By - Jon Brown

Best Operating Practices for Merchant & BA Groups in Western EIM Market
October 25-26, 2018 | Anaheim, CA

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The purpose for this EUCI course is to review the lessons learned from operating your portfolio (resources, loads, bilateral transactions) in the Western Energy-Imbalance market (EIM), review the bid-to-bill workflow for EIM merchant groups and BAs, and formulate best practices for bid to bill, portfolio optimization, outage management, fuel management, energy accounting, BA operations, and transmission billing to maximize benefits in the Western EIM market. The course will help you connect the dots between front-office bidding strategies and settlement results and will provide case studies to illustrate how you can maximize the value of your generating assets and lower your costs for serving loads in the Western EIM market.

The seminar covers the following “hot” issues:

  • What are the main objectives for the Western EIM market?
  • What are the potential costs and benefits for the EIM market?
  • What are the lessons learned for operating generating assets in the EIM market?
  • Can the EIM market be avoided while increasing solar or wind resources?
  • Can the EIM market cause financial “pains” for selected market participants?
  • If your company decides to stay out of the EIM market, but those around you join, how could it impact your operations?
  • What are the lessons learned from other EIM market participants?
  • How does the SCED engine work?
  • How do you derive your base schedule?
  • How do you create unit offers for combined-cycle plants, wind farms, solar plants, and cascaded hydro units to maximize market benefits?
  • Can the EIM market work effectively for market participants that operate large cascaded hydro plants?
  • How should you bid wind & solar resources in the EIM market to maximize benefits?
  • What are the pros and cons for modeling your EIM resources as multi-state generators?
  • How do you model Ancillary-Service Requirements (RegUp, RegDown, Spin, Non-Spin Reserve) in the EIM market?
  • How do you model GHG Costs for your EIM resources?
  • How should you operate your generating assets to maximize their value in the EIM market?
  • What are the BA responsibilities in the Western EIM market?
  • What are the penalties for over/under scheduling?
  • How do BAs update transfer limits for tie lines?
  • Understanding key EIM settlement charges for Merchant & BA Groups
  • What data are needed to validate the CAISO EIM settlement statements and invoices?
  • Why perform shadow settlement? Do you need to have your own shadow settlement software to check the ISO invoices?
  • How can you validate bid-cost recovery payments for your generating assets in the Western EIM market?
  • What are the main data sources to support shadow settlement?
  • What are the main causes for settlement disputes? What is the best way for managing settlement disputes?
  • How can you use settlement results to compute profit & loss metrics and provide feedback to traders on bidding strategies?
  • What are the potential impacts of Market Power 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?
  • How can you best prepare your team (Front office, Back office, BA, IT, Plant Personnel) for the new EIM market?



Thursday, October 25, 2018

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


8:00 a.m. – 5:00 p.m. :: Course Timing


12:00 – 1:00 p.m. :: Group Luncheon

Lessons Learned for Operating Generation & Transmission Assets in Western EIM Market

  • Objectives of Western EIM Market
  • Key Market Players
  • Understanding Full-Network Model and Commercial Model
  • Market Terminology
  • Key Responsibilities for Merchant and BA Groups
  • Reviewing RT Bidding Workflow for EIM Merchant Players and BAs
  • How do RT Unit Commitment (RTUC) and Security-Constrained Economic Dispatch (SCED) Work?
  • Bid-to-Bill Timeline & Challenges
  • Lessons Learned from First 4 Years of EIM Market Operations
  • Quantifying EIM benefits
  • Bid-to-Bill Timeline & Challenges
  • Potential Impacts of EIM Market on Market Participants
  • New EIM Initiatives (Day-Ahead Market, etc..)
  • Frequently-Asked Questions about EIM Market

Understanding Bid-to-Bill Workflow for EIM Merchant Groups

  • Reviewing Daily & Hourly Bidding Workflow in EIM for Merchant Groups
  • Detailed Walk-Through of EIM Bidding Workflow (bids, awards, dispatches, imbalance management, updating forecasts, updating outages)
  • Discuss What-if Scenarios (What if a plant outage occurs after T-40, What if wind forecast changes after T-55, What if a transmission schedule changes after the start of the hour, etc.)
  • Need to Forecast Hourly Loads
  • Run Unit Commitment to Derive Hourly Balanced Resource Plan and Capacity Plan
  • How do you model Ancillary-Service Requirements in EIM Market?
  • Modeling GHG Costs in Bidding Process
  • Submitting Resource and Capacity Plans to ISO
  • Key Factors Influencing 3-Part Energy Offers
  • Modeling Combined-Cycle and Other Resources as Multi-State Generators in EIM
  • Operating Wind Farms and Cascaded Hydro Plants in EIM
  • Automating Data Exchange with CAISO
  • Deadline to Submit Meter Data
  • Timeline for Settlement Statements & Invoices
  • Lessons Learned from Operating Portfolio (Resources, Loads, and Bilateral Transactions) in EIM Market

Using Settlement & P&L Metrics to Provide Feedback to Traders on EIM Market Operations

