Day-Ahead Market and Forward Reliability
Commitment Timing to Meet FERC Order on
Compliance for Gas Electric Scheduling
Requirements
Market Subcommittee
January 5, 2016
Purpose
 Review Background of FERC Order 809 (RM14-2-000)
 Communicate regulatory requirements and MISO response to FERC’s
December 17, 2015 Order on MISO’s Order 809/Section 206 compliance filing
(ER15-2256-000, EL14-25-000)
Key - Takeaways
MISO recommended response to FERC
 Comply with the Commission’s requirement to post our Day-Ahead Market
(DAM) Results at least 30 minutes prior to the 2:00 p.m. Eastern Prevailing
Time (EPT) Timely Nomination deadline
 Maintain the 6:00 p.m. EPT Forward Reliability Assessment Commitment
(FRAC) notification time as previously proposed
 Explain why our Day-Ahead Schedule start time should depend upon
Daylight Saving Time due to the fact that operations and market
administration observe Eastern Standard Time throughout the year
2
Background - FERC Order 809
 On April 16, 2015 FERC Issued Order 809 on Coordination of the
Scheduling Processes of Interstate Natural Gas Pipelines and Public
Utilities. Highlights:
 No change to the nationwide Gas Day Start, 09:00 at Central Clock Time





(CCT)
Natural Gas Timely Day-Ahead Nomination Deadline moved from 11:30 to
13:00 CCT
Additional Intra-day cycle to improve scheduling flexibility
FERC reinforced its directive for ISOs/RTOs to align Electric Market with
Gas Market or Show Cause
Gas Nomination Cycle changes Effective April 1, 2016
Compliance filings were due on July 23, 2015
 MISO was required to comply or show cause why such changes were
not necessary
3
Background - FERC Order 809
MISO made its Compliance Filing on July 23, 2015 proposing
modifications as follows:
 Day-Ahead Market (DAM)
 Shifted DAM (and FRAC) to Eastern Prevailing Time (EPT) year round
 Changed DAM close from 11:00 EST to 11:00 EPT, and moved results
publication up one hour to 14:00 EPT - clearing window cut from 4 to 3 hours
 Maintained Market day (settlement and instructions) at 24 hours in EST (00:0024:00 EST)
 Next-Day Forward Reliability Assessment Commitment (FRAC)
 Maintained One (1) hour Rebid following DAM results at 14:00-15:00
 Begins at 15:00 EPT, posts at 18:00 EPT - window also 3 hours, now
 Filed Show Cause as to why publication of Day-Ahead Market results
ahead of the Timely Nomination Cycle was not necessary or beneficial
4
MISO Day-Ahead and FRAC Timelines
– As Filed
DA
Market
Clearing
(11001400)
R
e
b
i
d
NextDay
FRAC
(15001800)
Timely
Nomination
Deadline
(1400)
Electric Day (0000-2400){Nov-Mar*}
Electric Day (0100-0100){Apr-Oct}
Evening
Nomination
Deadline
(1900)
Intraday 1
(1100)
Intraday 2
(1530)
Next Gas
Day
Intraday 3
(2000)
Current Gas Day (1000-1000)
1200
1800
2400
0600
Nomination and Market times are Eastern Prevailing Time
*Summer Daylight Savings Time (DST) runs from the second Sunday in March through the first Sunday in November
1200
5
FERC December 17, 2015 Order on 206 Requirements
In the Order on MISO’s filing in Docket ER15-2256-000 the
Commission found that MISO failed to show cause and required MISO
to:
 Move Day-Ahead Market (DAM) results posting deadline such that it is at
least 30 minutes in advance of the revised Timely Nomination Cycle
deadline of 2:00 p.m. EPT. (Order at p. 64)
 Consider proposing a different notification time for Forward Reliability
Assessment Commitment (FRAC), as long as any such notification is
sufficiently in advance of the Evening Nomination Cycle (Order at p. 2)
 Make DAM schedule effective at 12:00 a.m. EPT (11:00 p.m. CCT) or
explain why differing start times should depend on the use of Daylight
Savings Time (Order at p. 66)
6
MISO’s Recommended Compliance Actions –
Day Ahead and FRAC Timelines
 Comply with the Commission’s requirement to post our Day-Ahead
Market (DAM) Results at least 30 minutes prior Timely Nomination
deadline
 As a result, the DAM clearing window will move up an additional 30
minutes to close 10:30 a.m. to publish results by 1:30 p.m. Eastern
Prevailing Time (EPT)
 Maintain the 6:00 p.m. EPT Forward Reliability Assessment
Commitment (FRAC) notification time, as previously proposed
 FERC found the proposed time satisfied the requirement of Order 809
and the 206 Order
 FRAC rebid period remains 1 hour and aligns with the new DAM window
 MISO publishes FRAC results as available, so deadline typically has
minimal impact on when Market Participants actually receive notification
7
MISO Day-Ahead and FRAC Timelines
– Recommended Compliance
DA
Market
Clearing
(10301330)
R
e
b
i
d
Next-Day
FRAC
(14301800)
Timely
Nomination
Deadline
(1400)
Electric Day (0000-2400){Nov-Mar*}
Electric Day (0100-0100){Apr-Oct}
Evening
Nomination
Deadline
(1900)
Intraday 1
(1100)
Intraday 2
(1530)
Next Gas
Day
Intraday 3
(2000)
Current Gas Day (1000-1000)
1200
1800
2400
0600
Nomination and Market times are Eastern Prevailing Time
*Summer Daylight Savings Time (DST) runs from the second Sunday in March through the first Sunday in November
1200
8
MISO’s Recommended Compliance Actions –
Schedule Effective Time
 Explain why our Day-Ahead Schedule start time should
not adjust for Daylight Savings Time (DST)
 MISO’s historical practice of maintaining EST throughout the year dates




back prior to 2006 when Indiana did not observe DST
Implementing semi-annual transitions to and from DST will result in
significant impact and cost to MISO and our Market Participants
MISO can’t quantify any benefits of transitioning to DST
Transitioning to DST has not been identified as a future market or
operational enhancement and such an effort would delay higher priority,
higher value enhancements identified by MISO and our stakeholders
Order 809 did not specifically require modifications to the Gas Day,
Electric Day, or alignment thereof
9
Next Steps
 January 19, 2016 – MISO will submit compliance filing to FERC
 January 19, 2016 – MISO intends to seek rehearing on the limited
issue of modifying the Day Ahead Schedule start time
10
Appendices
11
Day Ahead Nomination Changes
Time Shifts -- All times CCT
Timely
Evening
Nomination Deadline
Schedule Issued
Start of Gas Flow
Nomination Deadline
Schedule Issued
Start of Gas Flow
Current
NAESB
Standards
11:30 a.m.
