IJT Transaction Timelines and Scheduling – NISL and CMSC

IJT Transaction Timelines and Scheduling – NISL and

CMSC

2

Real-time Scheduling

Pre-dispatch Scheduling

Real-Time Real-Time UnconstrainedUnconstrained

Real-time Real-time ConstrainedConstrained

Pre-dispatch Pre-dispatch UnconstrainedUnconstrained

Pre-dispatch Pre-dispatch ConstrainedConstrained

The Dispatch Algorithm is run in two time framesThe Dispatch Algorithm is run in two time frames

The Dispatch AlgorithmThe Dispatch Algorithm

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IJT ScheduleIJT Schedule

• Interchange Schedule is created Interchange Schedule is created based on the hour ahead pre-based on the hour ahead pre-dispatch algorithmdispatch algorithm

• Participants pick up their schedule Participants pick up their schedule from IMO systemfrom IMO system

• IMO co-ordinates with IMO co-ordinates with neighbouring jurisdictionneighbouring jurisdiction

• Interchange Schedule is created Interchange Schedule is created based on the hour ahead pre-based on the hour ahead pre-dispatch algorithmdispatch algorithm

• Participants pick up their schedule Participants pick up their schedule from IMO systemfrom IMO system

• IMO co-ordinates with IMO co-ordinates with neighbouring jurisdictionneighbouring jurisdiction

Timing and Prices

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Minnesota

Quebec (8)

Manitoba

New York

OntarioOntario

Operating Reserve(10 min synch)

Michigan

Energy

Energy

Energy

Energy

Energy

Energy

Operating Reserve(10 min non-synch)

Operating Reserve(30 min)











Projected PricesProjected Prices

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Manitoba

OntarioOntario

= $22= $22Energy MCP

Energy MCP = $25 Intertie Congestion Price (ICP)Intertie Congestion Price (ICP)

= Manitoba Intertie Zone MCP - Ontario MCP = Manitoba Intertie Zone MCP - Ontario MCP = $25 - $22 = $25 - $22 = $3= $3

Determined in the hour ahead pre-dispatch, it will be Determined in the hour ahead pre-dispatch, it will be used in real-time to determine Manitoba MCPused in real-time to determine Manitoba MCP

Projected PricesProjected Prices

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Projected Intertie Projected Intertie Zone PriceZone Price

Projected Market Clearing Projected Market Clearing Price in OntarioPrice in Ontario

ICP (Intertie ICP (Intertie Congestion Price)Congestion Price)

Pre-dispatchPre-dispatch

Real-timeReal-time MCPMCPICPICP +

Intertie Energy Price*Intertie Energy Price*

-

* MMCP

Settlement Price for Settlement Price for Withdrawals and InjectionsWithdrawals and Injections

Congestions Management Settlement Credits

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• CMSC payments are based on the CMSC payments are based on the difference between the Operating Profit difference between the Operating Profit that would result from the that would result from the Market Market ScheduleSchedule and Operating Profit resulting and Operating Profit resulting from the from the Dispatch InstructionDispatch Instruction

• CMSC payments are based on the CMSC payments are based on the difference between the Operating Profit difference between the Operating Profit that would result from the that would result from the Market Market ScheduleSchedule and Operating Profit resulting and Operating Profit resulting from the from the Dispatch InstructionDispatch Instruction

OP (OP (MQSIMQSI) - OP () - OP (DQSIDQSI))Where MQSI = Market Quantity Scheduled for InjectionWhere MQSI = Market Quantity Scheduled for Injection

DQSI = Dispatch Quantity Scheduled for InjectionDQSI = Dispatch Quantity Scheduled for Injection

OP (OP (MQSIMQSI) - OP () - OP (DQSIDQSI))Where MQSI = Market Quantity Scheduled for InjectionWhere MQSI = Market Quantity Scheduled for Injection

DQSI = Dispatch Quantity Scheduled for InjectionDQSI = Dispatch Quantity Scheduled for Injection

