Market Performance and Planning Forum December 9, 2015 Objective: - - PowerPoint PPT Presentation

Market Performance and Planning Forum

December 9, 2015

Objective: Enable dialogue on implementation planning and market performance issues

• Review key market performance topics
• Share updates to 2015 release plans, resulting from

stakeholders inputs

• Provide information on specific initiatives

– to support Market Participants in budget and resource planning

• Focus on implementation planning; not on policy
• Clarify implementation timelines
• Discuss external impacts of implementation plans
• Launch joint implementation planning process

Slide 2

Slide 3

10:00- 10:05 Introduction, Agenda Kristina Osborne 10:05 – 11:30 Market Performance and Quality Update Guillermo Bautista Alderete Nan Liu 11:30 – 12:00 Flexible Ramping Constraint Keith Collins 12:00 – 1:00 Lunch 1:00 – 1:30 Policy Update Brad Cooper 1:30 – 2:00 Market System Changes Spring 2016 Release Greg Ford 2:00 3:00 Release Update Janet Morris

Agenda

Market Performance and Quality Update

Guillermo Bautista Alderete, Ph.D. Manager, Market Validation and Quality Analysis Nan Liu Manager, Market Development and Analysis

Slide 4

Page 5

Good average price convergence between DA and FMM in October.

Page 6

Stable average prices at Malin intertie, converging across day ahead and real-time markets, including HASP.

Page 7

Palo Verde monthly prices.

Page 8

RT prices higher than DA prices in October for both NP 15 and SP 15.

RTD prices FMM prices

Page 9

Insufficient upward ramping capacity in ISO increased in October

Page 10

Insufficient downward ramping capacity continued to be low in September and October.

Page 11

Congestion revenue rights market revenue inadequacy without including auction revenues

Page 12

Congestion revenue rights market revenue inadequacy including auction revenues

Page 13

Exceptional dispatch volume in the ISO area declined since August

Page 14

Daily exceptional dispatches by reason

Page 15

Bid cost recovery dropped in October and November.

Year_Mon Total Net Virtual Supply (MWh) 15-Jul 669,578 15-Aug 840,965 15-Sep 420,856 15-Oct 200,834 15-Nov 249,890

Page 16

Bid cost recovery (BCR) by Local Capacity Requirement area

Page 17

Minimum online commitment (MOC)

Page 18

Binding minimum online commitments in September and October

MOC Name Number (frequency) of enforced hours in September and October Humboldt 7110 764 SDGE 7820 497 HNTBH 7820 334 SCIT MOC 175 MOC PEASE 146 Orange County 7630 136 MOC Drum 3578826 4

Daily RA and Non-RA MOC for September and October 2015

Page 19

Page 20

Day-Ahead solar scheduled outputs continued to improve in September and October

Page 21

IFM under-scheduling of wind generation still exist in September and October.

Page 22

Renewable (VERS) schedules and forecast in September - October

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

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Monthly renewable (VERS) curtailment declined since May

Page 24

Hourly distribution of maximum renewable (VERS) economic curtailment in October

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

Page 25

Solar Wind

Monthly wind (VERS) downward flexibility in FMM

Page 26

Monthly solar (VERS) downward flexibility in FMM

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Page 28

ISO area RTCO declined in September and October while RTIEO stayed at low level

2014 2015 (YTD) RTCO $107,237,641 $42,962,326 RTIEO $107,292,282 $15,004,005 Total Offset $214,529,922 $57,966,331

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Price correction events in September and October driven by software defects

2 4 6 8 10 12 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Count of Events Process Events Software Events Data Error Events Tariff Inconsistency

EIM 15-minute pricing performance improvements continued

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

EIM 5-minute pricing performance improves in June and July

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5-minute PACW Aggregate Price 5-minute PACE Aggregate Price

Hourly average transfer from PacifiCorp and ISO

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(+) PacifiCorp to ISO / (-) ISO to PacifiCorp

