SPP’s Integrated Market Launch: Are You Ready?...Page 2 SPP Integrated Marketplace The SPP...

SPP’s Integrated Market Launch:

Are You Ready?December 5, 2013

SPP Integrated Marketplace

The SPP Integrated Marketplace (IM) is scheduled to start March 1, 2014.

Absent either a major parallel operations issue, or a FERC dilemma, all indicators point to the market starting as scheduled March 1st.

Six months of market trials have elapsed with 2 months remaining.

Market trials will end January 31st for bids/offers while settlements will lag a few days until initial settlement statements are posted for January 31st.

The question for each market participant, are you ready and what should you be working on for the remaining two months?

SPP IM – Are you ready?

PCI is a software and consulting company with extensive experience in market evolutions such as the change in SPP from an Energy Imbalance Market to a full Integrated Marketplace (IM).

We thought it would be timely for us to share some of our insights and experiences where companies in other market evolutions would have liked to have been better prepared.

There is still time to work on preparations for the SPP IM.

We encourage each market participant to perform a self-assessment readiness review. PCI is here to help both with software and experience if you would like some assistance.

SPP IM – Are you ready?

This presentation has been arranged into the following sections to aid in both presentation and organization:• Day-Ahead• Real-Time• RUC• Settlements• IT

Each company is expected to have different priorities. A particular task may be important for one company whereas it may not be important for another.

At the end of the presentation we will provide our contact information to allow for follow-up questions.

SPP IM – Day-Ahead

Do you have a defined Day-Ahead Workflow and are you comfortable executing it?

• The Day-Ahead workflow should support an automated calculate and submit of the resource offers and demand bids. This should be done so if a problem occurs later in the morning, an updated set of bids and offers have already been submitted.

• For most companies, the workflow needs to support multiple strategies to coincide with commodity prices and different demand expectations.

• There should be time built into the workflow for reviews along with time for resolving submission problems if they occur.

• Desk procedures need to be in place that accurately document each individual task along with cross trained individuals that are able to execute them.

• Have you created contingency procedures for problem when they occur: Internet Connectivity Software Issues Missing workflow information such as fuel costs, load forecasts or wind

forecasts.

PCI’s GenManager and GenPortal solutions support automating the workflow process.


Can you forecast your fuel burn prior to the Day-Ahead Market clearing?

• Many companies are forced to build their Day-Ahead offers and procure fuel before they know whether the RTO (Regional Transmission Organization-SPP) will commit them.

• For companies facing this quandary they can successfully estimate their fuel usage expectation and secure fuel, thus reducing the fuel price fluctuation risk.

• How would a company go about determining their fuel needs:1. Forecast Day-Ahead LMPs for the resource locations that you need to

estimate fuel for. 2. Using the Day-Ahead LMP forecast, run a commitment program using

those LMPs to determine whether a resource will be committed and the expected output.

3. With the commitment and output, fuel consumption can be calculated and then procured.

The PCI LMP Manager and GenTrader tools can fulfill these requirements!


How are you using demand forecasts in the Day-Ahead Market to buy energy?• It makes the most risk sense to purchase most if not all of your demand from the

Day-Ahead Market. Buying energy from the Day-Ahead Market results in relatively stable prices absent of price spikes that can occur from transmission line loading and generation trips.

• Your Day-Ahead workflow should support importing one or more load forecasts to be used in building demand strategies around them.

• Some companies purchase a load forecast and also create one themselves. Using both they will combine them into a single forecast.

• Regardless how a forecast is created, the Day-Ahead demand bids need to be structured around these inputs. A user will also need the ability to modify a forecast whenever they see discrepancies.

• Demand bid strategies need to take into account the amount of certainty in a forecast, expected prices and the amount of risk a company is allowed to exercise in load procurement. The strategy between on and off peak may be different depending on where the demand is located.

The PCI GenManager solution is designed to meet this need!


How are you selling wind energy in the Day-Ahead Market?• If you can predict wind energy production, it makes sense to offer it into

the Day-Ahead Market. If you can’t predict it, you run the risk of selling and buying back at the wrong times.

• The SPP rules for Day-Ahead Must Offer related to wind are still uncertain. At this time there is no exception that allows a company that counts on wind from having to offer it 100% into the Day-Ahead Market.

