Interval ‘Meter’ Data in MISO Market Settlements Presented to: 2005 AEIC Load Research Annual Meeting By: Michael J. Amiss Sr. Market Settlements Analyst

Interval ‘Meter’ Data in MISO Market Settlements Midwest ISO MISO Competitive Energy Markets ‘Meter’ Data Market Settlement Activities

Acronyms Ahead! LDC- Local Distribution Company LMP – Locational Marginal Price LSA – Local Security Administrator MCC – Marginal Congestion Component MDMA – Meter Data Management Agent MEC – Marginal Energy Component MLC – Marginal Loss Component MMI – Midwest Market Initiative MP – Market Participant NAI – Net Actual Interchange NSI – Net Scheduled Interchange PSS – Physical Scheduling System RT – Real-Time RTO – Regional Transmission Organization SAS(70) – Statement on Auditing Standards #70 SCED – Security Constrained Economic Dispatch SE – State Estimator TO – Transmission Owner UFE – Unaccounted for Energy (residual load) XML – Extensible Markup Language AO – Asset Owner API – Application Programmatic Interface BA – Balancing Authority BPM – Business Practices Manual CA – Control Area CPNode – Commercial Pricing Node DA – Day-Ahead DART – Day-Ahead Real-Time DRR – Demand Response Resource EMT – Energy Market Tariff EPNode – Elemental Pricing Node FTR – Financial Transmission Right GFA – Grandfather Agreement ICCP – Inter Control Center Protocol IMM – Independent Market Monitor ISO – Independent System Operator JOU – Jointly Owned Unit

ISO/RTO Map

Control Areas within the MISO Reliability Monitoring Area   Control Areas within the MISO Reliability Monitoring Area Alliant Energy – East MidAmerican Energy Company Alliant Energy – West Michigan Electric Coordinated System Ameren Transmission Madison Gas and Electric Company Aquila Networks – Missouri Public Service Manitoba Hydro, Transmission Services Aquila Networks – West Plains Kansas Minnesota Power, Inc. Central Illinois Light Co Muscatine Power and Water Cinergy Corporation Northern Indiana Public Service Company Columbia Water & Light Nebraska Public Power District City Water Light & Power Northern States Power Company Duke Energy – Vermillion Omaha Public Power District Dairyland Power Cooperative Otter Tail Power Company First Energy Corp Southern Indiana Gas & Electric Co Great River Energy Southern Illinois Power Cooperative Hoosier Energy Southern Minnesota Municipal Power Agency Illinois Power Co Upper Peninsula Power Co Indianapolis Power & Light Western Area Power Administration UGPR Lincoln Electric System Wisconsin Energy Corporation LG&E Energy Transmission Services Wisconsin Public Service Corporation

Carmel Control Center

Midwest Market Initiative Midwest Market Launch April 1, 2005 00:00:01 EST

Why a Midwest administered Market? Create a framework for robust, transparent and competitive electric markets. Markets work better when there are many buyers and sellers Competition yields lower prices Sellers will build if there’s an opportunity to earn a return commensurate with the risks. Competitive markets are efficient! Maximizing consumer welfare ‘Correct’ allocation of scarce resources Production at lowest cost Enhance system reliability

Day-Ahead & Real-Time Markets Day Ahead (DA) Market Forward Market that provides risk management to Real Time Market Opportunity to schedule transactions Opportunity to set up Generation Offers – Demand Bids Real Time (RT) Market Continuous process of balancing supply and demand at the least cost using security constrained economic dispatch (SCED) to manage congestion and produce LMPs. Balancing market from DA Operations that are going on right now Schedules that are flowing right now

Market Activities

Key Market Participants May or may not have assets Marketer Load Serving Entity Generation Owner Transmission Owner

