MARKET MANUAL. Part 9.3: Operation of the Day-Ahead Commitment Process PUBLIC. Enhanced Day-Ahead Commitment (EDAC) Market Manual. EDAC Issue 0.1.

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1 MARKET MANUAL PUBLIC Enhanced Day-Ahead Commitment (EDAC) Market Manual Part 9.3: Operation of the Day-Ahead Commitment Process EDAC Issue This procedure provides guidance to Market Participants on the submission of dispatch data in the Real-Time Energy and Operating Reserve Markets. This document includes all the changes to the Day-Ahead Commitment Process Manual due to the EDAC project. (**This page must be removed before the market manual is released to the IESO Baseline Management process. This page is only pertinent to the EDAC project.*) Public

2 IESO_MAN_0078 EDAC Disclaimer This is an internal EDAC project document. Market participants and IESO operations shall not use this document as a reference for their operations. The existing Market Manual 9 Day-Ahead Commitment Process Operations and Settlement, available on IESO website ( shall be used by market participants and IESO until otherwise notified by the IESO. Background The purpose of this document is to revise the existing Market Manual 9 Day-Ahead Commitment Process Operations and Settlement based on the changes introduced by the EDAC project and to prepare the market manual for formal release under the IESO Baseline Management process. This document is controlled under EDAC project baseline management process. Therefore, the document versioning, i.e., issue number, follows the EDAC document versioning standards which, is different from the IESO Baseline Management versioning. (**This page must be removed before the document is released to IESO Baseline Management process. This page is only pertinent to the EDAC project.*) Document ID IESO_MAN_0078 Document Name Part 9.3: Operation of the Day-Ahead Commitment Process Issue EDAC Issue Reason for Issue Draft for Internal Project Review Effective Date July 7, 2010 Public

3 Part 9.3: Operation of the Day-Ahead Commitment Process Document Change History EDAC Document Change History Issue Reason for Issue Date First draft for internal project review June 22, 2010 EDAC Related Documents Document ID N/A Document Title (**This page must be removed before the document is released to IESO Baseline Management process. This page is only pertinent to the EDAC project.*) EDAC Issue July 7, 2010 Public

4 EDAC Table of Changes Reference (Paragraph and Section) Entire Document Description of Change This is a new document replacing the existing IESO_MAN_0041 Market Manual 9 Day-Ahead Commitment Process Operations and Settlement, Issue 7.0, released for baseline 22.1 on December 9, (**This page must be removed before the document is released to IESO Baseline Management process. This page is only pertinent to the EDAC project.*)

5 PROCEDURE PUBLIC IESO_MAN_0078 Market Manual 9: Day-Ahead Commitment Process Part 9.3: Operation of the Day-Ahead Commitment Process Issue 0.1 This procedure provides guidance to Market Participants on the submission of dispatch data in the Real-Time Energy and Operating Reserve Markets. Public

6 Disclaimer The posting of documents on this Web site is done for the convenience of market participants and other interested visitors to the IESO website. Please be advised that, while the IESO attempts to have all posted documents conform to the original, changes can result from the original, including changes resulting from the programs used to format the documents for posting on the Web site as well as from the programs used by the viewer to download and read the documents. The IESO makes no representation or warranty, express or implied that the documents on this Web site are exact reproductions of the original documents listed. In addition, the documents and information posted on this Web site are subject to change. The IESO may revise, withdraw or make final these materials at any time at its sole discretion without further notice. It is solely your responsibility to ensure that you are using up-to-date documents and information. This market manual may contain a summary of a particular market rule. Where provided, the summary has been used because of the length of the market rule itself. The reader should be aware, however that where a market rule is applicable, the obligation that needs to be met is as stated in the Market Rules. To the extent of any discrepancy or inconsistency between the provisions of a particular market rule and the summary, the provision of the market rule shall govern. Document ID IESO_MAN_0078 Document Name Part 9.3: Operation of the Day-Ahead Commitment Process Issue Issue 0.1 Reason for Issue Issue released for project review Effective Date July 7, 2010

7 Part 9.3: Operation of the Day-Ahead Commitment Process Document Control Document Change History Issue Reason for Issue Date 0.1 First draft for internal project review EDAC Issue July 7, 2010 Public

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9 Part 9.3: Operation of the Day-Ahead Commitment Process List of Figures Table of Contents Table of Contents... i List of Figures... iii List of Tables... iv Table of Changes... v 1. Market Manuals About this Manual Conventions Introduction Purpose Scope Overview of the Operation of the DACP Initial Scheduling Assumptions Initial Hours of Operation Start-up Offer Treatment for the First Hour of Day Treatment of Ramp Rate over Midnight Treatment of MGBRT over Midnight Treatment of MGBDT over Midnight Use of Three Part Offers in the DACE Optimization Process Overview Pass 1 Commitment Pass 2 Reliability Pass 3 Scheduling Scheduling the DACE Runs Initial DACE Run EELR Optimization Run Subsequent Run for Rerun Criteria Completion of the DACP and the Schedule of Record IESO Reliability Commitment Actions Principles for Applying Reliability Commitments Process for Applying Reliability Commitments Principles for Applying DACP Commitment Actions Process for Applying DACP Commitments DACP Reports Issue 0.1 July 7, 2010 Public i