• Most companies either purchase a wind forecast, take the one offered from SPP, or create one themselves. Some companies will blend forecasts together.

• Using a forecast, companies typically offer a portion of the forecasted energy into the Day-Ahead Market based on the confidence probability that the energy will be produced.

• The most conservative companies may opt not to offer wind energy into the Day-Ahead Market. With this decision you get the Real-Time price. For those that offer into the Day-Ahead Market, you have the ability to clear higher prices, but must be able to perform in the Real-Time.

• Before the market starts it is important to define your strategy and how you define success.

The PCI GenManager and Profit & Loss Analyzer tools are able to fulfill these requirements!


Do you understand the limitations in building your offers? • RTO markets for resources are all about stating what you can do and then doing what you

have stated when you are called to do so.

• Does your company have a clear understanding of all the components of the resource offer? If you can answer the following questions you are on the right road to being ready. If you can’t, this is the time to work on them before it begins to cost you.

Are your start-up parameters defined correctly?

o How early can a resource be online when told to start and still be eligible for Make Whole Payments?

o If your cool down time from intermediate to cold is defined too long, can this cause you a problem when called on to start when you just reach cold? If it is defined too short, can that be a problem?

o If you have a limited output resource due to environmental restrictions, can you put an opportunity cost in your offer? What about your mitigated offer?


Do you understand the limitations in building your offers? (Continued)

If SPP commits you in the Day-Ahead Market, what can you change thereafter and not impact your revenues and guarantees?

If a resource is cleared for ancillary services and then doesn’t supply them in Real-Time, how can this affect a unit’s revenue?

What is the purpose of the no-load offer and when are you guaranteed to be paid it?

What is the difference between stepped and sloped offers? Can you draw and explain a stepped offer to someone new to your organization?

Can you explain the difference between the offers used by SPP in the Day-Ahead, RUC and Real-Time Markets?

Can you explain what Day-Ahead Market results SPP uses in the RUC process?

If a resource is coming back from an outage and it is uncertain that it will be ready, how can the resource be offered in so that the company is not at risk to buy back the energy in Real-Time?

• Now is the time to ensure your staff understands the SPP IM market.

PCI software tools and experience can help educate companies in the preparations for the SPP IM.


With Day-Ahead clearing results, are you analyzing the results and calculating your Profits & Losses (P&L)?• It is expected that 95% of the SPP’s market dollars will clear in the Day-Ahead Market.

This will include most demand, generation and all of the TCRs.• Most profits are realized from the Day-Ahead Market.• It is important for companies to analyze their Day-Ahead results and analyze how they

can execute better. Some of the analysis can come before the Real-Time Market executes whereas the entire analysis can only be done after both markets have concluded.

• What should your P&L analysis look at: TCR hedging: This analysis needs to be performed for the TCR season. Companies

need to look at whether they are getting enough TCR payments to cover their congestion.

Resources: Need to compare P&L against both the Day-Ahead Offer and actual costs. Must run units such as coal generation should be analyzed over a longer period such as a month.

Demand: Need to analyze forecast errors and what can be done to reduce errors. Portfolio: Need to look at how the entire portfolio is working together (demand,

resources & TCRs). A particular resource strategy can hurt the portfolio.

The PCI Profit & Loss Analyzer tool fulfills this need!


Do you have analytical processes in place to validate Day-Ahead clearing results against your resource offers?• It is important to compare your resource offers to your cleared Day-Ahead results.• Are the resources being cleared for the most optimal revenue dispatch? Are resources not

being committed when they look like they should be?• If the SPP market engine is working as designed, there should be very little revenue

discrepancy between how SPP is clearing a resource and the best dispatch revenue solution for a resource.

• If there is a problem in the SPP market engine for a resource, or if there is an error in the network model related to a resource, there is almost no chance if will be found by anyone other than the generation owner. A problem such as this can last a long time if no one is looking for it.

• On a routine basis, but minimally after each network model update, a company should check whether their resources are being optimally cleared. This analysis needs to take into account energy and all ancillary services.

• Procedures and expectations should be in place for personnel to perform this review.

