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

ISO Market Settlements Fundamentals
August 20, 2020 | Online :: Central Time

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Settlements are the accounting methods and processes by which the transfer of power flows between counterparties are documented and value is derived.  Their primary function is to ensure all power purchases and sales are correctly reconciled to the terms, agreements and Tariffs, and that any discrepancies are properly investigated and disputed.  A secondary function of settlements is to provide feedback on the financial implication of power transactions to the Front Office, and to report on the financial performance of transactions to various Back Office departments. 

But, not all settlements are created equal.  Unlike bilateral, transmission and PPA power settlement transactions, RTO/ISO market settlements are very 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 (Day-Ahead market vs. Real-Time market, and FTR). 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 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, which together cover 80 percent of market activities.  Illustrations from various RTOs will be employed.  Course attendees will obtain insights on how to ensure their settlement organizations are wringing out every dollar of compensation to which their market participant organizations are 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 1.1 CEUs for this conference, 0.3 CEUs for the pre-conference workshop and 0.7 CEUs for the post conference workshop.


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.


Thursday, August 20, 2020 – 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.

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. :: Program Content

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 :: Workshop Adjourns


Henry Chu, Senior Staff Analyst – RTO Settlements & Analysis, Entergy Services

Henry Chu has more than 25 years of experience in the utility/energy industry, with a majority of that time in settlements.  He started at BC Hydro and its marketing arm POWEREX.  While there, he recovered several million dollars in disputes with 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 providing a series of market settlement training during the 2013/2014 integration of four southern states into MISO.  For the last five years, he has worked at Entergy where he continues to apply his market and settlement expertise as well as in-house training.  

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.

  • 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
ISO Market Settlements Fundamentals - (single connection)US $ 795.00
Pack of 5 connectionsUS $ 3,575.00
Pack of 10 ConnectionsUS $ 5,965.00
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 July 17, 2020 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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