Introduction to Regional Wholesale Electricity Markets - RTOs and ISOs

July 16-17, 2024 | Online :: Central Time

0724-wholesale-electricity-markets

“Raj is an excellent instructor. I’m thankful he converted his presentation into an online format that was easy to understand, included effective visuals and analogies, and was paced appropriately for an online course.” – Program Examiner, Office of Management and Budget

“This class was a great interactive and in-depth opportunity to learn industry knowledge from actual industry leaders.” –Registration Specialist II, MISO

“Definitely helped put all the terms and information I heard and knew about and put it together in a more structured and organized way.” –Manager of Organized Markets, Policy and Support, Arizona Public Service

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“Raj was great with explaining the industry at every level. I was happy with the knowledge I was able to gain from the course.” –Office Manager, Key Capture Energy

“Great speaker, great conference. I learned so much. Most beneficial conference I’ve attended.” –Accountant II, Associated Electric Coop

“This course helped me understand the relationship between generation, transmission, distribution, and load with respect to the different types of energy markets.” –Client Representative, MISO

“I am more confident answering operational questions now that I have a better understanding of how things work.” –Client Relations Sr. Analyst, MISO

“Topics multiple colleagues have struggled to explain to me finally make sense.” –Senior Regulatory Analyst, Oklahoma Corporate Commission

“Raj did a great job. He didn’t go too far off course and was able to answer questions easily.” –Analyst, MISO

“Excellent! Engaging speaker, very knowledgeable.” –Advisor, MISO

“Raj was excellent. Very good content, good explanations in response to questions.” –Attorney Advisor, Dept. of Energy

“The most comprehensive discussion on markets!” – Principal Electrical Engineer, Salt River Project

“Raj was excellent. He simplified and explained the concepts in terms, and with examples that were easy to follow and understand. Overall, Raj is one of the best instructors I’ve had on utility topics.” – Rates and Regulatory Strategy Director, Duke Energy Florida

“A great opportunity for starters in the Whole Electricity Markets; an opportunity for intermediates to reinforce knowledge.” – Energy Settlement Analyst, Ente Operador Regional

“Raj Rana did an excellent job. He made the material interesting. He is obviously an expert in the field.” Director of Rates and Regulatory Planning, Duke Energy

This course is designed to introduce basics of wholesale electricity markets operating in the U.S., Canada, and Mexico. The purpose is to enhance attendees’ understanding of types of wholesale electricity markets and the platforms that offer such markets. The focus will be on the functions of RTOs/ISOs and their role in providing platforms for real-time and day-ahead energy markets, ancillary service markets, and in some cases capacity markets. Participants will also gain a high-level understanding of current issues affecting electricity markets and will receive detailed explanation of how the electricity markets operate.  

Major topics covered in this course include: 

• Basics of electric power systems
• The role of FERC and State Regulatory Agencies
• RTOs and ISOs and their functions and characteristics
• Wholesale electricity prices trend and volatility, locational marginal price (LMP), capacity markets, financial transmission rights (FTRs)
• Review of supply and demand relationship; spot vs. bilateral electricity markets  
• Day-ahead and real-time settlement, wholesale demand response, forward pricing curve, and price forecasting
• Comparison of energy, capacity, and ancillary service markets offered by RTOs/ISOs in the U.S. 

Learning Outcomes  

• Review major components of a power system and types of wholesale electricity markets
• Discuss platforms for real-time and forward wholesale electricity markets
• Explain locational marginal price (LMP) and its components
• Describe types of risks inherent in the wholesale energy markets and financial tools to manage such risks
• Define and provide examples of ancillary services and bilateral and real-time energy markets
• State the role of FERC and state regulatory agencies
• Describe ISO/RTO functions, financial settlement, and credit issues
• Describe role of transmission in the regional wholesale electricity markets

Tuesday, July 16, 2024 : Central Time

Power System Basics, Types of Generation Resources and Loads, and Regulatory Oversight 

• Fundamentals of electricity, definitions, and units
• Overview of source to socket components: generation, transmission, distribution, and loads
• Power flow demonstration 
• Types of generation resources, heat rate, capacity factor, and installation costs
• Load characteristics, load duration curves, load factor, and customer classes
• Demand response
• Power system losses
• Regulatory oversight: role of FERC, state regulatory agencies, and market monitor
• Review questions 