10 Table of Contents IESO_MAN_ Outage Reports Pre-dispatch Reports Transmission Rights Reports DACP Report Descriptions Day-Ahead Schedule of Record Notifications Notifications Associated with the Initial DACE Run Notifications Associated with the EELR Optimization Run Notifications Prior to Completion of DACP at 15: DACP Failure Notification Procedures for Operation of the DACP Retrieve DACP Reports and Notifications DACP Reports and Notifications Retrieve DACP Reports and Notifications - Procedure Workflow for Retrieve DACP Reports and Notifications Procedural Steps for Retrieve DACP Reports and Notifications Notification of Reliability Commitments Notification of Reliability Commitments Procedure Workflow for Notification of Reliability Commitments Procedural Steps for Notification of Reliability Commitments ii Public Issue 0.1 July 7, 2010

11 Part 9.3: Operation of the Day-Ahead Commitment Process List of Figures List of Figures Figure 4-1: Satisfy Generator s MGBRT across Midnight... 5 Figure 4-2: Components of Three Part Offer Recognized by DACE... 6 Figure 4-3: Passes = 1 Run... 7 Figure 4-4: Publishing and Reporting Processes Figure 4-5: Publishing Timelines for Pre-dispatch Data...18 Figure 5-1: Retrieve DACP Reports and Notifications...25 Figure 5-2: Workflow for Notification of Reliability Commitments...29 Issue 0.1 July 7, 2010 Public iii

12 List of Tables IESO_MAN_0078 List of Tables Table 2-1: Table of Contents Market Manual Table 4-1: Pass 1 Inputs to Day-Ahead Calculation Engine... 8 Table 4-2: Pass 1 Outputs from Day-Ahead Calculation Engine... 9 Table 4-3: Pass 2 Inputs to Day-Ahead Calculation Engine Table 4-4: Pass 2 Outputs from Day-Ahead Calculation Engine Table 4-5: Pass 3 Inputs from Day-Ahead Calculation Engine Table 4-6: Pass 3 Outputs from Day-Ahead Calculation Engine Table 4-8: DACP Report Descriptions Table 5-1: Applicability of Procedures Table 5-2: Workflow Diagram Legend Table 5-3: Procedural Steps Legend Table 5-4: Procedural Steps for Retrieve DACP Reports and Notifications Table 5-5: Procedural Steps for Notification of Reliability Commitments iv Public Issue 0.1 July 7, 2010

13 Part 9.3: Operation of the Day-Ahead Commitment Process Table of Changes Table of Changes Reference (Paragraph and Section) Description of Change Issue 0.1 July 7, 2010 Public v

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15 Part 9.3: Operation of the Day-Ahead Commitment Process 1. Market Manuals 1. Market Manuals The market manuals consolidate the market procedures and associated forms, standards, and policies that define certain elements relating to the operation of the IESO-administered markets. Market procedures provide more detailed descriptions of the requirements for various activities than is specified in the "Market Rules". Where there is a discrepancy between the requirements in a document within a market manual and the market rules, the market rules shall prevail. Standards and policies appended to, or referenced in, these procedures provide a supporting framework. Issue 0.1 July 7, 2010 Public 1

16 2. About this Manual IESO_MAN_ About this Manual The Day-Ahead Commitment Process is Volume 9 of the market manuals, where this document forms Part 9.3: Operation of the Day-Ahead Commitment Process. The Day-Ahead Commitment Process Manual is composed of the following document set: Table 2-1: Table of Contents Market Manual 9.0 Document ID Part No. Name of Procedure Document IESO_MAN_ Day-Ahead Commitment Process Overview IESO_MAN_ Submitting Registration Data for the Day-Ahead Commitment Process IESO_MAN_ Submission Operational and Market Data for the Day-Ahead Commitment Process IESO_MAN_ Operation of the Day-Ahead Commitment Process IESO_MAN_ Real-Time Integration of the Day-Ahead Commitment Process IESO_MAN_ Settlement of the Day-Ahead Commitment Process 2.1 Conventions The market manual standard conventions are as defined in Part 9.0: Day-Ahead Commitment Process, Section 2.4 Conventions. End of Section 2 Public Issue 0.1 July 7, 2010

17 Part 9.3: Operation of the Day-Ahead Commitment Process 3. Introduction 3. Introduction 3.1 Purpose This document provides you with the procedures associated with the operation of the Day-Ahead Commitment Process (DACP). 3.2 Scope This market manual is intended to provide a summary of the steps and interfaces between you and the IESO during the operation of the DACP. The procedural workflows and steps described in this document serve as a roadmap for you and the IESO, and reflect the requirements set out in the market rules and applicable IESO policies and standards. The overview information in Section 4, below, is provided for context purposes only, highlighting the main actions that comprise the procedures as set out in Section 5. This procedure describes the steps required to retrieve DACP reports and notifications and to receive notification of reliability commitments. End of Section Issue 0.1 July 7, 2010 Public 3

