Last update: 2/26/2020
Below, affected ISO customers can learn more about actions they’ll need to take and changes to existing systems or procedures related to the Offer Caps Project. This project is one of several that ISO New England has undertaken, in collaboration with stakeholders, for the continued development of the region’s wholesale electricity markets. Target dates indicated below are subject to change.
See Participant Readiness Project Outlook for more detail on specifically affected customers and systems for this and other major projects.
Target launch: March 1, 2020
Under FERC Order 831, ISO New England is required to modify its offer-capping methodology to encourage participants submitting eMarket offers for generators and demand response resources; all other bids and offers* to offer supply when short-run costs exceed current offer caps. Existing caps may suppress locational marginal prices (LMPs) below the marginal cost of production during stressed system conditions, which may interfere with the dispatch of the most efficient set of resources.
For this project description, the term “incremental energy offers” will be applied as follows:
Additionally, the term “verified cost-based incremental energy offer” is the resource’s reference offer calculated from the data used to build reference schedules. Resources may be able to use fuel-price adjustments (FPAs) to effect that data; however, some reference offers may be valid above a “soft-cap” of $1,000 per megawatt hour (MWh) without an FPA.
Three of the four FERC Order 831 rules will be applied in eMarket by:
The hard-cap will be used in the day-ahead market for offers above $2,000 per MWh for use in commitment, dispatch, and LMP calculation. In the real-time market, verified cost-based incremental energy offers are hard-capped to calculate LMPs but are dispatched according to their offered costs. The soft-cap will also be performed in real-time for QFS resources because the amortized costs are not known in the day-ahead market.
An auto-raise feature will be introduced to automatically raise a participant’s offer up to their last submitted value using market system data to calculate reference levels. When FPAs or other adjustments that affect a resource’s reference levels are made after the fact, the Internal Market Monitor (IMM) will analyze soft-capped offers to assess whether changes to settlements are justified for the hours in question.
eMarket and related extensible markup language (XML) changes include:
*Participants offering dispatchable-asset-related demand (DARD) resources are not affected by the project because they do not have reference offers.
Affected market participants should be mindful of the following time-bound items, some of which may require customers to take specific steps or adapt to changes in ISO systems.
Please consider subscribing to Participant Readiness, Market Notices, Information Technology (IT) Notices, and MIS Report Issues to receive notices posted to the ISO calendar for future projects.
| TIMING OR DEADLINE | SYSTEM | ACTION OR EVENT |
|---|---|---|
|
November 27, 2019 |
eMarket Sandbox |
Test entering offers in the eMarket sandbox UI and using updated web services DRRs can view their new reference schedules in the UI and via web services |
|
Beginning February 29, 2020 (estimated 8:00 PM) ending March 1, 2020 (estimated 3:00 AM) |
eMarket outage |
Participants plan around the anticipated outage window for day-ahead market and intraday offers. |
|
March 1, 2020 |
eMarket |
Incremental energy offers are accepted above the $1,000/MWh on the eMarket Schedule Hourly Offers Updates display and its related XML |
The ISO may conduct online or classroom-based training and information sessions and other opportunities for affected customers to learn about changes and ask questions in advance of project implementation. Please consider subscribing to ISO Training to receive notices posted to the ISO calendar for this project.
| DATE | EVENT AND SUPPORTING MATERIALS |
|---|---|
|
December 13, 2019 |
eMarket Changes to Offer Caps (FERC Order 831) - Web-based training to demonstrate changes under the Offer Caps project |
|
December 13, 2019 |
eMarket Changes to Offer Caps (FERC Order 831)
|
|
Quarterly beginning Q4 2019 |
Quarterly Settlements Issues Forum (QSIF) |
Market participants affected by the project should consult the following documents for specific instructions on completing related tasks or processes and helpful answers to frequently asked questions.
| DOCUMENT | NOTES (if necessary) |
|---|---|
|
Summary of changes made under the Offer Caps project for operating day March 1, 2020 |
|
|
eMarket User Guide version V7.2, effective as of September 20, 2020 |
User Guide version V7.2 reflecting capacity resource definition change |
|
eMarket Data Exchange Specification v10.8, effective as of March 1, 2020 |
eMarket Data Exchange Specification v10.8 (effective as of March 1, 2020) reflecting changes made under the Offer Caps project |
|
eMarket Web Service Definition v21 Files (WSDL and XSD zip archive, effective March 1, 2020) reflecting changes made under the Offer Caps project |
|
|
eMarket Sample Client Programs in Java and .Net, effective as of March 1, 2020 |
eMarket Sample client programs in Java and .Net (effective March 1, 2020)reflecting changes made under the Offer Caps project |
| DOCUMENT | NOTES (if necessary) |
|---|---|
|
Market Rule 1 – sections to be updated with Order 841 changes |
