Market Performance and Planning Forum March 17, 2016 Market - - PowerPoint PPT Presentation

Market Performance and Planning Forum

March 17, 2016

10:00- 10:05 Introduction, Agenda Kristina Osborne 10:05 – 10:20 Sub LAP Area Definition Updates Jim Price 10:20 – 11:30 Market Performance and Quality Update Nan Liu Guillermo Bautista Alderete Amber Motley 11:30 – 12:00 DMM Update – Real-Time Bidding Flexibility Keith Collins 12:00 – 1:00 Lunch 1:00 – 2:00 Release Update Janet Morris 2:00 - 2:30 Policy Update Brad Cooper

Market Performance and Planning Forum Agenda – March 17, 2016

Sub-LAP Areas Update

Jim Price Senior Advisor, Market Development & Analysis

Slide 3

Sub-LAPs are areas within default load aggregation points (LAPs) that group buses with similar grid impacts

• Other than publication of locational marginal prices

(LMPs), Sub-LAPs have two purposes: – Aggregations of demand response and distributed energy resources must be within Sub-LAPs. – Sub-LAPs allow more precise reflection of congestion costs for congestion revenue rights (CRRs) than default LAPs, and allow additional CRRs to be awarded when congestion limits awards to default LAPs.

• Tariff does not list Sub-LAPs, or prescribe how

boundaries of Sub-LAPs are determined.

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Existing Sub-LAPs were identified when current market design was implemented and are outdated

• Existing boundaries were based on Reliability Must-Run

(RMR) study areas, discussion with transmission planners, and preliminary “LMP Study” results.

• Now, ISO relies less on RMR resources, and has

resource adequacy (RA) requirements including local capacity areas.

• Basing Sub-LAP boundaries on RA local areas will allow

demand response to qualify as local RA resources. – Operations concerns lead also to reflection of some RA sub-areas in defining some Sub-LAPs.

• Several Sub-LAP boundaries shift slightly to reflect RA

areas, and some can be merged.

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CRRs will be re-mapped to revised Sub-LAP areas

Current Sub-LAP New Sub-LAP Current Sub-LAP New Sub-LAP

SLAP_PGCC SLAP_PGNP SLAP_SCEC SLAP_SCEC SLAP_PGEB SLAP_PGEB SLAP_SCEN SLAP_SCEN SLAP_PGF1 SLAP_PGF1 SLAP_SCEW SLAP_SCEW SLAP_PGFG SLAP_PGFG SLAP_SCHD SLAP_SCHD SLAP_PGHB SLAP_PGHB SLAP_SCLD SLAP_SCLD SLAP_PGLP SLAP_PGZP SLAP_SCNW SLAP_SCNW SLAP_PGKN (New) SLAP_SDG1 SLAP_SDG1 SLAP_PGNB SLAP_PGNB Not defined SLAP_VEA SLAP_PGNC SLAP_PGNC SLAP_PGNV SLAP_PGNP SLAP_PGP2 SLAP_PGP2 SLAP_PGSA SLAP_PGSI SLAP_PGSB SLAP_PGSB SLAP_PGSF SLAP_PGSF SLAP_PGSI SLAP_PGSI SLAP_PGSN SLAP_PGNP SLAP_PGST SLAP_PGST

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Market Performance and Quality Update

Nan Liu Manager, Market Development and Analysis Guillermo Bautista Alderete, Ph.D. Manager, Market Validation and Quality Analysis Amber Motley Manager, Short Term Forecasting

Slide 7

Page 8

DA regulation up procurement and price.

5 10 15 20 25 100 200 300 400 500 600 700 800

1-Jan 3-Jan 5-Jan 7-Jan 9-Jan 11-Jan 13-Jan 15-Jan 17-Jan 19-Jan 21-Jan 23-Jan 25-Jan 27-Jan 29-Jan 31-Jan 2-Feb 4-Feb 6-Feb 8-Feb 10-Feb 12-Feb 14-Feb 16-Feb 18-Feb 20-Feb 22-Feb 24-Feb 26-Feb 28-Feb Regulation Price ($/MW) Regulation Cleared (MW) Average of Regulation Cleared (MW) Average of Regulation Price ($/MW)

Page 9

DA price higher than RT prices in February.

Page 10

Good price convergence at Malin across day ahead and real- time markets in January.

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Good price convergence at Palo Verde across day ahead and real-time markets in February.

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RT prices lower than DA prices in February for both NP 15 and SP 15.

RTD prices FMM prices

Page 13

Insufficient upward ramping capacity in ISO remained low in 2016.

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Insufficient downward ramping capacity declined since Last December.

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Congestion revenue rights market revenue inadequacy without including auction revenues

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Congestion revenue rights market revenue inadequacy including auction revenues

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Exceptional dispatch volume in the ISO area remained at low level in January and February.

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Daily exceptional dispatches by reason

Page 19

Bid cost recovery continued to drop since last November.

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Bid cost recovery (BCR) by Local Capacity Requirement area

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Minimum online commitment (MOC)

Page 22

Pmax of MOC Cleared Units

Page 23

Binding minimum online commitments in January and February

MOC Name Number (frequency) of binding hours in January and February Humboldt 7110 1024 MOC PEASE 528 SCIT MOC 102 Orange County 7630 69

Daily RA and Non-RA MOC for January and February 2016

Page 24

Page 25

Day-Ahead solar scheduled outputs improved in January

Page 26

IFM under-scheduling of wind generation in January and February

Page 27

Renewable (VERS) schedules and forecast in January and February

http://www.caiso.com/Pages/documentsbygroup.aspx?GroupID=EFF75C 2E-F28E-4087-B88B-8DFFAED828F8

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Monthly renewable (VERS) curtailment rose in February

Page 29

Hourly distribution of maximum renewable (VERS) curtailment in February

Monthly renewable (VERS) bid range trended upward in real-time

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Solar Wind

Monthly wind (VERS) downward flexibility in FMM

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Monthly solar (VERS) downward flexibility in FMM

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Monthly solar (VERS) downward flexibility in FMM from 11 AM to 5 PM

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ISO area RTCO and RTIEO to trend low in February

2015 2016 (YTD) RTCO $54,222,964 $11,310,028 RTIEO $14,251,082

• $507,141

Total Offset $68,474,046 $10,802,887

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Price correction events reduced in February.

1 2 3 4 5 6 7 8 9 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16

Count of Events

Process Events Software Events Data Error Events Tariff Inconsistency

EIM Price trends

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5-minute PACW Aggregate Price

5-minute PACE Aggregate Price

15-minute PACW Aggregate Price 15-minute PACE Aggregate Price

Power balance constraint infeasibilities in Nevada area have been minimal

Page 37 Last updated: March 15, 2016

Nevada prices since December 2015

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FMM Average Prices RTD Average Prices

Transfers among balancing authority areas

Page 39 Last updated: March 15, 2016

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About EIM transfers Transfers are optimized in both FMM and RTD markets.

• Transfers are tagged separately and permit each

directional transfer to be matched to a e-tag.

• Inter-tie schedules have ramp profiles and transfers

does not always change instantaneously.

• With this logic, some intervals may reflect transfers

in both directions during the transitioning periods.

