Load Serving Entity and
Transmission Customer
Residual Settlements
Nicolé K. Grottoli
Senior Market Trainer, Market Training
New York Independent System Operator
Accounting & Billing Workshop
October 18-20, 2016
Latham, New York
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
What are Residuals?

NYISO is a non-profit organization and must
remain revenue neutral - income from charges
should equal payments for credits

Residuals result from over collection or
financial imbalances

Residual Adjustments allocate cash imbalances
to withdrawal side customers (includes LSEs
and Transaction Customers)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
2
How are residuals allocated?
 Based on load ratio share of the
following:

NYISO-wide
• Load ratio share allocations for residuals exclude CTS-NE
MWHrs from the calculation
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
3
LSE and Transmission Customer
Residual Settlements
 Objectives Per Settlement Name:








Provide Settlement Description
Identify Settlement Eligibility
Name Settlement Determinants
Name Settlement Intermediates
Explain Settlement Algorithm
Step Through Settlement Scenario
Perform Settlement Example
Note Settlement Reference Material
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
4
LSE Residual Settlements
 Settlement Name:





DAM Energy Residuals
DAM Loss Residuals
Balancing Market Energy Residuals
Balancing Market Loss Residuals
Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
5
LSE Residual Settlements
 LSE DAM Energy Residual
Description

Designed to allocate any cash imbalance
(charges or payments) in NYISO’s DAM Energy
settlements, to the Market Participants
purchasing Energy as LSEs
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
6
LSE DAM Energy Residual
 Settlement Eligibility

LSEs will receive a charge or payment for DAM
Energy Residuals ($) if:
• LSE purchased energy to meet their load
requirements from the NYISO Energy markets
• Including Import and Internal Bilateral Transaction
energy, purchased from 3rd parties.
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
7
LSE DAM Energy Residual
 Settlement Determinants







Hr RT LSE Load (MWh)
Hr Total NYISO RT LSE Load (MWh)
Hr Total NYISO RT Export Trans (MWh)
Hr Total NYISO RT WT Trans (MWh)
Hr Total NYISO DAM Energy Cr to PS ($)
Hr Total NYISO DAM Energy Ch to LSE ($)
Hr Total NYISO DAM LBMP Energy Ch: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
8
LSE DAM Energy Residual
 Settlement Intermediates


Hr RT LSE Ld Ratio Sh: LSE, Exp, WT
Hr Total NYISO DAM Resid Energy ($)
 Settlement Results

Hr DAM Resid Energy Stlmnt: LSE ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
9
LSE DAM Energy Residual
 Settlement Algorithm
Hr DAM Resid Energy Stlmnt: LSE ($) =
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT * Hr Total NYISO DAM Resid Energy ($) * (-1)
Where:
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT =
Hr RT LSE Load (MWh) / {Hr Total NYISO RT LSE Load (MWh) + Hr Total NYISO RT Export
Trans (MWh) + Hr Total NYISO RT WT Trans (MWh)}
Hr Total NYISO DAM Resid Energy ($) =
Hr Total NYISO DAM Energy Cr to PS ($) + {Hr Total NYISO DAM Energy Ch to LSE ($) +
Hr Total DAM LBMP Energy Ch: TC ($)}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
10
LSE DAM Energy Residual
 Settlement Scenario

‘LSE A’ purchased energy, meeting load requirements
• 40.3555 MWh in HB 20 from NYISO Energy Market






The total NYISO RT LSE Load is 18,000.9709 MWh
The total NYISO RT Export MWh is 1,517.9988 MWh
The total NYISO RT Wheel Through MWh is 0 MWh
The total NYISO Energy Credit to PS is $292,104.53
The total NYISO Energy Charge to LSEs is $ - 274,960.73
The total NYISO LBMP Energy Charge to TCs is $ - 5,864.46
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
11
LSE DAM Energy Residual
 Settlement Example
Hr DAM Resid Energy Stlmnt: LSE ($) = $ - 23.33
$ 11,279.34 * .002068 * (-1)
Where:
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT =
40.3555 / {18,000.9709 + 1,517.9988 + 0}
Hr Total NYISO DAM Resid Energy ($) = $11,279.34
$292,104.53 + { ($-274,960.73) + ($ -5,864.46) }
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
12
LSE DAM Energy Residual
 Summary

A charge or credit to LSEs, to allocate
any cash imbalance in NYISO’s DAM
Energy settlements
• Based on RT Load Ratio Share
• Calculated on Hourly Level
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
13
LSE Residual Settlements
 Settlement Name:
 DAM




Energy Residuals
DAM Loss Residuals
Balancing Market Energy Residuals
Balancing Market Loss Residuals
Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
14
LSE Residual Settlements
 LSE DAM Loss Residual Description

