Day Ahead Market Operations

Narrative

As the electricity industry is deregulated, and as FERC defines more clearly what the market operation tariffs will encompass, three possible Regional Transmission Organizations (RTOs) in the Western Interconnection are developing seamless interfaces for Market Participants to submit energy schedules and ancillary service bids across these 3 RTOs. The 3 RTOs are California ISO (existing ISO handling the electricity market in California), RTO West (potential RTO of many northwestern utilities), and WestConnect (potential RTO of many southwestern utilities). These 3 RTOs are developing the requirements for the Western RTO functions.

The following is a list of Western RTO functions related to Day Ahead market operations.

Only the listed functions with asterisks are represented in the diagrams and/or step-by-step descriptions in section 2.

1. Day Ahead Market

a. Day Ahead Auction/sale of FTRs *

b. Day Ahead Submittal of Energy Schedules *

c. Day Ahead Submittal of Ancillary Service Bids *

d. Schedule Adjustment of Energy Schedules *

e. Schedule Adjustment of Ancillary Services *

f. NERC Tagging Management *

Day Ahead Auction of Firm Transmission Rights (DAAFTR)

Description

RTOs/ISOs are required to auction and/or sell transmission rights and other energy services to Market Participants (depends on market design), directly involving RTOs/ISOs, Scheduling Coordinators, Market Participants, Regulators, Auditors, performing market-established algorithm for allocating transmission rights to Market Participants, with key interfaces between

1. RTOs and Scheduling Coordinators

2. RTOs and Regulators

3. RTOs and Auditors

4. RTOs and Web Servers for Market Participants,

Diagram

Steps for DAAFTR

#	Event	Name of Process/Activity	Description of Process/Activity	Information Producer	Information Receiver	Name of Info Exchanged	IntelliGrid Architecture Environments
1.1	Before Day Ahead market	Issue notice of intent	(1) Issue notice of intent to use FTRs and NCRs before Day Ahead market	Scheduling Coordinator	Market Interface Web Server	FTR Notices of intent	RTOs/Market Participants
1.2	After previous step	Update intents	(2) Update intents to use FTRs	Market Interface Web Server	Transmission Right Ownership Database	FTR Notices of intent	RTOs/Market Participants
1.3	After previous step	(3) Provide updates on un-used FTRs and NCRs	(3) Provide updates on un-used FTRs and NCRs	Transmission Right Ownership Database	Operational Transmission Capacity	Unused FTRs	Intra-Control Center
1.4	After previous step	(4) Trigger posting of FTRs at Schedule Close	(4) Trigger posting of FTRs at Schedule Close	Time Line Manager	Operational Transmission Capacity	Used FTRs	Intra-Control Center
1.5	After previous step	(5) Post available FTRs as auctionable RTRs	(5) Post available FTRs as auctionable RTRs	Operational Transmission Capacity	Market Interface Web Server	Available FTRs	RTOs/Market Participants
1.6	After previous step	(6) Review auctionable RTRs	(6) Review auctionable RTRs	Market Interface Web Server	Scheduling Coordinator	Auctionable RTRs	RTOs/Market Participants
1.7	After previous step	(7) Make one-time bid on RTRs and ancillary services	(7) Make one-time bid on RTRs and ancillary services	Scheduling Coordinator	Market Interface Web Server	Bids for RTRs	RTOs/Market Participants
1.8	After previous step	(8) Enter RTR bids	(8) Enter RTR bids	Market Interface Web Server	FTR Market Clearing Price Auction Function	Bids for RTRs	RTOs/Market Participants
1.9	After previous step	(9) Select highest bidder for RTR and store as RTR owner	(9) Select highest bidder for RTR and store as RTR owner	FTR Market Clearing Price Auction Function	Transmission Right Ownership Database	RTR ownership	Intra-Control Center
1.10	After previous step	(10) Notify of auction results	(10) Notify of auction results	Market Interface Web Server	Scheduling Coordinator	Auction results	RTOs/Market Participants

Day Ahead Submittal of Energy Schedules (DAES)

Description

Scheduling Coordinators or other Market Participants must submit 24-hour energy schedules in the Day-Ahead market. The RTOs/ISOs must validate the submittals (depending on market design), directly involving Scheduling Coordinators (or other entities), RTOs/ISOs, Auditors, and other Market Participants.

