NH Settlement Processes Mark Wing Supervisor Hourly Markets Debbie DiFiore Supervisor Monthly Markets Jin Hua Thian Manager Settlements Agenda High level overview of energy markets Financial assurance considerations ID: 1029899
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1. JuNE 22, 2023 | Manchester, NHSettlement ProcessesMark WingSupervisor, Hourly MarketsDebbie DiFioreSupervisor, Monthly MarketsJin Hua ThianManager, Settlements
2. AgendaHigh level overview of energy marketsFinancial assurance considerationsMeter deadlines and settlement timeline2
3. High Level overview of Energy Markets3
4. 4Energy MarketsDay-Ahead EnergyMost energy is procured through DA Energy marketGenerator bids reflect the cost of producing energyBinding financial transactionGenerators are paid based on their obligation and the DA Locational Marginal Price (LMP)Performance in RT doesn’t impact DA creditsReal-Time EnergyBalancing marketDA bids used in RT unless changedBids can be changed between DA and RTGenerators paid or charges based on deviations and the RT LMPGenerators with a DA obligation that do not perform in RT will have to buy back missing energy at RT LMP
5. 5Energy Market Example – DA EnergyAssumptions100 MW generator bids Generator clears 80 MWhDA LMP is $50 per MWhHourly paymentDA ObligationDA LMPDA Energy Credit(DA Obligation x DA LMP)80 MWh$50 / MWh$4,000
6. 6Energy Market Example – RT Energy 1Assumptions100 MW Generator with an 80 MW DA obligation20 MW RT Energy bid In real time,Generator delivers additional 10 MWRT LMP is MW at $60 per MWhHourly PaymentDARQMANI(RQM – DA)RT LMPRT Credit(ANI x RT LMP)80 MW90 MW10 MW$60$600
7. 7Energy Market Example – RT Energy 2Assumptions100 MW Generator with an 80 MW DA obligation20 MW RT Energy bidIn real time,Generator fails to deliver energyRT LMP is MW at $60 per MWhHourly PaymentDARQMANI(RQM – DA)RT LMPRT Credit(ANI x RT LMP)80 MW0 MW(80) MW$60($4,800)
8. Financial Assurance Considerations8
9. Credit Risk MitigationFinancial positions are reviewed before IBTs are included in settlementDA and RT energy IBTsObjective of this review is the mitigation of credit risk to the market, by preventing the settlement of IBTs that cause credit test failure for a contract partyFA review process begins immediately after IBT submittal deadlineIBT is subject to rejection if inclusion in settlementwould result in in market participant’s credit test failureInternal Bilateral Transactions (IBT)9
10. Bilateral Contracts Info 10TransactionTypeUser InterfaceSubmission Deadlinefor Initial SettlementSubmission Deadlinefor Data Reconciliation ProcessMaximum Duration of TransactionDay-Ahead Energy Internal TransactionsOne business day after operating day (Hour 1200)N/A24 monthsReal-Time Energy Internal TransactionsTwo business days after operating day (Hour 1700)101 days after end of operating month24 monthsInternal Bilateral for LoadInternal TransactionsTwo business days after operating day (Hour 1700)101 days after end of operating month24 monthsCapacity Load Obligation Internal TransactionsFirst business day of the operating month(12:00 noon)101 days after end of operating month1 year (cannot cross capacity commitment period boundary)
11. Real-Time Energy IBTFA Review and Rejection Process Timeline12:00 p.m.1:002:003:004:005:007:008:009:00 p.m.6:00RT IBT FA Review 6:00 p.m.Rejection9:00 p.m.Submittal Deadline5:00 p.m.311IBT submittal deadline is at 5 p.m., two business days after the operating dayNo cure periodRejection notification e-mailed to impacted entities
12. MEteR Deadlines andSettlement TimeLine12
13. +2 business days after ODEarly AMISO publishes DAM MIS reports 1:00 PMDeadline for meter readings and peak contributions5:00 PMEnergy Quantity job startsOvernightISO runs RTM and ancillary settlements1 day before Operating Day (OD)ISO publishes DAM schedule and LMPsDA bids rolled into RTMDeadline for DAM offers and bids10:30 AM1:30 PMReal-timeISO calculates RT LMP and dispatches energy to match loadUp to real-timeCustomer may modify bidsOperating Day (OD)ISO schedules DAM settlement to run overnightNext business day after ODISO publishes RTM MIS reportsEarly AMISO begins review of ancillary data+3 business days after ODISO completes review of ancillary settlements and publishes reportsISO complete review of daily FCM and publishes reportsEarly AMDaily FCM settlement is run+4 business days after OD-1+1+2+3+4Daily Settlements