• Transfers in both directions are posted on OASIS

separately, but within the market optimization the final transfer reflects only one resultant direction.

Day-ahead load forecast

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015 2016

MAPE

Day-ahead peak to peak forecast accuracy

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015 2016

MAPE

Day-ahead wind forecast

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015 2016

MAE

Day-ahead solar forecast

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015 2016

MAE

Real-time wind forecast

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015 2016

MAE

Real-time solar forecast

0% 1% 2% 3% 4% 5% 6% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015 2016

MAE

Real-time bidding flexibility

Keith Collins Manager, Department of Market Monitoring

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• Highlights real-time bidding flexibility from DMM’s upcoming

2015 annual report – Analysis focuses on real-time bidding of incremental energy in the ISO balancing area in 2015 – Breaks down economic bids versus self-schedules by generation type

• Our analysis shows that about one-third of generation bids

into the real-time market economically. – Only natural gas bids in more than 50 percent of their generation into the real-time market. – The most inflexible resources are nuclear and imports.

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Overview

Natural gas resources in real time bid 87 percent of their incremental energy into the market in 2015, whereas imports only bid in only 8 percent.

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87% 42% 42% 26% 20% 8% 8% 1% 0% 20% 40% 60% 80% 100% 2,000 4,000 6,000 8,000 10,000 Percent of economic bids Average hourly MW No economic downward flexibilty Economic downward flexibility Percent economic

In 2015, about 57 percent of average load was met by resources that did not provide real-time economic energy bids.

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5,000 10,000 15,000 20,000 25,000 30,000 35,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Average MW Hour Geothermal Natural gas Hydro Other Wind Solar Nuclear Imports

• Avg. load

Almost 80 percent of the self-scheduled capacity in real time in 2015 was from imports, nuclear, solar and wind generation.

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0% 20% 40% 60% 80% 100% 120% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Average percent of MW without economic bid Hour Geothermal Natural gas Hydro Other Wind Solar Nuclear Imports

When renewable generation bid into the ISO real-time market, almost all of the bids were at negative prices.

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• 1,000
• 500

500 1,000 1,500 2,000 2,500 3,000 3,500 below -$50

• $50 to -$25
• $25 to $0

$0 to $25 $25 to $50 above $50 Average hourly MW Natural gas Hydro Geothermal Wind Solar Other

About 1.2 percent of solar generation and 0.2 percent

• f wind generation was curtailed in 2015. Almost all of

these curtailments were economically based.

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Economic downward dispatch Non-economic curtailment Total curtailment Economic downward dispatch Non-economic curtailment Total curtailment Jan 1.1% 0.0% 1.1% 0.1% 0.0% 0.1% Feb 1.5% 0.0% 1.5% 0.3% 0.0% 0.3% Mar 2.0% 0.1% 2.1% 0.3% 0.1% 0.3% Apr 2.0% 0.1% 2.1% 0.4% 0.1% 0.5% May 3.2% 0.2% 3.4% 0.2% 0.1% 0.3% Jun 0.8% 0.0% 0.8% 0.1% 0.1% 0.2% Jul 0.4% 0.0% 0.5% 0.2% 0.0% 0.2% Aug 0.6% 0.1% 0.6% 0.0% 0.0% 0.1% Sept 0.3% 0.0% 0.3% 0.1% 0.0% 0.1% Oct 0.4% 0.0% 0.4% 0.0% 0.0% 0.0% Nov 1.2% 0.0% 1.3% 0.2% 0.0% 0.2% Dec 1.1% 0.1% 1.2% 0.1% 0.1% 0.1% Month Wind Solar

Solar generation complied with decremental dispatch signals 94 percent of the time in 2015.

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0% 20% 40% 60% 80% 100% 10 20 30 40 50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Percent GWh Complied Generation (GWh) Noncomplied decremental dispatch instruction Complied decremental dispatch instruction Complied percent

Wind generation complied with decremental dispatch signals only 38 percent of the time in 2015.

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0% 20% 40% 60% 80% 100% 1 2 3 4 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Percent GWh Complied Generation (GWh) Noncomplied decremental dispatch instruction Complied decremental dispatch instruction Complied percent

Release Plan Update Janet Morris Director, Program Office

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Release Plan 2016

Early release 2016

• Capacity Procurement Mechanism Replacement
• Reliability Services Initiative
• Commitment Cost Enhancements Phase 2 (remainder)
• Post Implementation OMS Enhancements

2016

• Application Identity Management (AIM) Enhancements
• Expanding Metering and Telemetry Options Phase 2
• Demand Response Registration Enhancements
• RIMS Functional Enhancements
• Year 1 Enhancements 2015 - Available Balancing Capacity
• Bidding Rules Enhancements – Part A

Fall 2016

• BAL-003 Compliance
• Flexible Ramping Product
• BCR modifications and VER settlement
• RTD Local Market Power Mitigation (LMPM) Enhancements
• Bidding Rules Enhancements – Part B
• Acceptable Use Policy - CMRI
• OMAR Replacement
• PIRP System Application Decommissioning
• Post Implementation OMS Enhancement
• Energy Imbalance Market (EIM) Year 1 Enhancements Phase 2
• Energy Imbalance Market (EIM) 2016 Arizona Public Service (APS)
• Energy Imbalance Market (EIM) 2016 Puget Sound Energy (PSE)

Subject to further release planning:

• Reliability Services Initiative Phase 1B
• Commitment Cost Enhancement Phase 3
• Stepped Constraints
• Energy Storage and Distributed Energy Resources (ESDER)
• ADS User Interface Replacement
• Reactive Power Requirements and Financial Compensation
• Contingency Modeling Enhancements

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Early 2016 Release Market Simulation

Market Simulation Dates – RSI, CPM, Commitment Costs Phase 2, and OMS Enhancements 3/15– 4/20: Session 2 (Unstructured and Structured E2E) updated 2/16 – 4/20: OMS Enhancements (Unstructured) updated Link to Early 2016 Release Market Simulation Plan - http://www.caiso.com/Documents/MarketSimulationPlanEarly2016Release.pdf

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Early 2016 Settlements Release

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ISSUE SUMMARY BPM IMPACTED New and updated BPM Configuration guides in support of the Capacity Procurement Mechanism (CPM) Replacement Initiative PRR# 884 (CC 6460, CC 6470, CC 6482, CC 6488, CC 7891, CC 7896, CG PC MD TAC Area and CPM ) New and updated BPM Configuration guides for assessing resources with RA capacity in support of the Phase 1 of the Reliability Services Initiative PRR# 885 (CC 4515, CC 4999, CC 6011, CC 6455, CC 8830, CC 8831, CC 8835, CG PC IFM Net Amount, CG PC Metered Energy Adjustment Factor, CG PC MSS Netting, CG PC RA Availability Incentive Mechanism, CG PC RTM Net Amount, CG PC RUC Net Amount, CG PC Start-Up and Minimum Load Cost ) Terminated BPM Configuration guides in support of implementation of the Capacity Procurement Mechanism Replacement and Reliability Services Initiatives PRR 886: ( CC 7872, CC 7873, CC 7874, CC 7875, CC 7876, CC 7877, CC 7880, CC 7881, CC 7882, CC 7883, CC 7884, CC 7885, CC 7886, CC 7887, CC 8820, CC 8821, CC 8824, CC 8825, CC 8826, CC 8827, CG PC Standard Capacity Product )

