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