6.1.9 IFM Initial Conditions

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1 6.1.9 IFM Initial Conditions A Generating Unit that was committed in the previous day s Day-Ahead Market (IFM or RUC) run (TD-2 for TD-1) but was de-committed before HE24 would normally be considered initially offline in the next day s IFM run for the Trading Day (TD). However, in the event that the Scheduling Coordinator for such Generating Units have submitted Self-Schedules in the Real- Time Market for the remaining hours of the day in which it was not committed in the Day-Ahead Market for the TD-1 date, the CAISO may assume that the Generating Unit is indicating its intent to be on line at the beginning of the next day (TD). In that case, the CAISO market operator may set the initial condition for such a resource in the IFM conducted on TD-1 for the TD to be online taking into consideration the following conditions: A. The unit was offered in the Day-Ahead Market for all hours through hour ending 24 where it was not economically committed by the IFM from the previous day (TD-1) B. The unit is economically committed for some hours of the TD-2 for TD-1 IFM or RUC processes, but is not committed through the end of TD-1. An IFM partial day selfschedule commitment will not trigger this criterion. C. By one hour prior to the close of the Day-Ahead Market for TD (i.e. at 09:00 on TD-1), the unit has Self-Scheduled Energy (presumably, but not necessarily at PMin) in the RTM for TD-1 for each of the remaining hours after the last economically-committed hour in the DAM for TD-1. D. No risk of an over-generation condition is anticipated for any hours in TD-1. In addition, the CAISO monitors the interaction of the initial condition setting and Self-Schedule behavior by Scheduling Coordinators. For example, If the CAISO observes that a Scheduling Coordinator tends to withdraw its Self-Schedules after the close of the Day-Ahead Market, but prior to the close of Real-Time Market, the CAISO can consider such behavior and inform its decisions in setting the initial conditions for the next day s IFM. The initial condition of the resource consists of the resource s status, operating level, and for Multi-Stage Generating Resources, the operating MSG Configuration. When the operator, following this process, adjusts a resource s initial condition, they will adjust the operating level and MSG Configuration as follows: Non- Multi-Stage Generating Resource the operating level will be set to the resource s Minimum Load Multi-Stage Generating Resource the MSG Configuration will be set to the lower of a) the configuration in the last hour of the IFM commitment for TD-1; and b) the self- Version 25 Last Revised: April 9, 2012 Page 1

2 scheduled configuration in the Real-Time Bid for Hour Ending 24 on TD-1. operating level will be set to the Minimum Load of the selected MSG Configuration. The The initial condition will be set to the Minimum Load of the unit / MSG Configuration even if the RTM Self-Schedule is higher than Minimum Load. If the SC only offered the unit to be selfscheduled in the IFM run on TD-2 for TD-1, then the unit will not be a candidate for its initial condition to be set as online for the IFM run for the TD run on TD-1. The CAISO monitors how the Generating Units Self-Schedule their resources to inform the decisions the operators make in setting the initial conditions based on their self-scheduling practices. On any given day that the CAISO does not consider the next day s Self-Schedules in setting initial conditions, the CAISO will notify Scheduling Coordinators via the OASIS system operating messages. Furthermore, the setting of a resource s initial conditions does not supersede the scheduling of resources in IFM through the security constrained economic dispatch and unit commitment process of the IFM for a given Trading Day and only serves as an input to the IFM to inform operators on setting the resource s initial conditions to facilitate a more efficient operation of the market and grid. In setting the initial conditions in the Day-Ahead Market for TD the ISO operator or systems may also consider a resource s actual status (on-line or off-line) and on time (how long the resource has been in its current status) at the time of the close of the market (1000 TD-1). If a resource that does not have a Day-Ahead Market schedule for the previous and current hours of the current day in which the Day-Ahead Market is run is actually online at the time of the close of the Day-Ahead Market for TD (1000 TD-1), and in addition has a Day-Ahead Market schedule for a future hour of the current day including hour ending 24 of the current day, then an assessment of the resources ability to actually cycle off and back on prior to its upcoming schedule of the day may occur. If the ISO operator or systems determine that the resource would be unable to cycle off and back on without violating the resources registered minimum down time, then the resources on time will reflect its actual time on, as of the close of the market, plus the remaining hours of the current day. 6.6 Integrated Forward Market This section is based on CAISO Tariff Section 31.3, Integrated Forward Market. After the MPM and prior to RUC, CAISO performs the IFM. The IFM performs Unit Commitment and Congestion Management, clears Virtual Bids submitted by SCs and clears the Energy Bids Version 25 Last Revised: April 9, 2012 Page 2

