Structured / Unstructured Market Trials

Weekly Update – Friday MeetingJuly 26, 2013

Call Reminders• Please help to minimize disruptions:

• Mute your phones• Do not dial-in from a recorded line• Do not put the call on hold, even if you are on mute

2

Agenda• TCR and ECT Update (30 min) 9:00-9:30A

• Review of Events (10 min) 9:30-9:40A

• Analysis July 15 – 21 (25 min) 9:40-10:05A• Includes Settlements Analysis

• Look-Ahead July 29 – Aug 4 (20 min) 10:05-10:25A

• True-Up (15 min) 10:25-10:40A

• Updates (15 min) 10:40-10:55A• Release Scorecard• Migration and Maintenance Report• Known Issues Log

• Questions (5 min) 10:55-11:00A

3

TCR Market Trials• TCR Survey sent July 26th requesting MP input in order to:

– Gauge MP comfort level with moving forward (recommending ‘Go’) with financially-binding TCRs in the Integrated Marketplace

– Analyze MP concerns regarding the ARR/TCR process and Market Trials progress

– Solicit suggestions to better position SPP’s TCR Market for Go-Live success

• Please respond to the TCR Survey by Friday, August 2nd

4Brett Crane

TCR Phase 2: Monthly August Allocation / Auction

• Allocation Process• Auction Process• Revenue• Next Steps

5Brett Crane

Allocation Percentage• Allocated MW lower than Annual

– Due to Baseloading TCRs & Model Changes

6Brett Crane

Auction Participation

7Brett Crane

Revenue by AO: August On-peak

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Net Revenue -$2.5 M

Charges

Credits

Brett Crane

Participation / Model Changes Drive Revenue

9Brett Crane

ParticipationSelf Converts (MW)

• 1,500 MW On-Peak

• 1,180 MW Off-Peak

Buy Bid & Sell Offers (#)

• 139 On-Peak

• 118 Off-Peak

ARRS with no set Price (%)

• 56% in On-Peak

• 62% in Off-Peak

10Brett Crane

  Nomination Window

  Run ARR

  Post ARR

  Bid Window

  Run TCR

  Post TCR

  Model Posting

AugustSu Mo Tu We Th Fr Sa

1 2 3

4 5 6 7 8 9 1011 12 13 14 15 16 1718 19 20 21 22 23 2425 26 27 28 29 30 31

SeptemberSu Mo Tu We Th Fr Sa

1 2 3 4 5 6 7

8 9 10 11 12 13 1415 16 17 18 19 20 2122 23 24 25 26 27 2829 30

Next StepsPhase II Monthly Processes Remaining

Brett Crane 11

Extended Connectivity Testing

12Brett Crane

• ECT Preparation (complete no later than 8/2):• Complete Connectivity Test Checklists and return to SPP• LSA User Role Setup• OATI and CROW System Access Requests (if applicable)• XML Notification Listeners (if applicable)

• ECT Test Execution (occurs between 8/5 and 8/30):• MPs will be assigned a week during test execution time frame to

perform their testing. Assignments to be provided July 26th.• Tests are performed independently during the assigned week. No

appointment is necessary.• Issues with test execution handled via RMS .

Extended Connectivity Testing

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• Applicable Market Participants:Active Power Investments Denver Energy, LLC Merrill Lynch Commodities Tennessee Valley AuthorityAPEX DTE Energy Trading Midwest Energy Trading East Trademark Merchant EnergyAPX, Inc. Durable Electric Power Monterey SW, LLC Twin Eagle Resource Mgmt

BJ Energy, LLC EDF Trading North America Monterey SWF, LLCUnion Electric Company dba Ameren Missouri

Blue Canyon VEDP Renewable North America

Northpoint Energy Solutions Union Power Partners L P

Buffalo Dunes Wind Project ENEL Green Power NSP Energy Marketing Utilities PlusCitigroup Energy Entegra Power Services NSP Energy Trading Vitol, Inc.City of Fremont ETC Endure Energy Powerex Corp XO ENERGY SW, LPConoco Phillips Co Franklin Power, LLC PSCO Energy Trading XO ENERGY SW2, LPDB Energy Trading Infinity Wind Holdings PSCO Energy MarketingDC Energy Midwest, LLC J Aron & Co Saracen Energy West

Denver Energy 2, LLCJP Morgan Ventures Energy

Sustaining Power Solutions

Brett Crane

Review of Events• SPP disabled Market XML Notifications Wed July 24

• SPP found a defect with XML notifications that appears to send Regulation selection results to MPs for Resources they were not responsible.

