Enron Mail

From:crcommunications@caiso.com
To:20participants@caiso.com
Subject:CAISO Notification - April 26 FERC Order
Cc:
Bcc:
Date:Thu, 24 May 2001 14:11:47 -0700 (PDT)

The following are a few more details related to the April 26 FERC order:

1. Implementation date is May 29 per the FERC order, not June 1 as I
indicated in the MIF meeting.

2. Gas prices will be available in the new OASIS site starting 8:00 am on
May 28. See http://oasisp.caiso.com.
If for some reason, OASIS is not able to publish the prices, we will be
sending out the prices via e-mail to all market participants and/or system
messages display in the SI workspace.

3. Replacing the bids for gas-fired generators with proxy bids during
mitigation hours:
* We will determine mitigation hours by checking system status between
45 and 10 minutes before the start of an operating hour. The decision will
apply for a whole hour. We will not operate hours partially under
mitigation and partially under non-mitigation. A report indicating which
hours are mitigation hours will be published on the new OASIS site. The
latest status will be posted at the top of each operating hour.
* For generators in the control area only, that we have visibility to
(individually scheduled unit, gross metering), we will be checking for
available capacity, and we will be extending or inserting Supplemental
Energy bids on behalf of the SC to include the extra capacity. The bids for
the additional energy will be priced on the proxy curve.

4. Extending or inserting bids for must-offer generators by the ISO:
* For generators in the control area only, that we have visibility to
(individually scheduled unit, gross metering), we will be checking for
available capacity, and we will be extending or inserting Supplemental
Energy bids on behalf of the SC to include the extra capacity. The bids for
the additional energy will be priced at $0.
* Units awarded regulation will not be subject to ISO capacity
checking, and therefore not subject to bid extending or inserting.
* If a unit has not submitted a supplemental energy bid, we will only
generate a new Supp Energy bid for that unit if it appears to be available
and dispatchable during real-time. In order to facilitate that we are
using the following criteria: the unit is a combustion turbine, the unit has
a non-zero hour ahead schedule, or the unit has been awarded ancillary
services.

5. Submittal of single Heat Rate and Emission Rate points, or no points:
* For those units that have only submitted data for one operating
point, and are capable of generating over multiple operating ranges, or in
general cases where we believe the data to be inadequate, we will substitute
the operating point(s) with the data from current or pre-existing RMR
contracts where possible. If RMR data does not exist for a unit, we reserve
the right to use other data from other sources to replace the submitted
data.
* For those units that have not submitted any data, we will assume the
unit is a price taker and generate proxy bids at $0.

6. For those of you trying to cover your GMMs:

A SC asked about what happens when they have to overgenerate above
their Hour Ahead schedule to cover their GMM, and then we dispatch them the
difference between Pmax and their HA schedule to comply with the FERC order.


Example:
SC has a 31MW unit. Their GMM is 0.967, or about 1 MW of losses.
They usually submit an HA schedule of 30 MW, and generate at 31 MW to cover
the GMM.

The answer is that A unit that keeps the ISO apprised of its
availability in real-time and performs in accordance with its bid
characteristics when dispatched should not receive penalties.
A unit with a Final HA Schedule of 30 MW that is dispatched for the
additional 1 MW and generates 31 MW according to meter data will not be
penalized under CT 485. The Total Obligation for CT 485 for a unit that is
dispatched for Incremental Energy is Final HA Schedule + 90% of Instructed
Incremental Energy. The Total Obligation for the hour is compared to the
hourly meter value for that unit and is not adjusted for transmission
losses, i.e.. GMM is not taken into account. (Currently, penalties for
failure to perform are assessed on an hourly basis, however CT 485 may be
assessed on an interval basis in the future.) So the Total Obligation for
the unit is 30 MW + .9 MW ( 90% of 1 MW) = 30.9 MW which is less than the
meter of 31 MW. For CT 485 purposes, this unit will not receive any
penalties.
It is important to note that there is a 10% tolerance or 2 MW for
Instructed Energy less than 20 MW on CT 485 penalties. If the unit is
instructed for less than 20 MW, 2 MW will be taken off of the Instructed
Incremental Energy instead of 10%. This means that any unit that has an
Incremental Instruction for 2 MW or less would not be flagged for CT 485
review.
For other Settlement charge types such as, CT 401 and No Pay charges
on Spin, Non-Spin, and Replacement, a unit is required to provide the
Instructed Energy plus any transmission losses in order to receive full
credit for providing the Scheduled Energy and Ancillary Services.


7. Example of proxy curve calculation is included in the attached document.

<<Proxy curve generation example.doc<<


Contact information:

Greg Ford
California ISO
Market Operations
(916) 351-2344
gford@caiso.com


Client Relations Communication
CRCommunications@caiso.com


- Proxy curve generation example.doc