18 4. Overview of the Operation of the DACP IESO_MAN_ Overview of the Operation of the DACP This section provides an overview of the operation of the DACP including: Initial scheduling assumptions Optimization process overview Scheduling the DACE runs Summary of DACP reports. 4.1 Initial Scheduling Assumptions The majority of inputs required to initialize the Day-Ahead Calculation Engine (DACE) are identical to those required for the Pre-dispatch schedule. This section describes the additional inputs which are specific to the initialization of DACP Initial Hours of Operation Initial Hours of Operation (IHO) is defined as the number of consecutive hours a dispatchable generator is in operation at the end of Day 0. We use the IHO to determine whether to process the start-up offer for a generator scheduled at the beginning of Day 1 and to facilitate the treatment of MGBRT over midnight. The IHO is determined only for not quick start dispatchable generators and is based on: The schedules from the most recent Pre-dispatch run for the current dispatch day (Day 0) The previous day s DACP constraints in Contract Manager for the current dispatch day (Day 0) at the time that the most recent Pre-dispatch run results are published Start-up Offer Treatment for the First Hour of Day 1 When determining the schedule for the first hour of Day 1, the DACE does not take into account the start-up offers for dispatchable generators that are already in operation in the last hour of Day 0 as determined by the IHO Treatment of Ramp Rate over Midnight Resource Initial Schedule (RIS) is computed as part of each DACE run and represents the dispatchable resource s schedule in HE24 as determined by the most recent Pre-dispatch Schedule results for Dispatch Day 0. RIS is determined only for dispatchable generators and loads. The DACE uses the RIS to ensure the resource s hourly ramp rate is respected for the first hour of Dispatch Day 1. RIS is computed as part of each DACE run and requires the most recent Pre-dispatch Schedule results for Day 0. 4 Public Issue 0.1 July 7, 2010

19 Part 9.3: Operation of the Day-Ahead Commitment Process 4. Overview of the Operation of the DACP Treatment of MGBRT over Midnight The DACE commits a generator at the beginning of Day 1 for a minimum number of hours to satisfy its remaining minimum generation block run time (MGBRT) from the previous day (see Figure 4-1). It uses the daily generation data (DGD) MGBRT effective for Day 1 when calculating the remaining MGBRT that need to be satisfied. A generator will have its MGBRT honoured across midnight if it satisfies the following conditions: It is a DA-PCG eligible generator. It has valid offers for all the hours required to satisfy its remaining MGBRT in Day 1. DGD MGBRT IHO => 1. In order to satisfy the remaining hours of MGBRT, a generator must have offered to at least the DGD MLP for every remaining hour. A DA-PCG eligible generator with valid offers is committed up to the DGD MLP regardless of the offer price. Figure 4-1: Satisfy Generator s MGBRT across Midnight Issue 0.1 July 7, 2010 Public 5

20 4. Overview of the Operation of the DACP IESO_MAN_ Treatment of MGBDT over Midnight The DACE does not respect minimum generation block down time (MGBDT) over midnight and will commit a DA-PCG eligible generator that was scheduled off in the previous day, but has not been offline for the specified number of hours, for Day 1. To prevent a commitment that violates MGBDT over midnight, you must manage your offers in a manner that prevents scheduling for the hours which are required to complete the MGBDT. 4.2 Use of Three Part Offers in the DACE The DACE optimizes using the three-part offers of not quick start generators to determine day-ahead commitments and schedules. Since the engine will only schedule a not quick start generator to at least its minimum loading point, it needs to know the minimum generation costs for the generator. The engine will determine the minimum generation costs as the generator s speed no-load cost and the incremental energy offer up to its minimum loading point. How the engine interprets each of the three parts of a generator s offer is shown in Figure 4-2 below. 1. Start-up value to bring generator up to MLP (may also include amounts associated with ramp down from MLP) - $ per start 2. Minimum Generation speed no -load plus incremental energy offer up to MLP - $/MWh 3. Incremental Energy energy offers for entire operating range of generator - $/MWh Minimum Loading Point Generator Starts Generator Synchronizes Start Of DACP Schedule End Of DACP Schedule Generator Is Offline Figure 4-2: Components of Three Part Offer Recognized by DACE 4.3 Optimization Process Overview The Day-Ahead Calculation Engine (DACE) performs two functions: commitment and scheduling. In the DACP, commitment refers to the economic scheduling of not quick start generation facilities and 6 Public Issue 0.1 July 7, 2010

21 Part 9.3: Operation of the Day-Ahead Commitment Process 4. Overview of the Operation of the DACP imports. Commitment has financial connotations that represent a status for DA-PCG eligible generators and imports that are eligible for day-ahead guarantees should they: 1. Operate according to DACP rules, and 2. Receive insufficient real-time revenues to cover their day-ahead as-offered costs. For day-ahead scheduling, the engine produces constrained schedules for all economic resources from the day-ahead submitted bids and offers. These day-ahead schedules indicate the most efficient set of resources required to meet the forecast demand of the next day. Market participants with day-ahead schedules may use them to plan their next day s operations. For committed resources, day-ahead guarantees are calculated based on these schedules. The DACE performs day-ahead commitment and scheduling by maximizing the economic gain from trade. The objective function representing this gain from trade is the same as that used in the realtime dispatch algorithm. The engine co-optimizes energy and operating reserve over the entire 24 hours of the next day while ensuring that security constraints such as transmission limits are not violated. Every DACE run uses three passes. Each pass has a specific purpose and is explained in detail in subsequent sections: Pass 1 is Commitment Pass 2 is Reliability Pass 3 is Scheduling The final outputs of the DACE are schedules for all committed resources (DA-PCG eligible generators and imports), quick start facilities, dispatchable loads and exports, to meet average forecast demand. It co-optimizes energy and operating reserve over 24 hours of the next day. A complete run of the DACE is shown in the diagram below. Figure 4-3: Passes = 1 Run Issue 0.1 July 7, 2010 Public 7

