Market Evolution Program

1
Market Evolution Program
Drew Phillips/Mark Wilson
2
Workshops

• Stakeholder workshops took place in May/June for
  the Long Term Resource Adequacy and the Day Ahead
  Market initiatives
• Purpose was to engage stakeholders not directly
  involved through Working Group participation
• An opportunity to ask questions, provide input
  and prepare for the June 11 MAC

3
Locational Marginal Pricing

• Preliminary analysis indicates that underlying
  pricing issues need to be dealt with before any
  recommendation can be made

Environmental Information Tracking

• RFP for system issued
• Comment period on draft regulation closed May 5

4
Wholesale/Retail Integration

• Discussion paper issued May 15
• Seeking input by June 23
• Provides a list of activities under consideration
  e.g. pilot projects on load aggregation
• As part of its investigation into market
  integration
• What other activities should the IMO support?
• What other marketplace/technological developments
  should the IMO monitor?
• Does your organization have any proposals that
  relate to the identified activities?

5
Day Ahead Market

• Working on high level design
• LECG consultants engaged
• Strawman issued May 30 consisting of
• Guiding Principles
• High Level Design
• Calculation engine
• Issues log

6
Hour Ahead Dispatchable Loads

• Program begins this month
• Training material posted yesterday
• Quick Take 7
• New module in Ontario Energy Trading course
• (http//www.theimo.com/imoweb/marketplacetraining/
  training.asp)

7
Long Term Resource Adequacy

• Feasibility assessment - to be posted next week
• Contains objectives, evaluation criteria, options
  
• Policy issues raised regardless of their
  resolution a decision is required by year end
• Content will presented at June 11 MAC

8
Multi-Interval Optimization

• ABB Proposal
• Runs every 5 minutes
• Optimizes dispatch over next full hour using same
  objectives as currently used for five minutes
• Results applied to next 5 minute dispatch
• Dispatch advisory notices issued for 15,30, 45
  and 60 minutes out
• Currently being developed for NY and CAISO

• IMO Proposal
• Runs every 15 minutes
• Optimizes for critical intervals over the next 60
  minutes Less complicated approach to optimization
  (solution will be optimal approx. 80 of the
  time)
• Modified Look Ahead sequence provides maximum and
  minimum requirements to Real Time sequence for
  ramp limited resources
• Real Time continues to calculate Dispatch
  Instructions
• Dispatch Advisory notices issued for each run of
  the Look Ahead sequence

9
Multi-Interval Optimization

• Status
• Recommendation to proceed with IMO proposed
  solution
• Primarily as a result of concerns with estimates
  for the calculation time with the ABB solution
• MIO Working Group has determined design
  requirements which ABB are assessing
• ABB now have a MIO engine that can be used to
  baseline calculation times for the ABB proposed
  solution

10
Multi-Interval Optimization

• Next Steps
• Assess ABB calculation time results
• Assess impact on schedule and budget to implement
  ABB solution
• Make recommendation to continue with IMO solution
  or adopt ABB proposed solution