Market Participants Supply Market Demand Offers Generation Supplier bids (sets price they are willing to take for) generation into the market Demand Bids Demand MISO assesses the appropriateness of the bids and offers and contacts as needed To understand fully the Real-time processes for a Balancing Authority under the Midwest Market, we must begin with the day ahead. The Day Ahead Market provides the Market Participant greater price certainty. Market Participants will be able to take a Day-Ahead position on their generation or consumption. This position will allow them to achieve price certainty for their Real-Time activities since DA Pricing is published prior to the real-Time market. Generators and loads that are selected Day-Ahead will have a financial commitment and incentive to consume or generate a quantity in Real-Time equal to the amount selected in Day-Ahead. By providing price certainty, the Day-Ahead Market will reduce the impact of price volatility that may arise in the Real-Time Market. The day ahead process includes generation and load bids that are submitted to and accepted by the MISO market. This is a purely market process that once completed and the market is closed the reliability processes starts. The load bids also called Demand Bids are the key component of the “demand” side of the market. Demand Bids provide the ability for Load Serving entities to buy to supply load at a day-ahead price. The key to the day ahead market is matching the supply output and pricing to the demand intake and pricing. (press the enter or page up key) Load Serving entity bids (sets price they are willing to pay to supply) load into the market

Commercial Model The Commercial Model is a Financial representation of the Physical Network Model used to facilitate operations and settlement MISO MP Market Participant Generator Owner Load Resource Owner Marketer Asset Owner Can be Generation or Load Resource CPNode Commercial Pricing Node The published LMP represents the price at the CPNode The Commercial Model represents the Commercial Nodes and the Market Participants for which the energy markets function. The Commercial Model is a representation of the relationships between Market Participants and their Resources, Commercial Nodes and their transactions in the Energy Markets. The Commercial Model is a financial representation of the Physical Network Model used to facilitate operations and settlement The Commercial Model contains information used to identify assets, owners of assets, and the asset owner’s representative Market Participant. The Commercial model is made up of EPNodes, CP Nodes, Assets, Asset Owners, and Market participants The Elemental Pricing Node is the lowest level of the hierarchy of data in the Commercial Model. EP Nodes are directly related to the Network model and can be either Generation EPNodes, Load Zone EPNodes or Non inject/ Non withdrawal Nodes EPNodes. Generation EPNodes have a 1 to 1 relationship with Generation units, Load EP Nodes have a 1 to 1 relationship with Loads and Non Injection Non Withdrawal EPNodes have a 1 to 1 relationship to a transmission bus node that does not have generation or load directly associated to it (for example the representation of a hub). CP Nodes is the next level in the model, with CP nodes representing one or more CPNodes. CPNodes can be either Generation, Combined Cycle Collection, Dynamically Scheduled JOUs , Load Zone, External Interface, Dynamically scheduled External Interface, Hubs, External Pseudo Tie Generators or Loads, and demand Response Resource. CP Nodes must be assigned to an asset and these assets must be assigned to an asset owner. In general, a single generation asset will have one asset owner and will be represented by one CPNode. In General, Load EP nodes will have a many to 1 relationship with CPNodes, except in the case of isolated municipal or industrial load asset that has only one elemental load point in the Network model. EP Loads must be aggregated into Load Zone Assets and must be associated with an asset owner Each asset in the model must be represented by an Asset Owners. This is the operating entity level where all bid and offer data submittals, portal security, settlement statement aggregation, and internal and external transactions are conducted. Asset Owners can own any combination of generation or load. Asset Owners must be represented by a Market Participant. The Market Participant represents the highest-level of the Commercial model. The MP is the entity that is financially obligated to the MISO for market settlements. A MP can have associations with one or more asset owners. Elemental Nodes or ENodes shown on the bottom of the diagram are a component of the Network Model (not the Commercial model) but provide a tie to the relationship between the Network Model and the Commercial Model. The Elemental node is the physical point of injection or withdrawal from the system. EPNode Elemental Pricing Node Lowest Hierarchy in the Commercial Model ENode Elemental Node Component of the Network Model not Commercial Model Physical point of injection or withdrawal to the system

