1. Resource Offer Commitment Parameters Structured Market Trials August 23, 2013 Gay Anthony SPP Market Design

2. Resource Offer Commitment Parameters What are the Parameters? How are they used in SMT? Parameter Relationships How the Parameters are used for Commitment Examples 2 Gay Anthony

3. Resource Offer Commitment Parameters What are the Parameters? Time-Related Parameters for Resource Commitment Minimum Run Time Maximum Run Time Minimum Down Time Min-To-Off Time Sync-To-Min Time Hot-to-Cold Time Hot-to-Intermediate Time 3 Gay Anthony

4. Commitment Reminders DA Market, DA RUC, and ID RUC processes use the Current Operating Plan (COP) for determining if a Resource has satisfied submitted “Commitment Parameters” Commit Times are communicated as “Start” or “Stop” notifications Indicates when SPP expects the resource to be at minimum PLEASE NOTE: During SMT, the COP True-Up process is performed after DA RUC and run every two hours throughout an OD DA Market will be affected by EIS Market commitments Example: Resource with Max Run Time of 24 hours but shows as online for a week due COP True Up » DA Market will decommit the resource 4 Gay Anthony

5. Resource Offer Commitment Parameters 5 Markets User Interface Gay Anthony

6. Resource Offer Commitment Parameters 6 Parameter Relationships Commit Time De-Commit Time Minimum Run Time Min-To- Off Time Minimum Down Time Commit Time Sync-To Min Time Start-up order issued by SPP Hot-to-Cold Time Hot-to-Intermediate Time Commit Time Maximum Run Time Gay Anthony

7. Resource Offer Commitment Parameters 7 Minimum Run Time A Resource’s physical min run time begins when the resource is synchronized and is the amount of time a resource must remain synchronized. (Sync to Off) The MP’s submitted Min Run Time used by the Market should be the physical min run time minus the Sync-to-Min time and Min-to-Off time SCUC does NOT consider Sync-to-Min and Min-to-Off when evaluating Min Run Time for commitment purposes Gay Anthony

8. Resource Offer Commitment Parameters 8 Maximum Run Time A Resource’s physical max run time begins when the resource is synchronized but has a limit for how long it can remain synchronized. (Sync to Off) The MP’s submitted Max Run Time used by the market should be the physical max run time minus the Sync-to-Min time and Min-to-Off time SCUC does NOT consider Sync-to-Min and Min-to-Off when evaluating Max Run Time for commitment purposes Gay Anthony

9. Resource Offer Commitment Parameters 9 Minimum Down Time A resource’s physical min down time begins when the resource is de-synchronized and ends when the resource is physically able to synchronize again. The MP’s submitted Min Down Time used by the market should be the physical min down time of the resource. (completely offline) SCUC automatically adds Sync-to-Min and Min-to-Off time to the value entered for Min Down Time This sum represents the “effective” Min Down Time, which is evaluated by SCUC for commitment purposes Gay Anthony

10. Example Resource Offer Commitment Parameters 10 Resource A physical min run time: 5 hours physical max run time: 10 hours physical min down time: 3 hours Sync-to-Min Time: 1 hour Min-to-Off Time: 15 minutes Gay Anthony

11. Example Resource Offer Commitment Parameters 11 Resource A physical min run time: 5 hours physical max run time: 10 hours physical min down time: 3 hours Sync-to-Min Time: 1 hour Min-to-Off Time: 15 minutes Markets UI – Resource A (MP-submitted) Min Run Time - 3:45 Max Run Time - 8:45 Min Down Time - 1:45 Sync-to-Min Time - 1:00 Min-to-Off Time - :15 Gay Anthony

12. Resource Offer Commitment Parameters Start-Up Parameters In the Start-Up Offer, MPs submit a hot, intermediate and cold start-up price In the Resource Offer, MPs submit two time-related parameters: Hot-to-Cold Time Hot-to-Intermediate Time These parameters are used to determine which start-up price is applied 12 Gay Anthony

13. Resource Offer Commitment Parameters Hot-to-Cold Time A resource’s physical hot-to-cold Time begins when the resource is de- synchronized and represents the amount of time required before the next synchronization after which a cold start-up offer will apply. The MP-submitted Hot-to-Cold Time should be equal to the sum of the physical hot-to-cold time, the Sync-To-Min Time and the Min-To-Off Time No programmatic summing of parameters is performed in determining start-up times for applying start-up price 13 Gay Anthony

14. Resource Offer Commitment Parameters Hot-to-Intermediate Time A resource’s physical hot-to-intermediate Time begins when the resource is de-synchronized and represents the amount of time required before the next synchronization after which an intermediate start-up offer will apply. The MP-submitted Hot-to-Intermediate Time should be equal to the sum of the physical Hot-To-Intermediate time, the Sync-To-Min Time and the Min-To-Off Time No programmatic summing of parameters is performed in determining start-up times for applying start-up price 14 Gay Anthony

15. Hot-To-Cold Time Example If the Resource’s De-Commit Time is 10:00 AM, the Cold Start-Up Offer price would apply for Resource commitments after 8:00 PM. Resource Offer Commitment Parameters 15 Resource A physical hot-to-cold time: 8 hours Sync-to-Min Time: 1 hour Min-to-Off Time: 1 hour Markets UI – Resource A (MP-submitted) Hot-to-Cold Start-Up Time: 10 hours Gay Anthony

16. Hot-To-Intermediate Time Example If the Resource’s De-Commit Time is 10:00 AM, the Intermediate Start-Up Offer price would apply for Resource commitments between 4:00 PM and 8:00 PM. The Hot Start-Up Offer price would apply for Resource commitments prior to 4:00PM. Resource Offer Commitment Parameters 16 Resource A physical hot-to-intermediate time: 4 hours Sync-to-Min Time: 1 hour Min-to-Off Time: 1 hour Markets UI – Resource A (MP-submitted) Hot-to-Intermediate Time: 6 hours Gay Anthony

17. Resource Offer Commitment Parameters Summary The MP’s submitted Min Run Time should be the Resource’s physical min run time minus the Sync-to-Min time and Min-to-Off time The MP’s submitted Max Run Time should be the Resource’s physical max run time minus the Sync-to-Min time and Min-to-Off time The MP’s submitted Min Down Time should be equal to the physical min down time. The MP’s submitted time-related start-up parameters should be equal to the physical start-up time plus Sync-to-Min and Min-to-Off Time. These parameters are used to determine which Start-Up price to use 17 Gay Anthony