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2
Outline
- Identify issue
- Review proposal
- Next steps
- Solicit Panel feedback on above three points
MR-00323: Day-Ahead Intertie Offer Guarantee Adjustment Technical - - PowerPoint PPT Presentation
MR-00323: Day-Ahead Intertie Offer Guarantee Adjustment Technical - - PowerPoint PPT Presentation
MR-00323: Day-Ahead Intertie Offer Guarantee Adjustment Technical Panel 6 July 2006 1 Outline Identify issue Review proposal Next steps Solicit Panel feedback on above three points 2 Issue A market participant with an
SLIDE 2
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Issue
- A market participant with an import transaction
that:
– Has a day-ahead constrained schedule PDR_DQSI > 0; – Has real-time schedules (DQSI, MQSI) greater than the day-ahead constrained schedule; and – Is not subject to a real-time constrained-on event;
may receive less revenue than they should.
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DAIOG DAIOG
No Real-Time Constraints Scenario
30 100 10 20 90 PDR_DQSI MQSI; DQSI DAOP RTOP RTEMP Prices $/MW Schedule Quantities MW
RTIOG RTIOG
RT Energy Payment - NEMSC
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No Real-Time Constraints Scenario Revenue Calculations
Inputs Symbol Value Formulation Day-Ahead Constrained Schedule Qty (MW) PDR_DQSI 30 Day-Ahead Offer Price ($/MW) DA_OP 90.00 Real-Time Offer Price ($/MW) RT_OP 20.00 Real-Time Constrained Qty (MW) DQSI 100 Real-Time Market Qty (MW) MQSI 100 Real-Time Energy Market Price ($/MW) RT_EMP 10.00 Settlement Amount Calculations ($) Real-Time Energy Payment NEMSC 1000.00 DQSI x RT_EMP Real-Time CMSC CMSC 0.00 (MQSI-DQSI) x (RT_EMP-RT_OP) Day-Ahead Intertie Offer Guarantee DA_IOG 2400.00 MAX(0,MIN(PDR_DQSI,DQSI) x (DA_OP - RT_EMP) - CMSC) Real-Time Intertie Offer Guarantee RT_IOG 1000.00 MAX(0,MQSI x (RT_OP - RT_EMP)) IOG Reversal 1000.00 MIN(DA_IOG,RT_IOG) Total Settlement Amount 3400.00 RT_EP + CMSC + DA_IOG + RT_IOG - IOG Reversal Settlement Amount the MP Should Receive 4100.00 (PDR_DQSI x DA_OP) + ((DQSI - PDR_DQSI) x RT_OP) Under-Payment 700.00
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DAIOG DAIOG
Real-Time Constrained-Off Scenario
30 55 100 10 20 90 DAC RTC RTU DAOP RTOP RTEMP Prices $/MW Schedule Quantities MW
RTIOG RTIOG
- VE CMSC
Real-Time Energy Payment – NEMSC
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Real-Time Constrained-Off Scenario Revenue Calculations
Inputs Symbol Value Formulation Day-Ahead Constrained Schedule Qty (MW) PDR_DQSI 30 Day-Ahead Offer Price ($/MW) DA_OP 90.00 Real-Time Offer Price ($/MW) RT_OP 20.00 Real-Time Constrained Qty (MW) DQSI 55 Real-Time Market Qty (MW) MQSI 100 Real-Time Energy Market Price ($/MW) RT_EMP 10.00 Settlement Amount Calculations ($) Real-Time Energy Payment NEMSC 550.00 DQSI x RT_EMP Real-Time CMSC CMSC
- 450.00
(MQSI-DQSI) x (RT_EMP-RT_OP) Day-Ahead Intertie Offer Guarantee DA_IOG 2850.00 MAX(0,MIN(PDR_DQSI,DQSI) x (DA_OP - RT_EMP) - CMSC) Real-Time Intertie Offer Guarantee RT_IOG 1000.00 MAX(0,MQSI x (RT_OP - RT_EMP)) IOG Reversal 1000.00 MIN(DA_IOG,RT_IOG) Total Settlement Amount 2950.00 RT_EP + CMSC + DA_IOG + RT_IOG - IOG Reversal Settlement Amount the MP Should Receive 3200.00 (PDR_DQSI x DA_OP) + ((DQSI - PDR_DQSI) x RT_OP) Under-Payment 250.00
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Why Under-Payments Occur
- The DA_IOG and RT_IOG are calculated on different
MW quantity bases:
– DA_IOG uses day-ahead constrained schedule quantity – RT_IOG uses real-time unconstrained schedule quantity
- The DA_IOG and RT_IOG revenues are compared and
the participant receives the greater
- Participant may lose RT_IOG $ associated with MW
above day-ahead constrained schedule quantity
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Proposed Solution
- New Settlement Amount: DA_IOG adjustment
- Import transaction eligibility criteria
– DACP schedule ≥ one MW – RT schedules > DACP schedule – Not subject to constrained-on event
- DA_IOG adjustment formulation:
Maximum of (i) zero and the (ii) difference between the IOG floor value and the other settlement amounts for the import MAX(0, IOG_FV – NEMSC – MAX(RT_IOG, DA_IOG) – CMSC )
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Intertie Offer Guarantee Floor Value IOG_FV
Quantity Price
Legend:
Real-time offer price quantity pair Real-time offer curve Day-ahead offer price quantity pair Day-ahead offer curve
‘IOG _FV’ is a floor value for the minimum revenue that must be received by the market participant over a particular quantity range. This quantity range is determined by the amount scheduled in the DACP relative to the actual constrained quantity that is scheduled in the real-time market…..
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IOG Floor Value: No Real-Time Constraints Scenario
Quantity Price
Legend:
Real-time offer price quantity pair Real-time offer curve Day-ahead offer price quantity pair Day-ahead offer curve PDR_DQSI (day- ahead)
Floor value equation: TERM 1
DQSI (real-time constrained schedule) = MQSI (real-time unconstrained schedule)
Floor value equation: TERM 2 IOG Floor value (IOG_FV) IOG Floor value (IOG_FV)
In this example, TERM 2 is calculated for the portion of the import that is scheduled in the real-time market beyond the day-ahead schedule value (DQSI - PDR_DQSI)
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IOG Floor Value: Real-Time Constrained-off Scenario
Quantity Price
Legend:
Real-time offer price quantity pair Real-time offer curve Day-ahead offer price quantity pair Day-ahead offer curve PDR_DQSI (day- ahead)
Floor value equation: TERM 1
MQSI (real-time unconstrained schedule)
Constrained OFF event
DQSI (real-time constrained schedule)
Floor value equation: TERM 2 IOG Floor value (IOG_FV) IOG Floor value (IOG_FV)
In this example, TERM 2 is calculated for the portion of the import that is scheduled in the real-time market beyond the day-ahead schedule value (DQSI - PDR_DQSI)
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Next Steps
- Continue to review DACP results to determine if
necessary conditions for under-payment have occurred
- Review other potential scheduling and pricing scenarios
for inappropriate payments
- PA Consulting review of MR-00323 proposed
formulations and other DACP formulations in relation to RT formulations
- IESO to revise MR-00323 as required
- July 18th report back to Panel; further Panel review of
MR-00323
- July 27th IESO Board consideration of MR-00323 as