Mastering the Fundamentals of Power Market Settlements

Mastering the Fundamentals of Power Market Settlements

August 17-18, 2023 | Online :: Central Time

“Great and relevant information.“ Senior Operations Support Consultant, We Energies

“This training really solidified and expanded on things I’ve learnt in my day-to-day job and allowed me to connect the dots.” Analyst – Settlement & Structured Transactions, Brookfield Renewable

“Very informative session! Concepts were delivered well and many examples were included to promote thorough understanding of each topic. I would love to attend another program hosted by EUCI!” Analyst – Settlement & Structured Transactions,, Brookfield Renewable

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. 

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 they 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


Thursday, August 17, 2023 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:45 – 1:30 p.m.
Lunch Break

9:00 a.m. – 5:15 p.m.
Course Timing


9:00 – 9:15 a.m. :: Overview & Introductions

9:15 – 10:45 a.m. :: Power Industry & Relationship to Wholesale Power Markets

  • Regulatory framework
    • Federal
    • Regional
    • State
  • Impact of regulatory environment on market settlements

ISO/RTO Structure

  • Why and how
  • System models
  • Functions and benefits
  • Impact of ISO/RTO designs and rules on market settlements

    10:45 – 11:00 a.m. :: Morning Break 

    11:00 a.m. 12:45pm :: Market Participant Actions

    • Power trading organization
      • Front office
      • Middle office
      • Back office
      • Relationship between market settlements and its upstream and downstream departments

    The Building Block of the Market Settlements – LMP Pricing

    • Marginal energy component
    • Marginal congestion component
    • Marginal loss component
    • Importance of the LMP on market settlements charges

    12:45 – 1:30 p.m. :: Break for Lunch

    1:30 – 3:15 p.m. :: ISO Markets Overview

    • Comparisons across North American system operators’ markets
      • Day ahead (DAM)
      • Real time (RT)
      • Capacity
      • Financial Transmission Rights (FTR) / Congestion Revenue Rights (CRR)
    • Comparisons across North American system operators’ processes
      • Bid/offer price formation and submission
      • Parameters
      • Instruments

      3:15 – 3:30 p.m. :: Afternoon Break 

      3:30 – 5:00 p.m. :: Market Settlements Charges Overview

      • Relationship of Operations to market charges
        • Physical
        • Virtual schedules
      • Load
        • Imbalance charges
        • Market uplift charges
        • Admin charges
      • Generation
        • Imbalance charges
        • Bid cost recovery/make-whole payment
        • Ancillary services
      • FTR
        • Day-ahead congestion
        • Daily/monthly charges
        • True-ups

      5:00 pm :: Course Adjourns for the Day

      Friday, August 18, 2023 : Central Time

      8:45 – 9:00 a.m.
      Log In

      9:00 a.m. – 12:45 p.m.
      Course Timing

      9:00 a.m. – 10:45 a.m. ::Validating Settlements for Renewable Resources

      • Identify challenges of renewable resources on market settlements
      • Understanding key ISO settlement charges for energy, ancillary services, and capacity for renewable assets
      • Using contract settlements to validate PPA invoices
      • Validating transmission charges
      • REC accounting
      • Settlement challenges with energy storage resources (ESRs)
      • Lessons learned

      10:45 – 11:00 a.m. :: Morning Break 

      11:00 a.m. – 1:00 p.m. :: 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
        • Understand the importance of Front Office feedback and settlements strategy
        • 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
        • Staff hiring considerations

      1:00 pm :: Course Adjourns


      Henry Chu, Senior Market Analyst, Dairyland Power Cooperative

      Henry Chu is a Senior Energy Settlements Analyst at Dairyland Power Cooperative, which he joined in 2022.  Previously, he was Lead Product Manager at Power Settlements Consulting and Software.  Mr. 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 as well as conducting a series of market settlement training classes during the 2013/2014 integration of four Southern States into MISO.  Mr. Chu was also 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’s and master’s degrees in business administration at Canadian universities.

      Khai Le, Senior Vice President, PCI Energy Solutions

      Khai Le is Senior Vice President of PCI Energy Solutions, a supplier of power portfolio optimization software for power generation and trading companies.  Over the past 42 years, he 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, and ERCOT to automate their bid-to-bill, portfolio-optimization, ETRM, and BA-operations workflows.    Mr. Le has authored more than 100 technical papers on unit commitment, hydro-thermal coordination, emission dispatch, optimization of ancillary services, post analysis, and short-term planning.  He received his BS from Harvey Mudd College and his MS from Carnegie Mellon University.  Mr. Le is a Fellow of the IEEE.

      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 separate email with a unique link to a personalized landing page which will include links to join all sessions of this event.
      • 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 attendees for 7 days after the event


      Mastering the Fundamentals of Power Market Settlements

      August 17-18, 2023 | Online
      Individual attendee(s) - $ 1195.00 each

      Volume pricing also available

      Individual attendee tickets can be mixed with ticket packs for complete flexibility

      Pack of 5 attendees - $ 4,780.00 (20% discount)
      Pack of 10 attendees - $ 8,365.00 (30% discount)
      Pack of 20 attendees - $ 14,340.00 (40% discount)

      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 14, 2023 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




      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 1.1 CEUs for this event

      Requirements For Successful Completion Of Program 

      Participants must login for the entirety of course to be eligible for continuing education credit. 

      Instructional Methods

      Case studies and PowerPoint presentations will be used in this program. 

      Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

      Course CPE Credits: 12.5
      There is no prerequisite for this Course.
      Program field of study: Specialized Knowledge
      Program Level: Basic
      Delivery Method: Group Internet Based
      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. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site:


      Who Should Attend

      This program will appeal to professionals and support staff who support the following functions relating to ISO/RTO market transactions:

      • Settlements and energy clearing
      • Back office
      • RTO/ISO accounting
      • Operations accounting
      • Transaction accounting
      • Tariff billing
      • Trading and power management
      • Market management
      • Business controls
      • Commercial operations
      • Credit
      • IT analysis and support
      • Financial analysis