• The install of Release 1.4.1.3 was not successful• Releases 1.4.1.1 and 1.4.1.2 successfully installed

• Release 1.4.1.3 addresses database issues that do not impact the quality of market solutions

• SPP continues to work with the vendor to diagnose and address the issues encountered• SPP will inform MPs of progress and future installation plans

14Casey Cathey

8/1 Model Issues

15Gary Cate/Jarrett Friddle

• Known Issues with Model Uploads:• Seeding of Resource Offers

• Requires SPP to enter an initial offer before a Market Participant can begin to update their offer using the Markets UI or Markets API

• Markets UI/API does not allow data to be submitted for the Operating Day until the Resource/Settlement Location becomes effective

• This is actually a larger issue. We have workarounds for issue number one, but there are not any workarounds for issue 2.

• This does not affect just new resources. The architecture of the MDB is such that most of the attributes of an asset (ControlZone, ReserveZone, AssetOwner etc) are held on the MktResourceAssetDef table. This means that (especially during this influx of registration changes) there will most likely be a more than a few resources that terminate/re-start for this upload.

• If an Offer is already in place for that Asset, everything continues to work. They cannot see/update the offer, however it will be there and included in the solution.

8/1 Model Issues continued

16Gary Cate/Jarrett Friddle

• SPP course of action• We will upload Production on Monday, 7/29 at Noon. The

Effective Date will be 7/31.

• The resources that are not technically effective till 8/1 will not be able to enter offers and will be ignored in 7/31 DA case and the 7/31 RTBM cases

• The resources which are already effective and are only changing effective dates internal to MDB will need to submit both DA and RTBM’s offers (if they want to update and not use roll forward) for 7/31 before the 7/29 upload to PROD.

Analysis: July 15-21

17Alan Adams

• Structured Market Trials Statistics posted the day after each ODspp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market

Trials Project Documentation Folder > Structured Market Trials Presentations, Statistics, MP Meetings

• Analysis of July 17 and July 18 Operating Days posted Tues to spp.orgspp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market

Trials Project Documentation Folder > Structured Market Trials Presentations, Statistics, MP Meetings

Look-Ahead: July 15-21

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• July 29 – Aug 4 Daily Calendar• spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace

Market Trials Project Documentation Folder

• Now includes some initial Settlements Dates.. For all Settlements Calendar details please reference the Settlements Calendar marketplace.spp.org > Public > Settlements > Calendars

• Scheduled Scenarios• 20.0 – CRD Event• 14.1 – Low Load High Wind• 14.2 – Low Load High Wind

•

• Financial Only Training – SMT Call Fri Aug 2

• Official Operating Days – Weds July 31 & Thurs Aug 1• 3 ODs in August (e.g. Tues Aug 6, Weds Aug 7, Thurs Aug 8)

• Friday Maintenance & Saturday - Reserved for MP Testing

Leann Poteet

20.0 CRD Event1.1 Scenario Description•Contingency Reserve Deployment (CRD) is required whenever there is a loss of significant generation within the SPP footprint. The CRD application will:

• 1. Manage deployments of reserves• 2. Monitor the compliance of resources during contingency events

1.2 Expected Result•If a significant loss of resources occurs, a CRD event will be created by an operator; the operator will then acknowledge and deploy the event.

•CRD will calculate the total amount of reserves that will be deployed and split it between the RTGEN managed deployments and the CRD managed deployments.