4:30 p.m.
9:00 a.m.
6:00 p.m.
10:00 p.m.
9:00 a.m.
Revised NAESB
Standards*
1:00 p.m.
5:00 p.m.
6:00 p.m.
9:00 p.m.
*Effective April 1, 2016
12
Intraday Nomination Changes
Time Shifts -- All times CCT
Intraday 1
Intraday 2
Intraday 3
*Effective April 1, 2016
Nomination Deadline
Schedule Issued
Start of Gas Flow
IT Bump Rights
Nomination Deadline
Schedule Issued
Start of Gas Flow
IT Bump Rights
Nomination Deadline
Confirmations
Schedule Issued
Start of Gas Flow
IT Bump Rights
Current
NAESB
Standards
10:00 a.m.
2:00 p.m.
5:00 p.m.
bumpable
5:00 p.m.
9:00 p.m.
9:00 p.m.
no bump
Revised NAESB
Standards*
10:00 a.m.
1:00 p.m.
2:00 p.m.
bumpable
2:30 p.m.
5:30 p.m.
6:00 p.m.
bumpable
7:00 p.m.
9:30 p.m.
10:00 p.m.
10:00 p.m.
no bump
13
Timeline Summary
Next Gas Day2
Nomination Cycle
Alignment
Current Gas Day3
Nomination
Cycle Alignment
15:00 – 18:00
DAM – Evening
FRAC – Evening
DAM – ID2
FRAC – ID3
14:30 – 18:00
DAM – Timely
FRAC – Evening
DAM – ID2
FRAC – ID3
Timeline Description
Day-Ahead
Market Clearing
(EPT1)
Next-Day FRAC
Clearing
(EPT1)
MISO’s As-Filed Order 809
Compliance Proposal
11:00 – 14:00
FERC Compliance
Requirement
Modifications
10:30 – 13:30
Abbreviations
Notes
1
All Times Eastern Prevailing Time (EPT)
FRAC
Forward Reliability Assessment Commitment
2
The Next Gas Day - the 24 Hour Period starting at 10:00
EPT the following day
DAM
Day-Ahead Market
Timely
Timely Nomination Deadline 14:00 EPT
Evening
Evening Nomination Deadline 19:00 EPT
ID1
Intraday 1 Nomination Cycle Deadline 11:00 EPT
ID2
Intraday 2 Nomination Cycle Deadline 15:30 EPT
ID3
Intraday 3 Nomination Cycle Deadline 20:00 EPT
3
The Current Gas Day runs until 10:00 EPT the following
day
4
Summer Daylight Savings Time (DST) runs from the
second Sunday in March through the first Sunday in
November
5
Changes in Red as a result of December 17, 2015 FERC
Order
14
Revised Market Timing – Accepted
Time for
Submission of
Bids (CCT)
Time for
Publication of
Day-Ahead
Commitment
Bids (CCT)
Time for
Publication of
FRAC
Results(CCT)
New York Independent System
Operator, Inc. (NYISO)
4:00 a.m.
10:00 a.m.
10:00 a.m.
ISO New England Inc. (ISO-NE)
9:00 a.m.
12:30 p.m.
4:00 p.m.
PJM Interconnection, LLC (PJM)
9:30 a.m.
12:30 p.m.
6:30 p.m.
Midcontinent Independent
System Operator, Inc. (MISO)*
9:30 a.m.
12:30 p.m.
6:00 p.m.
Electric Reliability Council of
Texas (ERCOT)
10:30 a.m.
1:30 p.m.
5:00 p.m.
Southwest Power Pool, Inc. (SPP
9:30 a.m.
2:00 p.m.
6:15 p.m.
12:00 p.m.
3:00 p.m.
3:00 p.m.
ISO/RTO
California Independent System
Operator Corporation (CAISO)
*Per compliance requirements
15