3 as modified in the MPM, taking into account transmission limits, inter-temporal and other operating constraints, and ensures that adequate Ancillary Services are procured in the CAISO Balancing Authority Area based on 100% of the CAISO Forecast of CAISO Demand. The IFM: Determines Day-Ahead Schedules and AS Awards, and related LMPs and ASMPs Optimally commits resources that bid in to the DAM. The IFM performs an SCUC process which utilizes Mixed Integer Programming (MIP) algorithm using the multi-part Supply Bids (including a Start-Up Bid, Minimum Load Bid, and Energy Bid Curve), and a capacity Bid for Ancillary Services as well as Self-Schedules submitted by SCs. The IFM also optimally schedules Use-Limited Resources subject to their submitted Daily Energy Limits. When making a commitment decision in IFM, consistent with the consideration of a resource s minimum up time that extends beyond the IFM trading day time horizon, the minimum load costs that extend beyond the IFM trade day horizon up to the resources minimum up time may also be considered. For a Multi-Stage Generating Resource, the IFM produces a Day-Ahead Schedule for no more than one MSG Configuration per Trading Hour. In addition, the IFM will produce the MSG Transition and the MSG Configuration indicators for the Multi-Stage Generating Resource, which would establish the expected MSG Configuration in which the Multi- Stage Generating Resource will operate. During a MSG Transition, the committed MSG Configuration is considered to be the from MSG Configuration. 7. Real-Time Processes Welcome to the Real-Time Processes section of the CAISO BPM for Market Operations. In this section, you will find the following information: A description of the Real-Time Market timelines How CAISO performs the Hour-Ahead Scheduling Process (HASP) Version 25 Last Revised: April 9, 2012 Page 3

4 How CAISO performs the Short-Term Unit Commitment(STUC) process A description of the Real-Time Unit Commitment (RTUC) process A description of the Real-Time Economic Dispatch (RTED) process A description of the Real-Time Manual Dispatch (RTMD) process A description of the Real-Time Contingency Dispatch (RTCD) process A timeline and data flow diagram for the Unit Commitment and Dispatch processes of the Real- Time Market is included. 7.1 Differences from IFM In general, the RTM applications are multi-interval optimization functions minimizing the cost of dispatching Imbalance Energy and procuring additional AS, when applicable, subject to resource and network constraints. In this respect, the RTM applications are not much different than the IFM application. The main differences are the following: The IFM application uses hourly time intervals, whereas the RTM applications use subhourly time intervals within their Time Horizon. The Time Horizon of the IFM application spans the next Trading Day, whereas the Time Horizon of the RTM applications is variable (due to submission timelines limiting the availability of real-time bids beyond the end of the next hour) and spans the current and next few Trading Hours at most. The RTM applications run at periodic intervals, every 5 or 15 minutes, with a Time Horizon that ends at or beyond the Time Horizon of the previous run. Results for time intervals past the first one in the Time Horizon are advisory since they are recalculated the next time the application runs. The IFM application uses Demand Bids to clear against Supply Bids, whereas the RTM applications use CAISO Forecast of CAISO Demand and final scheduled exports. Demand Bids and Virtual Bids are not accepted in the RTM. The RTM applications use the latest available information about resource availability and network status; in fact, the optimal Dispatch is initialized by the SE solution that is provided by the Energy Management System (EMS). The IFM application commits resources optimally for the next Trading Day using threepart Energy Bids. Almost all resources can be considered for optimal commitment, except for resources with extremely long Start-Up and/or Minimum Run Times, because Version 25 Last Revised: April 9, 2012 Page 4

