Maximizing Market Benefits for Generation and Load Portfolio in SPP Integrated Marketplace
March 20-21, 2018
Westminster, CO

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After 4 years of operations in the SPP market, many SPP market participants would like to review their current market operating practices, benchmark their current workflow against “best” operating practices, and learn how they can increase market benefits for their portfolio (Resources, Loads, Bilateral Transactions, Virtual Transactions, and ARR & TCR contracts) in the SPP market.

This will be an excellent seminar for current SPP members and new Mountain West members who are preparing to join SPP.   In the workshop, you will learn how to formulate your unit offers, demand bids, and how settlement results can be used as a strategic tool to validate SPP settlement statements and invoices, identify settlement errors, submit settlement disputes, compute profit & loss metrics, provide feedback on the effectiveness of bidding strategies, and minimize your costs for serving loads in the SPP Integrated Marketplace.

The seminar covers the following “hot” issues:

  • What are the main objectives of the SPP Integrated Marketplace? Did the market operate as designed?
  • What are the lessons learned from the First 4 Years of market operations?
  • What would be the impacts of the Mountain West integration in SPP?
  • How should Mountain West participants prepare for participation in SPP?
  • What will be the potential benefits for optimizing the DC ties between SPP East and West?
  • Are your resources properly optimized by SPP in the Day-Ahead (DA) and Real-Time (RT) Market?
  • Why are your resources mitigated by SPP?
  • Do your resources receive sufficient DA & RT market-whole payments from SPP to cover their production costs?
  • How should you operate your resources to avoid or minimize SPP penalties?
  • Do you have a sound bidding strategy for your wind farms? Do your wind farms receive enough SPP credits to cover their power-purchase agreement?
  • How should you operate your combined-cycle plants to maximize market benefits?
  • Are your bilateral settlement schedules (BSS) in the money?
  • What are the key settlement charges for your assets (Resources, Loads, Bilateral Transactions, Virtual Transactions, and ARR & TCR contracts) in the SPP Integrated Marketplace?
  • How do you validate the SPP “black-belt” settlement charges, such as DA & RUC Make-Whole Payments, RUC charges, RT Penalties for Contingency-Reserve Deployment Failure, RT Out-of-Merit Make-Whole Payments, etc.?
  • What rules does SPP use to compute DA and RUC make-whole payments for generators and allocate charges to participants who cause deviations between DA and RT markets?
  • What data do you need to validate the SPP settlement statements and invoices?
  • Why perform shadow settlement? Do you need to have your own shadow settlement software to check the SPP 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 SPP settlement charges to support month-end closing?
  • How do you allocate SPP settlement charges to other stakeholders?
  • How can you use settlement results to compute profit & loss metrics and provide feedback to traders on bidding strategies?
  • How can you use Profit & Loss Metrics for Operational Feedback and what Real-Time Desk procedures are needed to identify and correct operational problems?
  • How can you validate DA market awards?
  • What is the main reason for P&L leakages? How can you use P&L leakages to identify potential operating and market problems?
  • Do your plants collect enough revenues from the energy, capacity, and ancillary service markets to cover their operating and capital costs?
  • Do you receive proper credits from your TCR and ARR contracts to cover your day-ahead congestion costs?
  • What should you do when you receive unexpected charges from your TCR contracts due to negative congestion?
  • What are the potential impacts of SPP 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?

In the workshop, you will have an opportunity to use a market simulator to simulate the full bid-to-bill workflow, i.e. submit your energy and operating-reserve offers, test your bidding strategies, clear the market, compute settlement, and determine the bottom-line profit for your generation and load assets.


Tuesday, March 20, 2018

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

Lessons Learned from 4 Years of Operations in SPP Integrated Marketplace

  • Benefits of SPP Integrated Marketplace
  • Understanding SPP Full Network Model and Commercial Model
  • Reviewing DA and RT Bidding Workflow for SPP Market Participants
  • Are your resources properly scheduled in the SPP DA and RT Market?
  • Why are your resources mitigated by SPP?
  • Are your resources fully compensated by SPP to cover their production costs?
  • Understanding SPP Penalties
  • Do your wind farms receive sufficient SPP credits to cover their power-purchase agreement?
  • How Does the Two-Step Settlement Work?
  • Why Use Virtual Bids and Offers?
  • Reviewing SPP Congestion Costs in the First 4 Years of Operations
  • Experience with using TCR and ARR Contracts to Hedge against Congestion Costs
  • Do your bilateral schedules (BSS) receive enough SPP credits to cover their bilateral costs?
  • Bid-to-Bill Timeline & Challenges
  • New SPP market initiatives for 18-19
  • Preparing for Mountain West Integration
  • SPP Goals for Market-to-Market Coordination
  • Coordinating MISO & SPP Seam Issues