• 100
• 50

50 100 150 200 250 300 1-Nov 15-Nov 29-Nov 13-Dec 27-Dec 10-Jan 24-Jan 7-Feb 21-Feb 7-Mar 21-Mar 4-Apr 18-Apr 2-May 16-May 30-May 13-Jun 27-Jun 11-Jul 25-Jul 8-Aug 22-Aug 5-Sep 19-Sep 3-Oct 17-Oct 31-Oct 14-Nov 28-Nov Hourly Average Transfer (MWh) Transfer to PAC Transfer from PAC

Hourly average transfers between PACE and PACW decreased in February but increased in May

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(+) PacifiCorp East to PacifiCorp West

50 100 150 200 250 1-Nov 15-Nov 29-Nov 13-Dec 27-Dec 10-Jan 24-Jan 7-Feb 21-Feb 7-Mar 21-Mar 4-Apr 18-Apr 2-May 16-May 30-May 13-Jun 27-Jun 11-Jul 25-Jul 8-Aug 22-Aug 5-Sep 19-Sep 3-Oct 17-Oct 31-Oct 14-Nov 28-Nov Hourly Average Transfer (MWh)

Update on Nevada Energy Go-Live

• Nevada Energy EIM became effective on December 1,

2015

• During the first 5 days of operation NV Energy has

– passed 94.16% of the balancing test. 2.5% failures for undersupply and 3.33% for over-supply. – passed 98.33% of the flex ramp sufficiency test. – 100% of fifteen- and five-minute intervals with no power balance constraint infeasibilities (excluding those associated with errors mainly during transition).

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EIM prices after activation of NEVP area

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FMM Prices RTD Prices

Transfers among different areas

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2015 v 2014 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

MAPE

2015 v 2014 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

MAPE

2014 v 2015 day-ahead wind forecast

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015

MAE

2014 v 2015 day-ahead solar forecast

0% 2% 4% 6% 8% 10% 12% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015

MAE

2014 v 2015 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

MAE

2014 v 2015 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

MAE

Flexible ramping constraint

Keith Collins Manager, Market Monitoring and Reporting

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• The flexible ramping constraint was implemented to

ensure sufficient ramping capacity was procured in the 15-minute commitment to ensure that variability of supply and demand could be met in the 5-minute market.

• The flexible ramping constraint was implemented in the

ISO in December 2011 and was included as part of the EIM in November 2014.

• The flexible ramping constraint requirement was
• riginally set by operator procedures until late March of

this year when the ISO automated the calculation.

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Flexible ramping constraint

The balancing area ramping requirement tool automated the ramping requirements by looking at historic ramping needs.

• Specifically, the tool:

– Calculates the requirement for each 15-minute interval independently from other intervals. – Calculates the net load ramp as the maximum difference between the RTPD net load minus the RTD net load over the 15-minute interval.

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Balancing area ramping requirement tool

– Looks back at the previous 40 weekdays and the previous 20 weekend days and takes the 95th highest

• bservation.

– Bounds the requirement by predetermined maximum and minimum levels.

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Balancing area ramping requirement tool - continued

• Each interval is evaluated independently of surrounding
• intervals. This has led to a few issues.

– The need to go back in time over 40 weekdays or 20 weekend days to increase the sample size. Thus, seasonality can become an issue. – The requirements from one interval to the next may be different and this can increase variability. – Bounds may be too low or too high.

• The current calculation includes net load variability

introduced by operator changes made through load bias.

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Balancing area ramping requirement tool - issues

Page 48

Flexible ramping constraint requirement – ISO area

Page 49

Flexible ramping constraint requirement – PacifiCorp East

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Flexible ramping constraint requirement – PacifiCorp West

• We have observed an increase in the frequency of

procurement shortfalls of the flexible ramping constraint, most notably in PacifiCorp East.

• This has driven EIM prices in PacifiCorp East above the

bilateral trading hub benchmark price that DMM estimates.

• The increase in requirement, along with generator
• utages and, to a lesser extent, a software defect have

contributed to the increase in flexible ramping constraint shortfalls.

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Impacts of the flexible ramping constraint

Page 52

Flexible ramping constraint relaxations have increased most notably in PacifiCorp East.

