Release User Group Agenda 10:00 a.m. 11:00 a.m. (Pacific Time)

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1 Release User Group Agenda March 18th, :00 a.m. 11:00 a.m. (Pacific Time) Web Conference Information URL: Meeting Number: Access Code: Conference Call Information Domestic Call In: (866) International Call In: (216) Access Code:

2 Release User Group Agenda March 18th, :00 a.m. 11:00 a.m. (Pacific Time) Time Topic Facilitator 10:00 10:05 Agenda & ISO Roll call Janet Morris 10:05 10:30 Release Plan Adrian Chiosea Elli Johnston Jeff Dawson Jeremy Malekos Kristen Kelley Natasha Sodhi Roxann Hall John Williams Chris McIntosh Eureka Cullado Indu Nambiar LuAnn Rivera Yinka Ajede 10:30 11:00 FERC 764 Implementation Working Group Jeremy Malekos Page 2

3 The ISO offers comprehensive training programs Date April 8 April 9 April April 24 Training Introduction to ISO Markets classroom training ISO Market Transactions classroom training Introduction to ISO Markets, ISO Market Transactions, Settlements 101 Houston - classroom training Welcome to the ISO - webinar Training calendar - Contact us - markettraining@caiso.com Page 3

4 Release Plan 2014 March 24, 2014 FERC Order 784 April 1, 2014 One-for-Many Substitution Spring 2014 May 1, 2014 Post Emergency Filing BCR changes / Mandatory MSG is combined with RIMPR-Phase 1 / BCR Mitigation Measures / Bid Floor Cap FERC Order 764 Compliance / 15 Minute Market / Dynamic Transfers RDRP activation / FERC 745 Compliance Revisions to Price Corrections Replacement Requirement for Scheduled Generation Outages - MF RDT May 19, 2014 and June 2, 2014 Acceptable Use Policy Phase 1 and Phase 2 Fall 2014 October 1, 2014 Energy Imbalance Market (EIM) Full Network Model Expansion Many-to-Many Substitution Outage Management System Replacement (OMS) Circular Scheduling Flexible Resource Adequacy Criteria and Must Offer Obligation (FRAC-MOO) FERC Order 789 Reliability Standard BAL-002 Independent efforts Contingency Modeling Enhancements Page 4

5 Release Plan 2015 Spring 2015 Maintenance Release No major functional changes Enhancements or other changes required for summer operations Minor design changes resulting from the Fall 2014 release Other system maintenance as needed Fall 2015 (tentative) Energy Imbalance Market (EIM) 2015 BAL-003 Compliance (Frequency Response) Subset of Hours RIMS functional enhancements OMAR replacement project ADS User Interface Replacement and Web Service Standardization Expanding Metering and Telemetry Options Reliability Services Auction - tentative based on policy phase Flexible Ramping Product tentative based on policy phase Subject to further release planning: DRS API Deployment Commitment Costs Enhancements Page 5

6 2014 Release Schedule Page 6

7 FERC Order 784 Milestone Details/Date Status Application Software Changes Board Approval BPM Changes External Business Requirements FERC Order 784 directs each public utility transmission provider to post historical one-minute and ten-minute average Area Control Error (ACE) data on their Open Access Same Time Systems (OASIS). The ISO will annually post historical one-minute and ten-minute average ACE data from the prior year on its OASIS starting in the spring of OASIS: Post the ACE data, allow the public to access and download the data via OASIS. N/A Market Operation: Describe the ACE post on OASIS. N/A Technical Specifications N/A Draft Configuration Guides N/A Market Simulation Phase 1 N/A Tariff N/A Deployment Date March 24, 2014 Production Activation Date March 24, 2014 Page 7

8 FERC Order 784 Page 8

9 One-for-Many Substitution Interim manual solution to accommodate one-for-many outage substitutions in advance of full functionality scheduled for Fall 2014 release Milestone Details/Date Status Draft Proposal/Tariff Language Posted December 23, 2013 Stakeholder Comments Due January 3, 2014 Stakeholder Call January 10, 2014 Stakeholder Comments Due January 17, 2014 FERC Filing January 30, 2014 User Guide & Template Posted March 19, 2014 BPM Implementation March TBD, 2014 Reliability Requirements April 1, 2014 Trade Day (NEW) Page 9