5 the full cost impact of commitment decisions for these resources cannot be evaluated within the IFM Time Horizon. Similarly, the RTM applications that have Unit Commitment capabilities can commit resources optimally within their Time Horizon, however, because that Time Horizon is short (a few hours at most), only Fast-Start, Short-Start and Medium Start Units can be committed. Consequently, any Long-Start Units that are not scheduled in the IFM or RUC, are effectively not participating in the RTM. Unlike the IFM application, the RTM applications need to interface with the Automated Dispatch System (ADS) to communicate financially binding commitment and Dispatch Instructions, and with the CAS for confirmation of System Resource Schedules and Dispatch. The RTM applications provide more control to the CAISO Operator with the capability to adjust the Imbalance Energy requirements (via adjustments to the Load forecast), block commitment or Dispatch Instructions, or issue Exceptional Dispatches. This CAISO Operator input is necessary to address any unexpected system conditions that may occur in Real-Time. The RTM applications also provide the functionality to the CAISO Operator to switch the system or individual resources into a Contingency state under which Contingency Only Operating Reserves are dispatched optimally to address system contingencies. Contingency Only Operating Reserves are otherwise reserved and not dispatched by the RTM applications. The CAISO Operator may augment or supplant the Dispatch Instructions generated by the RTM application with Exceptional Dispatches if necessary to address system conditions that are beyond the modeling capability of the RTM applications. The ISO market systems will validate Bids at transmission paths with zero rated OTC in both directions. The details of this procedure are provided in the BPM for Market Instruments. Unlike the IFM application, RDRR resources will not be selected for normal dispatch unless the CAISO Controlled Grid is in one or more of the following conditions as provided in the associated operating procedures (see CAISO public website): For system emergencies, including Transmission emergencies; and Mitigating imminent or threatened operating reserve deficiencies. Version 25 Last Revised: April 9, 2012 Page 5

6 For resolving local transmission and distribution system emergencies. In the event these conditions exist, the CAISO operator may choose to activate a software flag which will allow these resources to be dispatched. Likewise, after the condition has ended and conditions have stabilized, the operator will reset the flag which will prevent the resources from being dispatched, other than to their day-ahead awarded value. RDRR resources have the option of discrete dispatch capability in the RTM application. Similar to a COG unit, the RDRR resource selecting the discrete dispatch option will be dispatched either to zero or to a specified MW quantity, and will be allowed to set the LMP if a portion of energy from the resource is needed to serve demand. Unlike a COG unit, the MW quantity is specified via the hourly Energy Bid. 7.3 CAISO Activities The principle activities that CAISO performs are described in the following subsections Accept Hourly HASP & Real-Time Market Inputs This section lists the inputs that are common to the Real-Time processes. The inputs that are submitted for the DAM that are also used in the Real-Time process are not repeated here. Note that Real-Time Bids can be submitted after the DAM results are published Energy Limits & Energy Quota Calculation As per Section of Market Instruments BPM, Daily Energy Limits (a maximum and a minimum) Minimum Daily Energy limits are not enforced for Generating Resources. These are an optional component submitted by SCs in their Day-Ahead bids, and if submitted and validated, are enforced in all DAM applications. The enforcement of daily Energy Limits is straightforward in these applications because the Time Horizon is a Trading Day. Energy Limits are also enforced in the RTM applications to assure that the Unit Commitment and Dispatch these applications perform do not violate at the end of the Trading Day the daily Energy Limits that are enforced in the Schedules produced in the DAM. CAISO is committed to honoring Energy Limit constraints unless doing so would violate reliability of the grid. Version 25 Last Revised: April 9, 2012 Page 6

