During the last several weeks, APX has been extremely busy attending the various CAISO stakeholder meetings, managing Scheduling Coordinator activities, and following the dynamic CAISO MRTU timelines. There are a few topics of immediate importance to market participants, but due to the changing scope and timelines, it is nearly impossible to follow what is going on and know where to deploy resources. To assist our customers, the APX readiness team has divvied up the activities and is working on behalf of our clients to highlight these time sensitive issues:
In this issue:- Market Simulation
- Resource Data Templates
- Congestion Revenue Rights
- Save the Date: APX Power Market Conference - June 6 & 7, 2007
Market Simulation
Business Structured Simulation and Long Cycle Simulation, previously referred to as Market Simulation 3 and 4, and originally scheduled for May through June (Sim 3) and September through October (Sim 4), have been renamed by the CAISO as “Integrated Market Simulation” (IMS) and broken into 5 releases spread from May through October. It’s becoming a bit of a challenge for all market participants, vendors and service providers to determine the specific functionality that will be tested and to coordinate development activity and release schedules with the CAISO market simulation schedule.
The same functionality that was scheduled for Business Structured Simulation and Long Cycle Simulation will be included in Integrated Market Simulation, but made available incrementally. The details of the specific releases are only known for Release 1 and Release 2 and it is not likely that details for subsequent releases will come before June. Table 1 describes the dates, durations, functions and structure of each release. For Releases 3, 4 and 5 dates and durations are still very fluid and these are the best interpretation that APX can make at this time.
Table 1
| Release | Start Date | Duration | Functions | Structure |
|---|---|---|---|---|
| 1 | April 30, 2007 | 3 Weeks | Same as Market Simulation 2, but adding Master File parameters to the SIBR validations | Unstructured (No limitations on modification of data nor any obligation to submit data). |
| 2 | May 29, 2007 | ~ 4 Weeks | Integrates Day Ahead Integrated Forward Market and results/awards in CMRI. Will include some DA Settlement charges | Structured (CAISO will provide SC specific data. If the SC alters the data or doesn’t enter it by the scheduled market close, the CAISO will enter the data). |
| 3 | July 2, 2007 (Target Date) | 4-5 Weeks | Adds RTM for HASP and Real-time Market runs and pricing, Day Ahead and Real Time settlements. | Structured |
| 4 | August 13, 2007 (Target Date) | 4-5 Weeks | Adds SLIC, EMS, Control Area Scheduler and OMAR | Structured and Semi Structured (ISO inputs data and SCs, following the scripts, can overwrite and modify data). |
| 5 | September 17, 2007 (Target Date) | When Exit Criteria is met (TBD) | Adds Compliance, ETCC and PIRP. At some point runs all functions in a 24X7 environment |
Structured and Unstructured |
As the details emerge and data sets and scripts are delivered, it will be easier to understand the value of each of the releases. The majority of the releases and simulation activity feature structured tests, i.e. the CAISO determines what data will be used and runs the market without allowing alteration to that data, which serves as more of an end to end test for the CAISO rather than an opportunity for Market Participants to see the impacts of different scenarios. APX is reviewing the details of Release 1 and Release 2 to determine what specifically it will be able to support on the APX platform during the May and June timeframe. Details of what will be available through the APX platform will be communicated later this month
Resource Data Templates (RDT)
First off, what is a Resource Data Template (RDT)? It is the template with resource operating parameters that a Scheduling Coordinator sends to the CAISO for entry into the Master File. The ISO distributed a second MRTU RDT in late January 2007 for use in market simulation.
Since then, they have changed the naming conventions for inter-tie resources (imports and exports are treated similar to generators and loads under MRTU, they have to register in the Master File). That means the 300 plus “representative” Inter-tie resources that were included in the January 2007 RDTs, are not the final form for use in the MRTU market.
The CAISO posted an Inter-Tie RDT on their website towards the end of March. It uses pull down menus to create Inter-Tie resources for use during the IMS and ultimately MRTU go live. If a Scheduling Coordinator wants to see schedule activity using the new Inter-Tie resources during the IMS, they need to create resources and forward them to the CAISO.