Diagram

Steps for DAES

#	Event	Name of Process/Activity	Description of Process/Activity	Information Producer	Information Receiver	Name of Info Exchanged	IntelliGrid Architecture Environments
2.1	On-going	Submit energy schedules	(1) Submit Balanced Energy Schedule Database, including self-provided Ancillary Service Schedule, any inter-SC trades, and any generation limit changes, until Schedule Close	Scheduling Coordinator	Market Interface Web Server	Energy schedules	RTOs/Market Participants
2.2	Submittal of an energy schedule	Validation	(2) Indicates valid input or indicates clerical & format errors	Market Interface Web Server	Scheduling Coordinator	Energy schedules	RTOs/Market Participants
2.3	Correction	Correction	(3) Corrects errors	Scheduling Coordinator	Market Interface Web Server	Energy schedules	RTOs/Market Participants
2.4a	Valid energy schedule submitted	Energy Schedule Analysis	(4a) Provides Day-Ahead Energy Schedule Database	Market Interface Web Server	Energy Schedule Analysis	Energy schedules	RTOs/Market Participants
2.4b	Simultaneous with previous step	Energy Schedule Database to RTOs	(4b) Provides Day-Ahead Energy Schedule Database relevant to each RTO	Market Interface Web Server	Other 2 RTOs Energy Schedule Processing	Energy schedules	RTOs/Market Participants
2.5a	Analysis of energy schedules	Adjustment to energy schedules	(5a) Adjusts any unbalanced schedules and stores validated input as proposed schedules	Energy Schedule Analysis	RTO Energy & A/S Schedules	Energy schedules	Intra-Control Center
2.5b	Simultaneous with previous step	Adjusted energy Schedules to RTOs	(5b) Provides adjusted and validated cross-RTO schedules	Energy Schedule Analysis	Other 2 RTOs Energy Schedule Processing	Energy schedules	Inter-Control Center
2.5c	Simultaneous with previous step	Apply existing energy schedule contracts	(5c) Enter existing contracts	Existing Transmission Contracts	RTO Energy & A/S Schedules	Existing energy schedule contracts	Intra-Control Center
2.6a	Day Ahead Market Close	Time-based trigger	(6a) Initiates Day Ahead security analysis verification after Schedule Close	Time Line Manager	Congestion Management System	Day Ahead Energy schedules	Intra-Control Center
2.6b	Simultaneous with previous step	Retrieve Day-Ahead schedules	(6b) Retrieves all Day Ahead schedules	RTO Energy & A/S Schedules	Congestion Management System	Day Ahead Energy schedules	Intra-Control Center
2.6c	Simultaneous with previous step	Cross-RTO security analysis	(6c) For cross-RTO schedules, validates schedules, adjusts any unbalanced schedules, and provides as proposed schedules	Other 2 RTOs Energy Schedule Processing	RTO Energy & A/S Schedules	Day Ahead Energy schedules	Inter-Control Center
2.7a	After previous step	Security Analysis	(7a) Verifies schedules meet intra-zonal & connection point security requirements	Congestion Management System	RTO Energy & A/S Schedules	Day Ahead Energy schedules	Intra-Control Center
2.7b	Simultaneous with previous step	Cross-RTO security analysis	(7b) For cross-RTO schedules, provide results of Congestion Management analysis	Congestion Management System	Other 2 RTOs Energy Schedule Processing	Day Ahead Energy schedules	Inter-Control Center
2.8a	After previous step	Post results of security analysis	(8a) Posts results of Congestion Management analysis of schedules	RTO Energy & A/S Schedules	Market Interface Web Server	Day Ahead Energy schedules	RTOs/Market Participants
2.8b	Simultaneous with previous step	Post results of cross-RTO security analysis	(8b) Posts results of Congestion Management analysis of cross-RTO schedules	Other 2 RTOs Energy Schedule Processing	Market Interface Web Server	Day Ahead Energy schedules	Inter-Control Center
2.8c	Simultaneous with previous step	Cross-RTO conflicts	(8c) Notify of cross-RTO conflicts or inconsistencies	Other 2 RTOs Energy Schedule Processing	RTO Scheduler	Cross-RTO conflicts	Inter-Control Center
2.9	After step 8c	Resolve cross-RTO conflicts	(9) Posts resolutions to cross-RTO conflicts and inconsistencies	RTO Scheduler	Market Interface Web Server	Resolved cross-RTO conflicts	RTOs/Market Participants
2.10	After previous step	Notify Scheduling Coordinator	(10) Notifies of schedule acceptances and rejections	Market Interface Web Server	Scheduling Coordinator	Accepted Energy schedules	RTOs/Market Participants
2.11	Upon request by Scheduling Coordinator	Revisions to energy schedules	(11) Enter revisions to schedules as needed, until Revision Close	Scheduling Coordinator	Market Interface Web Server	Revised energy schedules	RTOs/Market Participants