10 Spring 2014 Market Simulation and Deployment Plan The ISO has posted an updated draft of the market simulation spring 2014 release plan to its website on 2/7/14: FERC Order 764 Structured scenarios updated 3/3/14: DynamicTransfersStructuredScenarios.pdf FERC Order 764 Unstructured scenarios: UnstructuredScenarioRequestsV1_0.xls Bid Floor Cap Structured scenario updated 2/26/14 : BidFloorStructuredScenarios.pdf Bi Weekly presentations with updated known issues: %20spring%202014%20release The plan includes the following initiatives, enhancements and activations: FERC Order Number 764 market changes with Dynamic Transfers Bid cost recovery (BCR) mitigation measures Revisions to Price Corrections Mandatory multi-stage generation (MSG) Renewable integration market and product review (RIMPR) phase 1 RDRP Activation / FERC 745 Compliance ISO has received MP feedback and will be reviewing it internally. Acceptable Use Policy Phase 1 OASIS enforcement Please send comments to ISO Market Simulation Coordinator at MarketSim@caiso.com Deployment plan posted:

11 2014 Spring Release Master File RDT changes Details/Date GRDT RESOURCE Tab: Removed RA Flag and RA Capacity (these are now available from CIRA) Added CERT_BLKSTRT (read only) Added Min Load Adder Amount (read only) Added VER_YN Added FORECAST_SELECTION (valid values Gare ISO and SC) STARTUP Tab Added Startup Adder Amount (read only) MSG_CONFIG Tab Removed Default RA Provider Added Min Load Adder Amount (read only) Added RA Range Min and Max TRANSITION Tab Removed Default RA Path Sequence CONFIG_STRT Tab Added Startup Adder Amount (read only) IRDT Removed RA Flag and RA Capacity (these are now available from CIRA) Added Hourly Pre-Dispatch. Modifiable. Valid values are Y and N If Hour Pre-Dispatch is set to Null (or previous version of IRDT is used), Hourly Pre-Dispatch will be left at its current approved value

12 2014 Spring Release 5/1 Meter granularity due 4/17/14 The default submission interval for all generators not providing Ancillary Services or Imbalance Energy SQMD will be hourly, unless the Scheduling Coordinator submits a request for submitting data in 5 or 15 minutes based on an effective trade date for each resource id to the MDAS mailbox at mdas@caiso.com on or before April 17, 2014.

13 Spring 2014 RIMPR Phase 1 / BCR Mitigation / Bid Floor Application Software Changes Implementation Impact Assessment IFM/RTM: Energy Bid Floor to -$150/MWh MQS: Modify MLC calculation and cost allocation rules. Change DA MLC determination Program PUIE calculation (may need to change MQS energy algorithm) Split netting between DA and RT markets. Settlements: Requires a tune-up on formulas to determine the ON criteria for resources, and the eligibility for Bid Cost Recovery. Modify and build up to 12 charge codes to implement new BCR netting rules and MLC. Program PUIE (persistent UIE) calculation. Program new RT PM (performance metric) calculation. Offset DA MLC by MLE revenues. Develop a number of BCR mitigation measurements SIBR: SIBR rule changes will be needed to change the bid floor from -$30 (soft) to -$150 (hard). CMRI: RTM to publish all advisory schedules including current and next hour in the horizon for RTPD runs Post relevant startup or transition time period for each startup cost or transition cost period from MQS in the commitment cost report Post energy allocation based on the default energy bid Post relevant startup ramp time or transition ramp time periods from MQS Monthly Market Reports incorporating greater granularity in reporting BCR components have been made available. Page 13

