Introduction to Regional Wholesale Electricity Markets – RTOs and ISOs

Introduction to Regional Wholesale Electricity Markets - RTOs and ISOs

March 2-3, 2022 | Online :: Central Time

“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

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 Regional Transmission Organizations (RTOs) and Independent System Operators (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 the basics of electric power systems, the role of FERC and regulatory oversight, locational marginal price (LMP), congestion and rights, trading, bidding, risk management, and more. The goal of the program is for attendees to return to their colleagues with a fully-realized understanding of how markets work so they can feel comfortable having in-depth conversations on the subject.

Learning Outcomes  

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

    Agenda

    Wednesday, March 2, 2022 : Central Time

    8:45 – 9:00 a.m.
    Log In

    12:30 – 1:15 p.m.
    Lunch Break

    9:00 a.m. – 4:30 p.m.
    Course Timing

    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) versus 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

    Thursday, March 3, 2022 : Central Time

    8:45 – 9:00 a.m.
    Log In

    9:00 a.m. – 12:00 p.m.
    Course Timing

    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

    Instructor

    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. 

    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.

    Register

    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
    Single Connection - Introduction to Regional Wholesale Electricity Markets - RTOs and ISOsUS $ 1195.00
    Pack of 5 connectionsUS $ 4,780.00
    Pack of 10 ConnectionsUS $ 8,365.00
    Pack of 20 ConnectionsUS $ 14,340.00
    Call us at 303.770.8800 if you have any specific questions on the volume discounts
    * all other discounts do not apply to license packs

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    Cancellation Policy

    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 January 28, 2022 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

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    CEUs

    Credits

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    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. 

     

    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: Beginner/Intermediate
    Delivery Method: Group-Live
    Advanced Preparation: None

    CpeEUCI 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.

     

     

    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

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