14. 14Settlement and Billing TimingMTWThFSSuMTWThFSSuMTWDAM settlement,Meter readings & peak contributions deadlineRTM settlementEnergy on billAS settlement,Daily FCM settlementAS & FCM on billOperating day
15. Data Reconciliation Process (DRP) Timeline 151234567891011121314CD17181920212223SMTWTFSMonth + 21234EF78910111213141516171819202122232425262728SMTWTFSMonth + 3242526272829302930311345678910111213141516171819202122232425262728SMTWTFS123456789101112A141516171819202122232425SMTWTFSMonth + 1Settlement Month293031262728293031End of settlement month99th day of first month following the settlement monthAFirst business day of the week after 9th day of first month following the settlement monthMonthly bill is released BDay after monthly bill is releasedRe-submission window opensC45 days after end of settlement month (5:00 PM)Deadline for directly metered assets to re-submit through metering UID46 days after end of settlement monthSP_METERDIRECT and SP_METERDOMAIN generated and publishedE65 days after end of settlement month (5:00 PM)Deadline for directly metered assets to re-submit through email / Ask ISODeadline for directly metered assets for MDE RBA stake in the groundF66 days after end of settlement monthSP_METERDIRECT and SP_METERDOMAIN generated and publishedG70 days after end of settlement month (5:00 PM)Deadline for Demand Assets associated with On-Peak Demand Resources or Seasonal Peak Demand Resources to submit demand reduction valuesDeadline for Demand Response Assets to submit meter dataH85 days after end of settlement month (5:00 PM)Deadline for profiled load assets to re-submit through metering UIDeadline for peak contributions through UII86 days after end of settlement month (5:00 PM)SP_METERDOMAIN, SP_METERPROFILED and SP_PEAKCONTRIBUTION generated and publishedHIGB
16. Data Reconciliation Process (DRP) Timeline cont.1612345678910111213141516171819202122232425SMTWTFSMonth + 4Settlement Month2627282930+1+2+3J99 days after end of settlement month (5:00 PM)Deadline for profiled load assets to re-submit through email / Ask ISODeadline for profiled load assets for MDE RBA stake in the groundK100 days after end of settlement month (5:00 PM)SP_METERDOMAIN, SP_METERPROFILED and SP_PEAKCONTRIBUTION generated and publishedL101 days after end of settlement month (5:00 PM)Deadline for bilateral transactionsMFirst business day of the week after 9th day of fifth month following the settlement monthMonthly bill is released including the data reconciliation process (DRP)123456781011121314M17181920212223SMTWTFSMonth + 5242526272829301516JKL999th day of first month following the settlement month
17. Meter Data Error (MDE) Request for Billing Adjustment (RBA) Timeline17MFirst business day of the week after 9th day of fifth month following the settlement monthNOne month after DRP invoice dateDeadline for MDE RBA submission formO45 days after MDE RBA submission limitDeadline for directly metered assets to re-submit through email / Ask ISO1234567891011121314151619202122232425SMTWTFSMonth + 7234567891011121314151617181920212223SMTWTFSMonth + 82627282930242526SMTWTFS1234567891011131415N171819202122232425262728SMTWTFSMonth + 6Month + 5293031123456789101112131417181920212223242526272829301516M13161718O127282930
18. Meter Data Error (MDE) Request for Billing Adjustment (RBA) Timeline18P86 days after MDE RBA submission limitDeadline for profiled load assets to re-submit through metering UIDeadline for peak contributions through email / Ask ISOQ90 days after MDE RBA submission limitDeadline for bilateral transactionsRFirst Monday after 9th day of eleventh month following the settlement monthFinal settlement1234567891011121314151619202122232425SMTWTFSMonth + 112627282930SMTWTFS1234567891011131415171819202122232425262728SMTWTFSMonth + 10Month + 9293031123456789101112131417181920212223242526272829301516P13161718RQ