7 This section describes the methodology employed in RTM for deriving Energy Limits for the relevant Time Horizon so that: (a) the daily Energy Limits are not violated at the end of each Trading Day and (b) there is sufficient room between the minimum and maximum Energy Limits for optimal Dispatch. If the Time Horizon spans a Trading Day boundary, the Energy Limits are derived in parts for each Trading Day applying the following general methodology using the data and variables applicable to the relevant Trading Day for each resource. The following concepts are used in the section: Scheduled Energy Quota To derive a maximum Energy Limit, the scheduled Energy quota is calculated as the scheduled Energy out of the higher of the IFM or RUC schedule, from the start of the Trading Day to the end of the RTM Time Horizon. To derive a minimum Energy Limit, the scheduled Energy quota is calculated as the scheduled Energy out of the lower of the IFM or RUC schedule 1, from the start of the Trading Day to the end of the RTM Time Horizon. The scheduled Energy quota may be negative for a minimum Energy Limit in the case of a Pumped-Storage Hydro 2 Unit scheduled to pump. Unused Energy Quota The unused Energy quota is a pro rata allocation of unused daily Energy (daily Energy Limit minus scheduled Energy over the Trading Day) from the start of the Trading Day to the end of the RTM Time Horizon. The unused Energy quota may be negative for a minimum Energy Limit in the case of a Pumped-Storage Hydro Unit. Dispatched Energy Quota The dispatched Energy quota is the total Energy dispatched in RTM from the start of the Trading Day to the start of the RTM Time Horizon. The dispatched Energy quota may be negative in the case of a Pumped- Storage Hydro Unit dispatched in the pumping mode. Energy Limit The Energy Limit for the RTM Time Horizon is calculated as the sum of the scheduled Energy quota and the unused Energy quota from the start of the Trading Day to the end of the RTM Time Horizon, reduced by the dispatched Energy quota from the start of the Trading Day to the start of the RTM Time Horizon. The minimum Energy Limit may be negative in the case of a Pumped-Storage Hydro Unit. 1 Except for IFM Energy or Minimum Load Energy, a RUC schedule is not an Energy schedule. 2 Minimum Energy Limit for a Pump-Storage Hydro resource reflect the maximum of pumping energy that can be consumed. Version 25 Last Revised: April 9, 2012 Page 7

8 Energy Limits are enforced in the RTM applications as soft constraints, i.e., with lower penalty costs than other constraints, such as network constraints and Exceptional Dispatches. Exceptional Dispatches, in particular, and also Outages and derates may result in Energy Limit violations. The described methodology enforces the daily Energy Limits as a dynamically adjusted rolling average over the course of a Trading Day, providing room for optimal refinement of the DAM Schedules in Real-Time. Aside from the effect of other binding constraints that may conflict with the Energy Limit constraints, the methodology assures a feasible outcome, but only when Dispatch Instructions are followed accurately, and neither AGC actions, contingencies nor Exceptional Dispatches cause Energy Limit violations, since the formulation involves only Instructed Imbalance Energy. Consequently, Energy Limits may be violated due to the regulating action of units on Regulation and due to Uninstructed Deviations driving the Dispatch Instructions via the State Estimator feedback. The method attempts to recover any Energy outside the rolling average limits over the course of a Trading Day, however, this may not be possible if Uninstructed Deviations persist. This means that if a resource deviates and causes the Energy Limits to exceed the rolling average Energy Limits but not the total Energy Limit for the day, then the solution attempts to reduce the Dispatch of the resource for future Dispatches in order to recover or conserve the Energy Limits in the future. If the total Energy Limit has been hit then the recovery is not possible Ancillary Service Award Allocation on Energy Bids Refer to the description given in Section of this BPM Resource Capacity Constraints RTM optimally commits and dispatches resources to balance Supply and Demand subject to resource and network constraints. Capacity constraints limit the Energy Dispatch and the AS Awards to the available resource capacity or the applicable MSG Configuration s capacity for a Multi-Stage Generating Resource as follows: On-line resource not scheduled for Regulation: The Energy Dispatch must be greater than or equal to the lower operating limit. Version 25 Last Revised: April 9, 2012 Page 8