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Milestone Date Status Configuration Guides Posted December 8, 2015 FIRST DRAFT Configuration Output File Posted December 14, 2015 MAP Stage Deployment January 13, 2016 SECOND DRAFT Configuration Output File Posted January 14, 2016 Market Simulation: Trade Dates to be Posted Calendar dates of Posting March 8 – April 7, 2016 March 14 – April 14, 2016 Pre-Production Configuration Output File Posted April 11, 2016 Production Deployment April 25, 2016 FINAL Configuration Output File Posted April 25, 2016

Early 2016 Settlements Release

Early 2016 – Capacity Procurement Mechanism Replacement (CPM)

Project Info Details/Date Application Software Changes

Competitive Solicitation Process (CSP): CSP replaces the existing administrative price process for annual, monthly and intra-monthly CPM events for flexible and generic RA capacity. CSP will cover all events that allow the ISO to procure additional capacity. CIRA: − Bid Submittal system for SCs to submit capacity bids (not an existing bid type) − Capacity bids to implement new validation rules (not an existing bid type) − Capacity Bid submittal to be on a yearly, monthly, and intra-monthly level − LSE/LRA deficiency calculation to be performed for CSP for Generic and Flexible RA data − Existing CPM calculation to be deprecated for trade dates after the effective date of implementation. − Manage import allocation and bilateral trades of import allocation Settlements: Settlements will need new CPM formulas that will result in charge code impacts. Reporting: If an annual or monthly CPM occurs greater than two times (over a rolling 24 month period) or more than 50% of the LSE’s RA requirement is CPMed, a report must be given to Market Participants. OASIS: − Publish all finalized offers into the competitive solicitation process on a rolling five-quarter delay. (Deferred)

Business Process Changes

− Solicitation for soft offer cap. Timeline for submittal needs to be defined. − Submittal process for annual/monthly CPM bid submittal − New business process for amount of capacity being relied on (non-RA from partial RA) − New process for Competitive Solicitation Process (annual/month/intra-monthly)

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Milestone Details/Date Status BPM Changes

Reliability Requirements – PRR issued 11/4/15 Market Instruments – issue PRR 1/8/16

• Billing & Settlements – PRR issued 1/11/16

Business Process Changes

− Solicitation for soft offer cap. Timeline for submittal needs to be defined. − Submittal process for annual/monthly CPM bid submittal − New business process for amount of capacity being relied on (non-RA from partial RA) − New process for Competitive Solicitation Process (annual/month/intra-monthly)

Board Approval

February 5, 2015

External BRS

March 31, 2015

Tariff

Filed: May 26, 2015 FERC Approved: October 1, 2015

Technical Specifications

CIRA Session 1  Fall 2016, MPs will use UIs OASIS Session 2  Fall 2016

Draft Configuration Guides

November 23, 2015 Session 2

External Training

October 21, 2015: Session 1 – Onsite w/Webinar, Full Day (combined w/ CPG Call)

• Training Materials – posted SP & RP page on 10/19

January 6, 2016: Session 2 - Onsite w/ Webinar option, Full Day

• Training Materials – post 1/5

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Early 2016 – Capacity Procurement Mechanism Replacement (cont.)

Milestone Details/Date Status Market Simulation

November 9 – December 17, 2015: Session 1, Structured

• Scenarios –posted on Release Planning Page on 7/30/15
• Scenarios w/timeline – posted on RP page on 10/19
• CIRA User Guide – posted on RP page on 11/24

March 14– April 20, 2016: Session 2

• Structured Scenarios: 3/16 – 3/24; 4/5 – 4/8 (New)
• Unstructured Scenarios: 3/14 – 3/15; 3/28 – 4/1; 4/11 - 4/20 (New)
• Post Structured Scenarios
• SIBR Rules, Release Notes, Specs posted – 12/11
• CIRA User Guide – 1/18
• 3-Day Onsite Market Simulation (Attendance Optional) 4/5 – 4/8 (New)

Production Activation

1/19/2016: Session 1 4/21/2016: Session 2 5/1/2016: Effective Date

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Early 2016 – Capacity Procurement Mechanism Replacement (cont.)

Project Info Details/Date

Application Software Changes

CIRA: − Manage new NQC/EFC process request for resource types. This will impact both internal users and Market Participants − Manage Import Allocation (CPM Replacement initiative is covering this scope but is needed for this initiative) − Manage RA obligation (taking into consideration substitution capacity and replacement capacity as RA capacity) will impact RA, Settlements, market, and outage. The output of CSP will be needed − Publish RA Obligations externally − Display Comparative snapshot of DA/RT obligation (outages, energy bids, RA

• bligation). Display input of RAAIM calculations

− Display SCP and CPM availability calculation output for historic trade dates − Creation of substitution rules for flexible resource adequacy resources − Modify existing DA/RT generic substitution rules − DA substitution timeframe shall change from 6 AM to 8 AM − Enable the release of substitute capacity for generic and flexible resources − Allow imports to substitute for other imports and CAISO system resources. The RA obligation will be at a daily level − Use result of Pre-qualification analysis (the pre-qualification analysis is a manual process) for real time substitution validation − API for substitution and release functionality − Enable Generic CPM substitutions − Enable Flexible CPM substitutions − Build Submit & Retrieve APIs to support Substitutions (4 types) and release of sub capacity − Substitution will now be in CIRA − Addition of RAAIM exempt and planned outage exemption flag − Allow the outage correction process to exempt outage from RAAIM calculations up to 5 business days OMS: − Add 5 nature of work attributes and various validations − Remove SCP Exempt flag from display Page 64

Early 2016 – Reliability Services Initiative (RSI) – 1A

Project Info Details/Date Status Application Software Changes

Masterfile: − Will store Use Limit Plan. There will be a new template (ULPDT – Use Limit Plan Data Template) RAAM: − Decommission RAAM Settlements:

• RAAIM (RA Availability Incentive Mechanism) NEW – replaces SCP for backstop.

Current SCP will retire with implementation of RAAIM. Will assess whether generic and flexible RA resources comply with MOO and better captures use limited resource availability.