7.1% 2.8% 7.5% 5.2% 3.2% 5.5% .9% 1.0% 1.6% 3.8% 8.8% 13.7% 0% 3% 6% 9% 12% 15% Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 15-Minute Market (RTPD) Percent of Intervals Flexible ramping constraint

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Flexible ramping constraint relaxations have increased prices in PacifiCorp East above the bilateral trading hub benchmark in September and October.

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2014 2015 Average weekly price ($/MW) Bilateral trading hub average price PACE price PACE price without price discovery

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Next steps

• In the short run, the ISO is working on enhancements to

the balancing area ramp requirement tool. – Grouping intervals and hours together. This will reduce the interval to interval variability and reduce the need for a longer sample period. – Remove load bias from the net load calculation. – Review and adjust thresholds.

• In the medium term, the flexible ramping constraint will be

replaced with implementation of the flexible ramping

• product. When this occurs, the requirement calculations

will change.

Policy Update

Brad Cooper Manager, Market Design and Regulatory Policy

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Ongoing policy stakeholder initiatives

• Contingency modeling enhancements

– Conducting prototype analysis – Third revised straw proposal posted Nov 20 – Stakeholder meeting on Dec 10 – March 2016 Board, Fall 2016 implementation

• Flexible ramping product

– Posting requirement and allocation data – Stakeholder meeting on revised draft final proposal

• n Nov 8

– Revised draft final proposal posted on Dec 17 – Stakeholder call on Jan 5 – Feb 2016 Board, Fall 2016 implementation

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Ongoing policy stakeholder initiatives (continued)

• Bidding rules

– Revised straw proposal posted on Nov 23 – Stakeholder meeting on Dec 3 – Feb, March Boards

• Commitment Cost Enhancements – Phase 3

– Draft final proposal to be posted late January/early February – Stakeholder call early February – March Board

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Ongoing policy stakeholder initiatives (continued)

• Reactive power and financial compensation

– Draft final proposal posted on Nov 12 – Stakeholder call on Nov 19 – Draft tariff language posted on Dec 1 – Stakeholder call on tariff language on Dec 18 – February Board

• Frequency response

– Stakeholder call on Dec 14 – Revised straw proposal posted in January – March Board

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Ongoing policy stakeholder initiatives (continued)

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

– Straw proposal to be posted by Dec 14 – June 2016 Board

• Reliability services – phase 2

– Second revised straw proposal posted on Nov 13 – Stakeholder call on Nov 20 – Draft final proposal to be posted on Jan 7 – March 2016 Board

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Ongoing policy stakeholder initiatives (continued)

• Competitive solicitation process enhancements

– Draft final proposal posted on Oct 12 – Stakeholder call on Oct 19 – Draft tariff language posted on Nov 23 – December board

• Stakeholder initiative catalog

– Final catalog to be posted by Dec 14

• Two-tier allocation of real-time bid cost recovery uplift

– Issue paper posted on Nov 24 – Stakeholder call on Dec 21

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Ongoing policy stakeholder initiatives (continued)

• Regional resource adequacy

– Issue paper to be posted on Dec 9 – Stakeholder meeting on Dec 16 (Salt Lake City)

• Regional transmission access charge structure

– Stakeholder call on issue paper on Oct 30 – Stakeholder workshops on Dec 15 (Salt Lake City) and Jan 6 (Folsom) – Straw proposal to be posted on Feb 8 – Stakeholder meeting on Feb 26 – June 2016 Board meeting

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Policy stakeholder initiatives coming soon

• Planned to start 2016 Q1

– CRR clawback rule modifications – Stepped transmission constraints – Regional integration CA greenhouse gas compliance – Metering rules updates – Transitional implementation items

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Stakeholder initiatives going to the Board for approval

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Initiative Board Presentation Competitive solicitation process enhancements December Energy storage and distributed energy resources Deferred from December Flexible ramping product February Reactive power and financial compensation February Bidding rules February, March Reliability services – phase 2 March Frequency response March Contingency modeling enhancements March Regional TAC structure June FRACMOO – phase 2 June

Market System Changes – Spring 2016 Release

Greg Ford Power Systems Engineer - Development Lead

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Agenda

• Market changes in support of Capacity Procurement

Mechanism (CPM)

• Market changes in support of Must Offer Obligation

(MOO)

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Market Changes in Support of CPM

Page 66

CSP Process

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CIRA process and annual and monthly optimization

• Part of market simulation session 1 (in progress).
• Currently improving the system in response to initial

simulation results.

