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.