Exceptional dispatch

Under MRTU, reliability requirements that cannot be resolved through the California ISO market software will be met by manually issued Exceptional Dispatches. Units receiving Exceptional Dispatches for energy will be paid the higher of their bid price or the Locational Marginal Price (LMP). The ISO expects that the frequency and duration of Exceptional Dispatches will be very limited under MRTU. However, the potential cost of such Exceptional Dispatches could be significant if generators receiving such dispatches are able to exercise local or temporary market power by submitting extremely high energy bids. Therefore, the ISO is considering modifications to the MRTU to mitigate the potential for market power by units receiving Exceptional Dispatches for energy.