The California ISO (CAISO) western energy imbalance market (WEIM) is pursuing an expansion over the next couple of years to incorporate an enhanced day-ahead market (EDAM). Many WEIM market participants, would like to understand the potential impacts of EDAM on the CAISO WEIM in three critical respects:
- Potential impacts of EDAM on merchant operations, BA operations, and settlement charge codes for WEIM
- Best practices for the front-office group in terms of submitting EDAM bids for resources, loads, and interties
- Best practices for the back-office group in the areas of meter validation, shadow settlements, dispute management, transmission billing, and month-end closing
Attendees will come away from this intensive course with a wealth of valuable knowledge:
- How the new EDAM will impact the front-office workflow for their merchant group, balancing area (BA) group and back-office group
- How settlement results can be used as a strategic tool to:
- validate settlement statements and invoices
- identify settlement errors
- submit settlement disputes
- compute profits and losses (P&L)
- provide feedback on the effectiveness of bidding strategies
- maximize the bottom-line profits for assets in WEIM
Front office, back office and settlement staff at WEIM and interested EDAM market participants will want to register early for this EUCI training in the Phoenix area, as in-person space is limited. Online attendance is also available.
Learning Outcomes
Attendees at this course will learn how to:
- Identify how EDAM will influence the front-office workflow
- Operate resources to maximize their value in WEIM
- Explore how to validate day-ahead market awards and compute DA settlement charges for resources and loads
- Assess whether will CAISO provide DA bid-cost recovery payments for resources
- Evaluate the potential impacts of EDAM on market operations and settlement charge codes
- Examine how to compute DA and DART P&L for resources
- Review how CAISO handles overcollected DA congestion revenues and losses
- Demonstrate the main charge codes for a BA group (Loads, Interties, and Nonparticipating Resources)
- Guide BAs to compute annual transmission revenue requirements
- Compute profit and loss (P&L) metrics
- Specify how BAs bill transmission customers for network and point-to-point services
- Allocate settlement charges for BAs to transmission customers
- Discuss the potential impacts of market power mitigation on settlement results
THURSDAY, JANUARY 18, 2024
8:30 a.m. – 5:00 p.m. Mountain Time
8:30 – 8:45 am :: Overview and Introductions
8:45 – 10:30 a.m. :: Potential Impacts of EDAM on WEIM Market Operations and Settlements
- Overview of western imbalance energy market (WEIM)
- Lessons learned from 10 Years of WEIM market operations
- Understanding CAISO full-network model and commercial model
- Key objectives for adding EDAM
- Potential impacts of EDAM on:
- Merchant group
- BA group
- Settlement group
- Reviewing DA bidding workflow for WEIM
- Merchant market participants
- BA participants
- How does security-constrained economic unit commitment (SCUC) work?
- Bid-to-bill timeline and challenges
- Quantifying EDAM benefits
- New WEIM initiatives
- Frequently-asked questions about EDAM
10:30 – 10:45 a.m. :: Morning Break
10:45 a.m. – 12:15 p.m. :: Reviewing EDAM Bid-to-Bill Workflow for WEIM Participants
- Reviewing EDAM bidding workflow
- Submitting 4-part energy bids and imbalance-energy bids for resources
- Submitting self-scheduled bids for interties
- Downloading CAISO DA awards for:
- Resources
- Interties
- Loads
- Reviewing EDAM & RT front-office workflow for merchant group
- Timeline for settlement statements and invoices
- Downloading settlement statements and invoices
- Understanding new EDAM charge codes
- Validating WEIM charge codes and managing settlement disputes
- Best practices for WEIM market operations
12:15 – 1:15 p.m. :: Lunch Break
1:15 – 3:00 p.m. :: Validating Charge Codes for Merchant Groups
- Understanding key DA & RT settlement charge codes for participating resources
- Reviewing WEIM back-office workflow for merchant group
- Computing DA energy payments for participating resources
- Computing DA imbalanced-energy payments for participating resources
- Computing DA GHG payments for participating resources
- Understanding CARB compliance
- Validating DA bid-cost recovery (BCR) payments
- Computing RT energy-imbalance payments and charges for participating resources
- Computing RT flexible-reserve payments for participating resources
- Validating RT GHG payments for participating resources
- Understanding WEIM administrative charges
- Best practices for WEIM back-office
3:00 – 3:15 p.m. :: Afternoon Break
3:15 – 5:00 p.m. :: Using WEIM and EDAM Settlement & P&L Metrics to Provide Feedback to Traders
- Using settlement and production-costing results to compute DA & DART Profits & Losses (P&L) for your resources
- Key factors influencing P&L
- Using P&L metrics to provide feedback to:
- Traders on effectiveness of WEIM bidding strategies
- Plant managers on plant performance
- Build key performance indices
- Settlement forensics – where front and back offices meet
- Lessons learned for using business-intelligence tools to analyze settlement results and validate market operations
- Best practices for WEIM P&L feedback
5:00 p.m. :: Program Adjourns for Day
FRIDAY, JANUARY 19, 2024
8:30 a.m. – 4:00 p.m. Mountain Time
8:30 – 10:45 a.m. :: Validating WEIM and EDAM Charge Codes for BA Group
- Reviewing BA workflow in WEIM market in EDAM
- Understanding key DA & RT settlement charge codes for BA group
- Computing DA energy charges for loads
- Validating meter data for resources, tie lines, and loads
- Deadlines for submitting settlement quality meter data (SDMQ) to CAISO
- Computing energy-imbalance payments and charges for nonparticipating resources, interties, and loads
- Computing actual system loads
- Validating over/under scheduling penalties and credits
- Understanding WEIM offset charges for loads
- How does CAISO compute WEIM settlement charges for unaccounted-for-energy?
- How does CAISO handle DA overcollections for congestion and losses?
- Best practices for BA operations and settlements
10:45 – 11:00 a.m. :: Morning Break
11:00 a.m. – 12:15 p.m. :: Goals for Transmission Billing
- Understanding open access transmission tariff (OATT)
- Computing annual transmission revenue requirements
- Computing transmission charges for:
- NITS customers
- Point-to-point customers
- Grandfathered agreements
- Revising OATT to reflect WEIM participation and settlement impacts
- Allocating WEIM settlement charges to transmission customers
- Using transmission billing to compute monthly invoices for transmission customers
- Best practices for transmission billing
12:15 – 1:15 p.m. :: Lunch Break
1:15 – 2:15 p.m. :: Goals for Transmission Billing (continued)
- Understanding open access transmission tariff (OATT)
- Computing annual transmission revenue requirements
- Computing transmission charges for:
- NITS customers
- Point-to-point customers
- Grandfathered agreements
- Revising OATT to reflect WEIM participation and settlement impacts
- Allocating WEIM settlement charges to transmission customers
- Using transmission billing to compute monthly invoices for transmission customers
- Best practices for transmission billing
2:15 – 2:30 p.m. :: Afternoon Break
2:30 – 3:30 p.m. :: Preparing for EDAM
- What software tools and IT infrastructure are needed to support the front-office and back-office workflow in EDAM?
- Preparing key personnel (traders, power-plant managers, fuel procurement, risk managers, load forecasters, etc.) for EDAM
- Reviewing lessons learned from other markets
3:30 – 4:00 p.m. :: Course Review & Roundtable Discussion
4:00 p.m. :: Course Adjournment