Market Trials
Structured/Unstructured Test
Scenario Detail:
21– RTBM Capacity Scarcity
Shortages
Southwest Power Pool, Inc.
Revision History
Date or Version
Number
1.0
July 1, 2013
1.1
September
Author
SPP Operations
Change Description
Comments
Initial Version
SPP Operations
Market Trials Structured/Unstructured Test Scenario Detail
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Southwest Power Pool, Inc.
Table of Contents
Revision History ...........................................................................................................................................2
1.0 Scenario Details ...................................................................................................................................4
1.1 Scenario Description ........................................................................................................................ 4
1.2 Expected Results............................................................................................................................... 4
2.0 Market Participant Activities ............................................................................................................7
2.0.1.1
MPs with Resources ..................................................................................................................7
3.0 SPP Activities and Procedures ..........................................................................................................7
3.1 Production-Like Activities ............................................................................................................... 7
3.2 Scenario-Specific Activities .............................................................................................................. 7
3.3 SPP Automated Procedures ............................................................................................................. 7
4.0 Additional Requirements & Considerations ..................................................................................7
4.1 Additional Components Required ................................................................................................... 7
4.2 Additional Considerations ............................................................................................................... 7
4.3 Demand Curve Background ........................................................................................................... 87
Market Trials Structured/Unstructured Test Scenario Detail
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Southwest Power Pool, Inc.
1.0 Scenario Details
1.1 Scenario Description
RTBM Operating Reserve scarcity pricing will be invoked by the following conditionssub scenarios:
1.
2.
3.
4.
5.
6.
7.
8.
System-wide OR shortage only
System-wide OR shortage, Zonal OR shortage
System-wide OR shortage, System-wide REGUP shortage
System-wide REGUP shortage, Zonal OR shortage
System-wide OR shortage, System-wide REGUP shortage, Zonal OR shortage
Zonal OR shortage only
System-wide REGUP shortage only
System-wide REGDN shortage only
Scarcity pricing results from a capacity shortage on either a Reserve Zone basis or system-wide basis.
Capacity shortages do not include shortages of Operating Reserves relating to insufficient ramping
capability.
These conditions will be invoked sequentially in 4 hour blocks starting on 9/23 through 9/26. 9/27 will be
reserved for retesting of any condition that was not observed.
The scenario schedule will be executed as described below:
Sub-Scenario
1
2-a*
2-b*
3
4-a*
4-b*
5-a*
5-b*
6-a*
6-b*
7
8
Date
24-Sep
24-Sep
24-Sep
24-Sep
24-Sep
24-Sep
24-Sep
25-Sep
25-Sep
25-Sep
25-Sep
25-Sep
Time (CPT)
0900
1000
1100
1200
1300
1400
1500
0900
1000
1100
1200
1300
* a-Zones 1 and 2
* b-Zones 3 and 4
1.2 Expected Results
Following execution of the RTBM SCED, LMPs and MCPs will be communicated to the Market
Participants.
Market Trials Structured/Unstructured Test Scenario Detail
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Southwest Power Pool, Inc.
To ensure rational pricing of cleared Operating Reserve products, the SCED algorithm will include product
substitution logic as follows:
(i)
(ii)
(iii)
Any Regulation-Up Offers remaining once the Regulation-Up Requirement is satisfied may be used to
meet Contingency Reserve requirements if Regulation-Up Offer is more economic or is required to
meet the overall Operating Reserve requirement;
Any Spinning Reserve Offers remaining once the Spinning Reserve Requirement is satisfied may be
used to meet Supplemental Reserve requirements if Spinning Reserve Offer is more economic or is
required to meet the overall Operating Reserve requirement;
The product substitution logic ensures that within each reserve zone the MCP for Regulation-Up is
always greater than or equal to the Spinning Reserve MCP and that the Spinning Reserve MCP is
always greater than or equal to the Supplemental Reserve MCP.
For this scenario, even with product substitution, there will be a shortage of operating reserve cleared.
If there is an Operating Reserve shortage, Scarcity Pricing will be invoked as described under Section 4.1.5 of the
Integrated Marketplace Protocols. All applicable demand curves will be applied to the LMP when the next
additional MW of energy causes an increase in the corresponding shortage conditions. This logic explains the
application of the zonal and system-wide Demand Curves. For this scenario, we will look at the following, with
the assumption that there is no capacity shortage:
1.
System-wide OR shortage only
a. System-wide OR Demand Curve of $1100 applied to all reserve zones
i. REGUP MCP: greater than or equal to $1100/MW
ii. SPIN MCP: greater than or equal to $1100/MW
iii. SUPP MCP: equal to $1100/MW
iv. REGDN MCP: less than or equal to Regulation-Down demand Curve
2.
System-wide OR shortage, Zonal OR shortage
a. System-wide OR Demand Curve of $1100 applied to all reserve zones
b. Zonal OR Demand Curve of $1100 applied to the zone in which the Zonal OR requirement was not
met (in addition to the System-wide OR Demand Curve)
i. REGUP MCP (shortage zone): greater than or equal to $2200/MW
ii. SPIN MCP (shortage zone): greater than or equal to $2200/MW
iii. SUPP MCP (shortage zone): equal to $2200
iv. REGUP MCP (sufficient zone): greater than or equal to $1100/MW
v. SPIN MCP (sufficient zone): greater than or equal to $1100/MW
vi. SUPP MCP (sufficient zone): greater than or equal to $1100/MW
vii. REGDN MCP: less than or equal to Regulation Down demand Curve
3.
