Challenges for Implementing 5-minute Settlement in RTO Markets
February 16-17, 2017
Orlando, FL

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Overview

Sponsored by EUCI, this 2-day seminar provides an in-depth discussion on the potential impacts of FERC Order 825 on meter data management, back office, market operations, and asset management for market participants in RTO Markets (MISO, PJM, ISO-NE, SPP, NYISO, and CAISO). 

The seminar covers the following “hot” issues:

  • What are the potential impacts of FERC Order 825 on meter data management, back office, market operations, and asset management for market participants in RTO Markets?
  • Should market participants upgrade their meter data management system to handle 5-minute meter data?
  • What is the cost for upgrading meters to provide 5-minute meter data?
  • What are the pros and cons for submitting 5-minute vs hourly meter data for generating assets?
  • How do you validate meter data?
  • What are the impacts of FERC Order 825 on RTO settlement for market participants in MISO, PJM, and ISO-NE?
  • What are the Real-Time charge types in MISO, PJM, and ISO-NE that will be re-coded to support 5-minute granularity?
  • What are the potential impacts of FERC Order 825 on revenues and profits for power plants?
  • What rules do RTOs use to recode make-whole payments and charges to meet FERC Order 825?
  • What rules do RTOs use to penalize units for Real-Time Deviations?
  • Do you need more staff to validate settlement in the 5-minute world?   
  • What data do you need to validate settlement statements and invoices that are issued by RTOs?
  • What are the main data sources for shadow settlement?
  • What are the main causes for settlement disputes? Do we expect an increased volume in disputes with 5-minute settlement?
  • What are the potential impacts of FERC Order 825 on asset management?
  • How can you minimize P&L leakages for generating assets under FERC Order 825?
  • What is the value of upgrading generating assets to provide greater operating flexibility (Faster Ramp Rates, Faster Startup Times, Lower Minimum MW, Lower Minimum Uptimes & Downtimes, etc)?  
  • In the world of 5-minute settlement, should you operate your generating assets differently in the Real-Time market?
  • How do you optimize the operation of Combined-Cycle Resources in the Real-Time market?
  • How do you quantify costs for Uninstructed Deviations?
  • Under FERC Order 825, how should Variable Energy Resources (wind & solar) be operated to maximize market revenues?
  • In the long run, will your plants collect enough revenue from the energy, capacity, and ancillary service markets to cover their operating and capital costs?
  • Should you build a data warehouse to store 5-minute meter and market data?
  • How can you use business-intelligence tools to provide feedback to traders on market operations and bidding strategies?
  • What IT infrastructure will you need to support 5-minute settlement? 

Agenda

Thursday, February 16, 2017

7:30 – 8:00 a.m. :: Registration and Continental Breakfast

8:00 a.m. – 5:00 p.m. :: Course Timing

12:00 – 1:00 p.m. :: Group Luncheon

Understanding FERC Order 825
  • Overview on RTO Markets
  • Understanding Full Network Model and Commercial Model
  • Reviewing Day-Ahead and Real-Time Bidding Workflows
  • Gas-Electric Harmonization Initiative
  • How Does the Two-Step Settlement Work?
  • Differences in Market Rules between Nodal Markets in North America (PJM, ISO-NE, NYISO, MISO, SPP, and CAISO)
  • Benefits for RTO Markets
  • Goals for FERC Order 825
  • Pros and Cons for Implementing 5-minute settlement
  • Validating Day-Ahead & Real-Time Market Operations
  • Understanding P&L Leakages
  • Which RTOs Pay Make-Whole Payments to Keep Resources Whole from a Cost Viewpoint and P&L viewpoint?
  • Potential Impacts of 5-minute Settlement on Market Revenues and P&L for Generating Resources
  • Potential Impacts of 5-minute Settlement on Load Charges
Uses of Nodal Locational Marginal Prices in Bidding & Settlement
  • Using the Full Network Model to Compute Nodal Locational Marginal Prices
  • How are LMPs Computed?
  • Understanding the 3 Components of LMPs:  Energy, Loss, Congestion
  • Understanding the Impacts of Flowgates on Congestion
  • Why Do We Have Negative LMPs in RTO Markets?
  • Explaining LMP Signatures
  • What are the Causes for Real-Time LMP spikes?
  • Impacts of FERC Order 825 on Real-Time Market Operations
Why Implement 5-minute Settlement?
  • What is Meant by 5-minute Settlement?
  • Misconceptions behind 5-minute Settlement
  • Why is 5-minute Settlement Necessary for a Healthy Market?
  • Review Case Studies to Illustrate why 5-minute Settlement is Needed to Provide Correct Market Signals
Potential Impacts of 5-minute Settlement on Meter Data Management
  • Pros and Cons for Submitting 5-minute vs Hourly Meter Data for Generating Resources
  • What is the Cost for Upgrading Revenue-quality Meters to Provide 5-minute Meter Data?
  • Need to Upgrade Energy-Accounting System to Handle 5-minute Meter Data
  • Validating 5-minute Meter Data for Generating Assets
  • Should You Submit Loads in Hourly or 5-minute Granularity?
  • Should You Submit Tie-Line Schedules in Hourly or 5-minute Granularity?
Experience with Implementing 5-minute Settlement in RTO Markets
  • RTO Settlement Statement and Invoice Timelines
  • Reviewing RTO Charge Codes
  • Which Real-Time Charge Codes will Need to be Recoded Using 5-minute Granularity?
  • Lessons Learned from SPP with 5-minute Settlement Implementation
  • Proposed Implementation Plans for RTO Markets that Plan to Implement 5-minute Settlement (MISO, PJM, ISO-NE)
  • Examples Illustrating Real-Time Settlement
  • Potential Impacts of 5-minute Settlement on Real-Time Make-Whole Payments
  • Market Principles behind Real-Time Make-Whole Payments & Charges
  • Potential Impacts of 5-minute Settlement on Real-Time Penalties
  • What Data do you Need to Validate RTO Settlement?
  • Potential Impacts of 5-minute Settlement on RTO Settlement Disputes
  • What are the Most Common Causes for Settlement Disputes?