Designed to allocate any cash
imbalance (charges or payments) in
NYISO’s DAM Loss settlements, to the
Market Participants purchasing Energy
as LSEs
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
15
LSE DAM Loss Residual
 Settlement Eligibility

LSEs will receive a charge or payment
for DAM Loss Residuals ($) if:
• LSE purchased energy to meet their load
requirements from the NYISO Energy
markets
• Including Import and Internal Bilateral
Transaction energy, purchased from 3rd
parties
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
16
LSE DAM Loss Residual
 Settlement Determinants








Hr RT LSE Load (MWh)
Hr Total NYISO RT LSE Load (MWh)
Hr Total NYISO RT Export Trans (MWh)
Hr Total NYISO RT WT Trans (MWh)
Hr Total NYISO DAM Loss Cr to PS ($)
Hr Total NYISO DAM Loss Ch to LSE ($)
Hr Total NYISO DAM LBMP Loss Ch: TC ($)
Hr Total NYISO DAM TUC Loss Ch: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
17
LSE DAM Loss Residual
 Settlement Intermediates


Hr RT LSE Ld Ratio Sh: LSE, Exp, WT
Hr Total NYISO DAM Resid Loss ($)
 Settlement Results

Hr DAM Resid Loss Stlmnt: LSE ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
18
LSE DAM Loss Residual
 Settlement Algorithm
Hr DAM Resid Loss Stlmnt: LSE ($) =
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT * Hr Total NYISO DAM Resid Loss ($) * (-1)
Where:
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT =
Hr RT LSE Load (MWh) / {Hr Total NYISO RT LSE Load (MWh) + Hr Total NYISO RT Export
Trans (MWh) + Hr Total NYISO RT WT Trans (MWh)}
Hr Total NYISO DAM Resid Loss ($) =
Hr Total NYISO DAM Loss Cr to PS ($) + {Hr Total NYISO DAM Loss Ch to LSE ($) +
Hr Total DAM LBMP Loss Ch: TC ($) + Hr Total NYISO DAM TUC Loss Ch: TC ($)}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
19
LSE DAM Loss Residual
 Settlement Scenario








‘LSE A’ purchased energy, meeting load requirements
• 40.3555 MWh in HB 20 from NYISO Energy Market
The total NYISO RT LSE Load is 18,000.9709 MWh
The total NYISO RT Export MWh is 1,517.9988 MWh
The total NYISO RT Wheel Through MWh is 0 MWh
The total NYISO DAM Loss Credit to PS is $7,877.90
The total NYISO DAM Loss Charge to LSEs is $ -14,459.36
The total NYISO DAM LBMP Loss Charge to TCs is $ -2,782.15
The total NYISO DAM TUC Loss Charges to TCs is $ -10,504.11
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
20
LSE DAM Loss Residual
 Settlement Example
1.
Calculate Hr RT LSE Ld Ratio Sh: LSE, Exp,
WT
2.
Calculate Hr Total NYISO DAM Resid Loss ($)
3.
Calculate Hr DAM Resid Loss Stlmnt: LSE ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
21
LSE DAM Loss Residual
 Summary

A charge or credit to LSEs, to allocate
any cash imbalance in NYISO’s DAM
Loss settlements
• Based on RT Load Ratio Share
• Calculated on Hourly Level
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
22
LSE DAM Energy and Loss
Residual Settlements
 Settlement Reference Material



MST Schedule 1 & OATT Schedule 1
Accounting and Billing Manual Section 8
Advisory Billing File
• Ancillary Services
• Residual Adjustment $
• Hourly Bill Code 611
• Daily Bill Code 813

DSS Corporate Report
• Settlement Details- Load Serving Entity - Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
23
LSE Residual Settlements
 Settlement Name:
 DAM
Energy Residuals
 DAM Loss Residuals
 Balancing Market Energy Residuals
 Balancing Market Loss Residuals
 Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
24
LSE Residual Settlements
 LSE Balancing Market Energy
Residual Description

Designed to allocate any cash imbalance
(charges or payments) in NYISO’s Balancing
Market Energy settlements, to the Market
Participants purchasing Energy as LSEs
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
25
LSE Balancing Market Energy
Residual
 Settlement Eligibility

LSEs will receive a charge or payment for
Balancing Market Energy Residuals ($) if:
• LSE purchased energy to meet their load
requirements from the NYISO Energy markets
• Including Import and Internal Bilateral Transaction
energy, purchased from 3rd parties.
• Hr Total NYISO Bal Resid Energy ($) < or > 0
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
26
LSE Balancing Market Energy
Residual
 Settlement Determinants







Hr RT LSE Load (MWh)
Hr Total NYISO RT LSE Load (MWh)
Hr Total NYISO RT Export Trans (MWh)
Hr Total NYISO RT WT Trans (MWh)
Hr Total NYISO Bal Energy Cr to PS ($)
Hr Total NYISO Bal Energy Ch to LSE ($)
Hr Total NYISO Bal LBMP Energy Ch: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
27
LSE Balancing Market Energy
Residual
 Settlement Intermediates