22 4. Overview of the Operation of the DACP IESO_MAN_ Pass 1 Commitment The first pass minimizes the total cost of serving average demand for the next day. The average demand, rather than the peak demand, is used to prevent over-commitment. For the commitment pass, the engine performs least-cost 1 (from submitted bids and offers), security constrained commitment and scheduling in order to meet average forecast demand and operating reserve requirements. The pass tries to minimize the total costs to serve average demand and operating reserve requirements for the next day. The inputs that Pass 1 uses are listed in Table 4-1. Table 4-1: Pass 1 Inputs to Day-Ahead Calculation Engine Pass 1 Inputs Dispatchable Generator Offers Import Offers Dispatchable Load Bids Export Bids Technical Data (Technical parameters the optimization process must satisfy in the determination of schedules and commitments) Forecasts Outage Information Security Limits Details 3-part hourly offers for energy from not quick start generators Single part hourly offers for energy from quick start facilities Single part hourly offers for operating reserve Single part hourly offers for energy and operating reserve Single part hourly bids for energy and operating reserve Single part hourly bids for energy and operating reserve Minimum loading point Minimum generation block run-time Minimum generation block down time Maximum number of starts per day Pseudo unit parameters output relationship between gas and steam units IESO forecast of average demand Market participant forecast of output from transitional scheduling generator/self-scheduling generation facility/intermittent generators Planned and forced outages and de-rates from all resources Constraints associated with outage plans Transmission system limits 1 The term cost refers to the as-bid and as-offered amounts to consume and produce energy in the market respectively. It does not represent the actual expenditure to maintain or generate an electricity-related product. 8 Public Issue 0.1 July 7, 2010

23 Part 9.3: Operation of the Day-Ahead Commitment Process 4. Overview of the Operation of the DACP The Pass 1 Outputs from the Day-Ahead Calculation Engine are listed below in Table 4-2. Pass 1 Outputs Pass 1 Day-Ahead Commitments Pass 1 Day-Ahead Constrained Schedules Table 4-2: Pass 1 Outputs from Day-Ahead Calculation Engine Details DA-PCG eligible generators and imports selected to be scheduled for the next day These resources are eligible for day-ahead guarantees Energy and operating reserve constrained schedules for all resources bid and offered day-ahead (includes exports) These schedules are only considered in Pass 2 and not used for the settlement of day-ahead guarantees Nodal prices Nodal prices as required for Pass 2 evaluation of offers (See Section ) Pass 2 Reliability The goal of Pass 2 is to ensure that if additional commitments are made to meet peak demand, minimal commitment costs are incurred. To achieve the minimum commitment cost, Pass 2 performs a least-cost security constrained commitment and scheduling to meet peak demand and operating reserve requirements, while considering the following rules: Schedule the remaining capacity above the minimum loading points of DA-PCG eligible generators committed in Pass 1. Because these resources were already committed to meet average demand, there would be no additional commitment costs to utilize the remaining capacity to satisfy peak demand. If additional DA-PCG eligible generators and/or imports get committed, the Pass 2 schedules for DA-PCG eligible generators committed in Pass 1 could be less than their Pass 1 schedules. However, Pass 2 schedules will not be any lower than their minimum loading points. Quick start generation units do not have any commitment cost. Imports committed in Pass 1 are scheduled to no less than their Pass 1 amounts; the import amounts scheduled in Pass 1 are already eligible for day-ahead guarantees. If a Pass 2 import schedule is greater than its Pass 1 schedule, the entire Pass 2 import schedule is eligible for the day-ahead guarantee. If required, new imports or additional DA-PCG eligible generation that did not receive a commitment from Pass 1 may be committed in Pass 2. Exports and dispatchable loads can be reduced from their Pass 1 amounts since these resources do not have any commitment costs. Inputs into Pass 2 are listed below in Table 4-3. Issue 0.1 July 7, 2010 Public 9

24 4. Overview of the Operation of the DACP IESO_MAN_0078 Table 4-3: Pass 2 Inputs to Day-Ahead Calculation Engine Pass 2 Inputs Dispatchable Generator Offers Import Offers Dispatchable Load Bids Export Bids Technical Data (Technical parameters the optimization process must satisfy to determine schedules and commitments) Forecasts Outage Information Security Limits Pass 1 Commitments Nodal Prices Details 3-part hourly offers for energy from not quick start generators Single part hourly offers for energy from quick start facilities Single part hourly offers for operating reserve Single part hourly offers for energy and operating reserve Single part hourly bids for energy and operating reserve Single part hourly bids for energy and operating reserve Minimum loading point Minimum generation block run-time Minimum generation block down time Maximum number of starts per day Pseudo unit parameters output relationship between gas and steam units Peak load forecast Forecast of output from transitional scheduling generator/ self-scheduling generation facility / intermittent generators Planned and forced outages and de-rates from all resources Constraints associated with outage plans Transmission system limits DA-PCG eligible generators and imports committed in Pass 1 These resources are eligible for Day-Ahead guarantees Nodal prices as calculated in Pass 1 for evaluation of offers During most hours, peak occurs for only 1 interval. The peak can be served by either ramping up dispatchable generation resources for the interval or scheduling an hourly import while backing down generation for other intervals. Similarly, a dispatchable load can be ramped down for an interval or an export can be reduced for an hour. However, the calculation engine commits and schedules on an hourly basis. To properly assess, on an equivalent basis, whether to ramp a dispatchable resource for an interval or schedule an hourly intertie transaction, Pass 2 performs a least-cost security constrained commitment. Pass 2 least-cost security constrained commitment satisfies peak for 1 interval by assessing offers/bids from dispatchable resources in the following manner: The incremental offers from DA-PCG eligible generators committed in Pass 1 and all offers from quick starts that are greater than their shadow prices in Pass 1 will be evaluated as: (Pass 1 shadow price) + (offer Pass 1 shadow price)/12 This averages out the cost per interval. (Refer to the example provided in Section ) 10 Public Issue 0.1 July 7, 2010