14 Spring 2014 RIMPR Phase 1 / BCR Mitigation / Bid Floor Milestone Details/Date Status Business Practice Manuals (BPMs) February 7, submitted to PRR process (709, 715, 716, 717) Bid Floor and BCR netting: December 15-16, 2011 Board Approval Post Emergency BCR / Mandatory MSG: Feb 15, 2012 BCR Mitigation Measures: December, 2012 External Business Requirements April 19, 2013 (Post Emergency BCR posted on Feb 1, 2013) Technical Specifications October 30, 2013 DRAFT Bill Determinant Matrix December 27, 2013 Draft Configuration Guides Released in conjunction with FERC 764 on 11/14/13, 11/21/13 and 12/5/13 DRAFT & 2 nd DRAFT Configuration Output File January 10, 2014, January 28, 2014 (Final to be posted upon deployment) Stakeholder Training Functionality/Reports - January 22/23, Settlements - January 29/30, 2014 Market Simulation February 3, 2014 April 18, 2014 Mandatory MSG Filed July 30, 2013 (order pending) Tariff Filing Date RI-MPR/BCR Filed September 24, 2013 FERC Order Received RIMPR/BCR December 19,2013 ISO Compliance Filing January 22, 2014 MSG Registration April 9, 2014: Form, GRDT, Transition Cost Validation Spreadsheet, Min Up/Down Time by Group Configurations RegistrationGuideBook-Draft.pdf Production Activation Spring 2014 (May 1, 2014) Page 14

15 Spring FERC Order 764 Application Software Changes Implementation Impact Assessment MasterFile: Identify variable energy resources and their selection of using ISO VER forecast or their own VER forecast. SIBR: Allow market participants to submit 5-minute VER forecast with a 2-hour lookahead window Allow an intertie various additional bidding options: An hourly block schedule A single curtailment for the remainder of the hour with block schedule Option to determine 15-minute market participation if not accepted in the hourly process IFM/RTM: A new 15-Minute market with financially binding energy and AS awards for internal generators, imports/exports, and participating loads. Real time bid submission process remains same Cleared against the CASIO forecast of real time demand Executed 37.5 minutes prior to the start of the binding interval, 15 minutes earlier than the current 22.5 minute prior to the binding of RTUC run Allow a number of bidding options for an intertie A new hourly process to produce the advisory hourly block schedule for the non-dynamic intertie transaction that will be used for subsequent 15- minute market. Convergence bidding will be allowed on intertie scheduling point. All convergence bids will be settled between the day-ahead market and the 15-minute market The physical only constraint at the scheduling point of the dual constraints not enforced in the IFM but enforced in RUC. RUC establishes the number of etags it can accept for day-ahead physical market awards. 15-minute market and 5-minute market dispatch VER based on its economic energy bid and use forecast as its upper operation limit Support Primary/Alternative ITC for DS/PTG Slide 15

16 Spring FERC Order 764 Implementation Impact Assessment Application Software Changes CAS: Perform scheduling check-out based on the 15-minute based schedules and tag energy profile Perform the tag update/approval by the hourly deadline T-20 for various intertie bidding options Receive and consume the RUC cleared capacity for day-ahead tagging check-out purpose Receive and consume the RTPD 15-minute schedules for tagging check-out purpose Automatically match retag DS/PTG schedule from the primary ITC to the alternative ITC when the primary ITC become open ADS As the HASP will be replaced the hourly process to accept the block schedule and the hourly process schedule is advisory, no more HASP predispatch schedules will be issued through ADS Settlements: 15-minute energy settlements will be based on the 15-minute schedule and the dayahead energy schedule. 5-minute energy settlement will be based on the difference of 15-minute schedule and 5-minute dispatch. All metering related settlement will be changed to 5-minute base. Real-time Inter-SC trades based on 15-minute price. Metering: 10-minute metering data changed to 5-minute metering data CMRI will report the following forecast data: MarketForecastType: RTUC ( all binding and advisory 15-mintue intervals) and RTD ( all binding and advisory 5-mintue interval). Published at the same time as RTUC/RTD awards are currently published. The forecast data finally used in RTUC/RTD and available after the market runs. OASIS: Report OTC and ATC output from the IFM, Hourly Process and the 15-minute market. Report the 15-minute market LMP. DLAP/CLAP load forecast (including potential operator bias) from the market system Slide 16

