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Ex post price correction make whole payments
Ex post price corrections have led to instances in which bids that were cleared in the market are no longer economical when evaluated against the corrected price. Currently, the ISO does not have a policy or mechanism for compensating market participants when this occurs. The absence of such a make-whole mechanism was based on the assumption that the need for market results would always be consistent with the cleared bids. In practice, this is generally the case. When market prices require corrections, however, settlement prices can differ from the value of the cleared bids. Through this initiative, the ISO will develop a make-whole payment mechanism to compensate market participants for adverse financial impacts in the case when prices are adjusted in a way that is not consistent with their accepted bids.
- Outcome
  The ISO implemented a make-whole adjustment mechanism to compensate market participants for adverse financial impacts in cases when prices are corrected in a way that is not consistent with their accepted demand bids. The make-whole adjustment applies to cleared Demand Bids including export and load in the event of an upward price correction. For export bids this applies to either day-ahead or hour-ahead price corrections, whereas for Demand Bids it would apply only to day-ahead price corrections.—Implemented: June 1, 2010; FERC Order: May 27, 2010 (ER10-966); Board of Governors approval: Feb. 10, 2010
- Ex post price correction make whole payments - papers and proposals
- Ex post price correction make whole payments - tariff
- Comments on tariff language
- Comments on draft final proposal
- Comments on straw proposal
- Comments on issue paper/ straw proposal
- Comments on 08-Dec-2009 presentation