Hr RT LSE Ld Ratio Sh: LSE, Exp, WT
Hr Total NYISO Bal Resid Energy ($)
 Settlement Results

Hr Bal Resid Energy Stlmnt: LSE ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
28
LSE Balancing Market Energy
Residual
 Settlement Algorithm
Hr Bal Resid Energy Stlmnt: LSE ($) =
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT * Hr Total NYISO Bal Resid Energy ($) * (-1)
Where:
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT =
Hr RT LSE Load (MWh) / {Hr Total NYISO RT LSE Load (MWh) + Hr Total NYISO RT Export
Trans (MWh) + Hr Total NYISO RT WT Trans (MWh)}
Hr Total NYISO Bal Resid Energy ($) =
Hr Total NYISO Bal Energy Cr to PS ($) + {Hr Total NYISO Bal Energy Ch to LSE ($) +
Hr Total Bal LBMP Energy Ch: TC ($)}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
29
LSE Balancing Market Energy
Residual
 Settlement Scenario







‘LSE A’ purchased energy, meeting load requirements
• 40.3555 MWh in HB 3 from NYISO Energy Market
The total NYISO RT LSE Load is 18,000.9709 MWh
The total NYISO RT Export MWh is 1,517.9988 MWh
The total NYISO RT Wheel Through MWh is 0 MWh
The total NYISO Bal Energy Credit to PS is $20,209.23
The total NYISO Bal Energy Charge to LSEs is $ - 25,374.37
The total NYISO Bal LBMP Energy Charge to TCs is $3,442.17
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
30
LSE Balancing Market Energy
Residual
 Settlement Example
Hr Bal Resid Energy Stlmnt: LSE ($) = $ -3.56
$ -1,722.97 * .002068 * (-1)
Where:
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT = .002068
40.3555 / {18,000.9709 + 1,517.9988 + 0}
Hr Total NYISO Bal Resid Energy ($) = $ -1,722.97
$20,209.23 + { ($- 25,374.37) + $3,442.17}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
31
LSE Balancing Market Energy
Residual
 Summary

A charge or credit to LSEs, to allocate any cash
imbalance in NYISO’s Balancing Market Energy
settlements
• Based on RT Load Ratio Share
• Calculated on Hourly Level
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
32
LSE Residual Settlements
 Settlement Name:
 DAM
Energy Residuals
 DAM Loss Residuals
 Balancing Market Energy Residuals
 Balancing Market Loss Residuals
 Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
33
LSE Residual Settlements
 LSE Balancing Market Loss Residual
Description

Designed to allocate any cash imbalance
(charges or payments) in NYISO’s
Balancing Market Loss settlements, to
the Market Participants purchasing
Energy as LSEs
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
34
LSE Balancing Market Loss
Residual
 Settlement Eligibility

LSEs will receive a charge or payment for
Balancing Market Loss Residuals ($) if:
• LSE purchased energy to meet their load
requirements from the NYISO Energy markets
• Including Import and Internal Bilateral Transaction
energy, purchased from 3rd parties.
• Hr Total NYISO Bal Resid Energy ($) < or > 0
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
35
LSE Balancing Market Loss
Residual
 Settlement Determinants








Hr RT LSE Load (MWh)
Hr Total NYISO RT LSE Load (MWh)
Hr Total NYISO RT Export Trans (MWh)
Hr Total NYISO RT WT Trans (MWh)
Hr Total NYISO Bal Loss Cr to PS ($)
Hr Total NYISO Bal Loss Ch to LSE ($)
Hr Total NYISO Bal LBMP Loss Ch: TC ($)
Hr Total NYISO Bal TUC Loss Ch: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
36
LSE Balancing Market Loss
Residual
 Settlement Intermediates


Hr RT LSE Ld Ratio Sh: LSE, Exp, WT
Hr Total NYISO Bal Resid Loss ($)
 Settlement Results

Hr Bal Resid Loss Stlmnt: LSE ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
37
LSE Balancing Market Loss
Residual
 Settlement Algorithm
Hr Bal Resid Loss Stlmnt: LSE ($) =
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT * Hr Total NYISO Bal Resid Loss ($) * (-1)
Where:
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT =
Hr RT LSE Load (MWh) / {Hr Total NYISO RT LSE Load (MWh) + Hr Total NYISO RT Export
Trans (MWh) + Hr Total NYISO RT WT Trans (MWh)}
Hr Total NYISO Bal Resid Loss ($) =
Hr Total NYISO Bal Loss Cr to PS ($) + {Hr Total NYISO Bal Loss Ch to LSE ($) +
Hr Total Bal LBMP Loss Ch: TC ($) + Hr Total NYISO Bal TUC Loss Ch: TC ($)}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
38
LSE Balancing Market Loss
Residual
 Settlement Scenario