17 Spring FERC Order 764 Milestone BPM Changes Business Process Changes Details/Date Market Operation, Market Instruments Metering (No impact see updated Market notice) Settlements & Billing, Definitions & Acronyms Manage Master file: Identify variable energy resources and their selection of using ISO VER forecast or their own VER forecast DA and RT processes: A new financially binding 15 minute scheduling market run for import, export, internal resources and loads Settlements: 15-minute market settlement Price Correction and Validation: Price Validation and correction tools and/or proposed MVT tool shall be modified to include 15-minute market Price validation. Interchange Scheduling: Update/approval etag hourly transmission profile and the 15-minute energy profile for various intertie bidding options. Manage Metering: Metering data for settlement for both CAISO ME polled data and SC submitted data are changed to 5-minute. Analysis Dispute and Resolution: expanded to include validation rules and corrections for the 15-minute market solution. Market Performance (MAD/DMM): expanded to monitor market performance related to the 15-minute market scheduling and settlement. Training: Training will be needed to train Operator/Analysts on the 15-minute market scheduling and settlement. Slide 17

18 Spring FERC Order 764 Milestone Details/Date Status Board Approval May 15, 2013 May 20 th MasterFile and SIBR External Business Requirements May 24 th Metering and Settlements June 3 rd ADS, OASIS and CMRI Complete BRS: June 21, 2013 Sep 13 th - MasterFile (updated 11/7) Oct 1 st - SIBR (updated 10/28) Technical Specifications Oct 16 th - OASIS Oct 30 th - CMRI Oct 25 th - ADS Nov 22 nd - Metering functional spec. Draft Expected Energy Formula Calculation (posted 12/9) Draft Updated BPMs Draft Market Instrument Dec 23 rd Draft Market Operations Dec 23 rd All draft configuration guides posted Draft Configuration Guides Bill determinants matrix - posted first draft 12/13 Draft configuration output file Jan 28, 2014 Initial Draft Mkt Sim Plan and Scenarios posted on 11/13/13 Market Simulation SIBR-Lite 1/9/14 Feb 3 Mar 31, 2014 Tariff Filed on Nov 26, 2013 Production Activation Spring 2014 (May 1, 2014) Page 18

19 Spring FERC Order 764 CMRI Page 19

20 Spring FERC Order 764 OASIS Page 20

21 Spring FERC Order 764 OASIS Page 21

22 Spring FERC Order 764 ADS API ADS Client The download is available on the MPP at: Page 22

23 Spring RDRP Activation / FERC 745 Compliance Milestone Details/Date Status Application Software Changes Activation of Reliability Demand Response Product (RDRP) including FERC Order 745 compliance. BPM Changes Board Approval External Business Requirements Metering (re-include what was originally removed) Market Operations Not Required See: iabilitydemandresponseproduct.aspx Updated BPMs Feb 12, 2014 Market Simulation May 13 15, 2014 Tariff Aug 19 th, 2013 Compliance filing Production Activation Spring 2014 (May 1, 2014) Page 23

24 Spring 2014 Revisions to Price Corrections Milestone Details/Date Status Application Software Changes BPM Changes Purpose: Identify improvements in price correction rules and requirements, and time horizon for price corrections MQS: Calculation and publication change SIBR: Workflow changes to accommodate change of closing time for inter schedule trades OASIS: Publishing times from MQS February 7, 2014 Market Operations Market Instruments Board Approval September 12, 2013 External Business Requirements November 18, 2013 Market Simulation February 17 March 7, 2014 Tariff Post: December 18, 2013 File: January 30, 2014 Production Activation Spring 2014: May 1, 2014 Page 24