Uses of Nodal Locational Marginal Prices in Bidding & Settlement

  • Using Full Network Model to Compute Nodal Locational Marginal Prices
  • How are LMPs computed?
  • Understanding 3 components of LMPs:    Energy, Loss, Congestion
  • Understanding Impacts of Flowgates on Congestion
  • Why do we have negative LMPs in SPP Market?
  • What is the impact of negative LMPs on units, TCR, and BSS contracts?
  • Explaining LMP Signatures
  • Can you forecast DA & RT LMPs?

Bid-to-Bill Workflow for Generating Resources

  • Understanding 3-part Energy Offers for Resources
  • Should Resources be Offered as Must Run or Economic in DA Market?
  • Examples Illustrating DA and RT Settlement for Resources
  • Market Principles behind Make-Whole Payments & Charges
  • Computing DA Make-Whole Payments for Resources
  • Who Will Pay DA & RUC Make-Whole Charges?
  • Validating Meter Data for Resources
  • Pros and cons of submitting Hourly vs 5-mn Meter Data
  • Operating Quick-Start Resources in SPP
  • Experience with Implementing Mileage Regulation in SPP
  • Understanding New Mileage Regulation Payments & Penalties
  • Computing RUC Penalties for Resources that deviate from their DA schedule or do not follow SPP 5-mn Dispatch Instructions
  • Computing Penalties for Regulation Non-Performance
  • Understanding Penalties for Real-Time Contingency-Reserve Deployment Failure
  • Understanding SPP Out-of-Merit Payments
  • SPP Initiative for Combined-Cycle Optimization
  • Experience with Operating Wind Farms in SPP
  • Evaluating Bidding Strategies for Wind Farms
  • Modeling Demand Resources
  • Benchmarking Current Bidding Workflow against “Best” Operating Practices

Using Profit & Loss Metrics to Provide Feedback to Front-Office and Plant Personnel

  • Using settlement results to compute DA and DART Profits & Losses (P&L) for your SPP portfolio
  • Key Factors Influencing Profits & Losses
  • Computing P&L Gains and Leakages for Generators
  • Using Profit & Loss Metrics to Provide Feedback to Traders on Effectiveness of Day-Ahead and Real-Time Bidding Strategies
  • Using Settlement Results to Provide Feedback to Plant Managers on Plant Performance
  • Using Settlement Results to Build Key Performance Indexes

Wednesday, March 21, 2018

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

8:00 a.m. – 4:00 p.m. :: Course Timing

12:00 – 1:00 p.m. :: Group Luncheon

Market Preparations for New Mountain West (MTW) Members

  • Transitioning from MTW Tariff to SPP Tariff
  • Business Needs for New MTW Participants
  • Potential Impacts of SPP Market on Unit Dispatch, Fuel Procurement, Bilateral Transactions, and Congestion Hedging
  • Meter Requirements
  • Software Requirements to Support Bid-to-Bill, Portfolio Optimization, Deal Management, and Gas Procurement in new SPP market
  • Preparing for Market Trials

Settlement Charges for Loads & Transactions

  • Validating load meter data
  • Computing DA & RT Charges & Credits for Loads
  • When do Loads have to Pay DA & RUC Make-Whole Charges?
  • What are the key components in Revenue-Neutrality Charge?
  • Understanding Bilateral Settlement Schedules (BSS) and Physical Transactions
  • Are your BSS contracts in the money?
  • Understanding Cross-Market Optimization
  • Can you make money with Cross-Market Optimization?
  • Using Virtual Transactions for Hedging and Speculative Purposes
  • Can you make Money with Virtual Transactions?
  • Understanding Loss Rebates
  • What can you do to minimize your total costs for serving loads in the SPP footprint?

