The California ISO is deploying the functionality of its FERC Order No. 831 Market Parameters and Import Bidding Enhancements initiative, effective trade date June 13, 2021 that includes two key components:
- Market scheduling and pricing parameters based on a $1,000/MWh soft energy bid cap unless market conditions support costs and bids above $1,000/MWh, and
- Revised rules for allowing import bids, export bids, demand bids, and virtual bids above $1,000/MWh.
The ISO previously implemented its FERC Order No. 831 Compliance functionality on March 20, 2021, which established a $2,000/MWh hard energy bid cap, allowed import bids, export bids, demand bids, and virtual bids up to $2,000/MWh, allowed resource-specific resource bids above $1,000/MWh with cost-justification, and scaled market scheduling and pricing parameters based on a $2,000/MWh hard energy bid cap. The FERC Order No. 831Market Parameters and Import Bidding Enhancements functionality is meant to complement the implemented FERC Order No. 831 Compliance functionality.
Additional information on bid validation rules for specific resource types and changes to market penalty parameters are detailed in revised versions of the Business Practice Manual (BPM) for Market Instruments and BPM for Market Operations, respectively. The Proposed Revision Requests (PRR) detailing these edits will be available prior to the project activation date at the ISO’s Business Practice Manual Change Management site, linked below.
Please refer to the links below for more information on FERC Order 831 Enhancements functionality.
FERC Order No. 831 Enhancements filing:
http://www.caiso.com/Documents/Feb22-2021-TariffAmendment-PricingParameters-OrderNo831-ER21-1192.pdf
Business Practice Manual Change Management site:
https://bpmcm.caiso.com/Pages/BPMLibrary.aspx
BPM for Market Instruments: https://bpmcm.caiso.com/Pages/BPMDetails.aspx?BPM=Market%20Instruments
BPM for Market Operations: https://bpmcm.caiso.com/Pages/BPMDetails.aspx?BPM=Market%20Operations
FERC Order 831 Customer Training:
http://www.caiso.com/Documents/Presentation-FERC-Order-831-Import-Bidding-Market-Parameters-Training-Apr-28-2021.pdf
