references to M-11 Section 8

Reflect deletion of Section 8 from M-11

Clean-up

3.1.1 (DARDs)

Delete “minimum run time” Not needed. Also newly defined term applies only to Generator Assets.

Clean-up


45


46


Throughout Replace “block” with defined term

New defined term in conforming changes

Clean-up

2.2.1 Revise FR Threshold Price submittals to “for each hour”

Reflect hourly offer capability

EMOF

2.2.1.1 Revise to indicate which Supply Offer is used and add a MR-1 reference.

Reflect changes that allow multiple Supply Offer submissions

EMOF

8.1 Delete subsections (1) and (2)

These summarize an allocation that appears again in 8.2.1(3)

Clean-up

M-36 Revision

47


Throughout Replace “block” with defined term

New term added in conforming changes filed.

Clean-up

august 6 , 2014 | nepool markets committee

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