Running Shadow Settlement to Validate SPP Invoices

  • Understanding SPP Settlement Statement and Invoice Timeline
  • Why Perform Shadow Settlement?
  • What data is needed to validate SPP settlement statements and invoices?
  • Mapping Data Sources to Support Shadow Settlement
  • Reviewing key settlement workflows
  • Analyzing Settlements for Operational Feedback
  • What Real-Time Desk Procedures are Needed to Validate SPP Black-Belt Charge Codes?
  • Validating hourly and 5-minute meter data
  • What Are the Most Common Causes for Settlement Disputes?
  • Which back-up information do you need to submit to SPP to support disputes?
  • Goals for Settlement Allocation
  • Overview on Transmission Settlements
  • Benchmarking Current Settlement Workflow against “Best” Operating Practices

Using Co-Optimization to Clear Energy and Operating Reserves in SPP

  • Why do we Need Operating Reserves?
  • Typical Market Prices for Operating Reserves
  • Formulating Operating-Reserve Offers
  • Understanding Lost Opportunity Costs
  • Understanding Operating-Reserve Deployment Costs and Probabilities
  • How does Co-optimization work?
  • Does Co-optimization Produce Correct Price Signals for Energy and Operating Reserves?
  • How Does SPP Allocate Operating-Reserve Charges?
  • Understanding Causes for Price Reversal
  • Case Studies to Illustrate Co-optimization
  • How do Operating-Reserve requirements affect unit dispatch and LMPs?
  • Are Operating-Reserve marginal prices influenced by congestion?
  • Validating Generator Revenues for Providing Operating Reserves
  • Validating Operating-Reserve Charges for Load-Serving Entities

Experience with Using ARR and TCR Contracts as Congestion Hedges

  • Key Factors Causing Congestion in SPP
  • Reviewing SPP Congestion Costs in First 4 Years of Operations
  • Using ARR & TCR contracts to hedge against DA congestion
  • Results of Annual ARR Allocation & TCR Auctions
  • Results of Monthly TCR Auctions
  • Why does SPP introduce Long-Term Congestion Right Contracts?
  • Evaluating ARR & TCR hedging strategies
  • Understanding Settlement Charges for ARR & TCR Contracts

Understanding Market Mitigation

  • SPP Objectives for Market Monitoring
  • SPP Rules for Market Power Mitigation
  • What cost components should Mitigated Offers cover?
  • Market Mitigation Scenarios
  • Impact of Market Mitigation on DA & RUC Make-Whole Payments

Using Market Simulation to Evaluate Bidding Strategies

  • Formulating DA Energy and Operating-Reserve Offers
  • Impacts of self-scheduling on profits
  • Forecasting LMPs and Operating-Reserve Prices
  • Running Case Studies to Illustrate Impacts of Various Bidding Strategies on Portfolio Profit & Loss
  • Market Simulation


Khai Le, Sr. Vice President, PCI Over the past 41 years, Khai Le has conducted over 600 seminars on market-based operations, bidding strategies, portfolio optimization, and shadow settlement for utilities and RTOs worldwide. He is currently working with market participants in SPP, MISO, PJM, NYISO, ISO-NE, CAISO, and ERCOT to deploy the PCI Generation Supply Management System 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.

Sahij Gadu, Product Manager, PCI   Sahij currently manages the PCI software suite for the SPP market. Sahij has over 7 years of experience in the energy industry working with SPP, CAISO, ERCOT, and NYISO. Sahij received his Master’s degree in Industrial Engineering from Oklahoma State University.

Carrie Simpson, Sr. Manager, Xcel Energy (Guest Speaker)  Carrie manages market operations and market design policy at Xcel Energy with a focus on Public Service Company of Colorado, including the Mountain West Transmission Group efforts. Carrie spent 6 years at SPP in market design and market operations and was a key contributor to the development and implementation of SPP’s Integrated Marketplace. Carrie holds her undergraduate degree from Harvard University and is currently pursuing her JD at the University of Denver, Sturm College of Law. 

Tucker Smith, Commodity Quantitative Analyst, Basin Electric Power Cooperative 


Denver Marriott Westminster
7000 Church Ranch Boulevard
Westminster, CO 80021

To reserve your room, please call 1-720-887-1177 or book online here.
Please indicate that you are with the EUCI group to receive the group rate.

Room Rate:

The room rate is $149.00 single or double plus applicable taxes.

Room Block Dates:

A room block has been reserved for the nights of March 19 – 20, 2018.

Rate Available Until:

Make your reservations prior to March 2, 2018. There are a limited number of rooms available at the conference rate. Please make your reservations early.


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