ISO Market Settlements Fundamentals

ISO Market Settlements Fundamentals

March 15, 2021 | Online :: Central Time

Power settlement transactions, within RTO/ISO markets are often quite complex.  Not only are there many different products/services (such as physical power, ancillary services and financial hedge instruments), there are also multiple and different markets (e.g., Day-Ahead market vs. Real-Time market, FTRs, etc). Those complexities in RTO/ISO market operations result in settlement charge types – from approximately 60 in some wholesale market systems to more than 200 in others.  Therefore, the key to understanding the settlements function is to comprehend the underlying RTO/ISO market operations they are designed to track.

This training will present a high-level workflow of RTO/ISO market operations from the beginning to the end. It will focus on generation and load functions, which together cover 80 percent of market activities.  These will be correlated with the settlement processes that, in turn, deliver full value back to the market participant providing that service to the ISO/RTO.  Illustrations from various RTOs will be employed.  Course attendees will obtain insights on how to ensure their settlement department is wringing out every dollar of compensation to which their market participant organization is entitled.

Learning Outcomes

  • Examine power markets design and processes
  • Explain LMP methodology, the basis for market pricing values
  • Compare basic charge types across ISOs
  • Assess why there are different terms for similar market/settlement functions
  • Examine market participant actions and strategies
  • Identify shadow settlement purposes and functions
  • Evaluate the value of feedback to front office
  • Discuss settlements challenges, tips and traps



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 0.7 CEUs for this course.

Instructional Methods

PowerPoint presentations and case studies will be used in program.

Requirements For Successful Completion Of Program

Participants must sign in/out each day and be in attendance for the entirety of the conference to be eligible for continuing education credit.


Monday, March 15, 2021 – Online Central Time

8:45 – 9:00 a.m. :: Log In

9:00 – 9:15 a.m. :: Introductions

9:15 a.m. – 12:45 p.m. :: Morning Session

Includes Breaks

Power Industry & Relationship to Wholesale Power Markets

  • Regulatory framework
    • Federal
    • Regional
    • State

ISO/RTO Structure & Market Overview

  • Why and How
  • System Models
  • Functions and Benefits
  • Products/Services
    • Co-optimized clearing in Day-Ahead market
    • Dispatching in Real-Time market
  • Settlements

Market Segments

  • Comparisons across North American system operators
  • Day-Ahead
  • Real-Time
  • Capacity

The Building Block of the Market Settlements – LMP Pricing

  • Marginal energy component
  • Marginal congestion component
  • Marginal loss component

12:45 – 1:30 p.m. :: Break for Lunch

1:30 – 5:15 p.m. :: Afternoon Session

Includes Breaks

Market Participant Actions

  • Power trading organization
    • Front office
    • Middle office
    • Back office
  • Asset bid strategy development
  • Bid/offer price formation and submission
  • Parameters
  • Instruments

Understanding Settlement Charges

  • Market inefficiency
  • Reliability
  • Performance issues
  • Cost Causation principle
  • Charge scenarios
    • Generation
    • Physical scheduling
    • Imbalance
    • Load
    • FTR

Settlements Strategy

  • After-the-fact shadow settlements
    • Mapping between settlement charge types and market results/transactions
    • Mapping between settlement charge types and market and charge type calculations, dispute
    • Calculation validation vs shadow settlements
    • Variance analysis
    • Performance analysis
  • Feedback to Front Office
    • Setting the table for efficiency and effectiveness information flow
    • Asset P&L analysis and reporting
    • Operation recommendations
    • Financial impact of performance issues
    • Review of strategy changes on settlements
    • Market settlements changes
    • Leakage
  • Settlements challenges, tips and traps
    • ISO operations and settlements deadlines
    • Mastering your internal trade shop flow
    • Staying abreast of market rules changes
    • Training resources
    • Reporting and data extraction tools
    • Understanding charge code strategy
    • ISO and vendor settlement charge code relationship

5:15 pm :: Course Adjourns


Henry Chu, Lead Product Manager, Power Settlements

Henry Chu is Lead Product Manager at Power Settlements Consulting and Software.  He has more than 25 years of experience in the utility/energy industry, with a majority of that time in settlements.  Mr. Chu started at BC Hydro and its marketing arm POWEREX.  While there, he recovered several million dollars in disputes from CAISO.  In 2003, he joined the Midcontinent ISO (MISO) where he worked in various positions, formalizing the market settlement training at the system operator and conducting a series of market settlement training classes during the 2013/2014 integration of four southern states into MISO.  Prior to joining Power Settlements, Mr. Chu was Senior RTO/ISO Energy Market Analyst at Entergy, where he spent 6 1/2 years.  He provided both ISO market overview and market settlements training events throughout Entergy, in addition to his daily responsibilities focusing on market analytic solutions.  He earned his bachelor and master’s degrees in business administration in Canada.

Joyce Jenq, Lead Product Manager, Power Settlements

Joyce Jenq is Lead Product Manager at Power Settlements Consulting and Software.  She recently joined the Consulting and Software’s team, bringing a perspective of more than 12 years of experience in the energy industry. She began her career with Shell Energy of North America in 2008 as a real time power trader, later transitioning to operational roles in regulatory, renewable, and carbon products. With her direct knowledge of trading and a passion for technology, she was key in California Independent Operator implementations for eight years. Additionally, Ms Jenq has direct experience working with the California Energy Commission and California Air Resources Board and has extensive experience in Greenhouse Gas Reporting and Renewable Portfolio Standard compliance reporting. She was also responsible for managing voluntary and compliance renewable energy credits and carbon inventory. Ms Jenq holds a bachelor’s degree from University of California, San Diego in Cognitive Science and Masters in Business Administration from Rady School of Management.

Online Delivery

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.

  • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time.
  • 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 registrants for three business days after the event

Event Standard RateAttendees

By clicking Accept or closing this message, you consent to our cookies on this device in accordance with our cookie policy unless you have disabled them. more information

By clicking Accept or closing this message, you consent to our cookies on this device in accordance with our cookie policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. We use cookies during the registration process and to remember member settings.