25 Part 9.3: Operation of the Day-Ahead Commitment Process 4. Overview of the Operation of the DACP Bids for dispatchable loads will be treated in a similar manner. The results produced after Pass 2 has completed its optimization are shown below in Table 4-4. Pass 2 Outputs Pass 2 Day-Ahead Commitments Pass 2 Day-Ahead Constrained Schedules Table 4-4: Pass 2 Outputs from Day-Ahead Calculation Engine Details Any additional DA-PCG eligible generators /or imports selected to be scheduled for the next day to meet peak demand These resources are eligible for day-ahead guarantees Energy and Operating Reserve constrained schedules for all resources bid and offered day-ahead (includes exports) These schedules are only considered in Pass 3 and not used for the settlement of dayahead guarantees Pass 3 Scheduling For this third and final pass, the engine performs least cost, security constrained scheduling to meet average demand and operating reserve requirements for each hour of the next day. Pass 3 performs this optimization to minimize the total cost of serving average demand for the next day while considering the following criteria: Committed DA-PCG eligible generators from Passes 1 and 2 are scheduled to at least their minimums. Since Pass 3 optimization is to satisfy average demand, Pass 3 schedules may be less than Pass 2 schedules, which were calculated to meet peak demand. Pass 3 schedules will not be less than their minimum loading points. Committed imports are scheduled to at least their schedules in Pass 2. Exports are scheduled to no more than their Pass 2 schedules. Dispatchable loads are scheduled to no more than their Pass 1 schedules. Energy from DA-PCG eligible generators ramping up to their minimum loading points is also considered when determining the schedules for all resources in Pass 3. Inputs into Pass 3 are shown below in Table 4-5. Table 4-5: Pass 3 Inputs from Day-Ahead Calculation Engine Pass 3 Inputs Dispatchable Generator Offers Import Offers Dispatchable Load Bids Export Bids Details 3-part hourly offers for energy from not quick start generators Single part hourly offers for energy from quick start facilities Single part hourly offers for operating reserve Single part hourly offers for energy and operating reserve Single part hourly bids for energy and operating reserve Single part hourly bids for energy and operating reserve Issue 0.1 July 7, 2010 Public 11

26 4. Overview of the Operation of the DACP IESO_MAN_0078 Table 4-5: Pass 3 Inputs from Day-Ahead Calculation Engine Pass 3 Inputs Technical Data (Technical parameters the optimization process must satisfy to determine schedules and commitments) Forecasts Outage Information Security Limits Pass 1 and Pass 2 Commitments Minimum loading point Minimum generation block run-time Minimum generation block down time Maximum number of starts per day Details Pseudo unit parameters- output relationship between gas and steam units, and Ramping energy to reach minimum loading point. (This is estimated to be 1/3 of the minimum loading point.) Average load forecast Forecast of output from transitional scheduling generator/self-scheduling generation facility/intermittent generators Planned and forced outages and de-rates from all resources Constraints associated with outage plans Transmission system limits DA-PCG eligible generators and imports committed in Passes 1 and 2 These resources are eligible for day-ahead guarantees The Outputs from Pass 3 are shown below in Table 4-6: Table 4-6: Pass 3 Outputs from Day-Ahead Calculation Engine Pass 3 Outputs Pass 3 Day-Ahead Commitments Pass 3 Day-Ahead Constrained Schedules Details Same commitments determined by Pass 1 and Pass 2 These resources are eligible for day-ahead guarantees Energy and OR constrained schedules for all resources bid and offered day-ahead (includes exports) to meet average demand These constrained schedules are the final day-ahead results used to determine guarantees 4.4 Scheduling the DACE Runs The Day-Ahead Commitment Process will normally consist of two runs of the DACE an initial run and an EELR optimization run. If conditions change and time permits, an additional run may be initiated. While two runs will normally be completed, when contingencies occur we may only have time for one run. If this occurs, and the run is successful, we will consider the DACP to be successful and the DACP schedule of record will be based on these results. 12 Public Issue 0.1 July 7, 2010