• New charge code changes are needed for implementation of the RA

Reporting:

• Report on the effectiveness of the RAAIM results (1 year after implementation)

(Deferred) Other:

• Modification of Use Plan with new validation rules
• LSE cost allocation methodology needs to automated.
• Publish list of all available prequalification combinations

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Early 2016 – Reliability Services Initiative (cont) -1A

Milestone Details/Date Status BPM Changes Reliability Requirements - issued PRR #888 on 1/12/16 Outage Management - issued PRR #889 on 1/12/16 Billing & Settlements - issued PRR on 1/11/16 Business Process Changes − Process to assign NQC values to NGR/PDR/DG resources − Process for PDR/NGR/DG testing − Process for RA Availability Incentive Mechanism (RAAIM). Must retire SCP business process flows. − Modify DA/Real Time Substitution Process − Process for allocating year end unallocated RA Availability Incentive Mechanism (RAAIM) funds Board Approval March 26, 2015 External BRS March 31, 2015 Tariff Filed: May 28, 2015 FERC Approved: October 1, 2015 Technical Specifications CIRA Session 2  Fall 2016, MPs will use UIs Masterfile Session 2

• posted tech spec 9/24 on Release Planning Page
• posted ULDT 9/11 to RP page
• posted ULR documentation/ sample templates to RP page on 12/4

OMS Session 2

• posted tech spec 12/2

Draft Configuration Guides November 23, 2015 Session 2

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Early 2016 – Reliability Services Initiative (cont) – 1A

Milestone

Details/Date

Status

External Training October 21, 2015: Session 1- Onsite w/Webinar, Full Day (combined w/ CPG Call)

• Training Materials – post 10/19
• NQC Template – posted RP page on 10/19

January 6, 2016: Session 2 – Onsite w/ optional Webinar, Full Day

• Training Materials – post 1/5

Market Simulation November 9 – December 17, 2015: Session 1

• Scenarios – posted on Release Planning page on 7/30/15
• Scenarios w/timeline – posted on RP page on 10/19
• CIRA User Guide – posted 11/24

March 14 – April 20, 2016: Session 2

• Structured Scenarios: 3/16 – 3/24; 4/5 – 4/8 (New)
• Unstructured Scenarios: 3/14 - 3/15; 3/28 - 4/1; 4/11 – 4/20 (New)
• Post Structured scenarios on Release Planning page
• MF/OMS Market Sim inputs: 1/19 – 3/16 (Updated)
• MF UI User Guide – 1/6
• OMS User Guide – embedded in application
• CIRA User Guide – 1/18
• 3-Day Onsite Market Simulation (Attendance Optional) 4/5 – 4/7 (New)

Production Activation 1/19/2016: Session 1 4/21/2016: Session 2 5/1/2016: Effective Date

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Early 2016 – Reliability Services Initiative (cont) – 1A

Important Announcements: – The California ISO CIRA system will be opened for unstructured testing in MAP Stage on 3/14 . – The Early 2016 Release market simulation for structured scenarios will start 3/16. – On-site Market Simulation is scheduled for 4/5 – 4/7. – The ULPDT is scheduled to go to Production in mid- March.

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Early 2016 – CPM & RSI Announcements

Market Simulation, Session 2: RSI/CPM/CCE2 Information: – Session 2 Market Sim delayed

• Structured scenario testing - 3/16 – 3/24, 4/5 – 4/8
• Unstructured scenarios testing– 3/14 - 3/15; 3/28 – 4/1; 4/11 – 4/20

– Structured Scenario schedule.

• Week 1 - RA Substitution (1B): 3/16 – 3/18
• Week 2 - RAAIM Incentive, Penalty, Exemption (2B, 3B, 4B): 3/22 – 3/24
• Week 4 - CPM Payments & Supplemental Revenue (6B, 7B, 8B) & Onsite Market Sim: 4/5

– 4/7 – Submission of OMS outages and ULPDT in preparation of Market Simulation is as follows:

• OMS Outage submission – to start “ongoing”. MPs need to submit new outages based on

new start date of Market simulation. The requirement to submit outages at least 7 business days prior to the start of the outage will be reduced to 2 business days for market simulation.

• ULPDT submission – to start “ongoing”. If you have already issued your template, there is

no need to re-upload due to delay in go live. The requirement to upload the template at least five business days prior to the effective start date of the use limitation will be deactivated for market simulation.

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Early 2016 – CPM & RSI Market Simulation

Use Limited Plan Data Template (ULPDT) Timeline: Postponed Market Notice to be posted: – The California ISO has delayed the go-live date of Use Limit Plan Data Template ( ULPDT) in the Production Master File application. Scheduling coordinators (SC) for use-limited resources are asked to wait until further notice before submitting supporting documentation via the customer inquiry dispute and information tool (CIDI).

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Early 2016 – CPM & RSI Announcements

3-Day Onsite Market Simulation, Session 2 April 5 – 7, 2016 The ISO will hold an OPTIONAL onsite market simulation for market participants in addition to the already scheduled market simulation session. Information : – Schedule for onsite market simulation for Session 2: 4/5 – 4/7 – Onsite Session will be during testing of Week 3 structured scenario testing – Mini-monthly Settlements statements are not available during the onsite market simulation, but are available for the 3-week offsite session – MPs need to bring their own laptops, because they have their certifications on them. – Please RSVP to the RR mailbox (reliabilityrequirements@caiso.com)

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Early 2016 – CPM & RSI Onsite Market Simulation

Early 2016 – Commitment Costs Phase 2

Milestone Details/Date Status Application Software Changes For the Early Jan 2016 release, the project will

• Clarify definition, qualifications, and requirements for use-limited resources
• Implementation of the use limited definition (No longer applicable)
• Implement revised must-offer rules
• Impacted Systems:
• MF
• SIBR

CCE2 Early 2016 release implementation will be coordinated as part of the Reliability Services Initiative (RSI) project

Board Approval

• Yes. March 26-27, 2015

Tariff Filed: May 28, 2015 Approved in Part: September 9, 2015

(FERC rejected the proposed revisions to the definition of “use limited resources”, but approved all other tariff revisions.)

BPM Changes Market Operations (Use Plan) – issued PRR #887 on 1/11/16 Business Process Changes No External Business Requirements November 24, 2015 Technical Specifications No External Training

January 6, 2016: Session 2 – Onsite w/ optional Webinar, Full Day

• Training Materials – post 1/5

Draft Configuration Guides No Market Simulation

3/16 – 3/24; 4/5 – 4/7: Session 2 (Updated)

Production Activation Deployment Target - 4/21/2016 Effective Date – 5/1/2016

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Early 2016 – Post Implementation OMS Enhancements

Project Info Details/Date Application Software Changes OMS Enhancements project will implement the following functionalities:

• Transmission Outage Report Enhancements
• Manage Broadcast Status Update (deferred until Fall 2016)
• Manage RetrieveResourceOutage API - add Invalid and Inconsistent

flags

• The API will be backwards compatible. OMS will support both V1

and V2 of B2B submit and retrieve outage API. The same applies to the transmission outage API as well.

• System change to validate the "ChangeThreshold" only at time of

submission of a change request, and allow change request to be accepted or rejected at any time. The project is also addressing the backlog of known issues. Other roadmap items (Substitutions, Additional Natures of Work, and Removal of SCP exempt flag/Inclusion of RAAIM exempt flag) will be part of the Reliability Services Initiative (RSI) project. The implementation will impact the following systems:

• Outage Management System (OMS)
• Market Systems (IFM/RTN)
• EMS
• CIRA
• Settlements

External Training

TBD

SLIC Decommissioning

Disable external SLIC API and UI access: January 15, 2016

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Early 2016 – OMS Enhancements (Continued)

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OMS Enhancements Market Sim Target Date Production Target Date Broadcast Status Updates Deferred scope Deferred scope Transmission Outage Report N/A April 20, 2016 Resource Outage API Updates (Inconsistent/Invalid flags & New Natures of Work – RIMS_OUTAGE, RIMS_TESTING) Note: V1 and V2 will be supported Already in map stage March 23, 2016 Transmission Outage API Updates (New Natures of Work - RIMS_OUTAGE, RIMS_TESTING, New PSR Type – SYNCHRONOUS_MACHINE and multiple instances of Adjusted Operational Limit per equipment) Note: V1 and V2 will be supported April 6, 2016 May 18, 2016 (CIDI 169719): Validation of change threshold only at the time of submission N/A March 23, 2016 Ability to open “Notes” boxes to full size window N/A April 20, 2016 Additional server side filtering to warning summary N/A March 23, 2016 Rules engine updates to allow for auto-approval of certain types of