Congestion Management Congestion Management Settlement CreditsSettlement Credits

Transaction Limitations: Net Interchange Schedule Limits

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1 2 3 4

Total Imports 700 1400 1400 1000

Total Exports 100 800 0 400

Total Net Interchange

Schedule 600 600 1400 600

Net Change From Previous Hour N/A 0 800 -800

Hour

Net Interchange Schedule Net Interchange Schedule LimitLimit

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• Maximum net schedule change for a Maximum net schedule change for a given hour on all interties must be given hour on all interties must be 700 MW700 MW

• Both constrained and unconstrained Both constrained and unconstrained algorithm include 700 MW hour-to-algorithm include 700 MW hour-to-hour limithour limit

• Bids and offers will only be accepted Bids and offers will only be accepted which will not violate the 700 MW limitwhich will not violate the 700 MW limit

• If necessary, IMO will proactively If necessary, IMO will proactively reduce transactions in pre-dispatch to reduce transactions in pre-dispatch to achieve this (manually)achieve this (manually)

• Maximum net schedule change for a Maximum net schedule change for a given hour on all interties must be given hour on all interties must be 700 MW700 MW

• Both constrained and unconstrained Both constrained and unconstrained algorithm include 700 MW hour-to-algorithm include 700 MW hour-to-hour limithour limit

• Bids and offers will only be accepted Bids and offers will only be accepted which will not violate the 700 MW limitwhich will not violate the 700 MW limit

• If necessary, IMO will proactively If necessary, IMO will proactively reduce transactions in pre-dispatch to reduce transactions in pre-dispatch to achieve this (manually)achieve this (manually)

Inter-Hour Schedule Inter-Hour Schedule Change LimitChange Limit

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• Previous hour schedule 500 MW importPrevious hour schedule 500 MW import• Next Hour MCP is $38, no congestionNext Hour MCP is $38, no congestion

• Previous hour schedule 500 MW importPrevious hour schedule 500 MW import• Next Hour MCP is $38, no congestionNext Hour MCP is $38, no congestion

Transbord Import 1300 MW @ $30

Pinepower Import 300 MW @ $35

Expbord Export 100 MW @ $50

Genbord Export 300 MW @ $34

Total Potential Net Interchange

Scheduled 1500 MW

Change From Previous Hour 1000 MW

Automatic ProcessAutomatic Process

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• Algorithm will maximize gain from Algorithm will maximize gain from trade while respecting limitstrade while respecting limits

• Two choices: drop an import or Two choices: drop an import or add an exportadd an export

• Algorithm will maximize gain from Algorithm will maximize gain from trade while respecting limitstrade while respecting limits

• Two choices: drop an import or Two choices: drop an import or add an exportadd an export

Add ExportAdd ExportAdd ExportAdd Export

Drop ImportDrop ImportDrop ImportDrop Import

($34 - $38) x 300 MW = -$1200($34 - $38) x 300 MW = -$1200($34 - $38) x 300 MW = -$1200($34 - $38) x 300 MW = -$1200

-($38 - $35) x 300 MW = -$900-($38 - $35) x 300 MW = -$900-($38 - $35) x 300 MW = -$900-($38 - $35) x 300 MW = -$900


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Transbord Import 1300 MW @ $30

Expbord Export 100 MW @ $50

Pinepower 0 MW

Genbord 0 MWNet Interchange

Schedule 1200 MWChange From Previous Hour 700 MW


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14001400

AA

Net

Tie

line

Sch

edul

e (M

W)

Net

Tie

line

Sch

edul

e (M

W)

700700

21002100

Hour 2Hour 2Hour 1Hour 1

BB

CC


AA AA

BB

= 700 = 700 = 1400

AA

Inter-hour Schedule Change Inter-hour Schedule Change Limit:Limit:

Manual ProcessesManual Processes

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14001400

AA

Net

Tie

line

Sch

edul

e (M

W)

Net

Tie

line

Sch

edul

e (M

W)

700700

21002100


BBCC


AA AA

BB

= 700 = 0 = 700

AA

Inter-hour Schedule Change Inter-hour Schedule Change Limit:Limit:

Manual ProcessesManual Processes

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• Both the constrained and Both the constrained and unconstrained algorithms are bound unconstrained algorithms are bound by the 700 MW limitby the 700 MW limit

• Constrained and unconstrained may Constrained and unconstrained may have different starting points, have different starting points, typically because of transmission typically because of transmission congestion within Ontariocongestion within Ontario

• If starting points differ, outcomes If starting points differ, outcomes will differwill differ

• This could result in CMSC paymentsThis could result in CMSC payments

• Both the constrained and Both the constrained and unconstrained algorithms are bound unconstrained algorithms are bound by the 700 MW limitby the 700 MW limit

• Constrained and unconstrained may Constrained and unconstrained may have different starting points, have different starting points, typically because of transmission typically because of transmission congestion within Ontariocongestion within Ontario

• If starting points differ, outcomes If starting points differ, outcomes will differwill differ

• This could result in CMSC paymentsThis could result in CMSC payments

Inter-hour Schedule Change Inter-hour Schedule Change Limit and CMSCLimit and CMSC

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Constrained Constrained AlgorithmAlgorithm

700700 TransbordTransbordOffer:Offer:

700 MW @ 700 MW @ $10/MW$10/MW

MCP=$50MCP=$50

Net

Tie

line

Sch

edul

e (M

W)

Net

Tie

line

Sch

edul

e (M

W)

500500

Net ImportNet Importof 700 MWof 700 MW

Hour 2Hour 2Hour 1Hour 1 Hour 2Hour 2Hour 1Hour 1

Unconstrained Unconstrained AlgorithmAlgorithm

TransbordTransbordOffer:Offer:

700 MW @ 700 MW @ $10/MW$10/MW

MCP=$50MCP=$50


Allowed range = 1400 to 0 MW Allowed range = 1200 to -200 MW

200 MW 200 MW does not flowdoes not flow

E.g.: Inter-hour Schedule E.g.: Inter-hour Schedule Change Limit & CMSC: Hour Change Limit & CMSC: Hour

11

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• Transbord constrained offTransbord constrained off– Offer price: $10/MWOffer price: $10/MW– MCP: $50/MWMCP: $50/MW– Lost operating profit: $40 per Lost operating profit: $40 per

megawatt megawatt CMSC = $40 x 200CMSC = $40 x 200CMSC = $8000CMSC = $8000

• Transbord constrained offTransbord constrained off– Offer price: $10/MWOffer price: $10/MW– MCP: $50/MWMCP: $50/MW– Lost operating profit: $40 per Lost operating profit: $40 per

megawatt megawatt CMSC = $40 x 200CMSC = $40 x 200CMSC = $8000CMSC = $8000

CMSC Payments: Hour 1CMSC Payments: Hour 1

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No Import OffersNo Import OffersBorgpower bidsBorgpower bids

to export to export 200 MW @ 200 MW @

$75/MW$75/MWMCP=$50MCP=$50

Net ExportNet Exportof -200 MWof -200 MW



No Import OffersNo Import OffersBorgpower bidsBorgpower bids

to export to export 200 MW @ 200 MW @

$75/MW$75/MWMCP=$50MCP=$50

Net ExportNet Exportof -200 MWof -200 MW

Allowed range = 1400 to 0 MW Allowed range = 1200 to -200 MW

Hour 1: Hour 1: Net Import Net Import of 700 MWof 700 MW

Hour 1: Hour 1: Net Import Net Import of 500 MWof 500 MW


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• UnconstrainedUnconstrained:: Borgpower Borgpower scheduled to export 0 MWscheduled to export 0 MW

• ConstrainedConstrained:: Borgpower Borgpower scheduled to scheduled to export 200 MWexport 200 MW

• Borgpower achieves higher Borgpower achieves higher operating profit based on operating profit based on constrained schedule than on constrained schedule than on unconstrained scheduleunconstrained schedule

• UnconstrainedUnconstrained:: Borgpower Borgpower scheduled to export 0 MWscheduled to export 0 MW

