APX is pleased to present this month’s update on current and future activities of the CAISO Market Redesign and Technology Upgrade (MRTU). This issue includes:

• CAISO Market Simulation
• CAISO Bid to Bill Training
• Data, Data, Data
• APX Power Market Conference

CAISO wrapped up Integrated Market Simulation Release 1 on May 19, 2007 and is planning to launch Release 2 on May 29, 2007.  Release 1 was a continuation of connectivity testing but incorporated Master File validations against the SI Business Rules.  Release 2 will be one of the first times market participants get to see limited "bid to bill functionality".

Table 1 - Integrated Market Simulation Phase Basic Functionality

The dates laid out above are likely to change since CAISO is currently contemplating combining Release 3 and Release 4 and extending the Release 2 timeframe.  Primary reason is that CAISO testing of the Real-time functionality has hit a rough spot and the CAISO wants to make sure the Real-time process is stable before exposing it to market participants.  There will be additional discussions and information at the Release 3 planning session on June 4.

For the most part, the Release 1 simulation accomplished what it set out to do.  While the functionality wasn’t too different than the previous two simulations, the integration of the master file data with SIBR proved functional.  There were still some intermittent connectivity issues for Application Program Interfaces due to changes in security requirements that will hopefully stabilize as we move forward.

Release 2 is still scheduled to start on May 29 with a final go-no go decision on Friday, May 25.   The Release 2 functionality will run the Day Ahead market on a predetermined, static set of bids and electrical system parameters.  While the CAISO is asking market participants to upload the bid set they have provided, they will overwrite the entire market-wide bid set prior to executing the market algorithm to assure a controlled outcome.  The CAISO will run the Day Ahead Integrated Forward Market process, and they will produce market result outputs as well as settlement statements for a number of Day Ahead charge codes.

This is a great opportunity to learn more about how things work in the new market.  The classes are three days long and each day looks at the market from a slightly different perspective, Demand, Interties and Generation.  There is still a chance to sign up for classes and even if you can only attend for one day, it still has value. 

While several classes have already been completed and others are underway, there are still a few chances to get registered and attend.  The curriculum is to follow the ISO market process from schedule submittal through the market software all the way through to a settlement statement.  It is highly recommended that attendees have completed (or reviewed the material) for the Level 200 courses and run through the Level 300 SIBR Computer Based Training.

Bid to Bill classes that are still open for registration are as follows:

The Houston classes will only cover Interties and Generators, although the basic concepts of how the MRTU markets will operate are covered.  For registration, go to the CAISO website and hit the training link.  If you have additional questions or have difficulty finding the link, please call Cris Gallegos (408.517.2154).

The CAISO is sending out a lot of data files that coincide with the various Market Simulation Releases. There is some opportunity to review and update data, but the timing can be a little tricky. There is no need to panic, since at this point the data set isn't going to determine how resources and loads are treated under MRTU, but now is certainly a good time to develop an understanding and to make sure that you are ready for MRTU go-live in February 2008.

By now, somebody in your organization has been inundated with market simulation data from the CAISO, and there is more on the way.  Scripted data set files have been delivered for market simulation Release 1 and Release 2.  Two sets of Resource Data Templates (master file) have been delivered for Release 3 simulation.  There isn’t much that can be done with the Release 2 data files other than review them to try to determine what will come out of settlement statements during the market simulation.   The Release 3 Resource Data Templates can be reviewed, and if it is determined that updates should be made, they can be sent to the CAISO until June 8.

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.

This event is by special invitation only, so contact your Account Manager to learn more.

Contact your Account Manager Cris Gallegos (408.517.2154) or Tony Frontino (714.544.1774) for more information.