Serving the energy industry for over 30 years
By - Jon Brown

Validating CAISO EIM Settlement Charges for Merchant & BA Groups in Western EIM Market
February 11-12, 2019 | Newport Beach, CA

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Many EIM market participants would like to better understand the CAISO EIM settlement charge codes for both Merchant and BA groups, connect the dots between front-office bidding strategies and settlement results, and visualize how settlement results can drive profits for their merchant portfolio (Participating Resources) and charges for their BA portfolio (Loads, Interties, and Non-participating Resources).  In the workshop, you will learn how settlement results can be used as a strategic tool to validate EIM settlement statements and invoices, identify settlement errors, submit settlement disputes, compute profits & losses, provide feedback on the effectiveness of bidding strategies, and maximize the bottom-line profits for your assets in the Western EIM Market.   The workshop will also provide best practices for your back-office group in the areas of meter validation, shadow settlements, dispute management, and month-end closing. 


The seminar covers the following “hot” issues:

  • What are the main objectives for the Western EIM market?
  • What are the lessons learned for operating generating assets, loads, and interties in the EIM market?
  • What are the key settlement charge codes for your merchant portfolio (participating resources) and your BA group (non-participating resources, loads, and interties) in the EIM market?
  • How does the front-office bidding workflow impact settlement charges in the EIM market?
  • How can you use master-file data and LMPs to validate 15-minute and 5-minute market awards?
  • How can you validate the 3 main EIM imbalance-energy charges for your participating resources?
  • What is the impact of base schedules on EIM imbalance-energy charges?
  • Why does CAISO need flexible reserves?
  • How does CAISO pay resources for providing flexible reserves?
  • How can you validate the CAISO flexible-ramp payments for resources?
  • How can you validate GHG payments for your resources?
  • Why and when does CAISO provide bid-cost recovery payments for generators?
  • What rules does CAISO use to compute bid-cost recovery payments for generators?
  • How can you use Settlements and P&L metrics to provide feedback to front-office personnel on bidding strategies and market operations?
  • What are the BA responsibilities in the Western EIM market?
  • What are the main charge codes for your BA group (loads, interties, and non-participating resources)?
  • How can you validate the 2 main EIM imbalance-energy charges for non-participating resources, loads, and interties?
  • What are the potential settlement impacts when submitting late tags?
  • How does CAISO compute over/under scheduling penalties?
  • How does CAISO settle for unaccounted-for-energy?
  • How does CAISO handle over-collected congestion revenues?
  • What are CAISO offset charges for the BA group?
  • What are the business objectives for transmission billing?
  • How do BAs compute annual transmission revenue requirements?
  • How do BAs bill transmission customers for network and point-to-point services?
  • How do you allocate EIM settlement charges for BAs to transmission customers?
  • How is your OATT agreement affected by the EIM market?
  • What data do you need to validate the EIM settlement statements and invoices?
  • Why perform shadow settlement? Do you need to have your own shadow settlement software to check the CAISO invoices?
  • What are the main data sources for shadow settlement?
  • What are the main causes for settlement disputes? What is the best way for managing settlement disputes?
  • What method can you use to estimate EIM settlement charges to support month-end closing?
  • How should you operate your generating assets to maximize their value in the EIM market?
  • What are the potential impacts of market power mitigation on settlement results?
  • Should you build a data warehouse to store settlement data?
  • What IT infrastructure should you build to automate the bid-to-bill process?
  • How can you best prepare your back-office team for the new EIM market?



EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.6 CEUs for this event.



Monday, February 11, 2019

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

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

12:00 – 1:00 p.m. :: Group Luncheon

Lessons Learned for Operating Generation & Transmission Assets in Western EIM Market

  • Objectives of Western EIM Market
  • Key Market Players
  • Understanding Full-Network Model and Commercial Model
  • Market Terminology
  • Key Responsibilities for Merchant and BA Groups
  • Reviewing RT Bidding Workflow for EIM Merchant Players and BAs
  • How do RT Unit Commitment (RTUC) and Security-Constrained Economic Dispatch (SCED) Work?
  • Bid-to-Bill Timeline & Challenges
  • Lessons Learned from First 4 Years of EIM Market Operations
  • Quantifying EIM Benefits
  • Bid-to-Bill Timeline & Challenges
  • Potential Impacts of EIM Market on Market Participants
  • New EIM Initiatives (Extended Day-Ahead Market, etc..)
  • Frequently-Asked Questions about EIM Market

Reviewing EIM Front-Office Workflow for Merchant Group

  • Reviewing Daily & Hourly Bidding Workflow in EIM
  • Detailed Walk-Through of an Hour on the EIM Clock (Bids, Awards, Dispatches, Imbalance Management, Updating Forecasts, Updating Outages)
  • What-if Scenarios (What if a Plant Outage Occurs After T-35, What if Wind Forecast Changes After T-20, What if a Transmission Schedule Changes After the Start of the Hour, etc.)
  • Need to Forecast Hourly Loads
  • Run Unit Commitment to Derive Hourly Balanced Resource Plan and Capacity Plan
  • Submitting Resource and Capacity Plans to ISO
  • Reviewing EIM Front-Office Workflow for Merchant Group