• utages

N/A May 18, 2016 Removal of search date range limitation on Outage summary N/A March 23, 2016 Market Impact Updates Deferred scope Deferred scope Maximum Curtailment Generation Report N/A April 20, 2016

Early 2016 – OMS Enhancements (Continued)

Page 75

Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs Publish Final Business Practice Manuals N/A External BRS External Business Requirements Jun 12, 2015  Tariff Tariff N/A Config Guides Config Guide N/A Tech Spec Create ISO Interface Spec (Tech spec) N/A Market Sim Market Sim Window Feb 16, 2016 - Mar 07, 2016 Production Activation Post Implementation OMS Enhancements Mar 23, 2016

2016 – Application Identity Management (AIM) Enhancements

Page 76

Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs BPMs N/A External BRS External BRS N/A Tariff Tariff N/A Config Guides Config Guide N/A Tech Spec Tech Spec N/A Production Activation AIM 2015 Enhancements Mar 17, 2016

2016 – Expanding Metering and Telemetry Options Phase 2

Milestone Details/Date Status

Application Software Changes Distributed Energy Resource Provider (DERP) Agreement: 1. General functions of the DERP,

• Offer Energy and AS: aggregated resources in Sub-Lap
• Provide ISO with accurate Information
• Responsible for operating and maintain DER

2. Specify data concentrator functionality for real time monitoring, control and after the fact metering data

• disaggregate ISO signals to sub-resources; obtain a resource response
• aggregate sub-resource operational and settlement meter data within a sub-Lap

3. Define the provision of technical and operational information to the ISO,

• metering and communications requirements,
• submission of economic bids and self-schedules and
• provision of ancillary services

4. Identify responsibility for fulfilling the terms of the agreement

• penalties and sanctions, cost responsibility, dispute resolution, representations and

warranties, liability, uncontrollable forces and other miscellaneous terms BPM Changes Metering, Direct Telemetry Revised straw proposal May 12, 2015

Draft final proposal June 10, 2015 Board Approval July 16, 2015 External Business Requirements N/A Updated BPMs February 25, 2016, submitted PRR 892 Technical Specifications N/A Draft Configuration Guides N/A Tariff filing March 4, 2016 Production Activation N/A

Page 77

2016 – Demand Response Registration Enhancements

Project Info Details/Date Application Software Changes Enhance Demand Response Registration functionality and processes Develop new registration user interface for DRRS Develop new APIs for support of enhanced registration processes

• CPG meeting (tech spec review) on March 22, 2016

BPM Changes Metering; Settlements & Billing Business Process Changes Automation of internal registration-related processes User Training TBD

Page 78

Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs Publish Final Business Practice Manuals (Metering; Settlements & Billing) Apr 18, 2016 Draft BPM changes (Metering; Settlements & Billing) Apr 06, 2016 Post Draft BPM changes (Metering; Settlements & Billing) Apr 07, 2016 External BRS External BRS - Enabling Demand Response Phase 2

• Registration

Jun 04, 2015  Tariff Tariff N/A Config Guides Config Guide N/A Market Sim Market Sim Window Apr 21, 2016 - May 11, 2016 Production Activation Post-Mrkt Consol - DRRS Phase 2 - Reg May 26, 2016

2016 – RIMS Functional Enhancements

Project Info Details/Date Status

Application Software Changes Functional enhancements resulting from the Customer Partnership Group CPG. More details to be provided in the future. BPM Changes Generator Interconnection and Deliverability Allocation Procedures Generator Interconnection Procedures Managing Full Network Model Metering Generator Management Transmission Planning Process Customer Partnership Group 10/16/15 Application and Study Webinar 3/31/16

Page 79

Milestone Type Milestone Name Dates Status

Board Approval Board approval not reqiured N/A BPMs No BPMs required N/A External BRS External BRS not Required N/A Tariff No Tariff Required N/A Config Guides Configuration Guides not required N/A Tech Spec No Tech Specifications Required N/A Production Activation RIMS5 App & Study Mar 21, 2016 RIMS5 Generation, Transmission and QM Jul 29, 2016

2016 – Year 1 Enhancements 2015 - Available Balancing Capacity

Milestone Details/Date Status

Application Software Changes SIBR: EIM Participating Resources to include their assigned Regulation capacity in their Energy Bids submitted to the EIM. RTM:

• The market will not dispatch this capacity, unless it is required to resolve a power

balance infeasibility in an EIM BAA.

• Formulate the solution so that the energy from the Regulation dispatch is consumed

within the BAA and does not exit through the EIM Transfer;

• Regulation should only be dispatched to the extent necessary to resolve power

balance infeasibility; it should not be used to displace other capacity made available in the BAA for EIM participation.

• If the infeasibility persists after dispatching all available Regulation, the price will be

set at the applicable administrative price. Board Approval N/A Tariff Approved on December 17, 2015. ISO requested waiver to go-live no later than March 1, 2016. http://www.caiso.com/Documents/Dec17_2015_OrderAcceptingComplia nceFiling_AvailableBalancingCapacity_ER15-861-006.pdf BPM Changes PRR posted February 1, 2016 Business Process Changes N/A External Business Requirements Please see Draft EIM BPM changes. Technical Specifications N/A External Training N/A Draft Configuration Guides Implemented with Year 1 Enhancements Fall 2015 Release Market Simulation N/A Production Activation March 23, 2016

Page 80

2016 – Bidding Rules Enhancements – Part A

Project Info Details/Date

Application Software Changes

Bidding Rules Enhancement Part A will correct a structural inefficiency by combining consideration of energy and commitment cost bidding rules to refine and improve alignment between rules. Market Participants will receive the following enhancements to the existing Minimum Load Cost (MLC) bid process:

• Improve cost bidding flexibility to consider resource operating costs and characteristics
• All the market participants to reflect actual costs through increased bid flexibility
• Reduce inefficient market outcomes by inappropriate changed bid prices
• Resolve market inefficiency caused by rerating the MLC where the ISO is committing less

economic resources DAM/RTM: Updated minimum load cost (MLC) calculations will include:

• Calculate the actual Minimum Load Costs (MLC) based on the heat rate of the

resource using a DEB integration method

• Incremental DEB costs are added to the master file minimum load costs at the re-

rated Pmin level

• Support hourly MLC in optimization engine
• Support rules for handling multiple Pmin rerates within same hour.
• Also applies to MSG resources per configuration

BPM Changes Market Operations

Page 81

Milestone Type Milestone Name Dates Status

Board Approval Board of Governors (BOG) approval Feb 04, 2016



External BRS External Business Requirements Feb 22, 2016



Post External BRS Feb 23, 2016



Tariff File Tariff Mar 18, 2016 Config Guides Complete ClearTrust Configuration document TBD Market Sim Market Sim Window N/A Production Activation Bidding Rules Part A May 18, 2016