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Intra-Monthly

• Part of session 2 market simulation (Jan 19)
• The purpose of intramonthly CSP merit order dispatch is

to evaluate exceptional dispatch and significant event capacity MW that could lead to a CPM

• If a reliability need is determined, selection of resources

is based on economics, performed by a merit order engine

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Intra-Monthly (continued)

• Merit order engine is part of the same system used to

run the markets

• Same three part bids (start-up, minimum load, energy)

are used, with modifications – Capacity curve is added to the incremental energy bid curve – Capacity cost for the capacity below Pmin is added to the minimum load cost

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Intra-Monthly (continued)

• If the reliability need is considered after the day-ahead

run, but before the real-time: – Run merit order using results from day-ahead (RUC), but run with the modified bids.

• Otherwise in real-time:

– Run with the most recent RTUC run as a base – Re-run with the modified bids

• Output:

– Resources selected through the process will be dispatched in the same manner as EDs are today

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Intra-Monthly (continued)

• Current status:

– SIBR business rules have been developed

• New workflow for ODCP
• New rules for using bids in the ODCP process

– BRS has been developed – Vendor coding is complete – Functional testing has begun

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Market Changes in Support of MOO

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MOO Changes

• Part of session 2 market simulation (Jan 19)
• The following changes are made as part of the Reliability

Services Initiative, Phase 1A, and administered as part

• f Commitment Cost Enhancements Phase 2.

– Clarified IFM bidding requirements for non-generator, variable energy, use-limited, or regulatory must-take

• resources. These resources will not be subject to bid

generation requirements. Requirements will be set via existing Master File ‘flags’. – Clarified distributed generation will be treated same as like technology types that are connected to the grid, for purposes of must offer. Requirements will be set as applicable in the Master File.

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MOO Changes (continued)

– Generated bids for non resource-specific system resources that provide resource adequacy will only be submitted during RAAIM assessment hours. This requires some changes to the SIBR system. – RAAIM assessment hours are:

• HE 14-18 April-October
• HE 17-21 November-March

– Example

• NRS-RA resource provides RA for hours 8-16.
• For the month of April, bids will be generated for

hours 14-18, regardless of the RA contract.

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MOO Changes (continued)

• Current status:

– SIBR business rules have been developed

• New/revised rules for generating bids for NRS-RA

resources – Vendor coding is in progress

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Schedule

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Schedule

• Market simulation session 1:

– now through 12/17

• Market simulation session 2:

– 1/19 through 2/12

• Go live:

– 3/1

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Questions

Page 79

Release Plan Update

Janet Morris Director, Program Management Office

Page 80

Release Plan 2015 - 2016

2015

• Application Identity Management (AIM) 2015 Enhancements

Early 2016

• Capacity Procurement Mechanism Replacement
• Reliability Services Initiative
• Commitment Cost Enhancements Phase 2 (remainder)
• Post Implementation OMS Enhancements
• Acceptable Use Policy – CMRI

2016

• Expanding Metering and Telemetry Options Phase 2
• Demand Response Registration Enhancements
• RIMS Functional Enhancements
• Reactive Power Requirements and Financial Compensation

Fall 2016

• BAL-003 Compliance
• Reliability Services Initiative Phase 1B
• Flexible Ramping Product
• Contingency Modeling Enhancements
• OMAR Replacement
• BCR modifications and VER settlement (DA Metered Energy Adjustment Factor and Residual Imbalance

Energy changes)

• Energy Imbalance Market (EIM) 2016 – implementation of PSE and APS as EIM Entities
• EIM Year 1 Enhancements Phase 2
• PIRP System Application Decommissioning
• Bidding Rules
• Enhancing market participation of storage and aggregated distributed energy resources (ESDER)
• Commitment Cost Enhancement Phase 3
• Post Implementation OMS Enhancements