27 Part 9.3: Operation of the Day-Ahead Commitment Process 4. Overview of the Operation of the DACP Initial DACE Run The optimization process begins with the initial DACE run at 10:00. After the run completes, we validate the results. If the results are valid, they are published and the EELR Re-submission Window is open until 12:00. If the results are invalid, they are not published. If there is time, the initial run is rescheduled and the EELR Re-submission Window is extended. Invalid Results: The results include commitment of generators that are not required, or do not include generators that are required, because of incorrect inputs. The results are incorrect, with commitment of generators that are not required, not including generators that are required, or both, because of an incorrect calculation. A correct calculation providing unacceptable results due to the inability of the DACE to resolve a binding constraint as a result of an unacceptable condition on the power system in the forecast day. (E.g., a conflict between planned and forced outages that has yet to be resolved.) This would be a condition that cannot be resolved by the market, but can be solved by implementing control action(s), such as cancelling a planned outage. The Re-submission Window for EELRs is normally open until 12:00. We accept revised offers from EELRs if they made an offer with a daily energy limit before 10: EELR Optimization Run If there is no delay from a failed initial run, the EELR optimization run starts at 12:00. After the run completes, we validate the results. Valid results are published, while invalid results are not published. If the EELR optimization run fails and there is sufficient time for another run, the EELR optimization run will be re-scheduled. Issue 0.1 July 7, 2010 Public 13

28 4. Overview of the Operation of the DACP IESO_MAN_ Subsequent Run for Rerun Criteria In some cases, if there is enough time, we complete a subsequent run after the initial and EELR optimization runs. This may be required due to changing system conditions known to impact Day 1. In order to be included in any subsequent DACE run, the necessary changes to your data must be received, processed and be available to our systems prior to the latest time possible to initiate a DACE run and still publish DACP results by 15:00. We will manually initiate an additional DACE run if it is apparent that a rerun could change the commitment and if the change meets the following criteria: Results of the previous run show a capacity or energy shortfall for the IESO-administered market. Any outage submission(s) or outage revision(s) (i.e. start-time or end-time) for a generating facility that results in a change in available capacity of 400 MW or more. This includes planned outages, forced outages and deratings. An increase or decrease of an operating security limit >= 400 MW on a limiting interface An increase or decrease of an intertie scheduling limit >= 400 MW An increase or decrease in demand forecast >= 400 MW An increase or decrease in operating reserve requirements >= 400 MW 4.5 Completion of the DACP and the Schedule of Record We publish Reports when they are available after each run of the DACP. The normal completion time of the DACP should be 13:00 2. No subsequent run (due to rescheduling of rerun criteria) will be started after 14:00 to ensure that the Day-Ahead Schedule of Record will be published no later than 15:00. We will notify you of Failure of the DACP if results are not available or they cannot be published and there is no time for another run before 15:00. You will be advised of a DACP failure as soon as we know, but no later than 15:00. The Day-Ahead Schedule of Record is the last set of valid results published for Day 1. If we have not notified you of delayed results (past 14:00), and no additional runs due to rerun criteria by 14:00, then the last set of published results is the Schedule of Record. If we have notified you of delayed results, and the results are due after 14:00, then the last set of published results as of 15:00 is the Schedule of Record. If no valid results can be produced after multiple attempts, then there will be no Day-Ahead Schedule of Record and a failure is declared for that day. You will be notified of the DACP failure. If the EELR optimization run does not produce valid results, or if there is insufficient time for an EELR optimization run, the results of the initial run will be the basis of the Day-Ahead Schedule of Record. DACP will not be declared a failure if the EELR Optimization run is not successful or if its results are not valid, providing the initial run was successful. 2 All times and durations shown in this document are subject to change based on the performance of the solution delivered. 14 Public Issue 0.1 July 7, 2010

29 Part 9.3: Operation of the Day-Ahead Commitment Process 4. Overview of the Operation of the DACP If we inadvertently publish invalid results and there is no time to re-run the DACE then the DACP will be declared a failure for the day. 4.6 IESO Reliability Commitment Actions If we know that reliability constraints will be required the next day or if the DACP runs do not produce a solution that satisfies the next day s reliability needs, we may need to intervene and constrain your resources to ensure that they are scheduled to no less than certain levels in the Day- Ahead Schedule of Record and all the way through to real time Principles for Applying Reliability Commitments We will implement DACP reliability commitment actions only if we consider that our intervention during or after the DACP is necessary to ensure or maintain reliability 3. This means that we will give market mechanisms priority in scheduling resources, but we will intervene and constrain a resource that is critical for meeting the next day s reliability needs when: There is a clear indication that the market mechanisms will not economically schedule the resource during the DACP, in Pre-dispatch or in real-time 4. Specific constraints, such as minimum shut-down time or minimum generation block run-time, require us to constrain the resource during the DACP for real-time operation. When more than one resource can satisfy our reliability needs for tomorrow, we will perform, to the extent possible, a least-cost evaluation to determine the resource(s) that we should commit during the DACP Process for Applying Reliability Commitments We will commit a dispatchable generator by applying minimum constraints to ensure that the generation unit is scheduled to at least its DGD minimum loading point and for at least its DGD minimum generation block run-time. Commitment action for reliability may also include constraints applied to energy limited resources. If we apply constraints during the DACP, they will appear in the DACP schedule and in the constrained sequence of subsequent constrained pre-dispatch runs until real time. These constraints will not affect any of the unconstrained (market) schedules. Therefore, resources committed during DACP will be eligible for the DA-PCG and/or Congestion Management Settlement Credit (CMSC) in real time. We will not implement any constraints without discussing with you the impact of our reliability commitment actions and considering other options available. Before committing any of your resources, we will call you to confer about any commitment actions we are contemplating during the DACP. We will publish the reliability commitments in a DACP Commitments Report that lists the constraints applied to each of your resources. This report also includes both constraints applied for 3 Reliability means security and adequacy (both local and global). 4 Constraints for must run generators or for ongoing reliability issues that we know will not be solved by the DACP or Pre-dispatch will be applied day-ahead. Issue 0.1 July 7, 2010 Public 15