Friday, February 17, 2017

7:30 – 8:00 a.m. :: Continental Breakfast

8:00 a.m. – 3:00 p.m. :: Course timing

12:00 – 1:00 p.m. :: Group Luncheon

Using Profit & Loss Metrics to Provide Feedback to Traders
  • Using Settlement and Production-costing Results to Compute Day-Ahead and Real-Time Profits & Losses (P&L) for Your Genco Portfolio
  • Key Factors Influencing Profits & Losses
  • Computing P&L Gains and Leakages
  • Using Profit & Loss Metrics to Provide Feedback to Traders on Effectiveness of Day-Ahead and Real-Time Bidding Strategies
  • Using Profit & Loss Metrics to Provide Feedback to Plant Managers on Plant Performance
  • Using Profit & Loss Metrics to Build Key Performance Indexes
  • Settlement Forensics – Where Front & Back Offices Meet
  • Using Business-Intelligence Tools to Understand Key Factors that affect DA and Real-Time Profits & Losses (P&L) for Your Portfolio
  • Benefits for Building Data Warehouse to Store Market Data
Potential Impacts of 5-minute Settlement on Asset Management & Operations
  • In the World of 5-minute Settlement, Should Market Participants Upgrade Generating Assets to have Faster Ramp Rates or Startup Times?
  • Methodology to Quantify Value for Upgrading Assets to Achieve Greater Operating Flexibility (Faster Ramp Rates, Faster Startup Times, Lower Minimum MW, Lower Minimum Uptimes & Downtimes, etc)
  • In the World of 5-minute Settlement, Should You Operate Your Generating Assets Differently?
  • Optimizing Operation of Combined-Cycle Resources in Real-Time market
  • Quantifying Costs for Uninstructed Deviations
  • Maximizing Value of Variable Energy Resources in Real-Time Market
Impacts of FERC Order 825 on IT Infrastructure
  • Impact of 5-minute Settlement on IT Infrastructure
  • Need to Upgrade Your Meter Data Management System to Handle 5-minute Settlement
  • Back-Office Requirements to Handle 5-minute Settlement
  • Impact of 5-minute Settlement on Reporting Requirements
  • Should You upgrade Data Warehouse and Business-Intelligence Tools to Handle 5-minute Settlement?

Course Review & Round-Table Discussion

Round-Table Discussion

Instructors

Khai Le, Sr. Vice President, PCI:    Over the past 40 years, Khai Le has conducted over 700 seminars on market-based operations, bidding strategies, portfolio optimization, and shadow settlement for utilities and ISOs worldwide. He is currently working with market participants in MISO, SPP, PJM, ISO-NE, CAISO, and ERCOT to deploy the PCI Generation Supply Management System (PCI GenManager, PCI GenTrader and PCI GenPortal) to automate their bid-to-bill workflow.  Khai authored over 100 technical papers on unit commitment, hydro-thermal coordination, emission dispatch, optimization of ancillary services, post analysis, and short-term planning.  Five of his papers received prize awards.  Khai received his BS from Harvey Mudd College and his MS from Carnegie Mellon University.  He is a Fellow of the IEEE and a Registered Professional Engineer in Pennsylvania.

Tony Delacluyse, Sr. Director, PCI:   Tony Delacluyse has over 29 years of experience that includes power plant operations, origination, pricing, deregulated retail, settlements, RTO operations.  After joining PCI in 2005, he managed the PCI team to develop back-office software for MISO, SPP, ERCOT, CAISO and PJM markets. Tony participates in RTO market meetings, monitors the industry and FERC for market impacts and works with markets participants on planning, software, and strategy. He received both his BA and MBA from St Ambrose University.

Ken Lukowski, Sr. Manager, PCI:  Ken manages the deployment of the PCI GSMS suite for market participants in the US.   Ken has over 10 years of settlements experience.  He chaired the MISO Market Settlements Working group.  Ken received his BS in Accountancy & Finance from Southern Illinois University and his MBA from Lindenwood University.

Location

Hilton Orlando Bonnet Creek
14100 Bonnet Creek Resort Ln
Orlando, FL 32821

To reserve your room, please call 1-407-597-3600
Please indicate that you are with the EUCI group to receive the group rate.

Room Rate:

The room rate is $209.00 single or double plus applicable taxes.

Room Block Dates:

A room block has been reserved for the nights of February 15 – 16, 2017.

Rate Available Until:

Make your reservations prior to February 1, 2017. There are a limited number of rooms available at the conference rate. Please make your reservations early.

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