Page 82

Project Info Details/Date

Application Software Changes

• To procure transferred frequency response from external BAs through a

competitive solicitation process

• Allocate the cost of TFR to metered demand: new charge code
• Require generators to manage their plants consistent with NERC published

reliability guidelines for primary frequency control

• Require generators to provide governor control and plant level control

system data to the ISO, including Droop Setting, Deadband, frequency responsive maximum output level, Plant-level distributed control systems(DCS) with frequency bias term (Y/N), level temperature loop controls(@what output and/or temperature; Y/N)

• Increase market transparency of the ISO’s frequency response performance

through its Monthly Market Performances Reports

• Clarify the authority of ISO to designate any reserve as contingency only

reserve regardless of resource’s election

Fall 2016 – BAL-003 Compliance

Milestone Name Dates Status

Board Approval BOG Approval Mar 25, 2016 BPMs Publish Final Business Practice Manuals TBD

Milestone Type

External Business Requirements Mar 31, 2016 Tariff File Tariff TBD Receive FERC order TBD Config Guides Draft Configuration Guides TBD Tech Spec Create ISO Interface Spec (Tech spec) N/A Market Sim Market Sim Window TBD Production Activation BAL- 003 Frequency Response Oct 01, 2016

Fall 2016 – Flexible Ramping Product

System Description Master File

• EIM transfer limit congestion treatment:
• Define ISL/ITC for multiple ETSR scheduling limits
• Define ISL/ITC for EIM BAA to support FMM
• Remove GHG bid CAP from MF, always use ECIC/RLC

IFM/RTM

• EIM transfer limit congestion treatment
• EIM transfer congestion component by BAA share
• EIM transfer limit subject to LMPM
• Allow multiple ETSR limits in ISL/ITC constraint
• Enforce ISL for EIM BAA by intertie

BSAP

• EIM entity shall submit base schedule of include approved, pending and adjusted

e-tags

CMRI

• Publish GHG bid Cap (CMRI)
• Publish after fact EIM interchange schedules

OASIS

• Publishing by type of constraints, include EIM Transfer Constraints, HVDC, and
• ther constraints.
• Allow API for GHG bid
• Publish base NSI for EIM BAA along with Base schedule test results at T-75, T-55

and T-40

ADS

 ADS instructions shall reflect FRU and FRD ramping awards (separately) in DOTs/DOPs to confirm flexible ramping awards in both binding and advisory intervals (for both generator and interties resource types).  Additionally, ADS shall present/indicate binding FMM interval instructions for intertie schedules/awards (for all product types inclusive of Energy, Flex Ramp Up, Flex Ramp Down). Page 83

Fall 2016 – Flexible Ramping Product

System Description BPM changes  Market instruments  Market Operations  Definitions & Acronyms  Settlements & Billing

Page 84

Milestone Type Milestone Name Dates Status

Board Approval Project Approved by Board of Governors Feb 03, 2016



BPMs Post Draft BPM changes Mar 31, 2016 External BRS Post External BRS Mar 15, 2016



Tariff File Tariff Mar 31, 2015 Config Guides Post Draft Config guides May 20, 2016 Tech Spec Publish Technical Specifications Apr 01, 2016 Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation Flexible Ramping Product Oct 01, 2016

Fall 2016 – BCR Modifications and VER Settlements

Project Info

Details/Date

Application Software Changes: CMRI, Settlements CMRI: Shall publish the Expected Energy Allocation records with a new market service type ‘FCS’. Note: ‘FCS’ stands for ‘forecast’ and represents capacity above the forecast. Proposed scope Policy Topics:

• Ramp rate for variable energy resources.
• Residual imbalance energy settlement for economic bidding variable energy resources.
• Persistent deviation metric applied to variable energy resources.
• Default energy bids for economic bidding variable energy resources.
• Day-ahead metered energy adjustment factor.
• Tariff clarifications following market issues bulletin.

BPM Changes Settlements and Billing

Page 85 Milestone Type Milestone Name Dates Status

Board Approval Board Approval Jul 01, 2015



BPMs Publish Final Business Practice Manuals (Settlements; Market Settlements Design and Configurations) May 13, 2016 External BRS Post External BRS Dec 31, 2015



Tariff File Tariff Mar 31, 2016 Config Guides Settlements Configuration Guide Apr 08, 2016 Tech Spec Publish Technical Specifications Mar 31, 2016 Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation BCR Modification and VER Settlement Oct 01, 2016

Fall 2016 – Real Time Dispatch Local Market Power Mitigation

Project Info

Details/Date

Application Software Changes

• CMRI – Display mitigated bids from RTD process
• RTM (Real Time Market)
• RTPD: Perform the LMPM run as an integral part of the

binding interval RTPD run

• RTD: Proposed mitigation in RTD run would work the same

way as the current RTPD run

• Oasis (Open Access Sametime Information System): Display

RTD reports for Market Clearing, the Pnode clearing, similar to current RTPD reports BPM Changes

• Energy Imbalance Market (EIM): under the proposed RTD method,

bids are not necessarily mitigated for the whole hour

• RTD MPM will work the same way as the current RTPD MPM

Business Process Changes TBD

Page 86

Fall 2016 - Real Time Dispatch Local Market Power Mitigation – RTD LMPM

Page 87

Milestone Type Milestone Name Dates Status

Board Approval Board of Governers (BOG) approval Mar 24, 2016 BPMs Update Business Practice Manuals (BPMs) TBD External BRS Post External BRS Mar 28, 2016 Tariff File Tariff Jul 18, 2016 Config Guides Complete ClearTrust Configuration document May 26, 2016 Tech Spec Technical Specifications May 03, 2016 Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation RTD - Local Market Power Mitigation Enhancement Oct 01, 2016

Fall 2016 - Bidding Rules Enhancements – Part B

Page 88

Project Info Details/Date Application Software Changes

Bidding Rules Enhancement Part B will evaluate multiple new features for inclusion. Developments under consideration include:

• Allow resources without a day-ahead schedule to rebid commitment costs in the real-time

market (SIBR rule changes)

• No longer insert bids for Short Term Unit Commitment (STUC) for

resources that do not have a day ahead market award and do not have a real time must

• ffer obligation (SIBR rule changes)
• Extend a filing right @ FERC for resources to seek recovery of marginal fuel procurement

costs exceeding the commitment cost bid cap not recovered through market revenues

• Increase the flexibility of registering fuel regions and allow for cap-and-trade credits to the

base gas transportation rates (Master File – RDT change)

• Include resource-specific start-up electricity costs in proxy costs based on wholesale

projected electricity price, unless resource verifies costs incurred are retail rates (Master File – RDT change)

• Settlements reflect minimum or maximum operating level if submitted through OMS.

(Settlement and Integration impact)

Business Process Changes Market Instruments; Reliability Requirements, Settlements & Billing

Fall 2016 – Acceptable Use Policy – CMRI

Project Info0 Details/Date Application Software Changes Scope includes enforcement of Acceptable Use Policy for CMRI services to support the full implementation of 1 call per service per identity (as designated by certificate) every 5 seconds.