Subject to further release planning:

• ADS User Interface Replacement
• Available Balancing Capacity
• Stepped Constraints

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2015-2016 Release Schedule

Page 82

http://www.caiso.com/Documents/ReleaseSchedule.pdf

Application Identity Management (AIM) 2015 Enhancements [Independent Release]

Milestone Details/Date Status Application Software Changes AIM: Adding endorsed user functionality BPM Changes None Business Process Changes Manage Operations Support & Settlements Board Approval N/A External Business Requirements N/A Technical Specifications N/A Draft Configuration Guides N/A External Training 12/1/2015 Tariff N/A Production Activation 12/21/2015

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Early 2016 Release Market Simulation

Market Simulation Dates – RSI, CPM, CC Phase 2, AUP CMRI and OMS Enhancements November 9 – December 17, 2015: Session 1 (Structured and Unstructured ) January 19 – February 12, 2016: Session 2 (Structured E2E) Twice weekly calls taking place now through December 17th for Session 1 Simulation, dial in information - http://www.caiso.com/Documents/Early2016ReleaseMarketSimulationCallsSch eduled.htm Link to Early 2016 Release Market Simulation Plan - http://www.caiso.com/Documents/MarketSimulationPlanEarly2016Release.pdf

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Early 2016 – Capacity Procurement Mechanism Replacement (CPM)

Milestone 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 the following charge code impacts:

• 0 New charge codes
• 22 Modified charge codes
• 0 Terminated charge codes

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) Page 85

Early 2016 – Capacity Procurement Mechanism Replacement (cont.)

Milestone Details/Date Status BPM Changes

Reliability Requirements – issue PRR 11/4/15 Market Instruments – issue PRR 1/8/16 Billing & Settlements – 1/8/16

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 Business Reqmnts

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 (Updated)

External Training

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

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

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

• Training Materials – post 1/4 (Updated)

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 (Updated)

January 19 – February 17, 2016: Session 2 (E2E), Structured (Updated)

• Scenarios – posted on Release Planning page on 8/21/15
• CIRA User Guide – TBD
• 3-Day Onsite Market Simulation (Attendance Optional) 2/2 – 2/4

Production Activation

1/12/2016: Session 1 2/23/2016: Session 2 3/1/2016: Effective Date

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

Milestone 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 obligation). 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 87

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

Milestone 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.

• The following charge code changes are needed for implementation of the RA

Availability Incentive Mechanism (RAAIM)

• 4 New charge codes
• 0 Modified charge codes
• 7 Terminated charge codes

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 - issue PRR 1/8/16 Outage Management - issue PRR 1/8/16 Billing & Settlements - issue PRR 1/8/16 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 Business Reqmts 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 (Updated)

OMS Session 2

• posted tech spec 12/2 (Updated)

Draft Configuration Guides November 23, 2015 Session 2 (Updated)

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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 with 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 (Updated)

• Training Materials – post 1/4 (Updated)

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 (Updated)

January 19 – February 12, 2016: Session 2 (E2E)

• Scenarios – posted 8/21/15 on RP page
• CIRA User Guide – 1/4 (Updated)
• MF UI User Guide – 12/11 (Updated)
• OMS User Guide – TBD
• 3-Day Onsite Market Simulation (Attendance Optional) 2/2 – 2/4

Production Activation 1/12/2016: Session 1 2/23/2016: Session 2 3/1/2016: Effective Date

Page 90

Early 2016 – CPM & RSI Announcements

Important Announcements: – Use Limited Plan templates

• Use the current template, not the new template, for 10/31/15 submissions.
• Note Emergency PRR 868 was issued as an interim solution, and ask that

you submit template via CIDI instead of email. Once RSI goes live, all templates will be submitted via Masterfile UI.

• ULR Process with sample template posted on 12/4/15

– RA and Supply Plan: use the new plans starting 1/12/16 – Contact you POCs to request two new external CIRA roles in preparation for Market Simulation on 11/9. On of these roles will be needed for Offer submission and viewing. Market Notice issued on 10/19 contains more details.