Commercial Model Entity Relationship MP MP Asset Owner Asset Owner CPNode CPNode CPNode CPNode EPNode EPNode EPNode EPNode This diagram shows the various relationships between EPNodes and CP Nodes. The first column highlights a generation asset. This is a typical Generation asset since most generators have a one to one relationship with one EPNode to One CPNode. With the next 2 arrows, each load is represented by the EP Node but the 2 EPNodes are represented by a single CPNode or Load Zone. The last arrow on the bottom right of the page could represent a Dynamically Scheduled Joint Owned Unit. A different CPNode will represent each portion of the JOU that is owned by different asset owners. In the Network model, a single generation unit is modeled and represented in the Commercial model by the EPNode. The Commercial model will have multiple CPNodes related to the single EPNode or generation unit. Each asset owner will represent their interest in the unit by a CPNode. One EP Node to One CPNode Many EP Nodes to One CPNode One EP Node to Many CPNodes

Market Activities

Meter Data Management Agents (MDMA’s) All Market Participants that own assets within MISO report, through their designated MDMA, hourly real- time meter injection and withdrawal volumes for each of their asset Commercial Nodes (e.g. ‘Meter Data’) ‘Meter Data’ may be: Actual Meter Data Estimated Meter Data (Day-Ahead Forecasts or Schedules, SCADA aggregated data, or profiled) Initially Estimated Meter Data that has been submitted to MISO that has been subsequently updated using Actual Meter Data when available.

Market Participant – Meter Data Management Agent (MDMA) Relationship

Market Activities

Market Activities MP – MDMA Relationship

Meter Data Management Agents (MDMA’s) in June ’05 Commercial Model:  

The MDMA is responsible for submitting ‘Settlement Quality Meter Data’ to MISO Accurate and complete measurement or estimation of actual hourly MWh injection and withdrawals volumes for each designated Market Participant’s asset Commercial Nodes. Aggregated (from Elemental Nodes) to the Asset Resource level (CP Node) consistent with the MISO Commercial Model including sub-transmission distribution losses and station auxiliary load where applicable. Where Validation, Estimation, and Editing (VEE) has been performed by the MDMA to ensure accuracy and completeness prior to submittal to MISO. Passes Market Settlement’s automatic validation controls – Initial (Portal) and Internal (preliminary data acquisition) validation process controls. Meets the above listed requirements with timely electronic submittal to Market Settlements in advance of S7, S14, S55 and S105 allowing for settlement of the market.

MISO Meter Data Process

Market Activities MDMA

Market Settlements

Meter Data File Format Standards XML format only MWh is the standard unit of measure Truncated past 3 decimal (kWh) places 24 intervals for each consecutive operating day Eastern Standard Time (EST) Submitted values represent ‘net’ injection or withdrawal Negative (-) values represent injection Positive (+) values represent withdrawal Meter Data may represent: Actual Meter Data Estimated Meter Data Profiled Meter Data Should be submitted by noon before scheduled settlement execution

Market Activities MDMA Meter Data Submission

Meter Data Files Process Flow

‘Meter Data’ Validation Measures

Market Activities Metering/Settlement Relationship

Market Settlements

Market Settlement

Settlement System Interfaces

Market Activities

Market Activities Charge Types

Settlement Charge Type Categories

Day-Ahead Charge Types

Real-Time Charge Types Characteristic of Real-Time Charge Types: Results from real time market activities Appear on real time settlement statement Calculated on a hourly and daily basis by trade date

FTR Charge Types

Market Activities Settlement Statements

Real-Time Settlement Asset Energy Amount

Settlements

Settlement Example

Real-Time Market Settlement Activity with Financial Bilateral Transactions

Real-Time Asset Energy Amount

MISO ‘Meter Data’ Analyst vs. Load Research Analyst - Comparison - Similarities: Time-Series Data Systems Intensive Energy Data Analytics Applications Not a ‘High Profile’ Function Differences: Data Not Sample Based ‘Asset’ or Population Data vs. Sample Point Collection Methodology Data Highly Aggregated MWh vs. kWh 60 vs. 15 Minute basis

For more information on the settlement of the MISO Day-Ahead, Real-Time, and FTR Competitive Markets refer to the Business Practices Manual for Market Settlements located at: www.midwestmarket.org/documents/ Market Procedures Documents and Technical Manuals / Business Practices Manuals / Manual 005 BPM for Market Settlements