• RTGEN manages deployments for Spinn and Online Supp. Reserves only RTGEN deployments made by RTGEN communicated via ICCP

• CRD manages deployments for recallable transactions, Offline Supp, BDR Spinn & Supp CRD triggered deployments communicated via XML

19Alan Adams

20.0 CRD Event2.0 MP Activities•Offer units in as available for Contingency Reserve clearing (Spin, Supp, Offline Supp).

•Observe Units as they get deployed for Contingency Reserve Events.

• Only one resource from each MP should offer a spin qualified resource with an Operating Reserve Dispatch Status of “Fixed” for 5 MW.

• All other spin qualified resources should have an OR Dispatch Status of “Market”

20Alan Adams

14.1 Low Load High Wind1.1 Scenario Description•Run the Day Ahead Market with bids and offers submitted by MPs that represent the activity they would expect on a low load/high wind day. •Outages will also be present to mimic the expected maintenance conditions during the period.

1.2 Expected Result•DA Market solution should reflect reasonable results during the representative day (April 5, 2013). The solution should honor any outages and constraints that were present on the representative day.

2.0 MP Activities•Submit Virtual bids and offers as desired for expected business strategies.

MPs with Load•Submit Demand bids similar to what would be expected during the reference day (April 5, 2013). Demand bids should include Fixed and Price-Sensitive and reflect expected production activity.

• Demand bids should be based on the Load Forecast supplied by SPP for the representative day (April 5, 2013).

MPs with Resources•Submit Resource Offers similar to what would be expected during the reference day (April 5, 2013). OR Offers should reflect OR obligation as posted by SPP.•Offers should reflect Outages that were in place on the reference day

21Alan Adams

14.2 Low Load High Wind1.1 Scenario Description•Run the Day Ahead Reliability Commitment with offers submitted by MPs that represent the activity they would expect on a low load/high wind day. •The load forecast used by DARUC will be from a selected representative day.•Outages will also be present to mimic the expected maintenance conditions during the period.

1.2 Expected Result•DARUC Market solution should reflect reasonable results during the representative day (April 5, 2013). •The solution should honor any outages and constraints that were present on the representative day (April 5, 2013).

2.0 MP ActivitiesMPs with Resources•Submit Resource Offers similar to what would be expected during the reference day (April 5, 2013). OR Offers should reflect OR obligation as posted by SPP.

22Alan Adams

Overview: Scenario Tracker

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MP ACTIVITY DATEExecute Scheduled Scenarios OD

Receive Scenario Email(s) OD +1

Respond to all Scenario Email(s) before deadlineFollowing Mon 12PM CST

View Scenario Tracker on iDashboard / metrics in Analysis Deck

Following Tues 5PM CST

Review Scenario Tracker on SMT Call for Scenarios executed one week in arrears

Following Fri 9AM CST

Scenario Tracker to track/report MP completion of Scenarios weekly•Updated based on MP Responses to Scenario Emails

Casey Cathey

Scenario Emails – MP Response Required• Emails sent only to MT Primary Liaison

• MPs can change email recipient by submitting an RMS Ticket

• If SPP receives an auto-reply, email forwarded to MT Secondary Liaison

• Roll-Forward Email sent each month• Will you intentionally roll-forward DA/RTBM offers the following month?

• Response Required: Use Voting Button “Yes” / “No”

• August Email sent Mon 7/29; response required Mon 8/5 by 12P CST

24Casey Cathey

Scenario Emails – MP Response Required• Catch-Up Scenario Email sent one time (Mon June 29)

• Have you completed applicable Scenarios executed June 3 – June 29?

• Response Required: Complete Table with “Pass” / “Fail”

• Catch-Up Email sent Mon 7/29; response required Mon 8/5 by 12P CST

• Scenario “X” Email sent for each Scenario every OD+1• Did you execute Scenario X on OD?