System-wide OR shortage, System-wide REGUP shortage
a. System-wide OR Demand Curve of $1100 applied to all reserve zones
b. System-wide REGUP Demand Curve of $600 applied to all reserve zones (in addition to the
System-wide OR Demand Curve)
i. REGUP MCP: greater than or equal to $1700/MW
ii. SPIN MCP: greater than or equal to $1100/MW
iii. SUPP MCP: greater than or equal to $1100/MW
iv. REGDN MCP: less than or equal to Regulation Down demand curve
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Southwest Power Pool, Inc.
4.
System-wide REGUP shortage, Zonal OR shortage
a. System-wide REGUP Demand Curve of $600 applied to all reserve zones
b. Zonal OR Demand Curve of $1100 applied to the zone in which the Zonal OR requirement was not
met (in addition to the System-wide REGUP Demand Curve)
i. REGUP MCP (shortage zone): greater than or equal to $1700/MW
ii. SPIN MCP (shortage zone): greater than or equal to $1100/MW
iii. SUPP MCP (shortage zone): greater than or equal to $1100/MW
iv. REGUP MCP (sufficient zone): greater than or equal to $600/MW
v. SPIN MCP (sufficient zone): less than or equal to Operating Reserve demand curve
vi. SUPP MCP (sufficient zone): less than or equal to Operating Reserve demand curve
vii. REGDN MCP: less than or equal to Regulation Down demand curve
5.
System-wide OR shortage, System-wide REGUP shortage, Zonal OR shortage
a. System-wide OR Demand Curve of $1100 applied to all reserve zones
b. System-wide REGUP Demand Curve of $600 applied to all reserve zones
c. Zonal OR Demand Curve of $1100 applied to the zone in which the Zonal OR requirement was not
met (in addition to the System-wide OR Demand Curve and REGUP Demand Curve)
i. REGUP MCP (shortage zone): greater than or equal to $2800/MW
ii. SPIN MCP (shortage zone): greater than or equal to $2200/MW
iii. SUPP MCP (shortage zone): equal to $2200/MW
iv. REGUP MCP (sufficient zone): greater than or equal to $1700/MW
v. SPIN MCP (sufficient zone): greater than or equal to $1100/MW
vi. SUPP MCP (sufficient zone): greater than or equal to $1100/MW
vii. REGDN MCP : less than or equal to Regulation Down demand curve
6.
Zonal OR shortage only
a. Zonal OR Demand Curve of $1100 applied to the zone in which the Zonal OR requirement was not
met
i. REGUP MCP (shortage zone): greater than or equal to $1100/MW
ii. SPIN MCP (shortage zone): greater than or equal to $1100/MW
iii. SUPP MCP (shortage zone): greater than or equal to $1100/MW
iv. REGUP MCP (sufficient zone): less than or equal to Operating Reserve demand curve.
v. SPIN MCP (sufficient zone): less than or equal to Operating Reserve demand curve.
vi. SUPP MCP (sufficient zone): less than or equal to Operating Reserve demand curve.
vii. REGDN MCP: less than or equal to Regulation Down demand curve
7.
System-wide REGUP shortage only
a. System-wide REGUP Demand Curve of $600 applied to all reserve zones
i. REGUP MCP: greater than or equal to $600/MW
ii. SPIN MCP: less than or equal to Operating Reserve demand curve.
iii. SUPP MCP: less than or equal to Operating Reserve demand curve
iv. REGDN MCP: less than or equal to Regulation Down demand curve
8.
System-wide REGDN shortage only
a.
System-wide REGDN Demand Curve of $600 applied to all reserve zones
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Southwest Power Pool, Inc.
i. REGDN MCP: greater or equal to $600/MW
*** Scenarios 1 through 8 assume the system is not capacity constrained with respect to the system RegDN
requirement
2.0 Market Participant Activities
2.0.1.1
MPs with Resources
 Market Participants activities will be same as base scenario.
 Market Participants can observe LMPs and MCPs via user interfaces.
3.0 SPP Activities and Procedures
3.1 Production-Like Activities
1.
Operators will track and exercise the tools to monitor MP performance. Calls will not be made.
3.2 Scenario-Specific Activities
1.
2.
3.
4.
Potential overrides necessary to ensure adequate data exists for the scenario:
Ensure subset of resources are offered in to supply Operating Reserves as defined in Section 1.2.
Ensure Reserve Zone Limits are established
Ensure Reserve Zone and System-Wide OR Requirements create a variety of shortage conditions.
3.3 SPP Automated Procedures

Desk procedures for RTBM and Gen Dispatch Operations 0841PCS00001
4.0 Additional Requirements & Considerations
4.1 Additional Components Required
None Applicable
4.2 Additional Considerations
SPP staff will document the results of the scenario. This documentation should include, but is not limited to, the
following:





What was the status of MP participation? Did MPs submit all data as requested? What was the quality of
the data?
How much manual intervention was required by SPP for the input data due to lack of MP participation,
quality of data, etc?
What were the results of the scenario? Did the results reflect the expected outcome?
How much manual intervention was required by SPP to execute the market and achieve a solution?
Were the results posted to the MPs by the pre-determined deadline?
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Southwest Power Pool, Inc.
4.3 Demand Curve Background
A Demand Curve is a series of quantity/price points used to set Operating Reserve Market Clearing Prices when
there is a supply shortage of Operating Reserve and to set LMPs when there is shortage of capacity to meet
Energy requirements. There are three sets of Demand Curves that apply on a system-wide basis and a Reserve Zone
basis: (1) Operating Reserve; (2) Regulation-Up; and (3) Regulation-Down. The price point for each Demand Curve
is (1) Operating Reserve = $1100; (2) Regulation-Up = $600; and (3) Regulation-Down = $600.
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