30 4. Overview of the Operation of the DACP IESO_MAN_0078 reliability during the DACP and constraints applied for the Day-Ahead Production Cost Guarantee (DA-PCG). 4.7 Principles for Applying DACP Commitment Actions When your DA-PCG eligible generation unit is scheduled in the Day-Ahead Schedule of Record to at least its DGD minimum loading point and DGD minimum generation block run-time, we will implement the necessary commitment actions on your generation unit. These actions ensure that your generation unit is not scheduled below its DGD minimum loading point or for less than the DACP scheduled hours in the subsequent pre-dispatch runs through to real time. However it is up to you to plan the time you start and synchronize your unit. How you operate in real time may affect your eligibility for the DA-PCG Process for Applying DACP Commitments We apply minimum constraints on your unit so that it is not scheduled below its registered minimum loading point or for less than the registered minimum generation block run-time in the next predispatch runs up until real-time. When we apply a day-ahead constraint on your generation unit, we use the DGD value of the minimum loading point that was used in the DA Schedule of Record. We will apply these constraints after the publication of the Day-Ahead Schedule of Record. The constraints applied for the DA-PCG commitment actions will only appear in the constrained sequence of the subsequent constrained pre-dispatch runs after the Day-Ahead Schedule of Record and through to real-time. These constraints will not affect any of the unconstrained (market) schedules. Therefore, subject to the limitations identified in Market Manual 9, Part 9.5, Settlement of the DACP, resources committed during DACP will be eligible for the congestion management settlement credit (CMSC) in real-time. To review the constraints applied on any of your resources, you must access the DACP Commitments Report, briefly described in Section 4.8. This report provides a summary for each of your dispatchable generation resources of all DACP constraints applied either for reliability reasons or as a result of the DACP. 4.8 DACP Reports This section describes the reports that we publish between 10:00 and 15:00 of the pre-dispatch day and that provide you with specific information relating to the DACP. For the publishing time and frequency of each report and the data definitions please see the corresponding technical reference documents posted on our website at: Reporting refers to the general creation of documents related to the operation of IESO-administered markets. Publishing refers to the specific preparation of public documents made available on our website. Public reports detailing the operating state of the IESO-controlled grid (ICG) are published prior to closure of the day-ahead bid/offer window at 10:00, to aid market participants in making market and operational decisions. 16 Public Issue 0.1 July 7, 2010

31 Part 9.3: Operation of the Day-Ahead Commitment Process 4. Overview of the Operation of the DACP System and Forecast Data IESO Internal Processes Bid / Data Offer Day-Ahead Commitment Process Public Results Data / Bid Offer Real-Time Market MP Confidential Results Settlement Processes MP Confidential Settlement Figure 4-4: Publishing and Reporting Processes Outage Reports The outage reports published for the real-time market are not impacted by the DACP Pre-dispatch Reports The Pre-dispatch process that runs between 00:07 and 14:07 on any given day will only include Predispatch data for all hours of the current dispatch day. The inclusion of the DACP results in the Pre-dispatch process for the next day will be implemented in the Pre-dispatch run that begins at15:07. This Pre-dispatch run publishes results for HE 17 to HE 24 of the current dispatch day (Day 0) and all hours of the next dispatch day (Day 1). Subsequent Pre-dispatch processes between 15:07 and 23:07 will continue to publish Pre-dispatch data for the remaining hours of the current dispatch day (Day 0) and all hours of the next dispatch day (day 1). The Pre-dispatch publishing schedule is shown below in Figure 4-5. Issue 0.1 July 7, 2010 Public 17

32 4. Overview of the Operation of the DACP IESO_MAN_0078 Figure 4-5: Publishing Timelines for Pre-dispatch Data Transmission Rights Reports The transmission rights market is unaffected by the DACP; therefore, there will be no change to the current TR market reporting requirements. 18 Public Issue 0.1 July 7, 2010

33 Part 9.3: Operation of the Day-Ahead Commitment Process 4. Overview of the Operation of the DACP DACP Report Descriptions Table 4-8 below lists all of the DACP reports and provides a brief description of each. Table 4-7: DACP Report Descriptions Report Name (Report Number) Report Description Day-Ahead Adequacy Day-Ahead Area Operating Reserve Shortfall This public report provides a summary of any projected shortfall or surplus of energy for the next day and is intended for the public use of all market participants. You can use the report as a resource for making business decisions when planning day-ahead. The report will be available after every successful run of the DACE. This public report contains operating reserve shortfalls in each hour by dispatch area for the day-ahead as calculated by the Day-Ahead Calculation Engine. The report is a resource for making your business decisions when planning day-ahead. The report will be available after every successful run of the DACE. Day-Ahead Area Reserve Constraints This public report contains hourly maximum and minimum constraints for the area reserve regions used as inputs for the Day-Ahead Calculation Engine. This report indicates regions where reserve supply may present an issue and is a resource for making business decisions when planning day-ahead. The report will be available after every successful run of the DACE. Day-Ahead Shadow Prices This public report contains Shadow Prices for energy and operating reserve at selected nodes within and external to Ontario as calculated by the Day- Ahead Calculation Engine. You can use the report for making business decisions when planning dayahead. The report will be available after every successful run of the DACE. Issue 0.1 July 7, 2010 Public 19