• Response Required: Use Voting Button “Yes” / “No”

• If “No”, submit an RMS Ticket and include RMS Ticket # in Voting Response

• Email(s) sent each OD+1; response required following Mon by 12P CST

• No emails for Base Scenarios

25Casey Cathey

August Roll-Forward Email

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DRAFT

Casey Cathey

Catch-Up Email

27Casey Cathey

Sample Scenario Email

28Casey Cathey

Scenario Tracker• Updated weekly based on MP responses to Scenario Emails

• Reviews Scenarios executed one week in arrears

• MPs who wish to update Scenario Tracker status after Email deadline can submit an RMS Ticket

• Posted to iDashboard & in Analysis by 5P Tuesday• Presented with Analysis in SMT Calls Friday

• Analysis includes “Roll-Up” Metrics• # of MPs who received Scenario Email

• # of MPS who responded to Scenario Email

• # of MPs who reported passed

• # of MPs who reported failed

29Casey Cathey

Sample Scenario Tracker_iDashboard

30Casey Cathey

DRAFT

• Tracked by Scenario:

Sample Scenario Tracker_iDashboard

31Casey Cathey

DRAFT

• Tracked by Market Participant:

MP Activities: July 29 – Aug 9

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MP ACTIVITY DATEReceive Scenario “Catch-Up” Email & Aug Roll-Forward Email Mon 7/29Execute Scenario 20.0 OD Wed 7/31

Receive Scenario 20.0 Email OD+1 Thurs 8/1

Execute Scenario 14.1 & 14.2 OD Thurs 8/1

Receive Scenario 14.1 & 14.2 Emails OD+1 Fri 8/2

Respond to all Scenario Emails Mon 8/5 by 5P

Review Scenario Tracker* on iDashboard/in Analysis Deck Tues 8/6 by 5P

Execute Scenario 12.0 and receive Scenario 12.0 Email the following day (OD+1) if applicable

Tues 8/6 – Fri 8/9

Review Scenario Tracker* during SMT Call Fri 8/9 at 9A

*The Scenario Tracker posted Tues 8/6 will have results for Scenarios executed from June 3rd through August 1st *

Casey Cathey

True-Up: Reasons and Impacts• New RTBM (though similar to the EIS Market) has several items that

need to be thoroughly tested by both SPP &MPs:• Operating Reserves aspect• New deployments:

Contingency and Regulation Reserve Control Modes coming from ICCP SPP Calculating and tracking its ACE, etc.

• To test functionality, SPP needs to operate with the same ICCP and SCADA that matches Resources’:• real output of the units• same net schedules• same net actual interchange• dispatchability of the Resources (must be similar)

If a Resource is not in the Current Operating Plan as committed, it is not dispatchable by the Marketplace RTBM.

33Jarrett Friddle

True-Up Reasons and Impacts• Without the COP True-up and NSI True-up to try and match

Real-time, the results of RTBM would be inadequate • Results would not provide useful information or confidence in the RTBM

solutions

• With 5-minute dispatch, the threshold for net deviations from real initial conditions is relatively small:• Without True-up there is increased risk of ramp rate violations, reserve

shortage conditions and breached constraints.

• Other Risk factors SPP can’t control:• Resources not following dispatch

• Resources often operating outside their submitted Max and Min ranges for Marketplace

• 0% Ramp sharing

34Jarrett Friddle

COP True-up• Allows the RTBM to dispatch resources based on real-time (EIS)

operating conditions

• If Resources are online in EIS and not in the COP, they are unable to be dispatched economically by RTBM• Output will be echoed• Not eligible to clear reserves

• After the DA RUC run, SPP checks the EIS Resource Plan statuses for the OD to identify Resources with conflicting status with the COP.

• SPP uses the ID-RUC to commit or decommit resources that have a conflicting EIS status with the COP. • If the resource has a EIS status of “Unavailable” and is committed in the COP, it

will be decomitted by ID-RUC.

• Process repeats at least 2 hrs a day from 8A-4P during supported ODs.• During unsupported days, the COP True-Up runs once a day.

35Jarrett Friddle

Other Adjustments for RTBM: NSI True-up• Utilized to make sure the Target MW for RTBM is not too far to

reach given the available Resources on-line• SPP ports over the interchange schedules from the EIS Market (no internal

schedules) in order to serve as a “NSI True-Up”

• EIS schedules are used to calculate SPP NSI used by RTBM and the SPP NSI used by RTGEN which is managing ACE.

