The California ISO implemented an enhancement to the Hydro Default Energy Bid calculation, effective May 1, 2020.
The ISO enhanced the formulation of the weighting factor that applies to the long-term component of the Hydro Default Energy Bid to a dynamic weighting factor that considers index prices of approved additional pricing hubs in highest to lowest ranking order. The ISO also clarified fallback logic when power prices are missing and the liquidity criteria for considering additional pricing hubs.
The details of the enhanced logic are described in Emergency Proposed Revision Request (PRR) 1242, which is available at https://bpmcm.caiso.com/Pages/default.aspx. The PRR comment period closes May 19, 2020.
The PRR will be discussed during the May and June Business Practice Manual (BPM) meetings.