25 Spring 2014 Revisions to Price Corrections Page 25

26 2014 Replacement Requirement for Scheduled Generation Outages - RAAM Deployment, MF RDT and IRR Decommissioning Milestone Details/Date Status Application Software Changes Next Monthly RR Workshop RA Range to MSG Config Mapping Market Simulation (MF RDT only) Tariff RAAM: Moving RAAM Replacement functionality to new CIRA IRR: Decommission MF (RDT): Removing RA flag, RA Capacity, Provider Flag, Default Path Sequence; adding RA Range for mapping RA Range to MSG Configurations March 19, 2013, 2:00 pm December 17, 2013 Production data provided by stakeholders already populated in MF. After Spring Release, use RDT to make changes. February 3 March 31, 2014 (Master File RDT - RA Range Mapping) FERC Order Conditionally Accepting Replacement Requirements November 19, 1012 FERC Order approving MSG Tariff change December 11, 2013 Production Activation RAAM February 18, 2014 (replacement functionality moving to CIRA) MF RDT Spring Release 2014 (April 1, 2014) December 17, 2013 No longer use IRR for RA Monthly plan submittals (beginning with March 2014 RA compliance month) - use CIRA January 20, 2014 No longer use IRR after the cure period for the February 2014 Compliance month runs use CIRA Production Decommission February 18, 2014 Replacement Functionality will no longer be available in RAAM use CIRA for March compliance month onwards February 18, February 28, 2014 submit supplier replacements using existing manual process for Feb compliance month only February 18, 2014 IRR no longer available to market participants Page 26

27 2014 Acceptable Use Policy Milestone Details/Date Status Application Software Changes Market Notice icyjan14_2014.htm Phase 1: No modifications to applications, logging only Phase 2: Client certificates mandatory for web services, use policy enforcement Impacted Applications: CMRI, MF, DRS, SIBR and OASIS (nocertificate required) Board Approval BPM Changes External Business Requirements N/A N/A N/A Technical Specifications March 10, 2014 Draft Configuration Guides N/A Market Simulation Phase 1 (OASIS) Logging February 10, 2014 Enforcement March 2014 Market Simulation Phase 2 April 1, 2014 Production Activation Date Phase 1 May 19, 2014 (Enforcement for OASIS) Production Activation Date Phase 2 June 2, 2014 (Enforcement for CMRI, MF, DRS and SIBR ) Page 27

28 Fall 2014 Energy Imbalance Market (EIM) Milestone Application Software Changes Details/Date Master File: Register EIM entity, EIM resources, EIM resource emission rate, EIM Interties SIBR: Accept and validate submitted EIM resource plan and load base schedule, EIM resource bids. ALFS: Forecast EIM load, EIM VER. EMS: Model updates EIM BAA, model EIM NSI. DAM/RTM: Perform the DCPA for each BAA for the constraint in the BAA and the test and mitigate the resources in the BAA; Decompose the LMP congestion by the constraint belong the same BAA; option for EIM entity unit commitment; All LMPs will not include marginal loss contributions from external network losses; The EIM entity access the interface to submit exceptional dispatch with EIM type ; send the latest valid prior RTD advisory results to EIM when ISO run RTCD. Model Greenhouse Gas (GHG) emission for EIM to ISO; Calculate BAAs transfers; Perform flexible ramping requirement sufficiency test. Meet flexible ramping requirement by BAA and total. MQS: Calculate resource unit contribution on congestion cost for real time congestion balance account. OMS: EIM submission of resource and transmission Outages Settlement: settle 15 minute and 5 minute markets IIE and UIE at LMP ; Calculate EIM LAP hourly volumetric weighted average LMP weighted by the load forecast deviations bounded by the min/max LMPs; Settle EIM administrative cost; create real-time congestion balancing account for each BAA; Collect and allocate underschedule penalty by month. Settle EIM resource BCR. Allocate uplift to the BAA shared by the transfers. Pay the flexible ramping capacity use current formula, allocate the cost prorata to the requirements. CMRI/OASIS/ADS: Publish the market results for EIM BAA and resources. Page 28

29 Fall 2014 Energy Imbalance Market (EIM) Milestone Details/Date Status BPM Changes Board Approval November 8, 2013 Market Operations, Market Instruments, Settlements and Billing External Business Requirements EnergyImbalanceMarket.pdf Metering no change SIBR 2/28/14 Master File RDT 3/5/14 Technical Specifications CMRI 4/1/14 ADS by 4/1/14 OASIS by 4/1/14 Charge code matrix posted; configuration guides 4/1/14 18 of 55 are posted Updated BPMs June 6, 2014 Market Simulation Tariff Draft EIM with FNM Expansion Market Simulation Structured Scenarios posted: FullNetworkModeExpansionStructuredScenarios.pdf Start market simulation on July 8, 2014 File: 2/28/14 Order anticipated on 6/20/14 Production Activation October 1, 2014 Page 29