19. +11Monthly settlement following settlement monthMonthly bill is releasedDay after monthly bill is releasedRe-submission window opens45 days after end of settlement month (5:00 PM)Deadline for directly metered assets to re-submit through metering UI46 days after end of settlement monthSP_METERDIRECT and SP_METERDOMAIN generated and published65 days after end of settlement month (5:00 PM)Deadline for directly metered assets to re-submit through email / Ask ISODeadline for directly metered assets for MDE RBA stake in the ground66 days after end of settlement monthSP_METERDIRECT and SP_METERDOMAIN generated and published70 days after end of settlement month (5:00 PM)Deadline for Demand Assets to submit demand reduction valuesDeadline for Demand Response Assets to submit meter data85 days after end of settlement month (5:00 PM)Deadline for profiled load assets to re-submit through metering UIDeadline for peak contributions through UI86 days after end of settlement month (5:00 PM)SP_METERDOMAIN, SP_METERPROFILED and SP_PEAKCONTRIBUTION99 days after end of settlement month (5:00 PM)Deadline for profiled load assets to re-submit through email / Ask ISODeadline for profiled load assets for MDE RBA stake in the ground100 days after end of settlement month (5:00 PM)SP_METERDOMAIN, SP_METERPROFILED and SP_PEAKCONTRIBUTION101 days after end of settlement month (5:00 PM)Deadline for bilateral transactions5th monthly settlement following monthMonthly bill is released including DRPOne month after DRP invoice dateDeadline for MDE RBA submission form45 days after MDE RBA submission limitDeadline for directly metered assets to re-submit through email / Ask ISO86 days after MDE RBA submission limitDeadline for profiled load assets to re-submit through metering UIDeadline for peak contributions through email / Ask ISO90 days after MDE RBA submission limitDeadline for bilateral transactions11th monthly settlement following monthFinal settlementThe monthly settlement process takes 11 monthsMonthly Settlement19
20. ReferencesISO Energy MarketMarket Rule 1, Section 3.2.1ISO Manual 28, Section 5Metering and Resettlement DeadlinesData Reconciliation ProcessISO Manual 28, Section 6.1Meter Data Error RBAISO Manual 28, Section 6.2Meter Data Error RBA Deadlines and affected Metering DomainMeter Data Error RBA Submittal Form20
21. ReferencesInternal Bilateral Transactions/Financial AssuranceISO Tariff Section I, Financial Assurance Policy, Section III.B.3(e)ISO Manual 28, Section 2.3ISO Manual 35, DefinitionsISO User Guide, Submitting Internal Bilateral Transactions Using SMS21
22. Appendix22
23. Initial Settlement ProcessSection 5.3 Timing(1)(a) By 0800 of the next Business Day following the Operating Day, the ISO provides loss data for which it is the Assigned Meter Reader to the appropriate Market Participants. If the ISO fails to provide this data by the time frame indicated, the deadline for Host Participant daily settlement data submission will be delayed by one hour for each hour that the data is delayed but in no case will the deadline for Host Participant daily settlement data submission be extended beyond the beginning of hour 1700 three Business Days after the Operating Day. Additional Process Detail23
24. OI_LOSSESMD MIS Report UpdatesQ3 2023The Enhancement to Operating Company Losses Report (OI_LOSSESMD MIS Report)* Replaces NEES_RI with RIE_RI 24*Loss report primarily for Host Participants/ Meter Readers; no impact to existing settlements MIS reports.Remove NEES_RIAdd RIE_RI
25. Daily Peak ContributionsMechanism for FCM cost allocation Annual Peak LoadPrior year pool peak loadCoincident peak contribution valueAmount of load consumption is captured for each load asset on that peak day/hourDaily Peak contributionsMeter readers submit for each load asset dailyTotal meter domain must coincide with Annual Peak May be adjusted due to load shiftingRecent changes to submitting Daily Peak contributionsMay submit peak contribution values for the futureSubmit peak contribution values for range of dates (i.e. month or commitment period)May revise previously submitted peak contribution values25