California ISO

Convergence Bidding


Background

Convergence (or virtual) bidding is a mechanism whereby market participants can make financial sales (or purchases) of energy in the Day Ahead market, with the explicit requirement to buy back (or sell back) that energy in the Real Time market. Virtual bids pressure Day Ahead and Real Time prices to move closer together, thus reducing the incentive for buyers and sellers to forgo bidding physical schedules in the Day Ahead market in expectation of better prices in the Real Time market. Under FERC's September 21, 2006 MRTU Order, the California ISO must implement convergence bidding within twelve months after the new ISO market startup. FERC's April 20, 2007 Order specifies that the ISO must file tariff language for the implementation of convergence bidding no later than 60 days prior to the on year anniversary of the new market startup. Thus the ISO is seeking focused stakeholder input now to help develop the design for Convergence Bidding so that the necessary software features and business processes can be built to meet a reasonable implementation schedule.
Relevant Market Notices
View History

Initiative Status

Policy Development
- Complete      View Draft Final Proposal and Addendum to the Draft Final Proposal
Tariff Development
- Complete      View Fourth Draft Tariff Language
Release Planning / Implementation
- In Progress

Current Stakeholder Meeting

Market Simulation Web Conference 01-Sep-2010

Presentation
pdf 274K | Abstract | 08/30/2010 16:04

Previous Stakeholder Meetings

Release Planning / Implementation

Convergence Bidding Market Simulation
Convergence Bidding Registration
Convergence Bidding Technical Specifications
Convergence Bidding Implementation Working Group

Implementation Plan

Convergence Bidding Implementation Plan - Version 5
pdf 1163K | Abstract | 08/30/2010 15:58

Eligible Locations

Convergence Bidding Eligible Locations and Limits - Version 3
xls 309K | Abstract | 08/19/2010 08:36

External Business Requirements Specification

Business Requirements Specification - Version 1.2
pdf 439K | Abstract | 07/26/2010 16:10
Business Requirements Specification - Version 1.2 - redline
pdf 441K | Abstract | 07/26/2010 16:09
Business Requirements Specification (BRS)
pdf 470K | Abstract | 12/02/2009 10:12


Policy Development


Papers and Proposals

Addendum to the Draft Final Proposal
doc 571K | Abstract | 05/21/2010 15:17
Draft Final Proposal
pdf 504K | Abstract | 09/18/2009 13:02     View Stakeholder Comments
Appendix A - Cost Allocation Examples
xls 32K | Abstract | 09/14/2009 18:20
Appendix B - CRR Settlement Rule Proposal
pdf 230K | Abstract | 09/14/2009 18:22
Appendix C - Results of RUC Testing
pdf 123K | Abstract | 09/14/2009 18:25
Straw Proposal
pdf 479K | Abstract | 07/02/2009 14:58     View Stakeholder Comments
All Stakeholder Comments

Tariff Development


Tariff Language

Fourth Draft Tariff Language 13-May-2010
doc 124K | Abstract | 05/13/2010 16:04
Third Draft Tariff Language 23-Apr-2010
doc 287K | Abstract | 04/23/2010 12:53     View Stakeholder Comments
Second Draft Tariff Language Update 15-Apr-2010
doc 266K | Abstract | 04/15/2010 11:52     View Stakeholder Comments
Second Draft Tariff Language 24-Mar-2010
doc 263K | Abstract | 03/24/2010 11:49     View Stakeholder Comments
Draft Tariff Language 21-Dec-2009
pdf 152K | Abstract | 12/21/2009 11:33     View Stakeholder Comments

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