30 Fall 2014 Full Network Model Expansion Milestone Details/Date Status Application Software Changes BPM Changes Master File: Define external BAA scheduling point as Generation Aggregated Point (GAP) and GDF. SIBR: Submit and create transaction ID for the SC Bids on Scheduling Points-BAA dynamically; Allow the SC bids at same BAA-SP to bid to different interties. DAM/RTM: Receive the dynamically formed transaction ID attributes from bid, perform contingency analysis for some critical external BAA resources and transmission equipment. Incorporate external BAA critical outages, Enforce both flow and schedule Intertie constraints, Model HVDC line. CRR: CRR market run on expanded Full Network Model. CMRI/ADS/OASIS/Settlement: Receive and process the dynamically formed transaction ID. Market Operations, Market Instruments, Managing FNM Board Approval February 6, 2014 External Business Requirements Technical Specifications October 31, FullNetworkModelExpansion.pdf N/A Updated BPMs June 6, 2014 Market Simulation July 8, 2014 Tariff Post: March 17, 2014 File: April 7, 2014 Production Activation October 1, 2014 Page 30

31 Fall 2014 Many to Many Substitution Requests Milestone Details/Date Status Application Software Changes Board Approval BPM Changes External Business Requirements CIRA: Add new functionality to process many to many substitution requests Enhance SCP Availability Calculations Provide single platform for management of resource adequacy and replacements /substitutions for associated outages Settlements: Impacts based on resource availability calculation in CIRA. Current system uses point and actual values in RAAM, with OMS there are only point values because of which the data settlements receive will be different than today. July 17, 2014 (reviewing) August 11, 2014 Reliability Requirements (UPDATED) January 23, 2014 Many to Many Substitution Request March 13, 2014 (REVISED) March 12, 2014 Application Consolidation (UPDATED) Technical Specifications April 15, CIRA (tentatively) Draft Configuration Guides TBD Market Simulation July 8 July 28, 2014 File Tariff Tariff (reviewing) Production Activation October 1, 2014 Page 31

32 Fall 2014 Outage Management System (OMS) Milestone Details/Date Status MPP and OASIS: Modified outage reports posted. Application Software Changes BPM Changes OMS: New OMS replaces SLLIC and current OMS (transmission) with a single outage management system. Application Programming Interfaces (APIs) will be modified to support new data structures and functionality, and a new user interface will be provided. Managing Full Network Model Market Instruments Outage Management Market Operations Draft Final Proposal Posted December 3, 2013 Conduct Stakeholder Call December 17, 2013 (pushed from December 10) Stakeholder Comments due December 23, 2013 (pushed from December 17) Present to Board of Governors February 6, 2014 External Business Requirements - Draft Posted June 28, 2013 External Business Rules Posted February 26, 2014 External Business Requirements - Final April 14, 2014 Page 32

33 Fall 2014 Outage Management System (OMS) Milestone Details/Date Status Generation Technical Specifications Posted January 8, 2014 Transmission Technical Specifications Posted January 27, 2014 Other Technical Specifications February 10, 2014 Publish Final Technical Specifications April 1, 2014 Developer Customer Partnership Group for Generation January 21, 2014 February 19, 2014 Developer Customer Partnership Group for Transmission February 11, 2014 Business Customer Partnership Group for Generation March 11, 2014 Business Customer Partnership Group for Transmission March 12, 2014 Business Process Changes Manage Generation Outages Manage Transmission Outages Updated BPMs September 2014 Market Simulation July 8 July 28, 2014 Tariff File Tariff: April 14, 2014 Production Activation October 1, 2014 Page 33

34 Fall 2014 Outage Management System (OMS) RAAM functionality There is no RAAM functionality that will be moved to the new OMS. Substitution of RA Capacity to cover for Forced Outages on an RA Resource will be moved from RAAM to CIRA Customer Partnership Groups Developer CPGs focused on review of the technical specifications and interface sequence diagrams to clarify and provide enhanced support for the implementation of OMS APIs Developer CPG for Generation was conducted on January 21, 2014 Developer CPG for Transmission was conducted on February 11, 2014 Business CPGs focused on review of user interface and business functionality Business CPG for Generation was conducted on March 11, 2014 Business CPG for Transmission was conducted on March 12, 2014 Final session for Business CPG to be scheduled Page 34