• External READ – ONLY
• External READ – WRITE

– Market Sim Session 1 extended from 12/4 to 12/17 to give MPs time to test fixed CIDI tickets. This is unstructured, so if you need support, please contact Market Sim or Reliability Mailbox. – Market Sim Session 2: Please be sure to submit outage information ahead of time.

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Early 2016 – CPM & RSI Onsite Market Simulation

February 2 – 4, 2016: 3-Day Onsite Market Simulation, Session 2 The ISO will hold an OPTIONAL onsite market simulation for market participants in addition to the already scheduled 4-week market simulation session from 1/19 – 2/12/16. Information : – Onsite market simulation for Session 2 will be 2/2 – 2/4/16 – 2/2 – 2/3 will be structured, and 2/4 will be unstructured – Mini-monthly Settlements statements are not available during the onsite market simulation, but are available for the 4-week offsite session (Re- evaluating this)

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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 ISO will file the change for transition costs for MSG (Fall 2015), some clarifications to the definition of “use-limited resource” that are needed that would be included along with the MSG changes. 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 Instrument – 1/8/16 Reliability Requirements – 1/8/16 Market Operations – 1/8/16 Business Process Changes No External Business Requirements November 24, 2016 (Updated) Technical Specifications No; SIBR business rules to be posted during week of 12/14/15 External Training

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

• Training Materials – post 1/4 (Updated)

Draft Configuration Guides No Market Simulation

January 19 – February 12, 2016: Session 2 (E2E)

Production Activation Deployment Target - 2/23/2016 Effective Date – 3/1/2016

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Early 2016 – Post Implementation OMS Enhancements

Milestone Details/Date Status Application Software Changes OMS Enhancements project will implement the following functionalities:

• Transmission Outage Report Enhancements
• Manage Broadcast Status Update (deferred until later in the year)
• Manage retrieveResoruceOutage API - add Invalid and Inconsistent flags
• System change to validate the "ChangeThreshold" only at time of submission
• f 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

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Early 2016 – OMS Enhancements (Continued)

Milestone Details/Date Status

Board Approval

N/A

Tariff

No tariff changes are anticipated for this initiative

Business Process Changes

No business process changes are anticipated for this initiative

External Business Requirements Technical Specifications

BRS Target Posting Date: Sep 18, 2015 Tech Specs Target Posting Date: Sep 30, 2015

BPM Changes

Outage Management, and Market Operations BPMs will be updated. Dec 31, 2015

External Training

Slides will be added to the Market Simulation Call: Jan 7, 2016

Draft Configuration Guides

N/A

Market Simulation

• Unstructured. Jan 19 – Feb 12, 2016

Production Activation

Deployment - 2/23/2016 Activation Date - 3/1/2016

SLIC Decommissioning

Disabling external SLIC API and UI access by 12/31/2015

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Early 2016 - Acceptable Use Policy – CMRI

Milestone Details/Date Status 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. BPM Changes N/A Business Process Changes N/A Board Approval N/A External Business Requirements N/A Updated BPMs N/A System Access Document Reviewing the implementation approach to minimize changes required for Market Participants Draft Configuration Guides N/A Market Simulation January 19, 2016 – February 12, 2016 Tariff N/A Production Activation February 23, 2016

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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 1, 2016 Technical Specifications N/A Draft Configuration Guides N/A Tariff filing Draft language posted, Stakeholder discussions began October 1, 2015 Production Activation April 1, 2016

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2016 – Demand Response Registration Enhancements

Milestone Details/Date Status 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

• Reissued final BRS with clarifications on July 8 as a result of second CPG

meeting held on June 11.