Types of Energy Markets and Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs)  

• Wholesale electricity prices and volatility
• Review of supply and demand relationship 
• Types of electricity markets: real-time (spot) vs. bilateral markets
• RTOs/ISOs in U.S. and Canada
• RTO functions and characteristics
• RTO drivers
• Advantages and disadvantages of RTO/ISO participation
• Regulatory framework and role of FERC and state regulatory agencies 
• RTO stakeholders
• Review questions

Locational Marginal Price (LMP) 

• LMP concept
• Components of LMP and examples 
• Nodal, Hub, and Zonal LMP
• LMP demonstration, review questions, and class exercise 

RTO/ISO Wholesale Electricity Markets 

• Economic merit order and unit commitment
• Security constrained economic dispatch
• Cost of transmission congestion and losses
• Financial transmission rights (FTRs) for transmission congestion hedging
• Day-ahead and real-time market, scheduling, and dispatch
• Capacity market
• Ancillary services – whose responsibilities?
• Ancillary services market
• Comparison of markets offered by RTOs/ISOs in the U.S.
• Review questions

Wednesday, July 16, 2024 : Central Time

Review of Previous Day; Opportunities for Questions and Discussion on Previous Day’s Material 

 

Regional Wholesale Electricity Market Basics – Continued 

• Overview of generator/load offer/bidding considerations, bid and offer curves, and three-part bid
• Generator capacity dispatch range, variable cost components, start-up cost, no-load cost, and ramp rate concepts
• Overview of RTO/ISO financial settlement
• Review questions

Risk Management and Credit Requirements 

• Potential risks 
• Overview of risk hedging tools for real-time and bilateral markets: FTRs, virtual trading, options, futures, and SWAPs 
• Credit requirements
• Review questions

Raj Rana, PE, MBA, CEM, PMP, President, Rana Energy Consulting  

While serving as the director of RTO Policy and NERC Compliance at American Electrical Power, Raj was responsible for coordination of energy, transmission, market structure, finance, and governance-related RTO policy issues among the AEP business units, development of corporate positions/policies, and advocacy of such positions at regulatory agencies and stakeholder forums in PJM, SPP, and ERCOT RTOs. He was also responsible for the development and coordination of strategic direction of AEP’s power system reliability compliance program among all business units, as well as coordination and facilitation of compliance plans, policies, and procedures within the company to ensure timely and successful compliance of NERC and regional reliability standards.  

Previously, Mr. Rana worked in AEP’s System Planning department in various positions. His experience at AEP includes planning and operation of the bulk transmission network, generation interconnections, tariff and regulatory/legislative issues, system integration, asset management, mergers and acquisitions, as well as planning and engineering studies for international transmission and generation projects.  

Mr. Rana holds a BSEE degree from M. S. University (India), an MSEE degree from West Virginia University, and an MBA degree from University of Dayton. Mr. Rana also completed the AEP Management Development Program at the Fisher Business College of the Ohio State University. He is a life-senior member of IEEE and holds the Ohio State PE license. Mr. Rana is also a certified energy manager and project management professional. 

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

• Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
• You will receive a separate email with a unique link to a personalized landing page which will include links to join all sessions of this event.
• If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
• The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all attendees for 7 days after the event

REGISTER NOW FOR THIS EVENT:

Introduction to Regional Wholesale Electricity Markets - RTOs and ISOs

July 16-17, 2024 | Online

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before June 14, 2024 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.0 CEUs for this event

Requirements for Successful Completion of Program 

Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

Instructional Methods

This course will use slide presentation, group discussions, as well as active participation. Attendees will have ample opportunities to actively participate in review questions/answers sessions, group breakout sessions, and simulations/demonstrations offered as part of this course. 

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Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 11.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

Who Should Attend

• Employees new to the industry or with limited industry experience
• Energy attorneys and regulatory personnel new to the industry
• Energy traders and power marketers new to their job
• Customer service representatives
• Support staff of electric utilities and RTOs/ISOs – accounting, IT personnel, and support personnel 
• Power generator and transmission project owners and developers
• Energy finance professionals