35 Fall 2014 Circular Scheduling Milestone Details/Date Status Application Software Changes BPM Changes Masterfile: Creation of new field to capture attestation letter submission. Change to Intertie RDT to allow participants to view the new field. CAS: Identify circular schedules associated with a SC, with single e-tagged schedule with source/sink at the same BAA; the BAA could be CAISO or other BAA; Exclude dynamic, DC segment, open intertie, Wheeling through for load. CRR Claw Back/MQS: Identify the SC s affiliation for single SC and circular schedule MW. Build new rule to calculate value the CRR claw-back in dollars. Settlement: Identify the SC s affiliation for single SC. Identify the circular schedule Import/export MW applicable to IFM, HASP and real-time market. Build settlement rule that applies to a circular schedule, settle the Import to the ISO at the lower of LMPs at scheduling points for import and export for the MW in the market the schedule was awarded. Circular schedule is not eligible for BCR for the interval. Market Operations, Market Instruments, Settlements & Billing Business Process Changes Manage Interchange Scheduling, Manage MQS, Manage Billing and Settlements Board Approval March 2012 External Business Requirements March 22, 2013 Updated BPMs June 6, 2014 Technical Specifications March 20, 2014 Draft Configuration Guides May 2014 Market Simulation July 8, 2014 Tariff Approved January 30, 2013 Production Activation October 1, 2014 Page 35

36 Flexible Resource Adequacy Criteria and Must-Offer Obligation (FRAC-MOO) Milestone Details/Date Status Application Software Changes Board Approval March 19, 2014 BPM Changes External Business Requirements Technical Specifications Draft Configuration Guides Market Simulation File Tariff RA System: CAISO interface for resource adequacy and Manage Reliability Requirements process shall be modified to reflect the acceptance, verification and processing of Flexible Capacity RA data via GUI, determination of Effective Flexible Capacity (EFC) values, issuing EFC list, performing EFC test and determination of necessary backstop procurement for FRAC system deficiencies. Mater File: Master file updates with EFC values. Settlements and Billing: Settlement of FRAC-MOO backstop procurement for Flexible Capacity System Deficiencies. Reliability Requirements, Market Operations, Settlement and Billing TBD TBD TBD TBD TBD Production Activation Fall 2014 Page 36

37 Fall 2014 FERC Order 789 Reliability Standard BAL-002 Milestone Details/Date Status Application Software Changes EMS: Minimum contingency reserve calculations to be updated in EMS software. Operations Tools: Any day ahead and real time tools used to calculate, procure and monitor operating reserve per OP 1340 need to be updated with the new Minimum contingency reserve calculations. Settlements: Potential impact on ancillary services settlements and allocation in ISO settlements. Board Approval BPM Changes External Business Requirements Technical Specifications Draft Configuration Guides Market Simulation Phase 1 Tariff N/A BPM Market Operations, BPM Market Instruments, BPM Market Settlements TBD N/A TBD N/A Tariff changes likely Deployment Date October 1, 2014 Production Activation Date October 1, 2014 Page 37

38 Contingency Modeling Enhancements Milestone Details/Date Status Application Software Changes BPM Changes IFM/RTN: Adds a preventive-corrective constraint to the market co-optimization OASIS/CMRI: Publish preventive-corrective capacity awards with associated LMPC Settlements: Payment and charges for corrective capacity awards, allocation of cost of the corrective capacity constraint, no-pay provisions, bid cost recovery Manage Full Network Model, Market Operations, Market Instruments, Settlement and Billing, Definitions and Acronyms Study Results Board Approval July 17, 2014 External Business Requirements Technical Specifications Draft Configuration Guides Market Simulation Distribute Results: March 13 (Delayed - TBD) In Person Call: March 20 (Was a Meeting, but changed to a Call) Comments Due: March 27 TBD TBD TBD TBD File Tariff Production Activation TBD 2014 will be in an Independent Release (not activated with the Fall 2014 release) Page 38