The PCI Profit & Loss Analyzer tool and PCI training can fulfill these requirements!

SPP IM – RUC

Do you have a defined workflow for the reoffer period and are you comfortable with performing it?

• The SPP Market supports Day-Ahead RUC and an Intra-Day RUC processes.• When are you calculating and submitting your Real-Time Offers?

Real-Time offers should be calculated and submitted as soon as they change. Real-Time Offers will roll over day to day, hour to hour if they have not be

submitted by the Market Participant. Do you have processes in place to keep your offers refreshed?

• As both the Day-Ahead and Intra-Day RUC processes run, what should you expected out of them?

• Does your workflows include validating resource commitments?• Do you have a solid communication process defined with your resources so they are

informed of all commitments timely?• It is important to have desk procedures in place that accurately document each individual

task in the workflow along with cross trained individuals able to execute on them.

PCI’s GenManager and GenPortal solutions allow automating the workflow process.

SPP IM – RUC

Do your generating resources understand what startup and shutdown messages from SPP mean and when to start?

• SPP can send out start/stop instructions from the Day-Ahead Market results and from the Day-Ahead/Intra-Day RUC processes.

• SPP does not tell a resource when they need to begin their start process, but when they need to be online at minimum.

• It is important for companies to validate the start and stop messages and communicate them to the plants. The plants need to know when they need to start. If instructions are requiring a resource to start/stop and they cannot comply, that resource may lose their Make Whole Payment guarantee status.

• In all markets, RTOs can call a company and issue verbal start/stop messages. There should be desk procedures in place to document to settlements SPP instructional calls so they can be validate with Make Whole Payments. The desk procedures also need to ensure that SPP sends the start/stop instructions to document the verbal request.

• All companies need to have processes in place to determine the actual resource start time from the start instructional messages.

PCI software receives SPP instructions and supports building workflows and communications to resources.

SPP IM – Real-Time

Do you know what can be done to limit your penalties during a resource trips and derates?

• Do you know what triggers the uninstructed resource deviation (URD) flag on resource trips or derates?

• SPP has an automated process for providing an exemption, but it will only be automatically set if trip or derate causes a Contingency Reserve Event.

• Companies need to have desk procedures that request and verify the URD flag is set for every derate and trip including which intervals are exempted.

• Each company should have procedures that identify the steps necessary to handle both unit derates and trips. For instance: Do you know when to ask for overrides from SPP? Do you know what SPP can override in SCED? Can your staff identify when overrides didn’t get removed? When do outages events need to be submitted to support derates & trips?

PCI software supports the Real-Time workflows.


Do you have defined procedures for handling late resource starts?

• A big change from the EIS to EIM market is that SPP will call on resources to start.• The window for being guaranteed Make Whole Payment (MWP) for startup costs

prevents a resource from being online more than one hour before their expected breaker close.

• Resources that synchronize late are still eligible for Startup Make Whole Payment provided SPP hasn’t cancelled the start.

• Companies need to have procedures in place in order to properly ensure they do not lose Startup Make Whole Payments. This will include what communications are necessary with SPP to ensure they do not lose the MWP status.

• Along with the Real-Time procedures, a company will need a shadow settlement software that has sufficient detail to help identify missing MWP credits.

• PCI’s GenManager Bid Formulator and Settlements applications are designed to help companies monitor MWP.

• Training also needs to be provide for plants to understand the SPP expectations.

• All procedures need to include adequate documentation so that a company’s settlement group can validate all credits are properly received.


Are you prepared to handle changes to resource start/stop instructions?

• All RTOs have a tendency to modify resource start and stop instructions. • In some cases a resources may be told to start earlier than their initial start request.• More often a resource’s stop time is delayed. A stop time can be delayed multiple times.

This can happen when demand doesn’t fall off as expected or energy from wind doesn’t pick up as fast as forecasts predicted.

• The communication of start and stop time changes to the resource is very important. Missing a start or shutting down early can cause reliability issues and make it appear that a resource is not following instructions. Companies need to ensure any verbal instructions from SPP are followed up with actual messages.

• If a resource’s non-performance becomes common, one can expect SPP’s Market Monitoring Unit to start asking questions why the resources isn’t complying.