  • Using Settlement and Production-Costing Results to Compute EIM Profits & Losses (P&L) for Your EIM Portfolio
  • Key Factors Influencing EIM Profits & Losses
  • Using P&L Metrics to Provide Feedback to Traders on Effectiveness of EIM Bidding Strategies
  • Using P&L Metrics to Identify when CAISO Dispatch may not be Optimal for Your Generating Unit
  • Using P&L Metrics to Validate CAISO Bid-Cost Recovery Payments
  • Using P&L Metrics to Provide Feedback to Plant Managers on Plant Performance
  • Lessons Learned for Using Business-Intelligence Tools to Analyze Settlement Results and Validate Market Operations

Friday, October 26, 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

BA Responsibilities in EIM Market

  • Understanding Role of BA (Balancing Authority) in Western EIM Market
  • BA Responsibilities Before and After EIM Market
  • Reviewing Hourly Workflow for BA
  • BA Requirement to Submit Balanced Schedules
  • Monitoring CAISO Sufficiency Tests
  • Examples Illustrating how CAISO Checks to Make Sure that Base Schedule is Balanced, Meets Flexible-Ramp Constraints, and Free of Congestion
  • BA Penalties for Over and Under Scheduling
  • Updating Dynamic Tie Line Limits
  • Modeling Transmission Limits in SCED engine
  • Using Energy Accounting Software to Validate Meter Data for Units and Tie Lines and Compute Actual System Loads
  • Allocating CAISO Charge Codes to Transmission Customers
  • Interfacing with CAISO IT Platform to Support EIM Bid-to-Bill Workflow

Validating EIM Settlement Statements and Invoices

  • Understanding Settlement Workflow for Western EIM Market
  • Understanding Key Charge Codes for Merchant Groups (EIM Participating Resources) and BAs (EIM Entities)
  • What Lessons can You Learn from Reviewing EIM Settlement Results?
  • Computing Energy Imbalances for Resources, Imports, Exports, and Loads
  • Validating GHG Payments for EIM Resources
  • Validating Bid-Cost Recovery (BCR) Payments
  • Computing Over/Under Scheduling Penalties
  • Understanding EIM Admin Charges
  • Downloading Settlement Statements and Invoices
  • Why Perform Shadow Settlement?
  • Key Functions of Shadow Settlement Software
  • What lessons can You Learn from Settlement Disputes?
  • Managing Settlement Disputes

Uses of Locational Marginal Prices in Bidding & Settlement

  • Using Full Network Model to Compute Nodal Locational Marginal Prices
  • How are LMPs Computed?
  • Understanding 4 Components of LMPs: Energy, Loss, Congestion, and GHG
  • Understanding Impacts of Flowgates on Congestion
  • Can LMPs be Negative?
  • Real-Time Settlement Calculations

Understanding Market Mitigation

  • CAISO Objectives for Market Monitoring
  • Rules for Local Market Power Mitigation
  • Market Mitigation Scenarios

Preparing for New Western EIM Market

  • Preparing for Western EIM Market
  • What Software Tools and IT Infrastructure do you Need to Automate Your Bid-to-Bill Workflow for Merchant Groups and BAs in the Western EIM Market?
  • Training Key Personnel (Traders, Power-Plant Managers, Fuel Procurement, Risk Managers, Load Forecasters, etc…) for Market-Based Operations
  • Reviewing Lessons Learned from other EIM Market Participants
  • Frequently-Asked Questions about EIM Market
    • EIM upsides and downsides
    • Has membership borne fruit for vertically-integrated and other power organizations that have already joined?
    • Is EIM involvement a permanent solution?
    • How does EIM participation compare/contrast to full membership in CAISO? 
  • What are the Key Risks in the New EIM Market?

Course Review & Round-Table Discussion


Khai Le, Sr. Vice President, PCI:    Over the past 42 years, Khai Le 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 deploy the PCI Suite to automate their bid-to-bill, portfolio-optimization, ETRM, and BA-operations workflows.    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.

Justin Shearer, Director, PCI: Justin Shearer actively participates in all phases of solution development, deployment, and consulting for market participants in the CAISO MRTU and EIM markets. Justin has been closely involved with the deployment of the PCI EIM suite at NV Energy, Arizona Public Service, Puget Sound Energy, Portland General Electric, and Salt River Project. Justin received both his BA and MBA from the University of Oklahoma.

Suiyi Su, Manager, PCI:  Suiyi is the PCI subject matter expert on transmission operations and billing. Suiyi has been actively involved in the implementation of the PCI Transmission-Billing suite at Arizona Public Service and Puget Sound Energy.   Suiyi obtained his Master’s degree in Industrial and Systems Engineering from the University of Florida.

Praveen Allaka, Technical Consultant, PCI:  Praveen is responsible for deploying the PCI EIM suite at a number of EIM clients. He specializes in automating bidding workflows for EIM entities.   Praveen received his Bachelor’s degree from Osmania University and his Masters degree from Oklahoma State University.


Hyatt Regency Orange County

11999 Harbor Blvd

Garden Grove, CA 92840

Reserve your room:

please call 1-714-750-1234

Click here to book online.

Room Block Reserved For:

Nights of October 24-25, 2018

Room rate through EUCI:

$169 single or double plus applicable taxes
Make your reservations prior to October 3, 2018.


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