Decremental Re-Bidding in the Real Time Market	Back to Previous Page  Download Adobe Reader

Background A bidding rule was included within the MRTU Tariff that forbids decremental energy bids below the Day-Ahead Schedule in the Real-Time market at prices that are lower than what was bid in and accepted in the Day-Ahead market. This "DEC Bidding Rule" was put in place early in the MRTU design to mitigate gaming opportunities during the short period from the close of the Day Ahead Market through Real time, in situations where constraints change through transmission derates which require re-dispatch of generation. The consulting firm LECG in its report "Comments on the California ISO MRTU LMP Market Design" pointed out problems with this "DEC Bidding Rule" and determined it was ineffective due to the priority assigned to final Day-Ahead schedules in the Real Time Market. Thus, with the unanimous agreement of stakeholders and the MSC, the CAISO Board of Governors on May 21, 2008, approved the removal of this "DEC Bidding Rule" before MRTU start-up. The CAISO is now seeking FERC approval to delete this rule from the MRTU Tariff and permit DEC bids on any portion of a bid curve that cleared the Day Ahead Market throughout the Real Time Market. The CAISO also is continuing this stakeholder process to consider what other changes for Real Time Energy bid offers might be appropriate but are not feasible for implementation as part of MRTU start-up. Any additional modifications could be included as part of the Markets and Performance (MAP) initiative.

Outcome Pending closure of initiative

Process

Relevant Market Notices

DEC Bidding Rule Tariff Language DEC Bidding Rule Draft Tariff Language doc 39K | Abstract | 05/08/2008 13:27

Stakeholder Comments on Revised Straw Proposal CEI Comments on DEC Bidding Revised Straw Proposal 02-May-2008 pdf 38K | Abstract | 05/08/2008 13:19 Coral Power Comments on DEC Bidding Revised Straw Proposal 30-Apr-2008 pdf 116K | Abstract | 05/01/2008 17:10 PG&E Comments on DEC Bidding Revised Straw Proposal 30-Apr-2008 pdf 112K | Abstract | 05/01/2008 17:07 Powerex Comments on DEC Bidding Revised Straw Proposal 30-Apr-2008 pdf 30K | Abstract | 05/01/2008 17:05 SCE Comments on Revised Straw Proposal for DEC Bidding pdf 29K | Abstract | 05/01/2008 13:19 SDG&E Comments on Revised Straw Proposal for DEC Bidding pdf 115K | Abstract | 04/30/2008 16:32 WPTF Comments on DEC Bidding Revised Straw Proposal 01-May-2008 pdf 111K | Abstract | 05/08/2008 13:20

Revised Straw Proposal on DEC Bidding Stakeholder Comments Template - DEC Bidding Revised Straw Proposal doc 40K | Abstract | 04/23/2008 11:54 Presentation - Revised Straw Proposal for DEC Bidding Activity Rule 21-Apr-2008 pdf 512K | Abstract | 04/18/2008 16:29 Revised Straw Proposal for the DEC Bidding Activity Rule pdf 242K | Abstract | 04/14/2008 17:56

Stakeholder Comments on Straw Proposals on DEC Bidding and COG Pricing CPUC Comments on DEC Bidding Straw Proposal 02-Apr-2008 pdf 27K | Abstract | 04/08/2008 11:26 Dynegy Comments on DEC Bidding Straw Proposal 25-Mar-2008 pdf 11K | Abstract | 03/26/2008 15:31 PG&E Comments on COG Pricing Straw Proposal 24-Mar-2008 pdf 67K | Abstract | 03/25/2008 14:09 PG&E Comments on DEC Bidding Straw Proposal 24-Mar-2008 pdf 69K | Abstract | 03/25/2008 14:13 Powerex Comments on DEC Bidding Straw Proposal 07-Mar-2008 pdf 22K | Abstract | 03/20/2008 16:05 SCE Comments on COG Pricing Straw Proposal 24-Mar-2008 pdf 130K | Abstract | 03/25/2008 14:05 SCE Comments on DEC Bidding Straw Proposal 24-Mar-2008 pdf 112K | Abstract | 03/25/2008 14:18 WPTF Comments on COG Pricing Straw Proposal 25-Mar-2008 pdf 66K | Abstract | 03/28/2008 16:14 WPTF Comments on DEC Bidding Straw Proposal 25-Mar-2008 pdf 93K | Abstract | 03/26/2008 13:03

Straw Proposals on DEC Bidding and COG Pricing Logic Presentation - DEC Bidding and COG Pricing: Review of Straw Proposals 17-Mar-2008 pdf 334K | Abstract | 03/17/2008 09:31 Straw Proposal for the DEC Bidding Activity Rule 07-Mar-2008 pdf 236K | Abstract | 03/07/2008 16:17 Stakeholder Comments Template - DEC Bidding Rule Straw Proposal 11-Mar-2008 doc 43K | Abstract | 03/12/2008 09:04 Straw Proposal for Pricing Logic Under Flexible Modeling of COG Units 07-Mar-2008 pdf 246K | Abstract | 03/07/2008 16:21 Stakeholder Comments Template - COG Pricing Straw Proposal doc 41K | Abstract | 03/11/2008 15:31

Initial Stakeholder Comments on DEC Bidding Rule and COG Pricing Logic CPUC Comments on DEC Bidding Rule 15-Feb-2008 pdf 30K | Abstract | 02/20/2008 07:48 Dynegy Comments on DEC Bidding Rule 15-Feb-2008 pdf 9K | Abstract | 02/15/2008 15:52 PG&E Comments on COG Pricing and Dec Bidding 22-Feb-2008 pdf 65K | Abstract | 02/25/2008 10:36 PG&E Comments on DEC Bidding Rule 15-Feb-2008 pdf 17K | Abstract | 02/19/2008 15:26 PG&E Comments on COG Pricing 15-Feb-2008 pdf 110K | Abstract | 02/19/2008 15:38 SCE Comments on DEC Bidding Rule and COG Pricing 15-Feb-2008 pdf 52K | Abstract | 02/19/2008 08:20 WPTF Comments on DEC Bidding Rule 15-Feb-2008 pdf 70K | Abstract | 02/20/2008 07:45 WPTF Comments on COG Pricing 19-Feb-2008 pdf 87K | Abstract | 02/20/2008 10:33

Market Surveillance Committee/Stakeholder Meeting 08-Feb-2007 Template for Stakeholder Comments - DEC Bidding Rule doc 40K | Abstract | 02/12/2008 09:49 Template for Stakeholder Comments - COG Pricing Logic doc 41K | Abstract | 02/12/2008 09:51 Presentation - Modifying the DEC Bidding Activity Rule on Day Ahead Schedules 08-Feb-2008 pdf 290K | Abstract | 02/05/2008 14:16 Presentation - Pricing Logic Under Flexible Modeling of COG Units 08-Feb-2008 pdf 367K | Abstract | 02/05/2008 14:18

Market Release 1A Final - DEC Bidding - Issue Paper 01-Feb-2008 pdf 92K | Abstract | 02/01/2008 16:12 Issue Paper - Pricing Logic Under Flexible Modeling of COG Units 01-Feb-2008 pdf 129K | Abstract | 02/01/2008 16:13