Day Ahead Submittal of Ancillary Services Bids (DAAS)

Description

Scheduling Coordinators must submit Day-Ahead bids for ancillary services: reserve, regulation, frequency response, etc., and the RTOs/ISOs must validate the submittals. This function directly involves Scheduling Coordinators, RTOs/ISOs, Auditors, other Market Participants. Key interfaces include those between

1. Scheduling Coordinators and RTOs/ISOs

2. RTOs/ISOs and neighboring RTOs/ISOs

3. RTOs/ISOs and Web Server for Market Participants,

Diagram

Steps for DAAS

#	Event	Name of Process/Activity	Description of Process/Activity	Information Producer	Information Receiver	Name of Info Exchanged	IntelliGrid Architecture Environments
3.1	On-going	Submit ancillary services bids	(1) Submit Ancillary Services resources and bid prices, until Schedule Close	Scheduling Coordinator	Market Interface Web Server	Ancillary services bids	RTOs/Market Participants
3.2	Upon receipt of submittal	Validation of A/S bids	(2) Indicates valid input or indicates clerical & format errors	Market Interface Web Server	Scheduling Coordinator	Validity checks on ancillary services bids	RTOs/Market Participants
3.3	Correction of errors	Corrections of A/S bids	(3) Correct errors	Scheduling Coordinator	Market Interface Web Server	Corrections to ancillary services resources and bid prices	RTOs/Market Participants
3.4a	Enter A/S	Enter A/S bids	(4a) Enter A/S resources and bid prices	Market Interface Web Server	RTO Energy & A/S Schedules	Ancillary services bids	RTOs/Market Participants
3.4b	Notify other RTOs	Notify other RTOs	(4b) Notify of A/S services accepted by other RTOs	Other 2 RTOs	Ancillary Services Procurement Analysis	Ancillary services bids	Inter-Control Center
3.5	Day ahead market close	Analyze A/S bids	(5) Initiates Day Ahead A/S analysis at Schedule Close	Time Line Manager	Ancillary Services Procurement Analysis	Ancillary services bids	Intra-Control Center
3.6	Previous step	Determine which A/S	(6) Determines which A/S are needed, and calculates either one Market Clearing Price or separate Market Clearing Prices for each Congestion Zone	Ancillary Services Procurement Analysis	RTO Energy & A/S Schedules	Selected A/S bids	Intra-Control Center
3.7a	Previous step	Create Balancing Energy Stack	(7a) Creates the Balancing Energy Stack entries for each Settlement Period	RTO Energy & A/S Schedules	Balancing Energy Stack	Selected A/S bids	Intra-Control Center
3.7b	Simultaneous with previous step	Post results	(7b) Posts results of selection of A/S resources and the Market Clearing Price	RTO Energy & A/S Schedules	Market Interface Web Server	Selected A/S bids	RTOs/Market Participants
3.7c	Simultaneous with previous step	Inform other RTOs	(7c) Inform other RTOs of accepted A/S resources	RTO Energy & A/S Schedules	Other 2 RTOs	Selected A/S bids	Inter-Control Center
3.8	Previous step	Notify Scheduling Coordinator	(8) Notifies of A/S resource status	Market Interface Web Server	Scheduling Coordinator	Selected A/S bids	RTOs/Market Participants
3.9	Previous step	Withdraw A/S	(9) Withdrawal of Ancillary Service resources not yet selected	Scheduling Coordinator	Market Interface Web Server	Withdrawn A/S bids	RTOs/Market Participants

Adjust Energy Schedules (AES)

Description

The RTO/ISOs perform congestion management and security analysis on submitted energy schedules (depending on market design), directly involving RTO/ISO Scheduler, Other RTOs, Scheduling Coordinators, other Market Participants, TransCos, GenCos, Regulators, Auditors, performing power system analysis of the impact of the proposed energy on system conditions to determine probable ancillary services and any violations of power system security conditions. After this analysis is performed, the Scheduling Coordinators may be asked to adjust their energy schedules.