9 Where: The sum of the Energy Dispatch and the Non-Spinning and Spinning Reserve Awards must be less than or equal to the lower of the upper economic limit or the upper operating limit. On-line resource scheduled for Regulation: The Energy Dispatch minus the Regulation Down Award must be greater than or equal to the higher of the lower regulating limit or the lower operating limit. The sum of the Energy Dispatch and the Non-Spinning and Spinning Reserve Awards must be less than or equal to the upper economic limit. The sum of the Energy Dispatch and the Non-Spinning, Spinning, and Regulation Up Awards must be less than or equal to the lower of the upper regulating limit or the upper operating limit. Off-line Fast Start Unit: The Energy Dispatch must be zero. The Non-Spinning Reserve Award must be less than or equal to the lower of the upper economic limit or the upper operating limit. No energy Bid is required if the Non-Spinning Reserve Award is less than or equal to the Minimum Load. The lower operating limit is the resource Minimum Load adjusted by any applicable overrates 3 The upper operating limit is the resource maximum capacity adjusted by any applicable derates The upper economic limit is the highest operating level in the resource Energy Bid The lower regulating limit is the lowest operating level below which the resource cannot regulate The upper regulating limit is the highest operating level above which the resource cannot regulate 3 'An "overrate" is the opposite of a "derate": an "overrate" restricts a resource's operating range above its lower operating limit, in contrast to a "derate" that restricts its operating range below its upper operating range. Version 25 Last Revised: April 9, 2012 Page 9

10 Further details on Upper and lower operating limits are given in Section 4.2.3, Ancillary Service Award Allocation of Energy Bids, and Exhibit 6-4, Capacity Available for RUC. For resources on regulation with two regulating ranges, the regulating range for the current operating hour is obtained from EMS. The regulating range for the following operating hours is determined based on which range can accommodate Day-Ahead Regulation Down Award immediately below the Day-Ahead Schedule, and a simultaneous dispatch of Day-Ahead Regulation Up, Spinning Reserve, and Non-Spinning Reserve Awards, above the Day-Ahead Schedule. In the case where both regulation ranges can accommodate all Day-Ahead AS Awards, the lower regulation range that contains the Day-Ahead Schedule will be selected. If an Exceptional Dispatch would take a regulating unit outside of the EMS regulation range (for the current operating hour) or the selected regulating range (for the following operating hours), RTM will assume that the unit is taken off regulation. The AS Awards include the relevant DAM AS Awards, any qualified AS self-provision, and the selected incremental AS Awards in HASP/RTUC. The Energy Dispatch and the selected AS Bid are decision variables, optimally determined to minimize the Energy and AS procurement cost over the entire Time Horizon. When making a decision to shut down a resource in RTM, minimum load costs that arise as a result having to maintain a resource online to allow a resource to meet its day-ahead binding commitment while ensuring the resource does not violate the resources minimum down time may be considered prior to time the resources minimum down time becomes binding. It is important to note that Spinning and Non-Spinning Reserve self-provision requires an Energy Bid for qualification in the RTM, unlike the DAM. Regulation Up Bids can be selected irrespective of the presence of an Energy Bid. Real-Time AS Awards awarded in HASP/RTUC are settled at the relevant ASMP. When resource capacity constraints are binding at the optimal solution, the LMP reflects the opportunity cost of the resource capacity that is reserved from dispatching Energy in order to provide AS. Version 25 Last Revised: April 9, 2012 Page 10

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