• Companies need to have procedures in place to handle changes in start/stop instructions. These need to include any communication and validation with SPP. Companies will also need to validate requests, log them appropriately for later settlement validations and communicate them to the resource.

PCI’s GenManager Bid Formulator and Settlements applications are designed to help companies monitor MWP.


Do you have analytical processes in place to validate Real-Time clearing results against your resource offers?• This is very similar to the Day-Ahead validation process, but occurs on a 5 minute basis in

lieu of hourly. This check is to ensure the Real-Time SCED process is dispatching accurately.• Are the resources being dispatched for the most optimal revenue dispatch? Are resources

not being committed when they look like they should be?• If the SPP market engine is working as designed, there should be very little revenue

discrepancy between how SPP is dispatching a resource and the best dispatch revenue solution for a resource.

• If there is a problem in the SPP market engine for a resource, or if there is an error in the network model related to a resource, there is almost no chance if will be found by anyone other than the generation owner. A problem such as this can last a long time if no one is checking for it.

• On a routine basis, but minimally after each network model update, a company should check whether their resources are being optimally dispatched. This analysis needs to take into account energy and all ancillary services.

• Procedures and expectations should be in place for personnel to perform this review.

The PCI Profit & Loss Analyzer tool and PCI training can fulfill these requirements!


Are you prepared to analyze your Profit & Losses between Real-Time and Day-Ahead?

• Companies need to strive to retain the resource profits captured in the Day-Ahead Market. Outstanding performing companies will on average make additional revenues in the Real-Time Market.

• Resources that fail to meet dispatch expectations will lose revenues and may even incur penalties.

• Companies need to constantly look at actual Real-Time performance of all resources to determine if there is room for improvements. What can companies find: Real-Time Resource Offers that resources can’t comply with. Resource Offers that do not clear enough revenues to cover market uplifts. Penalties being assessed that can be operational avoided. Market Design issues that reduce revenues that need to be changed.

The PCI Profit & Loss Analyzer tool is identify revenue losses.

• Although most resource revenues are expected to be made in the Day-Ahead Market, not having analytical processes in place to view Profit & Loss (P&L) between the two markets typically will result in losses.


Does your staff know how to recognize inconsistencies in dispatch compared to your offers?• Companies need to be able to identify dispatch inconsistencies. For companies that

maintain a Real-Time Generation Desk, this may be hard if there are many resources to monitor at the same time.

• What can cause dispatch irregularities: Manual dispatch by SPP An err in the SCED engine used by SPP An err in the Network Model that SPP is using. An operational override applied, but not removed.

• In most cases, dispatch inconsistencies can result in lost revenue. Typically this loss is not recoverable through a dispute.

• A company’s generation desk and plant operators need to be able to spot these type of problems. For instance if a resource had an override applied to lower their economic maximum limit, but it wasn’t removed, they would not see dispatches above that limit when they would expect it.

• Procedures need to be in place to document and follow-up with these type of inconsistencies. Without this type of procedure, these types of problems can continue for a long time without being noticed.

PCI tools and consulting can help personnel and identify operational issues.


Have you defined your Real-Time Workflow?

• It is critical that both a company’s generation desk and the resource operators know the SPP Real-Time workflow.

• When is the latest an offer can be revised and what can a company do to get it modified after the cutoff?

• Do your plant operations staff know when the offer cutoff time occurs and the timeliness around when to inform a company’s generation desk about a problem?

• Have you defined how you will track and monitor overrides requested to SPP?• What offer parameters can a company ask SPP to override?• If there are resource operational problems, have you defined the communications process

between the resource, your generation desk and SPP?• Have you defined what needs to be logged related to events? This needs to include

sufficient information for settlements to evaluate it and for possible dispute verifications.• When a resource is derated or tripped, who is responsible for submitting the outage to

SPP? Do you know the time limit for getting the outage submitted?• Have you defined with your Real-Time workflow the minimum logging requirements.

PCI can help companies understand these type of needs and requirements.

SPP IM – Settlements

Can you validate the Make Whole Payments including startup?

• A critical capability of settlements is to evaluate Day-Ahead and Real-Time Make Whole Payments (MWP) from SPP.

• These type of payments are important to the profitability of resources, especially Real-Time resources.