• ConstrainedConstrained:: Borgpower Borgpower scheduled to scheduled to export 200 MWexport 200 MW

• Borgpower achieves higher Borgpower achieves higher operating profit based on operating profit based on constrained schedule than on constrained schedule than on unconstrained scheduleunconstrained schedule


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• CMSC payments CMSC payments return return participant to the operating profit participant to the operating profit from the unconstrained schedulefrom the unconstrained schedule

• In this case, there will be a negative In this case, there will be a negative CMSC:CMSC:

CMSC = ($75 - $50) x (0 - 200)CMSC = ($75 - $50) x (0 - 200)

CMSC = CMSC = -- $5000 $5000



CMSC = ($75 - $50) x (0 - 200)CMSC = ($75 - $50) x (0 - 200)

CMSC = CMSC = -- $5000 $5000


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Actual cost to Borgpower is equivalent to Actual cost to Borgpower is equivalent to Borgpower’s original bid price of $75/MW:Borgpower’s original bid price of $75/MW:

Cost of export: 200 MW @ $50/MW Cost of export: 200 MW @ $50/MW = = $10,000$10,000 Cost of Negative CMSC:Cost of Negative CMSC: = $ 5,000= $ 5,000 Total Cost: Total Cost: == $15,000 $15,000

Actual cost to Borgpower is equivalent to Actual cost to Borgpower is equivalent to Borgpower’s original bid price of $75/MW:Borgpower’s original bid price of $75/MW:

Cost of export: 200 MW @ $50/MW Cost of export: 200 MW @ $50/MW = = $10,000$10,000 Cost of Negative CMSC:Cost of Negative CMSC: = $ 5,000= $ 5,000 Total Cost: Total Cost: == $15,000 $15,000

Bid Price: 200 MW @ $75/MW = Bid Price: 200 MW @ $75/MW = $15,000$15,000

Bid Price: 200 MW @ $75/MW = Bid Price: 200 MW @ $75/MW = $15,000$15,000


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700700 ExborgExborgBidsBids

700 MW @ 700 MW @ $100/MW$100/MW

MCP=$50MCP=$50

Net

Tie

line

Sch

edul

e (M

W)

Net

Tie

line

Sch

edul

e (M

W)

500500

Net ExportNet Exportof 700 MWof 700 MW



TransbordTransbordOffer:Offer:

700 MW @ 700 MW @ $10/MW$10/MW

MCP=$50MCP=$50

Net ExportsNet Exportsof 500 MWof 500 MW

Allowed range = 0 to -1400 Allowed range = 200 to -500

200 MW 200 MW does not flowdoes not flow


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No Export BidsNo Export BidsBorgpower offersBorgpower offers

to importto import200 MW @ 200 MW @

$75/MW$75/MWMCP=$150MCP=$150

Net ImportNet Import of 200 MW of 200 MW



No Export OffersNo Export OffersBorgpower offersBorgpower offers

to import to import 200 MW @ 200 MW @

$75/MW$75/MWMCP=$150MCP=$150


Allowed range = 0 to - 700 Allowed range = 200 to – 500

Hour 1: Hour 1: Net ExportNet Exportof 500 MWof 500 MW

Hour 1: Hour 1: Net ExportNet Exportof 500 MWof 500 MW


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CMSC = ($150 - 75) x (0 - 200)CMSC = ($150 - 75) x (0 - 200)

CMSC = CMSC = -- $3000 $3000



CMSC = ($150 - 75) x (0 - 200)CMSC = ($150 - 75) x (0 - 200)

CMSC = CMSC = -- $3000 $3000


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IOG in Hour TwoIOG in Hour Two

• What will be the IOG Payment in What will be the IOG Payment in hour two? hour two?

• What will be the IOG Payment in What will be the IOG Payment in hour two? hour two?

The Market Quantity is Zero (MQSI)The Market Quantity is Zero (MQSI) so the IOG is Zero! so the IOG is Zero!

Documents

IJT Transaction Timelines and Scheduling – NISL and CMSC