Scheduling Coordinators may also submit changes to their energy schedules, again subject to market rules.

Diagram

Steps for AES

#	Event	Name of Process/Activity	Description of Process/Activity	Information Producer	Information Receiver	Name of Info Exchanged	IntelliGrid Architecture Environments
4.1a	Whenever energy schedules need to be adjusted	Submit adjusted schedules	(1a) Submits adjusted schedules for withdrawn RTR and other reasons, during Schedule Adjustment Period	Scheduling Coordinator	Market Interface Web Server	Adjusted schedules	RTOs/Market Participants
4.1b	Whenever RTRs need to be recalled	Recall RTR	(1b) Recalls RTR (up to 2 hrs before Settlement Period) and submits new schedule using FTR	SC-FTR Owner	Market Interface Web Server	Recalled RTRs New schedule	RTOs/Market Participants
4.2a	After previous step	Validation	(2a) Indicates valid input or indicates clerical & format errors	Market Interface Web Server	Scheduling Coordinator	Validated data	RTOs/Market Participants
4.2b	After validation	Reverts RTRs	(2b) Reverts RTR to original owner as FTR	Market Interface Web Server	Transmission Right Ownership Database	RTR ownership	RTOs/Market Participants
4.3a	Errors are corrected	Error correction	(3a) Correct errors	Scheduling Coordinator	Market Interface Web Server	Corrected data	RTOs/Market Participants
4.3b	After 2b	Provide updated FTR	(3b) Provides FTR ownership information	Transmission Right Ownership Database	RTO Energy & A/S Schedules	FTR ownership data	Intra-Control Center
4.4	After 3	Store validated input	(4) Stores validated input as proposed schedules	Market Interface Web Server	RTO Energy & A/S Schedules	Validated input	RTOs/Market Participants
4.5	At specified date and time	Initiate security analysis	(5) Initiates security analysis as needed for adjusted schedules	Time Line Manager	Congestion Management System	Energy schedules	Intra-Control Center
4.6	After previous step	Test for congestion	(6) Verifies schedules meet intra-zonal & connection point security requirements	Congestion Management System	RTO Energy & A/S Schedules	Energy schedules	Intra-Control Center
4.7	At specified date and time	Post results	(7) Posts results of FTR ownership and security analysis of schedules	RTO Energy & A/S Schedules	Market Interface Web Server	Energy schedules	RTOs/Market Participants
4.8	After close of schedule adjustment period	Update operating plan	(8) Updates Operating Plan after close of Schedule Adjustment period	RTO Energy & A/S Schedules	Operating Plan	Energy schedules and A/S schedules	Intra-Control Center
4.9a	One hour before Settlement Period	Review Operating Plan	(9a) Reviews Final Operating Plan one hour ahead of Settlement Period	Operating Plan database	Area & Resource Operation Centers	Operating Plan	Inter-Control Center
4.9b	One hour before Settlement Period	Review Operating Plan	(9b) Reviews Final Operating Plan one hour ahead of Settlement Period	Operating Plan database	Transmission Owner	Operating Plan	Inter-Control Center
4.9c	One hour before Settlement Period	Provide Operating Plan	(9c) Provides Operating Plan to other RTOs	Operating Plan database	Other 2 RTOs	Operating Plan	Inter-Control Center
4.10a	After previous step	Confirm Operating Plan	(10a) Confirms Operating Plan	Area & Resource Operation Centers	Operating Plan database	Operating Plan	Inter-Control Center
4.10b		Confirm Operating Plan	(10b) Confirms Operating Plan	Transmission Owner	Operating Plan database	Operating Plan	Inter-Control Center
4.11	At specific date and time	Post Operating Plan	(11) Posts public information of Operating Plan	Operating Plan database	Market Interface Web Server	Operating Plan	RTOs/Market Participants

Adjust Ancillary Services (AAS)

Description

Additional auctions may be held to adjust ancillary services during the adjustment period. In particular, Local Generation Resources (LGRs) may be scheduled to reflect new requirements by the RTO/ISOs.