• As part of the routine settlement process a company should: Compare an independent calculated shadow result to the SPP result, Review a company’s generation desk log looking for instances where an award is

expected that didn’t occur, and Perform a Profit and Loss Analysis looking for resources that lose money.

• Each verification checks a different perspective where money for the MWP could be lost. • In the first instance verifying MWP with shadow settlements will make sure independent

results match, but if there is an expected override by SPP, it might not be caught without looking at logs.

• In the last instance a resource’s failed performance may be causing a loss of MWP. In performing a profit & loss analysis, instances where there should be MWP may be identified.

PCI’s GenManager Shadow Settlement and P&L Analyzer tools are designed to help identify missing revenue.

Can you explain all resource penalties in a settlement statement?• Settlements should evaluate all penalties received. Penalties are a direct result of a failure

in performance.

• The following charge codes should be evaluated by resource to determine the source of each problem: Real-Time Regulation Non-Performance Amount Real-Time Contingency Reserve Deployment Failure Amount RUC Make Whole Payment Distribution Amount

• These evaluations need to help identify why the charges are occurring and how often they occur. With this information a conclusions will result either: 1) the unit is offering too much flexibility and it needs to be scaled back, or 2) plant equipment is not reliable enough to offer the service.

• Operational penalties may occur when a resource operates in a particular range and offers may need to be altered to take these regions into account.

• These type of penalties need to be attributed back to the profitability of a resource.

PCI’s GenManager Shadow Settlement solution breaks down charges by resource so these charges can be analyzed.



Can you calculate and track your ARR/TCR portfolio profitability?

• Are you properly congestion hedged?• Typically by ARR/TCR season, a company needs to evaluate how well their ARR/TCRs are

hedging their portfolio. This process is may significantly harder by the fact that both ARRs and TCRs have a daily, monthly and yearly revenue funding processes. The yearly process doesn’t occur until May 31st is settled.

• A review process needs to be put in place to evaluate whether the congestion charged between your resources and demand locations are being sufficiently reimbursed through the ARR/TCR funding process.

• As part of this process a company needs to keep track of the difference between funding shorts falls and shortfalls from their hedges. For instance a company’s ARRs/TCRs may be fully funded, but the ARRs/TCRs do not provide enough congestion hedging between their resources and their demand.

• The evaluation and review process needs to be defined and reports generated to support this analysis.

PCI’s P&L Analyzer and reporting tools are designed to support this process.


Are you monitoring your Real-Time meter data?• Monitoring meter data is a critical aspect to daily

settlements.

• Typically major mistakes are caught promptly whereas subtle issues tend to go unnoticed.• Although meter data is reported via the meter agent, the meter agent is not financially

liable for errs.• What are the types of analysis needed:

Compare submitted meter data to adjusted meter data. The adjustment difference should be reviewed for reasonability and consistency. If routinely the data is adjusted up by a small value all of a sudden switches negative, the meter agent should be questioned. Even a small value over time accounts for a large dollar amount. Errors in meter reporting or intertie metering will impact this adjustment.

Compare submitted meter data for reasonableness. Both the Meter Agent and SPP perform this review, but as the entity paying the bill you are the one financially accountable.

Compare submitted meter data to telemetry. This needs to be done to validate both meter data and telemetry. If telemetry doesn’t tend to track with meter data, then what SPP sees a resource at and what they dispatch them to will not match to settlements.

PCI’s Energy Accounting and Settlement Analyzer tools support this type of analysis.


Do you understand the use of the Settlement Calculation Flags?

• The biggest point of contention for settlement disputes is the use of calculation flags in the settlement statement. It is important that those who review settlement statements not only understand what each flag represents, but also what can cause them to change.

• In some cases these flags can be requested to be set such as the one used for exempting resource dispatch deviations (XmptDev5minFlg).

• Each company should have a procedures for how these flags are used and what needs to be done when they are not set properly. In most cases operational issue will cause a flag such as not getting Real-Time Make Whole Payment startup (RtStartUpElig5minFlg).

• If properly used, these flags will help identify and correct operational issues if you are looking at them. If a resource routinely experiences resource deviations and are not aware of them, it is unlikely that they will change their behavior.

