Briefing on 2009-2011 Market Initiatives Release Plan Margaret - - PowerPoint PPT Presentation

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Briefing on 2009-2011 Market Initiatives Release Plan Margaret - - PowerPoint PPT Presentation

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Briefing on 2009-2011 Market Initiatives Release Plan Margaret Miller Senior Market Design and Policy Specialist Janet Morris Director, Program Office ISO Board of Governors Meeting General Session September 10-11, 2009 The ISO existing

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Briefing on 2009-2011 Market Initiatives Release Plan

Margaret Miller Senior Market Design and Policy Specialist Janet Morris Director, Program Office ISO Board of Governors Meeting General Session September 10-11, 2009

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The ISO existing market design should be enhanced with new elements:

! Short timeline from bid to bill ! Standardized and tradable resource adequacy capacity

product

! More demand response participation ! Reserve shortage scarcity pricing mechanism ! Efficient dispatch of generators with forbidden operating

regions

! Explicit financial arbitrage and hedging mechanism

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Planned market enhancements deliver new functionality and provide key market and operational benefits.

! Payment Acceleration

! Reduces credit risk ! Shortens payment timeline

! Standard Capacity Product/ancillary services must offer

  • bligation

! Facilitates contracting and trading of capacity ! Prevents AS withholding from resource adequacy resources

! Proxy Demand Resource

! Increases demand response participation ! Meets FERC regulatory requirements

! Scarcity Pricing

! Provides enhanced price signals triggered during reserve shortages ! Stimulate participation in demand response

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Planned market enhancements deliver new functionality and provide key market and operational benefits.

! Multi-Stage Generator Modeling

! Addresses deferred implementation of real-time enforcement of forbidden operating regions ! Ensures more accurate price signals

! Participating Load

! Provides ability for demand response to schedule demand and bid load curtailments as an integrated bid ! Provide comparable treatment to a generator in the ISO markets

! Convergence Bidding

! Allows all market participants to take a position in real-time to hedge

  • r arbitrage price differences

! Converges prices between day-ahead and real-time

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The market initiatives roadmap process to prioritize future market initiatives is currently underway.

! Ranking process will be completed in September ! Results will feed into corporate strategic planning

process resulting in release planning and implementation post 2011

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Release Plan

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Our release plan derives from the strategic plan, FERC orders, stakeholder input and lessons learned.

The ISO Markets are based on the redesigned platform Up to 1 year

Standard Capacity Product Post Summer Market Enhancements Payment Acceleration Multi-Stage Generating Unit Modeling Participating Load Refinements Scarcity Pricing Convergence Bidding

1-2 years

Proxy Demand Resources Credit System Enhancements

Current

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Based on lessons learned, our release plan reduces risk in implementing major ISO projects.

Under- estimation of full effort Incomplete and changing requirements Resource constraints

  • Conduct full business impact

assessment

  • Review requirements with key vendors
  • Trace business requirements with

tariff

  • Enforce tight governance process
  • Ensure rigorous change management
  • Build committed resource plan
  • Plan longer term with key vendors

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Delivery and deployment phases benefit from the planning investments and other process improvements.

Vendor delivery Adherence to schedule Market participant readiness

  • Contract fixed terms
  • Involve vendor in requirements
  • Complete testing prior to market

simulation

  • Ensure that scope, schedule, budget

and quality measures are met

  • Allow market participants time to design

and test their systems

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The market initiatives release plan results from detailed implementation planning with stakeholders.

09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 10 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov

PA

Dry Run Period

Tariff Filing 6/1

10 Dec 11 Jan 11 Feb

Post-Summer 2009 Winter 2009

Go-Live 11/1

BPM

Tech Specs BPM Draft

Spring 2010 Early 2011

Market Simulation

Go-Live - 9/ 21

Mkt Sim

Go Live – 10/ 1 SIBR API Tech Specs 9/14 SIBR LITE Open 10/ 26 SIBR LITE 8/ 13

Mkt Sim

Tariff Filing 8/ 10 Tech Specs & BPM Drafts 9/28 11/9 – 12/ 11 Go-Live 12/31

Mkt Sim

11/9 – 12/ 11 Tariff Filing November Tech Specs 12/15 Q1 2010

BPM

Feb-March 2010 Go-Live 4/ 1/ 2010 – 10/ 1/ 2010

Mkt Sim

7/1 – 10/3

8/10 – 8/25 Final Proposal 9/30 BOG Approval 12/ 17 FERC Filing & BPM Drafts

Mkt Sim

Go-Live 4/1/ 2010 Final Proposal 8/ 5 BOG Approval 9/ 11 Go Live 4/1/ 2010 Final Proposal 9/ 30 BOG Approval 10/30 Go Live2/ 1/ 2011 Go-Live - 9/10 8/ 17 – 8/28

Mkt Sim

SIBR Lite Go-Live 12/31 External BRS 8/ 12 External BRS 8/ 12

Market Simulation

10/1/ 2010 – 1/31/ 2011 Tech Specs Q2 2010 External BRS November 2009

BPM

Q3 2010 Go-Live 12/31 11/9 – 12/ 11

Mkt Sim

March Tech Specs BPM Draft – 8/ 19 9/ 1 – 9/ 30 BPM Draft 7/ 8 Tech Specs 6/ 26 Go-Live - 9/1 External BRS Q1 2010

BPM

Market Simulation

Wind

Forecasting

SIBR UI Enhancements Simplified Ramping Master File II SIBR Rules 3.10 Standard Capacity Product / AS MOO SIBR Reports / API Multi-Stage Generating Unit Modeling Scarcity Pricing Proxy Demand Resources Convergence Bidding Participating Load Refinements

Schedule may extend based on feedback received Assessing ability to bring in schedule