Page 89

Milestone Type Milestone Name Dates Status

Board Approval Board Approval N/A BPMs BPMs N/A External BRS External BRS N/A Tariff Tariff N/A Config Guides Config Guide N/A Tech Spec Tech Spec N/A Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation Acceptable Use Policy - CMRI Oct 01, 2016

Fall 2016 – OMAR Replacement

Project Info Details/Date Application Software Changes

The scope of the project is to replace the current OMAR Online application with a new CUI framework based interface and provide standard B2B web services integration. B2B services will be modified to align with CIM standard and to convert to GMT, and the existing FTP solution will be replaced. The new solution will also remove the custom OMAR certificates by leveraging the CAISO Multiple Application (CMA) certificates.

• Targeted API review sessions to scheduled for February
• API integration targeted for testing in April, in time for unstructured market sim
• UI delivery targeted for end of May, with active CPG involvement

BPM Changes

Metering and Definitions & Acronyms (references to systems may need to change)

Business Process Changes

Potential Level-II business process changes under –

• Manage Market & Reliability Data & Modeling
• Manage Operations Support & Settlements

Page 90

Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs Publish Final Business Practice Manuals N/A External BRS Publish External BRS Oct 02, 2015  Tariff Receive FERC order N/A Config Guides Config Guide N/A Tech Spec Publish Tech Specs Dec 21, 2015  Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation Post-Mrkt Consol - OMAR Replacement Sep 29, 2016

Fall 2016 – PIRP System Application Decommissioning

Project Info

Details/Date

Application Software Changes: PIRP/CMRI

• Forecast Data Reporting (resource-level) that was performed in

PIRP will be done in CMRI. Rolling Hour Ahead, Locked Hour Ahead, and Rolling Day-Ahead forecasts

• CMRI to publish ClearedMW from all markets (Day-Ahead and

Real-Time) to the Market participants.

• CMRI to receive the Electricity Price Index for each resource from

Potomac/RLC/ECIC, store it, and publish it to the Market Participants. BPM Changes CMRI Technical Specification; New APIs will be described. Business Process Changes MPs will receive the VER reports from CMRI rather than PIRP.

Page 91

Milestone Type Milestone Name Dates Status

Board Approval Board Approval N/A External BRS External Business Requirements Jun 29, 2015



Tariff Tariff Filing Activities N/A Config Guides Settlements Configuration N/A Tech Spec Publish Technical Specifications (Data Transparency Improvements) Apr 15, 2016 Tech Spec Publish Technical Specifications (CMRI / PIRP Decommissioning) Feb 05, 2016



Market Sim PIRP Decommissioning, CMRI Reports, Data Transparency Improvements Jul 05, 2016 - Jul 29, 2016 Production Activation PIRP Decommissioning, CMRI Reports, Data Transparency Improvements Oct 01, 2016

Fall 2016 – Post Implementation OMS Enhancements

Project Info Details/Date Application Software Changes OMS Enhancements project will implement the following functionality:

• Manage Broadcast Status Update

BPM Changes TBD Business Process Changes Yes

Page 92

Milestone Type Milestone Name Dates Status

Board Approval Board Approval N/A BPMs Publish Final Business Practice Manuals N/A External BRS External Business Requirements Jun 12, 2015



Tariff Tariff N/A Config Guides Config Guide N/A Tech Spec Create ISO Interface Spec (Tech spec) N/A Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation Post Implementation OMS Enhancements October 1, 2016

Fall 2016 – EIM Year 1 Enhancements Phase 2

Project Info Details/Date Application Software Changes

• EIM transfer limit congestion treatment: (MF, RTM, EIM transfer congestion component

by BAA share)

• Dynamic competitive assessment for market power mitigation of EIM transfer limits:

(IFM/RTM, LMPM configuration)

• Use of e-tags to establish base schedule for import and export: (BSAP, EIM entity submit

base schedule)

• Outage reporting to Peak Reliability Coordinator (OMS, service provide to EIM entity)
• Allow multiple EIM transfer ETSRs subject to one scheduling constraint (MF,RTM)
• Publish Intertie binding constraint shadow prices by type of constrains(OASIS)
• Publish the LMP for SP-Tie include loss component(OASIS)
• Publish Resource GHG bid at public bids(OASIS)
• Publish EIM BAA base NSI at T-75, T-55, and T-40(OASIS)
• Publish the EIM BAA after-the-fact interchange schedules to EIM entity(CMRI)
• Publish resource GHG bid Cap(CMRI)

BPM Changes

Energy Imbalance Market

Business Process Changes

Manage market and grid, Manage operations support and Settlements

Page 93

Milestone Type Milestone Name Dates Status

Board Approval Board Approval occurred in year 1 phase 1 N/A BPMs Draft BPM changes Jun 30, 2016 External BRS External Business Requirements Feb 16, 2016



Tariff File Tariff Aug 01, 2016 Config Guides Post Draft Config guides Jun 24, 2016 Tech Spec Create ISO Interface Spec (Tech spec) Apr 01, 2016 Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation EIM Year 1 – Phase 2 Oct 01, 2016

Fall 2016 – EIM Arizona Public Service

Project Info Details/Date Application Software Changes Implementation of Arizona Public Service as an EIM Entity. BPM Changes EIM BPM will be updated to reflect new modeling scenarios identified during APS implementation and feedback from APS. Additional Market Sim Info ISO promoted market network model including PSE area to non- production system and allow PSE exchange data in advance of Market Simulation on 3/7/16. Integration/Day in the Life Testing March 7 – May 30, 2016 Market Simulation July 5 – July 29, 2016 Parallel Operations August 1 – September 30, 2016

Page 94

Milestone Type Milestone Name Dates Status

Board Approval Board Approval N/A BPMs BPMs N/A External BRS External BRS N/A Tariff APS files tariff revisions with FERC Feb 12, 2016



Config Guides Config Guide N/A Tech Spec Tech Specs N/A Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation EIM - Arizona Public Service Sep 30, 2016

Fall 2016 – EIM Puget Sound Energy

Project Info Details/Date Application Software Changes

Implementation of Puget Sound Energy as an EIM Entity. WebOMS - Provide Balancing Authorities with the ability to submit outages to WebOMS and the ability to submit PeakRC through their Coordinated Outage Scheduling System (COS).

BPM Changes

EIM BPM will be updated based on feedback from PSE.