• Improperly set flags can be the result of an a system issue at SPP, a resource operational issue, or the lack of intervention by a company’s generation desk to ask for a flag to be set to exempt a penalty.

• By defining a procedure around these flags, including how they are set and who should be informed of issues, they can be seen as an operational aid in lieu of a problem.

PCI’s GenManager Settlement and reporting tools help companies identify issues with settlement calculation flags.


Are you monitoring and detecting anomalies to uplift rates?• One major way to determine the health of an RTO is to monitor the uplift rates.• The more the rates are near zero, the better the overall health of the market. • High and/or fluctuating rates may be the result of operational issues with the RTO. • In other cases high rates may be identifying a gap in the RTO software or simply a market

design irregularity that needs to be addressed.• It is not uncommon that high and fluctuating rates can cause market liquidity issues and

drive some market participants out of the market.• It is highly recommended that the uplift rates be tracked, monitored and reported. It is also

recommended to track any abnormalities that SPP has shared related to spikes. • Monitoring uplift rates is especially important when a new market changes or a major

market initiative is implemented.• Through routine monitoring uplifts a company will be able to:

Report on the health of the market to management Understand and question SPP on fluctuations Be able to understand the quality of estimating the rates for the accounting close.

• PCI’s Settlement Analyzer is designed to help companies monitor uplift rates.


Are you prepared to validate your Over Collected Losses rebates?• A question that every company will need to answer for themselves after they join an

LMP market is whether they are getting what they expect from Over Collected Losses rebates?

• Each company will need to be prepared to answer this question and it is a market check that should be done at least twice a year.

• SPP rebates losses from the Day-Ahead and Real-Time Markets separately.• It is recommended that companies spot check rebates for each market by taking their

rebated losses and subtracting from it their demand volume multiplying by the Marginal Congestion Component.

• This process will need to be done for the Day-Ahead demand and the incremental Real-Time demand.

• By performing this check companies can validate that the loss rebate process is working within reason.

• PCI’s GenManager Settlement and reporting tools provide the data for this review.

SPP IM – IT

Are you planning on having a test system February 22nd?

• PCI has requested that SPP have their test connectivity system back online February 22nd. SPP is evaluating whether this can be supported.

• Every company needs a fully setup test system available in the event problems are occur. Although not expected, there are many complex systems involved both at SPP and with each company. It is not unexpected that something may not work as designed and it will need to be investigated.

• Having a fully functioning test system with an exact copy of your production system will give you a place to test software patches and also a place to troubleshoot production connectivity issues with SPP.

• In the past some companies have tried to avoid setting up a test system immediately. We highly discourage this, no one should try something first in their production system!

• SPP will be shutting down their market systems at that start of February in order to prepare them for market go-live.

• The SPP systems will be brought back on-line on February 22nd.• The SPP protocols allows bids/offers to be entered 7 days in

advance. February 22nd is 7 days prior to March 1st (Integrated Marketplace Go-Live).

• Why is a whole week needed? Reliability in order to give SPP the ability to request long lead resources to start.

SPP IM – IT

Do you have a plan to verify data and systems for the SPP Market start on February 22nd?

• SPP systems will come back on line February 22nd for the market start.• No company should assume that everything will be good to go without first checking it.• We encourage each company to put together a readiness checklist that can be executed

on February 22nd. It is important to start working on building the checklist now because it allows time for it to be refined and double checked.

• PCI has also requested from SPP that they put together a checklist of what a market participant should check when the system come back. SPP said they would assemble a checklist.

• What should be on a checklist:

SPP access by every employee that has been granted a certificate.

Verify that employees with access can see all assets registered.

Verify all asset default registration data is correct. If you have software, verify communications with SPP’s APIs. Exercise any communication uploads and downloads with SPP

that are functional. Load a set of default bids/offers for March 1st Day-Ahead and

Real-Time.

SPP IM – IT

Are you ready to purge test data from your production system?

• Companies typically take the system they are using during market trials and make it their production system for market go-live.

• One major problem IT has to face when this occurs is that there can be both test and production data in the same system. No one wants to have a production system that has test data in it.