Reviewing EIM Back-Office Workflow

  • Reviewing EIM Back-Office Workflow for Merchant & BA Groups
  • Timeline for Settlement Statements and Invoices
  • Downloading Settlement Statements and Invoices
  • Why Perform Shadow Settlement?
  • Key Functions of Shadow Settlement Software
  • Managing Settlement Disputes
  • What Lessons can you Learn from Settlement Disputes?
  • Understanding Key Charge Codes for Western EIM Market

Validating EIM Charge Codes for Merchant Group

  • Understanding Key Settlement Charge Codes for Participating Resources
  • Reviewing EIM Back-Office Workflow for Merchant Group
  • Using Masterfile Data to Validate 15-minute and 5-minute Market Awards
  • Computing Energy-Imbalance Payments & Charges for Participating Resources
  • Computing Flexible-Reserve Payments for Participating Resources
  • Validating GHG Payments for Participating Resources
  • Validating Bid-Cost Recovery (BCR) Payments
  • Understanding EIM Admin Charges

Using Settlement & P&L Metrics to Provide Feedback to Traders

  • Using Settlement and Production-costing Results to Compute RT Profits & Losses (P&L) for your EIM Genco Portfolio
  • Key Factors Influencing Profits & Losses
  • Using P&L Metrics to Provide Feedback to Traders on Effectiveness of EIM Bidding Strategies
  • Using P&L Metrics to Provide Feedback to Plant Managers on Plant Performance
  • Using P&L Metrics to Build Key Performance Indices
  • Settlement Forensics – Where Front and Back Offices Meet
  • Lessons Learned for Using Business-Intelligence Tools to Analyze Settlement Results and Validate Market Operations

Tuesday, February 12, 2019

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

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

12:00 – 1:00 p.m. :: Group Luncheon

Validating EIM Charge Codes for BA Group

  • Reviewing BA Workflow in EIM Market
  • Validating Meter Data for Resources, Tie Lines, and Loads
  • Deadlines for Submitting Meter Data to CAISO
  • Understanding Key Settlement Charge Codes for BA Group
  • Computing Energy-Imbalance Payments & Charges for Non-Participating Resources, Interties, and Loads
  • Computing Actual System Loads
  • Validating Over/Under Scheduling Penalties
  • Understanding EIM Offset Charges for Loads
  • How does CAISO Compute EIM Settlement Charges for Unaccounted-for-Energy?
  • How does CAISO Handle Over-collections for Congestion?
  • Lessons Learned on Validating EIM Charge Codes for BA

Goals for Transmission Billing

  • Understanding OATT Agreement
  • Computing Annual Transmission Revenue Requirements
  • Computing Transmission Charges for NITS Customers
  • Computing Transmission Charges for Point-to-Point Customers
  • Computing Transmission Charges for Grand Fathered Agreements
  • Revising OATT Agreement to Reflect EIM Charges
  • Allocating EIM Settlement Charges to Transmission Customers
  • Using PCI Transmission Billing to Compute Monthly Invoices for Transmission Customers
  • Lessons Learned on Transmission Billing

Uses of Locational Marginal Prices in Bidding & Settlement

  • Using Full Network Model to Compute Nodal Locational Marginal Prices
  • How are LMPs computed?
  • Understanding 4 Components of LMPs: Energy, Loss, Congestion, and GHG
  • Understanding Impacts of Flowgates on Congestion
  • Can LMPs be Negative?
  • Real-Time Settlement Calculations

Understanding Market Mitigation

  • CAISO Objectives for Market Monitoring
  • Rules for Local Market Power Mitigation
  • Computing Energy Bid Curves
  • Market Mitigation Scenarios
  • Impact of Market Mitigation on EIM Settlements Calculations

Lessons Learned for Validating Settlements in Western EIM Market

  • What Software Tools and IT Infrastructure do you Need to support your Back-office Workflow in the Western EIM Market?
  • Training Key Personnel (Traders, Power-Plant Managers, Fuel Procurement, Risk Managers, Load Forecasters, etc…) on 42 EIM Charge Codes
  • Reviewing Lessons Learned from other EIM Market Participants
  • What are the key risks in the new EIM Market?

Course Review & Round-Table Discussion


Khai Le, Sr. Vice President, PCI

Over the past 42 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 CAISO, MISO, SPP, PJM, ISO-NE, NYISO, and ERCOT to deploy the PCI Suite to automate their bid-to-bill, portfolio-optimization, ETRM, and BA-operations workflows.    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.

Justin Shearer, Director, PCI

Justin Shearer actively participates in all phases of solution development, deployment, and consulting for market participants in the CAISO MRTU and EIM markets. Justin has been closely involved with the deployment of the PCI EIM suite at NV Energy, Arizona Public Service, Puget Sound Energy, Portland General Electric, and Salt River Project. Justin received both his BA and MBA from the University of Oklahoma.

Suiyi Su, Manager, PCI

Suiyi is the PCI subject matter expert on EIM transmission operations and billing. Suiyi led the implementation of the PCI Transmission-Billing suite at Arizona Public Service, Puget Sound Energy, and Salt River Project.   Suiyi obtained his Master’s degree in Industrial and Systems Engineering from the University of Florida.


Renaissance Newport Beach Hotel

4500 MacArthur Blvd

Newport Beach, CA 92660

Reserve your room:

please call 1-949-476-2001

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Room Block Reserved For:

Nights of February 10 – 11, 2019

Room rate through EUCI:

$159.00 single or double plus applicable taxes
Make your reservations prior to January 29, 2019.


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