• Process is being used until RTOSS with new Web Mirroring feature is integrated with MOS

36Jarrett Friddle

Other Adjustments for RTBM• When RTOSS is integrated, adjustment schedules will be created

to continue this “NSI True-Up” function• SPP expects MPs to start submitting test schedules via RTOSS

• SPP expects MPS will want to see impacts through Settlements.

• SPP does not think MPs will have the Resources to dual submit schedules to the EIS Market and to Marketplace for SMT.

• Web Mirror feature (RTOSS): will allow all schedules submitted to the EIS to also be submitted as tagged “RTBM Only” schedules into the Marketplace RTOSS.

• After the DA Market Clears, SPP will determine the net deviation in schedules for each hour the next day

37Jarrett Friddle

Adjustments for RTOSS during SMT cont’d• When RTOSS is integrated, adjustment schedules will be created

to continue this “NSI True-Up” function• After DA Market Clears, SPP will determine net deviation in schedules for

each hour the next day for the AC system & each DC Tie

• This deviation will include DA Dispatchable, Up to TUC and DA Fixed that were and cleared.

• will also include any RTBM Only Fixed schedules submitted as Test schedules into the Marketplace RTOSS by 4pm day prior

• A schedule will be submitted for the next day with an external area in the AC system as well as one for each DC Tie. • Profiles will be equal and opposite the deviation calculated at 4 pm

• Schedules will look like Emergency Schedules for the SPP BA and will not be settled to any Asset Owner.

38Jarrett Friddle

DA Market and DA RUC results• MP concern about the volumes of changes in the

commitments from DA Market vs. DA RUC vs. changes made in the COP True-up• SPP acknowledges that by separating the RTBM process away from

the commitments in RUC that DA Market/RTBM Market comparisons can be challenging

• To this point in SMT, there are several factors that could contribute to deviations between DA Market / DA RUC results and EIS Market Commitments (beyond Centralized Unit Commitment)

39Jarrett Friddle

DA Market and DA RUC results

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• SPP has identified ways to improve results as well as factors that MPs can consider while performing analysis:• DA Market is dependent on COP commitments, and DA RUC is directly

impacted by DA Market clearing.

• COP True-Up influences the DA Market initial conditions calculations (min run, min down, max run, etc.)

• Compounding the problem, unsupported weekend days have had DA Market and DA RUC run on Fridays and not in normal order.

• Initial conditions for the Sunday and Monday have nothing in the COP which is contributing to “strange” commitments/decommitments by DA Market

• SPP plans to start running DA Market/DA RUC process on the weekends to correct this issue.

Jarrett Friddle

DA Market and DA RUC results

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Factors to Consider:

•Not sure how consistent MPs offering between their EIS and Marketplace.

•Varying participation on unsupported days (especially in the DA Market)

•Do not have Wind Forecast application integrated • Wind output is using test data

•Several MPs not updating Wind Resource Offers from test levels

•Just started using outages in DA Market and DA RUC last week

•5 of the supported ODs in July for specific test day scenarios that do not reflect the real-time forecasts

Jarrett Friddle

DA Market and DA RUC results

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Factors to Consider:

•DA Market and RUC still not including SFT constraints• May be local constraints committed for by MPs in EIS that are not being

captured without including SFT unless the Resources are self-committed.

•Market UI and API start/stop defects still exist so “reason” code cannot be relied on for accuracy

•Still seeing some unit physical parameters that are preventing commitment (Max Energy and Min/Max runtimes)

SPP hopes to see more consistency in DA Market and DA RUC after fixing weekend problems and improving systems integrations after this week

Reference this COP True-Up Presentation on spp.orgspp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Reference Documents

Jarrett Friddle

Release Scorecard

43

Release Scorecard posted to spp.org:spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder

Leann Poteet

Migration and Maintenance Report

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Migration and Maintenance Report posted to spp.orgspp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder

•RTOSS to MOS interface installation Friday July 26• Extended change window: 8A – 5P• Schedules from RTOSS to MOS will be out of synch

• Could impact RTBM solutions• SPP asks that MPs not enter any tags in this environment until Monday July 29.

