Proposed Modification of Day-Ahead Energy Offer Window Deadline
ISO-NE is proposing a modification to the Day-Ahead Energy Offer Window by changing the submission deadline from 10:00 AM to 10:30 AM. This adjustment aims to provide suppliers additional time to consider information before finalizing their day-ahead offers and bids. The proposal also includes Tariff clean-up changes to align with offer cap filing requirements. The current schedule, established in 2013, is being revised to enhance transparency, price discovery, and competition in the market.
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A P R I L 7 , 2 0 2 0 | M A R K E T S C O M M I T T E E Day-Ahead Energy Offer Window Modification & Clean- Up Changes Modify the current 10:00 AM deadline to 10:30 AM for Day-Ahead Energy Offer submissions and address Tariff clean-up changes Dennis Robinson 4 1 3 . 5 3 5 . 4 1 3 2 | D R O B I N S O N @ I S O - N E . C O M ISO-NE PUBLIC
WMPP ID: 145 Day-Ahead Energy Offer Window Modification Proposed Effective Date: October 1, 2020 The ISO is proposing to modify the submission deadline for offers and bids in the Day-Ahead Energy Market from 10:00 am to 10:30 am to address feedback from stakeholders Modifying the submission deadline to later in the morning may afford some suppliers additional time to consider information before finalizing their day-ahead offers and bids In addition, the ISO will also be addressing Tariff clean-up changes related to conforming language with the offer cap filing (Docket No. ER17-1565) This presentation will review the background and the proposed Tariff and manual revisions ISO-NE PUBLIC 2
Background The current Day-Ahead Energy Market schedule was established in May 2013 when the timeline was revised to better accommodate the fuel procurement activities of gas- fired generators Current timeline provides that offers and bids must be submitted by 10:00 am and market results must be posted by 1:30 pm When this schedule was established, the ISO committed to evaluate opportunities for improvement ISO-NE PUBLIC 3
Problem Statement Customers have frequently noted to the ISO that the Day- Ahead Energy Market submission deadline does not afford suppliers enough time to consider recent information when finalizing their offers and bids Gas-fired generators benefit from additional transparency, price discovery, and competition in the natural gas commodity marketplace when formulating day-ahead energy bids Participants who transact on the NY-NE interface would find it beneficial to consider the NYISO day-ahead results when formulating their ISO-NE day-ahead offers ISO-NE PUBLIC 4
Proposal Provide market participants with additional time to submit day-ahead market offers and bids while also preserving adequate time for the ISO s activities to clear, validate and post the day-market results Move the current 10:00 am deadline to submit offers and bids to 10:30 am Will not change the current schedule for the re-offer period and real- time market activities that occur subsequent to the day-ahead market finalization ISO-NE PUBLIC 5
Supporting Analysis Since 2013, process and technical improvements have reduced the time needed to clear the day-ahead market ISO is typically able to post the day-ahead market results earlier than 1:30 pm (usually between 12:00 pm and 1:00 pm) 2,504 approved Day Ahead solutions since May 23, 2013* 93% approved within 3 hours 173 days took longer than 3 hours 4 days since 1/1/2019 99.1% approved within 3 hours since start of 2019 * As of 4/1/2020 ISO-NE PUBLIC 6
Clean-Up Changes The ISO is also proposing two clean-up revisions in Section III.1 of the Tariff to conform language with the 2017 offer cap filing (Docket No. ER17-1565) The 2017 offer cap filing eliminated the term Energy Offer Cap and consolidated language related to the Energy Offer Floor in a single Tariff section A Price Responsive Demand (PRD) revision filing (Docket No. ER17- 2164) submitted after the offer cap filing did not include the Energy Offer Cap language in its base document because the PRD filing was effective prior to offer caps Therefore two Tariff provisions related to Demand Response Resources have not been conformed to the offer cap filing With this filing, that is being remedied ISO-NE PUBLIC 7
Summary of Proposed Tariff and Manual Changes Reason for Change Section Change III.1.10.1A Energy Market Scheduling. The submission of Market Participants may submit offers and bids in the Day-Ahead Energy Market until 10:30 offers and bids shall occur not later than 10:00 a.m. on the day before the Operating Day for which transactions are being scheduled, or such other deadline as may be specified by the ISO in order to comply with the practical requirements and the economic and efficiency objectives of the scheduling process specified in this Market Rule 1. Address stakeholder feedback to extend the Day Ahead Energy Market submission deadline Tariff Section III.1.10.1A 10:030 a.m. Day-Ahead Energy Market submission period closes for Supply Offers, Demand Reduction Offers, Increment Offers, Demand Bids and External Transactions. Manual M-11 Section 2.2.1 Tariff Section III.1.9.1.2(c) (c) Supply Offers and Demand Reduction Offers shall not specify an offer price (for incremental energy) below the Energy Offer Floor. Clean-up change to conform language to offer cap filing Demand Reduction Offers (ii) Shall not specify a price that is above the Energy Offer Cap, below the Energy Offer Floor, or below the Demand Reduction Threshold Price in effect for the Operating Day. Tariff Section III.1.10.1A(e)(ii) ISO-NE PUBLIC 8
Day-Ahead Energy Market deadlines and timeframes may need to be revisited in the future In 2022, the ISO will be replacing the Day Ahead clearing engine. While this change is expected to increase performance reducing solve time, the ISO will need to gain experience using the new clearing engine under various market conditions to see if further modifications could be made to the Day-Ahead Market deadlines and timeframes In addition, the Energy Security Improvements (ESI) project will be implemented on June 1, 2024. This project incorporates several new day-ahead ancillary service products into the market, which could also impact the Day-Ahead Market deadlines and timeframes The ISO anticipates it may likely need to revisit the Day-Ahead Energy Market deadlines and timeframes in 2024 as a result ISO-NE PUBLIC 9
Conclusion The ISO is proposing to modify the submission deadline for offers and bids in the Day-Ahead Energy Market from 10:00 am to 10:30 am to address feedback from stakeholders This modification may afford some suppliers additional time to consider information before finalizing their day-ahead offers and bids In addition, the ISO will be addressing clean-up revisions in the Tariff to conform language to the 2017 offer cap filing The proposed effective date of these revisions is October 1, 2020 ISO-NE PUBLIC 10
Stakeholder Schedule Stakeholder Committee and Date Scheduled Project Milestone Markets Committee April 7, 2020 Discussion of proposed Tariff and manual revisions Markets Committee May 12-13, 2020 Discussion of proposed Tariff and manual revisions Markets Committee May 12-13, 2020 Vote on proposed Tariff and manual revisions Participants Committee June 4, 2020 Vote proposed Tariff and manual revisions ISO-NE PUBLIC 11