• Tech Specs CPG meeting held on November 3, 2015

BPM Changes Metering; Settlements & Billing Business Process Changes Automation of internal registration-related processes Board Approval TBD External Business Requirements June 4, 2015 Clarified, July 3, 2015 Technical Specifications September 18, 2016 Draft Configuration Guides N/A User Training; Market Simulation March 21 – 23; March 23 – April 13, 2016 Tariff TBD Production Activation April 28, 2016

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2016 – RIMS Functional Enhancements

Milestone 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 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 Customer Partnership Group 10/16/15 Tariff N/A Production Activation App & Study – March 8, 2016 Generation, Transmission and Queue Management - July 29, 2016

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Milestone Details/Date Status Application Software Changes

• 1. Replace the current system impact study approach applied in assessment of

reactive requirement for asynchronous resources with a uniform requirement for asynchronous resources.

• 2. Set up rules for reactive power financial compensation for all resources.

BPM Changes TBD Proposal Revised Straw Proposal posted October 8th, 2015 Final proposal scheduled on Nov 12th, 2015 Board Approval February 2016 External Business Requirements TBD Updated BPMs TBD Technical Specifications TBD Draft Configuration Guides TBD Market Simulation Yes Tariff Yes Production Activation Propose applying the new policy in 2016 for Cluster 9

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2016– Reactive Power Requirements and Financial Compensation

Fall 2016 – BAL-003 Compliance

Milestone Details/Date Status Application Software Changes ISO expected Frequency Response Obligation (FRO): 752 MW or 258 MW/0.1Hz Phase 1:

• Revise Tariff to include requirements for all participating synchronous

generators with governor controls

• Develop “look-ahead” tool to assess PFR capability and anticipated deficiency
• Revise Tariff require Contingency Only Reserve
• Include frequency response performance requirement for the resources
• Allocate any non-compliance penalties associated with BAL-003-1

BPM Changes Yes - TBD Business Process Changes TBD Board Approval February 2016

• Posted Issue Paper on 8/7/15 with Stakeholder call on 8/14/15
• Straw Proposal posted on 10/12/2015
• Draft Technical Appendix posted on 10/21/2015
• Straw Proposal comments due 11/2/2015
• Draft Final Proposal scheduled on 12/7/2015
• Board scheduled on 2/3/2016

External Business Requirements TBD Technical Specifications TBD Draft Configuration Guides TBD Market Simulation TBD Tariff TBD - Yes Production Activation Fall 2016

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Fall 2016 – Reliability Services Initiative Phase 1B

Milestone 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

Board Approval

• Yes. March 26, 2015

Tariff TBD BPM Changes Yes - TBD Business Process Changes Yes - TBD External Business Requirements Yes – Date TBD Technical Specifications Yes External Training Yes Draft Configuration Guides Yes Market Simulation Yes Production Activation Fall 2016

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Fall 2016 – Flexible Ramping Product

Milestone Details/Date Status Application Software Changes RTD/FMM – Modify the objective function, add System and BAA FRP requirement, add resource constraints SIBR – No FRP bidding allowed, no FRP self-provision CMRI – Publish the resource FRP awards and prices, 5 minute movement allocation OASIS – Publish the min and max FRU and FRD requirements, confidence band demand curve and shadow price for each BAA and the EIM area, Publish the movement allocation per category. Settlements – Financially settle in both the RTD and the FMM BPM Changes Market Instruments, Market Operations, Settlements & Billing Business Process Changes Manage operations Support and Settlements, Support Business Services, Support Customers & Stakeholders Board Approval

• Updated Technical Appendix will be posted November 11th
• Workshop scheduled for November 18th
• Board: February 2016

External Business Requirements Yes Technical Specifications TBD Draft Configuration Guides TBD Market Simulation Yes Tariff Yes Production Activation Fall 2016

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Fall 2016 - Contingency Modeling Enhancements

Milestone Details/Date Status Application Software Changes IFM/RTN: Adds a preventive-corrective constraint to the market co-optimization 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 Study Results In Person Call: March 20, 2014 Distribute Results: TBD Comments Due: TBD Board Approval March 2016 External Business Requirements TBD Technical Specifications TBD Draft Configuration Guides TBD Market Simulation TBD File Tariff TBD Production Activation Fall 2016

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Fall 2016 - BCR Modifications and VER Settlements

Milestone

Details/Date

Status 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 Market Operations (System Operations), Settlements and Billing (Market Settlements Design and Configuration) Board approval July, 2015 External Business Requirements TBD Technical Specifications TBD Draft Configuration Guides TBD Tariff Filing TBD Production Activation DA Metered Energy Adjustment Factor changes , and RIE changes Fall 2016

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Fall 2016 – OMAR Replacement

Milestone Details/Date Status 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.