The deadline for inclusion of new Inter-Tie resources for Release 1 of IMS was Friday, April, 6. But don’t panic. The CAISO committed to updating the Master File prior to each IMS release. Since there is no throughput in Release 1, scrambling to create Inter-Tie resources by April 6 has limited value. The first data throughput (bid to bill) in IMS is during Release 2. The date for submitting Master File changes for inclusion in the Release 2 market simulation is April 27, 2007.
APX is assisting customers with completing the RDT. If you have questions about the timing and what you need to do with respect to your Resource Data Template and Master File information for MRTU, please contact Cris Gallegos
Congestion Revenue Rights
Market Participants must prepare for CRRs now.
By the nature of the Congestion Revenue Rights (CRR) Allocation and Auction process and the current schedule for MRTU go live (Feb 1, 2008), “market” activity for CRRs is commencing. This is a little unnerving since there are stakeholder meetings on CRR policy still underway and a scheduled Tariff filing in May. Nonetheless, preliminary activities include data gathering for allocation qualification and CRR certification and registration for candidate CRR holders.
Similar to the market simulation process, details regarding these activities are only now being provided to Market Participants. What is clear is that any entity that is entitled to receive CRRs through the allocation process or wants to participate in the auction needs to execute a CRR agreement with the CAISO and meet the certification requirements. These are not necessarily a high barrier, but certainly items that need to be completed in the next several months if and entity wants to participate in the initial CRR process which is scheduled to begin in July.
Key dates for the Registration and certification process are included in Table 2. The most important date is the first one, April 25, 2007 which is the deadline to submit a completed application to initiate the balance of the process.
Table 2
| Due Date | Activity |
|---|---|
| April 25, 2007 | Submit Candidate CRR Holder Application and CRR Entity Agreement Information Sheet |
| May 9, 2007 | Notification from CAISO of acceptance, rejection or deficiency of application |
| May 15, 2007 | Updated information for deficient applications due back to CAISO |
| May 14 – 15, 2007 | CAISO distributes CRR Entity Agreements to qualified applicants |
| May 21, 2007 | Qualified Applicant returns signed Entity Agreement and CRR Affiliate form to CAISO |
| June 5, 2007 | Establish EDI/Fedwire connection with CAISO |
Even thought the qualification, registration and certification process is underway, there is a little bit of time to make commercial and financial decisions regarding CRRs. The qualification, registration and certification processes are procedural and don’t create any long term binding commitments. That process begins in July and runs through October with the actual allocation (for qualified Load Serving Entities) and auction.
If you have questions about the items, timing and process for meeting CRR participation requirements, please contact Cris Gallegos. Additionally, if you need assistance in formulating your commercial and risk strategies for CRRs, Tony and the APX team have developed an offering designed to deal with this complex issue.
APX Power Market Conference - June 6-7, 2007
Save the Date! - Join us June 6 and 7 in San Diego for our annual conference: "Redesigning the Future, APX Looks Ahead".
We will be discussing the future of power markets in California and Texas. This event will be held at the Omni San Diego Hotel on June 6-7, 2007 in San Diego, CA to learn how APX clients and market participants will navigate these power market changes with new business strategies, new operational approaches, and new technology.
For More Information
Contact your Account Manager Cris Gallegos (408.517.2154) or Tony Frontino (714.544.1774) for more information.
APX provides technology, strategic consulting, and expert operational services to assist wholesale power market participants reduce costs and improve performance in power scheduling, settlement, market operations, and demand response programs. Clients include utilities, merchant companies, financial institutions, retail service providers, ISOs/RTOs, and other electricity market participants.
APX is also North America's leading provider of environmental registry solutions for markets in renewable energy and greenhouse gases, as well as corporate environmental management. APX technology is now the system of choice for every major renewable energy registry in North America, including the PJM, ERCOT, New England and other markets. A privately held company, APX is headquartered in Santa Clara, CA.
More information is available at www.apx.com or contact us at 408.517.2100.