34 4. Overview of the Operation of the DACP IESO_MAN_0078 Report Name (Report Number) Report Description Day-Ahead Constrained Totals Day-Ahead Intertie Scheduling Limits This public report contains hourly MW totals (total energy, total losses, total load, total operating reserve). You can use the report for making business decisions when planning dayahead. The report will be available after every successful run of the DACE. This public report contains hourly intertie scheduling limits. The report provides guidance when you are considering submitting import and export dispatch data. The report will be available after every successful run of the DACE. Day-Ahead Security Constraints This public report contains binding security constraints as determined by the Day-Ahead Calculation Engine. The report may indicate why a particular resource received the schedule that it did due to binding security constraints applied by the DACE. The report will be available after every successful run of the DACE. Day-Ahead Scheduled Energy and Operating Reserve Day-Ahead Commitments This private report provides energy and operating reserve schedules for each hour of the next day as established by the Day-Ahead Calculation Engine. The report provides you with schedules for your resources as determined by the DACE. If the Day-Ahead Operator verifies that the DACE results are valid, this report is published. The report will be available after every successful run of the DACE. This private report provides a list of your specific resources that have been committed for acceptance of the Day-Ahead Production Cost Guarantee. The report is a confirmation that DA-PCG eligible resources receiving a schedule in the Schedule of Record have had a corresponding commitment that will be applied in Pre-dispatch. The report will be available after every declaration of the Schedule of Record. 20 Public Issue 0.1 July 7, 2010

35 Part 9.3: Operation of the Day-Ahead Commitment Process 4. Overview of the Operation of the DACP Report Name (Report Number) Report Description Day-Ahead Check Source /ADE Valid Bid Report Current Daily Generator Data This private report provides a confirmation of the dispatch data submission used for a resource included in the EDAC Schedule of Record and its Availability Declaration Envelope (ADE). The report is a confirmation of the dispatch data you submitted which is used by the DACE to establish a resource s Schedule of Record and ADE. The report shall be available after every successful run of the DACE. This is an existing query available through MPI which shows your last valid submitted dispatch data. This report includes 3-part offers. This query is available on demand via the MPI. This query is available through MPI which shows your last valid submitted daily generator data, per resource. The query is a confirmation of the data you last submitted for the execution of the Day-Ahead Calculation Engine. This query is available on demand via the MPI. Valid Private Daily Generator Data for Day 1 (10:00 snapshot) This private report provides the Daily Generator Data used in the DACP and. The report provides a confirmation of the Daily Generator Data submitted prior to 10:00 of the DACP day that was recorded for use as input to the Day-Ahead Calculation Engine. This report also includes the Daily Generator Data values that we calculate for your pseudo units. This report is available after 10:00 of the DACP day. 4.9 Day-Ahead Schedule of Record The Schedule of Record (SOR) is published after the successful completion of the DACP. The SOR is made up of two sets of private reports the Day-Ahead Scheduled Energy Reports and the Day- Ahead Check/Source ADE Reports. If either of these sets of reports fails to publish, the DACP is declared a failure for that day. On a successful day, the SOR will always be published by 15:00 and will always be based on the last set of published results Notifications During the execution of the DACP, contingencies may occur that require us to communicate the nature of the contingency and any impact to the marketplace. We make these notifications publically available. They are triggered manually by the IESO as required. Issue 0.1 July 7, 2010 Public 21

36 4. Overview of the Operation of the DACP IESO_MAN_ Notifications Associated with the Initial DACE Run The initial DACE run results are expected to be available by 11:00. If the initial results are not available (the initial run has been delayed or re-scheduled), the following notification will be sent: Initial Results Delayed and EELR Window Extended as one notification including: The time to expect results; The time to which the window will remain open; and, EELR Optimization Results will also be delayed. The EELR Re-submission Window (nominally 1 hour from 11:00 to 12:00) will have to be extended to allow time for revised offers to be accepted after the initial run. The notification will indicate the end time of the extended Re-submission Window (which is the same as the start time for the EELR Optimization run) Notifications Associated with the EELR Optimization Run EELR optimization results should be available to you by 13:00. If there is a delay to the EELR Optimization run or there must be a rerun, and there was no previous delay before 13:00, we will send a notification that EELR Results Delayed Notifications Prior to Completion of DACP at 15:00 A notification of No EELR Optimization is sent when: There is not enough time remaining to complete a run prior to 15:00, or The EELR Optimization run produces invalid results and the SOR is published using previous results. If the DACP has failed to produce a valid EELR optimization run, the DACP SOR will be based on the day's initial run results. Notification that Day-Ahead Rerun Criteria has been met and that a subsequent run is required will be sent when conditions warrant. If the marketplace is not notified of an additional run by 14:00, there will not be any additional DACE runs. The last set of published results will be used as the basis of the SOR DACP Failure Notification A notification of DACP Failed will be sent if no DACE results have been produced, or the if the results cannot be published to the market participants. If invalid results are inadvertently published as the SOR, a DACP failure will also be declared. Note: Publication of the SOR and notification of DACP failure both serve as notice of completion of DACP for the day. End of Section 22 Public Issue 0.1 July 7, 2010