CALIFORNIA ISO MARKET NOTICE

Requested Client Action:  Mark Your Calendar, Request for Comment

 

Date of Distribution:  October 11, 2007

 

Categories:  Legal/ Regulatory, Market Rules and Market Design

 

Subject:  10/16/07 Conference Call Time Change - Declined Predispatched Intertie Bids

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Summary:  The CAISO is initiating a stakeholder process to identify and consider potential options for deterring declined bids for import and exports of real time energy that are pre-dispatched by the CAISO.  The CAISO has posted a white paper outlining several options for review and comment, and will hold a stakeholder conference call on October 16, 2007 to discuss the issue.  The conference call, previously scheduled from 10:00 a.m. to 12:00 p.m., has been rescheduled to 1:00 p.m. to 3:00 p.m.

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Main Text:  Bids for imports and exports of real time energy that are pre-dispatched by the California ISO (CAISO), but then not delivered or declined by market participants have periodically resulted in operational problems and market inefficiencies under the CAISO’s current market design.  On May 16, 2007, the CAISO posted a report from the Department of Market Monitoring (DMM) to the Board of Governors concluding that, “if declined pre-dispatches of supplemental energy bids remains a significant issue, DMM will evaluate market design changes that could range from implementing the uninstructed deviation penalty to developing a penalty or charge focused on declined dispatches.”  Under MRTU, such declines could pose additional problems.  

 

The CAISO will begin a stakeholder process to assess options for addressing the problems involving declined pre-dispatched bids in preparation for MRTU and the summer of 2008.  The Declined Predispatched Intertie Bids initiative will also provide market participants with more precise guidance about expected conduct.

 

DMM has prepared a whitepaper that summarizes various problems posed by declined bids, presents several options for addressing these problems, and provides a background and framework for the stakeholder process.  The CAISO has posted the white paper to its website at http://www.caiso.com/1c72/1c72db9160800.html.

 

The CAISO will hold an initial conference call to discuss this issue and options outlined in the whitepaper.

 

Conference Call Details

Date:  Tuesday, October 16, 2007

Time:  1:00 p.m. to 3:00 p.m. Pacific Time (Note the time change)

Call-In Number:  (866) 205-4243

Pass Code: 6365899

 

Stakeholders can submit comments to PredispatchIssues@caiso.com on the issues and options outlined in the white paper prior to the conference call and by close of business October 23, 2007.

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For More Information Contact:  Saurabh Monga at 916-351-2394 or smonga@caiso.com