Diagram

Steps for AAS

#	Event	Name of Process/Activity	Description of Process/Activity	Information Producer	Information Receiver	Name of Info Exchanged	IntelliGrid Architecture Environments
5.1	Anytime up to 30 minutes before Settlement Period	Submit one-time A/S bids	(1) Submittal of one-time Bids for Ancillary Services up to 30 minutes before Settlement Period	Scheduling Coordinator	Market Interface Web Server	A/S bids	RTOs/Market Participants
5.2	After previous step	Validate	(2) Indicates valid input or indicates clerical & format errors	Market Interface Web Server	Scheduling Coordinator	Error indications	RTOs/Market Participants
5.3	After previous step	Correct errors	(3) Correct errors	Scheduling Coordinator	Market Interface Web Server	Corrected A/S bids	RTOs/Market Participants
5.4a	After previous step	Enter A/S bids	(4a) Enter A/S resources and bid prices	Market Interface Web Server	RTO Energy & A/S Schedules	A/S bids	RTOs/Market Participants
5.4b		Notify of accepted A/S bids	(4b) Notify of A/S services accepted by other RTOs	Other 2 RTOs	Ancillary Services Procurement Analysis	Accepted A/S bids	Inter-Control Center
5.5a	After previous step	Indicate possible need for A/S services	(5a) Indicate probable need for additional A/S resources	Data Acquisition and Control (DAC) Subsystem	Ancillary Services Procurement Analysis	Indication of need for A/S	Intra-Control Center
5.5b		Indicate possible need for A/S services	(5b) Indicate probable need for additional A/S resources	Balancing Energy Stack	Ancillary Services Procurement Analysis	Indication of need for A/S	Intra-Control Center
5.6	After previous step	Determine needed A/S	(6) Determines need for additional A/S resources, and selects lowest bids	Ancillary Services Procurement Analysis	RTO Energy & A/S Schedules	Selected A/S schedules	Intra-Control Center
5.7a	After previous step	Post	(7a) Posts selected A/S resources	RTO Energy & A/S Schedules	Market Interface Web Server	Selected A/S schedules	RTOs/Market Participants
5.7b		Provide A/S	(7b) Provides selected A/S resources	RTO Energy & A/S Schedules	Balancing Energy Stack	Selected A/S schedules	Intra-Control Center
5.7c		Inform RTOs	(7c) Inform other RTOs of selected A/S resources	RTO Energy & A/S Schedules	Other 2 RTOs	Selected A/S schedules	Inter-Control Center
5.8	After previous step	Notify	(8) Notifies of A/S resource status	Market Interface Web Server	Scheduling Coordinator	Selected A/S schedules	RTOs/Market Participants
5.9	Anytime after previous step	Withdraw A/S	(9) Can withdraw Ancillary Service bids if not already selected by RTO	Scheduling Coordinator	Market Interface Web Server	Withdrawn A/S	RTOs/Market Participants
5.10	After previous step	Notify	(10) Notify other RTOs of withdrawn A/S bids	Market Interface Web Server	Other 2 RTOs	Withdrawn A/S	RTOs/Market Participants

NERC E-Tagging Management (ETAG)

Description

NERC requires the tracking of the ownership and characteristics of all energy schedules through the submittal of e-tagging forms.

Diagram

Steps for ETAG

#	Event	Name of Process/Activity	Description of Process/Activity	Information Producer	Information Receiver	Name of Info Exchanged	IntelliGrid Architecture Environments
6.1	At appropriate times	Submit tags	(1) Submit tags to Tag Authority	Scheduling Coordinator	Tag Authority	E-Tag information	RTOs/Market Participants
6.2	After previous step	Submit tags	(2) Submit all tags requiring RTO approval	Tag Authority	Market Interface Web Server	E-Tag information	RTOs/Market Participants
6.3	After previous step	Submit tags	(3) Submit tags for validation and approval	Market Interface Web Server	Tag Approval Service	E-Tag information	RTOs/Market Participants
6.4	After previous step	Provide approval status	(4) Provide approval status of energy schedules and ancillary services procurements	RTO Energy & A/S Schedules	Tag Approval Service	E-Tag information	RTOs/Market Participants
6.5	After previous step	Provide approval status	(5) Indicate status of tags, based on status of energy and A/S schedules	Tag Approval Service	Market Interface Web Server	E-Tag information	RTOs/Market Participants
6.6	After previous step	Submit tags	(6) Send updated tag information	Market Interface Web Server	Tag Authority	E-Tag information	RTOs/Market Participants
6.7	After previous step	Submit tags	(7) Submit tagging information to NERC	Tag Authority	NERC	E-Tag information	RTOs/Market Participants