Starting Monday use these links:• ITE WebTrans URL is https://demo.oati.spp.com• OATI users tagging URL: https://demo1.spp.tag.oati.com

• Other Market UIs and APIS available for use until regular 3-5P change window

•Please verify access to Tag Agent software

MT Tagged Transactions documentation posted to spp.orgspp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Reference Documents

Wendy Reynolds

Known Issues Log

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Market Trials Known Issues Log posted to spp.orgspp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder

Resolved Defects in the MUI 3.3 Release Friday July 26th:•206: Commitment notifications not always correct•238: VRL displays not populated•377: Ownership % can be modified for dates less than OD and > +8•378: JOU Share % cot calculated correctly•382: PostEnergyJOUShareResourceOfferSet does not accept Ramp Rates for multiple hours•383: JOU Ownership Percent Validations -- should not allow sum to exceed 100%•397: MDB not saving data entered in MT or ST NC Load Forecast•433: Publish “Manual” to members ONLY when start/stop changed through a manual process•459: System reserve requirement overrides not displayed correctly in UI or API•464: OR Ramp Rates not displayed correctly in UI and API•468: Commitment updates made to COP not triggering notifications to participants•469: Validations for Max Daily Starts & Max Weekly Starts to prevent value greater than 999•192: Reselecting current page from Navigation tree results in blank page•473: Markets API Performance issue – PostReserveOfferSet•446: System Reserve Requirements are not correct in Markets UI

Leann Poteet

Known Issues Log

46

Resolved Defects in the MUI 3.3 Release Friday July 26th - Continued:•201: Emergency Limit notification not visible on MUI•203: Unable to see Regulation Selection results on MUI

•316: WS: GetLoadForecastSEtByDay does not return data for ST Non-Conforming Load•320: WS: GET EDR Resource Offer methods should return results in date order•329: START/STOP notifications in MUI show all historical messages causing duplicate records•367: PostEnergyJOUOwnershipShareSet allows data to be posted outside operating window•386: WS: GetReserveRampRateCurveSetByDay ramp rate error

•387: GetEnergyDispatchSetByDay errors when using valid AOs and times

•418: PostReserveMitigatedOfferSet returns Internal System Error•419: PostEnergyOperatingLimitSet does not save MQSRLimit to Market system•431: Submitting OR Mitigated Offers results in Internal System Error in UI and API•443: Remove validaiton to verify Min Emer Runtime < Max Emer Runtime

•444: Maximum Energy Limit should require MW to be greater than zero

•452: Markets UI - Energy Day Ahead Results not showing properly

•474: Markets API allowing update to no load cost by JOU Share owners•480: UI does not consistently display the Day Ahead Cleared offers results Resource level

•412: Commitment status of 'OUTAGE' for EDR not allowed for PostEnergyCommitmentStatus

Leann Poteet

Scheduled Scenarios

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• July 29 – Aug 4• 20.0 – CRD Event

• 14.1 – Low Load High Wind

• 14.2 – Low Load High Wind

• Aug 5 – Aug 11• 0.5 – Settlements Base Scenario• 12.0 – OOME Retesting

Leann Poteet

Market Trials Useful ResourcesSMT Hotline: 501-482-2222 for critical & high issues Mon-Fri 8A – 5PPlease submit all other inquiries via the Request Management System (RMS)

Settlements Calendarmarketplace.spp.org > Public > Settlements > Calendars

Integrated Marketplace Market Trials Project Documentation Folderspp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder

• Market Trials Daily Calendar• Release Scorecard• Migration Report • Market Participant Guide• Market Trials Known Issues Log

•SMT Presentations, Statistics, MP Meetings Folder•SMT Reference Documents Folder

• SMT Tips and Guidelines• Unstructured Tips• COP True-Up Presentation

•SMT Scenarios FolderChange Tracker spp.org > Integrated Marketplace > Marketplace Documents

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