Price inconsistency caused by intertie constraints

Upon the start of convergence bidding, the ISO began enforcing two separate constraints at each intertie scheduling point within the integrated forward market, pursuant to ISO tariff section 31.8. The constraints prevent virtual bids from causing net interchange schedule violations of intertie scheduling limits. Enforcing the separate constraints has resulted in a difference between export pricing and the resources’ bid price. As a result, export schedules are sometimes subject to prices above submitted bid prices. Through this stakeholder initiative, the ISO will evaluate the existing market rule and consider any changes to address adverse outcomes resulting from the current design.