Additional Market Sim Info

ISO promoted market network model including PSE area to non-production system and allow PSE exchange data in advance of Market Simulation on 3/7/16. Integration/Day in the Life Testing March 7 – May 30, 2016 Market Simulation July 5 – July 29, 2016

Parallel Operations

August 1 – September 30, 2016

Page 95

Milestone Type Milestone Name Dates Status

Board Approval Board Approval N/A BPMs BPMs N/A External BRS OMS - BRS External Design Jul 24, 2015



Tariff Tariff filing at FERC Feb 12, 2016



Config Guides Settlements N/A Tech Spec Tech Specs N/A Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation EIM - Puget Sound Energy Sep 30, 2016

Reliability Services Initiative Phase 1B

Project Info Details/Date Status

Application Software Changes

• Default flexible qualifying capacity provisions for phase 2 consideration (we

might need data collection performed in order to support RSI Phase 2

• Redesign of Replacement Rule for System RA and Monthly RA Process
• RA Process and Outage Rules for implementation for 2017 RA year
• Scope not delivered in RSI Phase 1A (Grandfathered Contracts, RAAM

Decommissioning – SCP & CPM screens from RAAM to CIRA, Acquired Contracts, OASIS reporting, web services related to APIs for CSP offers, APIs for Generic/Flex Substitutions, and Release of Generic/Flex Subs – UI & API)

• Impacted Systems:
• CIRA
• OMS
• Integration

Business Process Changes Manage Market & Reliability Data & Modeling

Page 96

Milestone Type Milestone Name Dates Status

Board Approval Board Approval Mar 25, 2015



BPM Post Draft BPM changes - Outage Management TBD PostDraft BPM changes - Reliability Requirements TBD External BRS External Business Requirements Apr 22, 2016 Tariff File Tariff TBD Receive FERC order TBD Config Guides Issue Draft Configuration Guides TBD Tech Spec Create ISO Interface Spec (Tech spec) TBD Market Sim Market Sim Window TBD Production Activation Reliability Services Initiative Phase 1b TBD

Project Info Details/Date

Application Software Changes

• 1. Clarify registration process and documentation to determine opportunity costs
• 2. Each submission evaluated on a case-by-case basis to determine if the ISO can

calculate opportunity costs

• ISO calculated; Modeled limitation
• Market Participant calculated; Negotiated limitation
• 3. Enhanced definition of “use-limited” in response to FERC’s rejection of the

proposed definition in Cost Commitment Enhancements Phase 2 BPM Changes Market Instruments Business Process Changes Level II – Manage Reliability Requirements Level II – Manage Day Ahead Market

Page 97

Commitment Cost Enhancements Phase 3

Stepped Constraints

Milestone Details/Date Status Application Software Changes

The ISO market applies stepped penalty prices to certain constraints in the market: (1) the power balance constraint, (2) transmission constraints, and (3) energy imbalance market transfer constraints, These changes would apply different penalty prices for infeasibilities depending on the level of constraint relaxation or potentially other criteria

Board Approval TBD Tariff TBD BPM Changes Yes Business Process Changes N/A External Business Requirements Yes Technical Specifications N/A External Training N/A Draft Configuration Guides N/A Market Simulation N/A Production Activation TBD

Page 98

Energy Storage and Distributed Energy Resources (ESDER) Policy

Project Info

Details/Date

Status Scope and Application Changes 2015 scope:

• 1. NGR model enhancement:

a. Update documentation on NGR to ISO BPMs to capture material and clarifications b. Clarify how the ISO uses state of charge in market optimization. c. Allow initial state of charge as a submitted parameter in the day-ahead market. (SIBR) d. Allow option to not provide energy limits or have ISO co-optimize an NGR based on state of charge (SIBR, IFM/RTM)

• 2. PDR/RDRP enhancement:

a. Support alternative performance evaluation method: MGO b. Support Baseline Type-II

• 3. Multiple use applications:
• a. DERA provides services to distribution system and wholesale market
• b. DERA provides services to end-use customers and wholesale market

Include provisions: 1. Daily SQMD for DERA; 2. Settle DERA deviation through UIE; 3. Not address potential double payment; 4. No limitation DERA for distribution system; 5. treat PDR/RDRR as serve end-use and wholesale market. Page 99

Milestone Type Milestone Name Dates Status

Board Approval Board Approval Feb 04, 2016



BPMs Post Draft BPM changes TBD External BRS External Business Requirements TBD Tariff File Tariff TBD Config Guides Draft Configuration Guide TBD Tech Spec Create ISO Interface Spec (Tech spec) TBD Market Sim Market Sim Window TBD Production Activation Storage and Aggregated DER TBD

ADS UI Replacement

Milestone Details/Date Status Application Software Changes Port client from Delphi to new common user interface (ADS Query Tool and Real Time Functionality) BPM Changes N/A Business Process Changes N/A Board Approval N/A External Business Requirements N/A Updated BPMs N/A Technical Specifications N/A Draft Configuration Guides N/A Market Simulation TBD Tariff N/A Production Activation TBD

Page 100

Contingency Modeling Enhancements

Project Info

Details/Date

Application Software Changes

• IFM/RTN: Adds a preventive-corrective constraint to the market co-
• ptimization
• OASIS/CMRI: Publish preventive-corrective capacity awards with

associated LMPC

• Settlements: Payment and charges for corrective capacity awards,

allocation of cost of the corrective capacity constraint, no-pay provisions, bid cost recovery BPM Changes Manage Full Network Model, Market Operations, Market Instruments, Settlement and Billing, Definitions and Acronyms

Page 101

Policy Update

Brad Cooper Manager, Market Design and Regulatory Policy

Page 102

Ongoing policy stakeholder initiatives

• Contingency modeling enhancements

– Fourth revised straw proposal and technical analysis posted on late March – early April – Stakeholder meeting to follow – June 2016 Board, projected Fall 2017 implementation

• Commitment cost bidding Improvements
• Combined bidding rules and commitment cost

enhancements – phase 3 initiatives

• Stakeholder calls on draft final proposals on Feb 10

and Feb 25 – March Board, projected Fall 2016 implementation

Page 103

Ongoing policy stakeholder initiatives (continued)

• Reactive power and financial compensation

– Suspended until FERC NOPR concludes

• Frequency response

– Stakeholder call on Feb 9 – March Board, projected Fall 2016 implementation

• Flexible resource adequacy criteria and must-offer
• bligation – phase 2

– Revised Straw Proposal posted on Mar 23 – Stakeholder call Mar 31 – June 2016 Board, projected Fall 2017 implementation

Page 104

Ongoing policy stakeholder initiatives (continued)

• Reliability services – phase 2

– Revised Draft Final Proposal posted on May 4 – June 2016 Board – Projected Fall 2017 implementation

• Bid Cost Recovery Enhancements (formerly two-tier

allocation of real-time bid cost recovery uplift)

– Straw Proposal posted late March – early April – August 2016 Board meeting – Projected Fall 2017 implementation

Page 105

Ongoing policy stakeholder initiatives (continued)

• Metering rules enhancements

– Stakeholder call on issue paper/straw proposal on March 3 – Comments due on March 17 – August 2016 Board meeting – Projected Fall 2018 implementation

• Regional resource adequacy

– Revised straw proposal to be posted on Apr 4 – June 2016 Board meeting – Projected Fall 2018 implementation

Page 106

Ongoing policy stakeholder initiatives (continued)

• Transmission access charge options

– Stakeholder comments due on Mar 23 – Revised proposal to be posted in the second half of April – June 2016 Board meeting – Projected Fall 2018 implementation

Page 107

Policy stakeholder initiatives coming soon

• Planned to start this month

– Regional integration CA greenhouse gas compliance – Energy storage and distributed energy resources (ESDER) Phase 2 – Aliso Canyon Gas-Electric Coordination

• Planned to start 2016 Q2

– CRR clawback rule modifications – Stepped transmission constraints – Generator contingency/RAS modeling – Frequency response – phase 2

Page 108

Market Performance and Planning Forum 2016 Schedule

• May 17
• July 21
• September 20
• November 17

Please submit questions or meeting topic suggestions through CIDI; select the “Market Performance and Planning Forum” category.

Page 109