• Technical CPG meeting in early January to review technical specifications / API
• API integration targeted for testing in March, 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

Board Approval

Potentially needed – Dates TBD

External Business Requirements

Date TBD

Technical Specifications

OMAR Online Replacement – mid-December 2015

Draft Configuration Guides

N/A

Market Simulation

Date TBD

Tariff

N/A

Production Activation

Fall 2016

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Fall 2016 – EIM Year 1 Enhancement Phase 2

Milestone Details/Date Status 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)

BPM Changes Energy Imbalance Market, Settlements and Billing Business Process Changes Manage market and grid, Manage operations support and Settlements Board Approval November 5-6, 2015 External Business Requirements TBD Technical Specifications TBD Draft Configuration Guides TBD Market Simulation Yes Tariff Yes Production Activation Fall 2016

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Fall 2016 – PIRP System Application Decommissioning

Milestone

Details/Date Status

Application Software Changes Transition PIRP Hour-Ahead/Day-Ahead forecast reports and associated APIs to the CMRI system. Will post corresponding artifacts as they become available. BPM Changes CMRI Technical Specification; New APIs will be described. Business Process Changes MPs will receive the VER reports from CMRI rather than PIRP. Board Approval N/A External Business Requirements 28 August, 2015 Updated BPMs CMRI Technical Specification Market Simulation Yes, TBD Technical Specifications March 2016 Draft Configuration Guides N/A Customer Partnership Group N/A Tariff N/A Production Activation Fall 2016

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Fall 2016– Bidding Rules

Milestone Details/Date Status Application Software Changes Through this initiative the ISO will evaluate the following: 1) unrestricted flexibility

• f resources to change energy bid prices between the day-ahead and real-time

markets, and across real-time hours; 2) restrictions on commitment cost changes between and within the day-ahead and real-time markets; and 3) verification of generator resource characteristics. BPM Changes TBD Business Process Changes TBD Board Approval March 2016 (Order 809 July, 2015 Board, No change for IFM timing) External Business Requirements TBD Technical Specifications TBD Draft Configuration Guides TBD Market Simulation TBD Tariff TBD Production Activation TBD

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Fall 2016– Energy Storage and Distributed Energy Resources (ESDER) Policy

Milestone

Details/Date

Status Proposed scope

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.

• d. Allow option to not provide energy limits or have ISO co-optimize an

NGR based on state of charge

• 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.

BPM Changes

Yes

Proposed scope

May 13, 2015, June 25, 2015

proposal

Revised straw proposal September 17, 2015 Draft Final proposal Nov 2nd, 2015

Board approval

Dec 2015 for proposed resolutions in 2015 scope

External Business Requirements

January 31, 2016

Technical Specifications

TBD

Tariff filing

TBD

Production Activation

TBD, tentatively Fall 2016

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Milestone Details/Date Status Application Software Changes

• Straw proposal – revised, posted November 3rd, 2015
• Straw proposal update presentation posted November 4th
• Stakeholder webinar scheduled for Monday - November 9th
• Stakeholder comments due to CA ISO by Monday – November 23rd

BPM Changes Yes Business Process Changes Yes Board Approval March 2016 External Business Requirements Yes – Date TBD Technical Specifications TBD Draft Configuration Guides TBD Market Simulation TBD Tariff Yes Production Activation Fall 2016

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Fall 2016– Commitment Cost Enhancements Phase 3

Fall 2016 – Post Implementation OMS Enhancements

Milestone Details/Date Status Application Software Changes OMS Enhancements project will implement the following functionality:

• Manage Broadcast Status Update

The implementation will impact the following systems:

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

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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

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TBD– 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 Stakeholder process will be started in late 2015, Board on March 2016 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

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Market Performance and Planning Forum 2016 Schedule

• January 19
• March 17
• 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.

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