• Test data should be purged. Why store 8 months of data that has no further purpose?• When to purge it is a dilemma:

out most. Some companies want to purge data prior to starting the

market whereas others companies would prefer not to purge until after the systems are solidly being used in production.

There are good arguments for both methods. By purging before go live you don’t run the risk of having incorrect data getting submitted to SPP that could end up incurring you charges. On the other hand, by deleting test data after go-live you don’t run the risk of deleting data that may be critical if the system is in operation.

Of the two methods, deleting data before go-live tends to the method that wins the most.

SPP IM – IT

Are you ready to purge test data from your production system? (continued)• Regardless whether you delete test data before or after go-live, this is the best time to

prepare and test it.

• If your company is using a vended software, the vendor should provide you with a means to delete test data.

• For systems that are not vended, the IT department will need to determine how to accomplish this task. Purging will include deleting data from databases along with deleting test files. Remember you will need to remove both the copy of files sent to and received from SPP.

• In preparations for purging IT groups will need to do the following:

Identify all locations of files sent to/from SPP. Determine how to identify dates of the file to know what should be deleted.

Identify all data in data bases that need to be removed. This data consists of LMPs, market results, transactional data, dispatch instructions and settlement data to name a few.

Create a deletion procedure for the files and database data.

Test the deletion procedure. This may be easier against a databases than files.

Keep in mind that deleting a large number of files or running large delete scripts on a database can and will impact production speeds!

SPP IM – IT

When are you expecting system performance problems?• IT should be expecting system performance problems immediately.• Contingency plans need to be built and put in place when problems begin. • Contingency Plans need to include:

Identify who is responsible for monitoring performance for each system and make sure they know when they need should raise their awareness. o Don’t expect IT to know the market start timeline. Set expectations and don’t

forget to keep them informed of date changes.o Issues can be sudden and subtle. Subtle issues tend to be missed and cause

extreme user frustration as processes slow down. Be prepared to monitor both.

Identify who is responsible for monitoring database performance. This tends to be bigger issue in larger companies because the SPP go-live will be only a small portion of their entire database system. o Database performance problems also routinely happen when a system has little or

no data in it. It seems like the systems are designed to work with large amounts of data, but when they start from nothing they need some extra tender loving care.

o Also ensure the regular database maintenance is schedule. Sometimes we have seen this get missed when systems become production.

Identify who is responsible for file share monitoring. For the first several weeks, monitor for space usage, responsiveness and ensure all archiving is working.

PCI’s market solution software comes with tools to help identify and manage performance.

PCI Bid-to-Bill Solution for

SPP-IM Market ParticipantsPCI GenManager

Bid Formulator

ISO Communication

Meter Management

Shadow Settlement

Pre-Settlement

LMP Manager

Bid Evaluator

PCI BI & DW Tools

Data Warehouse

P&L Analyzer

Settlement Analyzer

PCI GenPortal

PCI Deal Management & Etagging

PCI Outage Management

PCI Energy Accounting

PCI Gas Management

PCI GenTrader

Unit Commitment

Production Costing

Slide Title

35

Next

Steps?

• Arrange WebEx session with PCI to:– Ask specific questions on

preparations for SPP go-live– Review results for parallel

operations– See demo of PCI software

• Sign up for EUCI Workshop on Using Settlement Results to Provide Feedback on Effectiveness of Bidding Strategies for Genco Assets in SPP Integrated Marketplace, Jan 27-28, San Antonio, TX

For More Information

• Bid-To-Bill Automation– Forecast LMPs– Automate XML Communications– Create Unit & Demand Bids– Evaluate Bidding Strategies– Perform Shadow Settlement

• Deal Management

– Capture Bilateral Deals

– Perform Deal Settlement

– Submit NERC Tags

Operations & Trading

– Optimal unit commitment and economic dispatch

– Fuel Forecasting

– Emissions Forecasting

BI & Data Warehouse

– P&L Analyzer

– Settlement Analyzer

– GenTrader Analyzer

PCI GENERATION SUPPLY MANAGEMENT SYSTEM™

Tony Delacluyse

(405) 326-1496

[email protected]

Stuart Wright

(303) 917-3565

[email protected]

SPP’s Integrated Market Launch: Are You Ready?...Page 2 SPP Integrated Marketplace The SPP...

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