‘LSE A’ purchased energy, meeting load requirements
• 40.3555 MWh in HB 3 from NYISO Energy Market
The total NYISO RT LSE Load is 18,000.9709 MWh
The total NYISO RT Export MWh is 1,517.9988 MWh
The total NYISO RT Wheel Through MWh is 0 MWh
The total NYISO Bal Loss Credit to PS is $ -943.62
The total NYISO Bal Loss Charge to LSEs is $607.54
The total NYISO Bal LBMP Loss Charge to TCs is $ -450.30
The total NYISO Bal TUC Loss Charge to TCs is $72.56
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
39
LSE Balancing Market Loss
Residual
 Settlement Example
Hr Bal Resid Loss Stlmnt: LSE ($) = $ -1.48
($ -713.82) * .002068 * (-1)
Where:
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT = .002068
40.3555 / {18,000.9709 + 1,517.9988 + 0}
Hr Total NYISO Bal Resid Loss ($) = $ -713.82
($ -943.62) + {$607.54 + ($ - 450.30)+ $72.56}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
40
LSE Balancing Market Loss
Residual
 Summary

A charge or credit to LSEs, to allocate
any cash imbalance in NYISO’s
Balancing Market Loss settlements
• Based on RT Load Ratio Share
• Calculated on Hourly Level
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
41
LSE Residual Settlements
 Objectives Per Settlement Name:
 DAM
Energy Residuals
 DAM Loss Residuals
 Balancing Market Energy Residuals
 Balancing Market Loss Residuals
 Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
42
LSE Residual Settlements
 LSE Balancing Market Congestion
Residual Description

Designed to allocate any cash imbalance
(charges or payments) in NYISO’s
Balancing Market Congestion
settlements, to the Market Participants
purchasing Energy as LSEs
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
43
LSE Balancing Market
Congestion Residual
 Settlement Eligibility

LSEs will receive a charge or payment for
Balancing Market Congestion Residuals ($) if:
• LSE purchased energy to meet their load
requirements from the NYISO Energy markets
• Including Import and Internal Bilateral Transaction
energy, purchased from 3rd parties.
• Hr Total NYISO Bal Resid Energy ($) < or > 0
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
44
LSE Balancing Market
Congestion Residual
 Settlement Determinants









Hr RT LSE Load (MWh)
Hr Total NYISO RT LSE Load (MWh)
Hr Total NYISO RT Export Trans (MWh)
Hr Total NYISO RT WT Trans (MWh)
Hr Total NYISO Bal Cong Cr to PS ($)
Hr Total NYISO Bal Cong Ch to LSE ($)
Hr Total NYISO Bal LBMP Cong Ch: TC ($)
Hr Total NYISO Bal TUC Cong Ch: TC ($)
Hr Ttl NYISO RT M2M Coord Ch to RTO ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
45
LSE Balancing Market
Congestion Residual
 Settlement Intermediates


Hr RT LSE Ld Ratio Sh: LSE, Exp, WT
Hr Total NYISO Bal Resid Cong ($)
 Settlement Results

Hr Bal Resid Cong Stlmnt: LSE ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
46
LSE Balancing Market
Congestion Residual
 Settlement Algorithm
Hr Bal Resid Cong Stlmnt: LSE ($) =
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT * Hr Total NYISO Bal Resid Cong ($) * (-1)
Where:
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT =
Hr RT LSE Load (MWh) / {Hr Total NYISO RT LSE Load (MWh) + Hr Total NYISO RT
Export Trans (MWh) + Hr Total NYISO RT WT Trans (MWh)}
Hr Total NYISO Bal Resid Cong ($) =
Hr Total NYISO Bal Cong Cr to PS ($) + {Hr Total NYISO Bal Cong Ch to LSE ($) +
Hr Total Bal LBMP Cong Ch: TC ($) + Hr Total NYISO Bal TUC Cong Ch: TC ($) + Hr
Ttl NYISO RT M2M Coord Ch to RTO ($)}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
47
LSE Balancing Market
Congestion Residual
 Settlement Scenario









‘LSE A’ purchased energy, meeting load requirements
• 40.3555 MWh in HB 3 from NYISO Energy Market
The total NYISO RT LSE Load is 18,000.9709 MWh
The total NYISO RT Export MWh is 1,517.9988 MWh
The total NYISO RT Wheel Through MWh is 0 MWh
The total NYISO Bal Cong Credit to PS is $ -14,593.62
The total NYISO Bal Cong Charge to LSEs is $13,560.24
The total NYISO Bal LBMP Cong Charge to TCs is $ -2,060.50
The total NYISO Bal Cong TUC Charge to TCs is $412.76
Hr Ttl NYISO RT M2M Coord Charges to RTO is $0
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
48
LSE Balancing Market
Congestion Residual
 Settlement Example
Hr Bal Resid Cong Stlmnt: LSE ($) = $ 5.54
$-2,681.12 * .002068 * (-1)
Where:
Hr RT LSE Ld Ratio Sh: LSE, Exp, WT = .002068
40.3555 / {18,000.9709 + 1,517.9988 + 0}
Hr Total NYISO Bal Resid Cong ($) = $-2,681.12
$ -14,593.62 + {$13,560.24 + ($-2,060.50) + $412.76 + $0}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
49
LSE Balancing Market
Congestion Residual
 Summary

A charge or credit to LSEs, to allocate
any cash imbalance in NYISO’s
Balancing Market Congestion
settlements
• Based on RT Load Ratio Share
• Calculated on Hourly Level
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
50
LSE Balancing Market Energy, Loss
and Congestion Residual Settlement
 Settlement Reference Material



MST Schedule 1 & OATT Schedule 1
Accounting and Billing Manual Section 8
Advisory Billing File
• Ancillary Services
• Residual Adjustment $
• Hourly Bill Code 611
• Daily Bill Code 813

DSS Corporate Report
• Settlement Details- Load Serving Entity - Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
51
LSE Residual Settlements
 Concept Re-Cap

Residual Adjustments are designed to
allocate cash imbalances
a) True
b) False

Residual Adjustment Allocations are
based in part on RT Load Ratio Share
a) True
b) False
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
52
LSE Residual Settlements
 Settlement Name:
DAM Energy Residuals
DAM Loss Residuals
Balancing Market Energy Residuals
Balancing Market Loss Residuals
Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
53
Transaction Customer
Residual Settlements
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
Transaction Customer – Residual
Settlements
 Settlement Name:





DAM Energy Residuals
DAM Loss Residuals
Balancing Market Energy Residuals
Balancing Market Loss Residuals
Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
55
Transaction Customer –
Residual Settlements
 Transaction Customer DAM Energy
Residual Description:

Designed to allocate (charge or payment)
any cash imbalance in NYISO’s DAM
Energy settlements to the Market
Participants transacting energy via export
and/or wheel-through transactions
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
56
Transaction Customer DAM
Energy Residuals
 Settlement Eligibility:

Transaction Customers will receive a charge or
payment for DAM Energy Residuals ($) if all of the
following conditions exist:
• The Transaction Customer transacted energy via exports
and/or wheel-throughs
• Hr RT Export Trans: TC (MW) > 0 or Hr RT Wheel-Thru
Trans: TC (MW) > 0
• There is a NYISO DAM Energy Residual ($) for the given
hour
• Hr Total NYISO DAM Resid Energy ($) <> 0
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
57
Transaction Customer DAM
Energy Residuals
 Settlement Determinants:








Hr RT Export Trans: TC (MWh)
Hr RT Wheel-Thru Trans: TC (MWh)
Hr Total NYISO RT LSE Load (MWh)
Hr Total NYISO RT Export Trans (MWh)
Hr Total NYISO RT WT Trans (MWh)
Hr Ttl NYISO DAM Engy Cr to PS ($)
Hr Ttl NYISO DAM Engy Ch to LSE ($)
Hr Ttl NYISO DAMLBMP Engy Ch: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
58
Transaction Customer DAM
Energy Residuals
 Settlement Intermediates:


Hr RT TC Ld Ratio Sh: LSE, Exp, WT
Hr Total NYISO DAM Resid Energy ($)
 Settlement Results:

Hr DAM Resid Enrgy Stlmnt: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
59
Transaction Customer DAM
Energy Residuals
 Settlement Algorithm:
Hr DAM Resid Enrgy Stlmnt: TC ($) =
(Hr RT TC Ld Ratio Sh: LSE, Exp, WT * Hr Total NYISO DAM Resid Energy
($)) * -1
Where:
Hr RT TC Ld Ratio Sh: LSE, Exp, WT = {Hr RT Export Trans: TC (MWh) + Hr
RT Wheel-Thru Trans: TC (MWh)} /
{Hr Total NYISO RT LSE Load (MWh) + Hr Total NYISO RT Export Trans
(MWh) + Hr Total NYISO RT WT Trans (MWh)}
Hr Total NYISO DAM Resid Energy ($) =
Hr Ttl NYISO DAM Engy Cr to PS ($) + {Hr Ttl NYISO DAM Engy Ch to LSE ($)
+ Hr Ttl NYISO DAM LBMP Engy Ch: TC ($)}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
60
Transaction Customer DAM
Energy Residuals
Settlement Scenario:
For Hour 0800 – 0900 the following data was recorded:








Hourly RT Export Transaction Schedule for Jack’s Energy = 500 MWs
Hourly Wheel-through Transaction Schedule for Jack’s Energy = 0 MWs
Hourly Total NYISO RT LSE Load = 14,000 MWs
Hourly Total NYISO RT Export Transactions = 1,200 MWs
Hourly Total NYISO RT Wheel-Thru = 60 MWs
Hourly Total NYISO DA Market Credit to Power Suppliers = $ 476,000
Hourly total NYISO DA Market Charge to LSEs = $ - 470,000
Hourly Total NYISO DA Market Charge to Trans Customers = $ -97,000
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
61
Transaction Customer DAM
Energy Residuals
Settlement Example:
Calculate:
1. The 0800 – 900 hourly Real Time Transaction Customer
Jack’s
Energy load share ratio
(500 + 0)/(14,000+1,200+60)=3.28%
2.
The Hourly Total NYISO Day Ahead Market Residual
Energy ($) for DA hour 0800
476,000 + (-470,000+(-97,000)) = -$91,000
3.
The 0800 - 0900 Hourly DA Market Residual Settlement for
Jack’s Energy
.0328 * (-$91,000 * -1) = $2,984.80
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
62
Transaction Customer – Residual
Settlements
 Settlement Name:
 DAM Energy Residuals

DAM Loss Residuals
 Balancing Market Energy Residuals
 Balancing Market Loss Residuals
 Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
63
Transaction Customer DAM
Loss Residuals
 Transaction Customer DAM Loss
Residual Settlement Description:

Designed to allocate (charge or payment)
any cash imbalance in NYISO’s DAM
Loss settlements to the Market
Participants transacting energy via
export and/or wheel-through
transactions
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
64
Transaction Customer DAM
Loss Residuals
 Settlement Eligibility:

Transaction Customers will receive a charge or
payment for DAM Loss Residuals ($) if all of the
following conditions exist:
• The Transaction Customer transacted energy via exports
and/or wheel-throughs
• Hr RT Export Trans: TC (MW) > 0 or Hr RT Wheel-Thru Trans: TC
(MW) > 0)
• There is a NYISO DAM Loss Residual ($) for the given hour
• Hr Total NYISO DAM Resid Loss ($) <> 0
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
65
Transaction Customer DAM
Loss Residuals
 Settlement Determinants:









Hr RT Export Trans: TC (MWh)
Hr RT Wheel-Thru Trans: TC (MWh)
Hr Total NYISO RT LSE Load (MWh)
Hr Total NYISO RT Export Trans (MWh)
Hr Total NYISO RT WT Trans (MWh)
Hr Ttl NYISO DAM Loss Cr to PS ($)
Hr Ttl NYISO DAM Loss Ch to LSE ($)
Hr Ttl NYISO DAM LBMP Lss Ch: TC ($)
Hr Ttl NYISO DAM TUC Lss Ch: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
66
Transaction Customer DAM
Loss Residuals
 Settlement Intermediates:


Hr RT TC Ld Ratio Sh :LSE, Exp, WT
Hr Total NYISO DAM Resid Loss ($)
 Settlement Results:

Hr DAM Resid Loss Stlmnt :TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
67
Transaction Customer DAM
Loss Residuals
 Settlement Algorithm:
Hr DAM Resid Loss Stlmnt: TC ($) =
(Hr RT TC Ld Ratio Sh: LSE, Exp, WT * Hr Total NYISO DAM Resid
Loss ($)) * -1)
Where:
Hr RT TC Ld Ratio Sh: LSE, Exp, WT =
{Hr RT Export Trans: TC (MWh) + Hr RT Wheel-Thru Trans: TC (MWh)} /
{Hr Total NYISO RT LSE Load (MWh) + Hr Total NYISO RT Export Trans
(MWh) + Hr Total NYISO RT WT Trans (MWh)}
Hr Total NYISO DAM Resid Loss ($) =
Hr Ttl NYISO DAM Loss Cr to PS ($) + {Hr Ttl NYISO DAM Loss Ch to LSE ($)
+ Hr Ttl NYISO DAM LBMP Lss Ch: TC ($) + Hr Ttl NYISO DAM TUC Lss
Ch: TC ($)}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
68
Transaction Customer – Residual
Settlements
 Settlement Name:
 DAM Energy Residuals
 DAM Loss Residuals

Balancing Market Energy Residuals
 Balancing Market Loss Residuals
 Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
69
Transaction Customer Balancing
Market Energy Residuals
 Transaction Customer Balancing
Market Energy Residual Settlement
Description:

Designed to allocate (charge or payment)
any cash imbalance in NYISO’s Balancing
Market Energy settlements to the Market
Participants transacting energy via export
and/or wheel-through transactions
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
70
Transaction Customer Balancing
Market Energy Residuals
 Settlement Eligibility:
 Transaction Customers will receive a charge or
payment for Balancing Market Energy Residuals ($)
if all of the following conditions exist:
•
The Transaction Customer transacted energy via exports
and/or wheel-throughs
• Hr RT Export Trans: TC (MW) > 0 or Hr RT Wheel-Thru Trans: TC
(MW) > 0).
•
There is a NYISO Balancing Market Energy Residual ($) for
the given hour
• Hr Total NYISO Bal Resid Energy ($) <> 0
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
71
Transaction Customer Balancing
Market Energy Residuals
 Settlement Determinants:








Hr RT Export Trans: TC (MWh)
Hr RT Wheel-Thru Trans: TC (MWh)
Hr Total NYISO RT LSE Load (MWh)
Hr Total NYISO RT Export Trans (MWh)
Hr Total NYISO RT WT Trans (MWh)
Hr Ttl NYISO Bal Engy Cr to PS ($)
Hr Ttl NYISO Bal Engy Ch to LSE ($)
Hr Ttl NYISO BalLBMP Engy Ch: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
72
Transaction Customer Balancing
Market Energy Residuals
 Settlement Intermediates:


Hr RT TC Ld Ratio Sh: LSE, Exp, WT
Hr Total NYISO Bal Resid Energy ($)
 Settlement Results:

Hr Bal Resid Enrgy Stlmnt: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
73
Transaction Customer Balancing
Market Energy Residuals
 Settlement Algorithm:
Hr Bal Resid Enrgy Stlmnt: TC ($) =
(Hr RT TC Ld Ratio Sh: LSE, Exp, WT * Hr Total NYISO Bal Resid Energy ($)) * -1)
Where:
Hr RT TC Ld Ratio Sh: LSE, Exp, WT =
{Hr RT Export Trans: TC (MWh) + Hr RT Wheel-Thru Trans: TC (MWh)} /
{Hr Total NYISO RT LSE Load (MWh) + Hr Total NYISO RT Export Trans
(MWh) + Hr Total NYISO RT WT Trans (MWh)}
Hr Total NYISO Bal Resid Energy ($) =
Hr Ttl NYISO Bal Engy Cr to PS ($) + {Hr Ttl NYISO Bal Engy Ch to LSE ($) +
Hr Ttl NYISO Bal LBMP Engy Ch: TC ($)}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
74
Transaction Customer – Residual
Settlements
 Settlement Name:
 DAM Energy Residuals
 DAM Loss Residuals
 Balancing Market Energy Residuals

Balancing Market Loss Residuals
 Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
75
Transaction Customer Balancing
Market Loss Residuals
 Transaction Customer Balancing
Market Loss Residual Settlement
Description:

Designed to allocate (charge or payment)
any cash imbalance in NYISO’s Balancing
Market Loss settlements to the Market
Participants transacting energy via export
and/or wheel-through transactions
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
76
Transaction Customer Balancing
Market Loss Residuals
 Settlement Eligibility:

Transaction Customers will receive a charge or
payment for Balancing Market Loss Residuals ($)
if all of the following conditions exist:
•
The Transaction Customer transacted energy via exports
and/or wheel-throughs
• Hr RT Export Trans: TC (MW) > 0 or Hr RT Wheel-Thru Trans: TC
(MW) > 0
•
There is a NYISO Balancing Market Loss Residual ($) for
the given hour
• Hr Total NYISO Bal Resid Loss ($) <> 0
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
77
Transaction Customer Balancing
Market Loss Residuals
 Settlement Determinants:









Hr RT Export Trans: TC (MWh)
Hr RT Wheel-Thru Trans: TC (MWh)
Hr Total NYISO RT LSE Load (MWh)
Hr Total NYISO RT Export Trans (MWh)
Hr Total NYISO RT WT Trans (MWh)
Hr Ttl NYISO Bal Loss Cr to PS ($)
Hr Ttl NYISO Bal Loss Ch to LSE ($)
Hr Ttl NYISO Bal LBMP Lss Ch: TC ($)
Hr Ttl NYISO Bal TUC Lss Chg: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
78
Transaction Customer Balancing
Market Loss Residuals
 Settlement Intermediates:


Hr RT TC Ld Ratio Sh: LSE, Exp, WT
Hr Total NYISO Bal Resid Loss ($)
 Settlement Results:

Hr Bal Resid Loss Stlmnt: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
79
Transaction Customer Balancing
Market Loss Residuals
 Settlement Algorithm:
Hr Bal Resid Loss Stlmnt: TC ($) =
(Hr RT TC Ld Ratio Sh: LSE, Exp, WT * Hr Total NYISO Bal Resid Loss ($)) * -1
Where:
Hr RT TC Ld Ratio Sh: LSE, Exp, WT =
{Hr RT Export Trans: TC (MWh) + Hr RT Wheel - Thru Trans: TC (MWh)} ÷
{Hr Total NYISO RT LSE Load (MWh) + Hr Total NYISO RT Export Trans (MWh)
+ Hr Total NYISO RT WT Trans (MWh)}
Hr Total NYISO Bal Resid Loss ($) =
Hr Ttl NYISO Bal Loss Cr to PS ($) + {Hr Ttl NYISO Bal Loss Ch to LSE ($) + Hr
Ttl NYISO Bal LBMP Lss Ch: TC ($) + Hr Ttl NYISO Bal TUC Lss Chg: TC ($)}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
80
Transaction Customer – Residual
Settlements
 Settlement Name:
 DAM Energy Residuals
 DAM Loss Residuals
 Balancing Market Energy Residuals
 Balancing Market Loss Residuals

Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
81
Transaction Customer Balancing
Market Congestion Residuals
 Transaction Customer Balancing
Market Congestion Residual
Settlement Description:

Designed to allocate (charge or payment)
any cash imbalance in NYISO’s
Balancing Market Congestion
settlements to the Market Participants
transacting energy via export and/or
wheel-through transactions
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
82
Transaction Customer Balancing
Market Congestion Residuals
 Settlement Eligibility:

Transaction Customers will receive a charge or
payment for Balancing Market Congestion
Residuals ($) if all of the following conditions
exist:
•
The Transaction Customer transacted energy via exports
and/or wheel-throughs
• Hr RT Export Trans: TC (MW) > 0 or Hr RT Wheel-Thru Trans :TC
(MW) > 0
•
There is a NYISO Balancing Market Congestion Residual ($)
for the given hour
• Hr Total NYISO Bal Resid Cong ($) <> 0
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
83
Transaction Customer Balancing
Market Congestion Residuals
 Settlement Determinants:










Hr RT Export Trans: TC (MWh)
Hr RT Wheel-Thru Trans: TC (MWh)
Hr Total NYISO RT LSE Load (MWh)
Hr Total NYISO RT Export Trans (MWh)
Hr Total NYISO RT WT Trans (MWh)
Hr Ttl NYISO Bal Cong Cr to PS ($)
Hr Ttl NYISO Bal Cong Ch to LSE ($)
Hr Ttl NYISO Bal LBMP Cng Ch to TC ($)
Hr Ttl NYISO Bal TUC Cng Ch to TC ($)
Hr Ttl NYISO RT M2M Coord Ch to RTO ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
84
Transaction Customer Balancing
Market Congestion Residuals
 Settlement Intermediates:


Hr RT TC Ld Ratio Sh: LSE, Exp, WT
Hr Total NYISO Bal Resid Cong ($)
 Settlement Results:

Hr Bal Resid Cong Stlmnt: TC ($)
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
85
Transaction Customer Balancing
Market Congestion Residuals
 Settlement Algorithm:
Hr Bal Resid Cong Stlmnt: TC ($) =
(Hr RT TC Ld Ratio Sh: LSE, Exp, WT * Hr Total NYISO Bal Resid Cong ($)) * -1
Where:
Hr RT TC Ld Ratio Sh: LSE, Exp, WT =
{Hr RT Export Trans: TC (MWh) + Hr RT Wheel-Thru Trans: TC (MWh)} /
{Hr Total NYISO RT LSE Load (MWh) + Hr Total NYISO RT Export Trans
(MWh) + Hr Total NYISO RT WT Trans (MWh)}
Hr Total NYISO Bal Resid Cong ($) =
Hr Ttl NYISO Bal Cong Cr to PS ($) + {Hr Ttl NYISO Bal Cong Ch to LSE ($) +
Hr Ttl NYISO Bal LBMP CngCh: TC ($) + Hr Ttl NYISO Bal TUC CngCh to TC
($) + Hr Ttl NYISO RT M2M Coord Ch to RTO ($)}
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
86
Transaction Customer – Residual
Settlements
 Settlement Name:





DAM Energy Residuals
DAM Loss Residuals
Balancing Market Energy Residuals
Balancing Market Loss Residuals
Balancing Market Congestion Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
87
Residuals
 Summary

Purpose is to allow NYISO to remain
revenue neutral

Based on Load ratio share

DAM Congestion Balancing is not
included for transaction customers –
addressed in Transmission Congestion
Contracts (TCC) Module
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
88
Transaction Customer - Residuals
Settlement Reference Material:
 Tariff Reference

OATT – Schedule 1, Section 6.1.8
 Accounting and Billing Manual

Section 8.1.7, Appendix M
 Advisory Billing File



Transaction Customer Section
• Residual Adjustment $
Hourly Bill Code: 611
Daily Bill Code: 813
 DSS Corporate Report

Settlement Details – Transaction Customer – Residuals
© 2016 New York Independent System Operator, Inc. All Rights Reserved.
For Training Purposes Only
89