MISO Market & Transmission Settlements Best Practices

Understanding and Validating Settlement Charges for Merchant & BA Groups

March 14-15, 2023 | Denver, CO and Online :: Mountain Time

Many MISO market participants would like to better understand the MISO settlement charge codes for both market and transmission settlements, how to connect the dots between front-office bidding strategies and settlement results, and how to visualize ways that settlement results drive profits for their resources and charges for their loads. 

In this course, attendees will learn:  

1. How settlement results can be used as a strategic tool to validate MISO settlement statements and invoices
2. Identify settlement errors
3. Submit settlement disputes
4. Compute profits & losses
5. Provide feedback on the effectiveness of bidding strategies
6. Maximize the bottom-line profits for your assets in MISO  

The tutorial program will also provide best practices for back-office groups in the areas of meter validation, shadow settlements, dispute management, P&L calculations, and month-end closing. 

Learning Outcomes  

Attendees at this course will:  

• Identify key MISO settlement charge codes for market and transmission settlements
• Explain how to validate MISO settlement charges and invoices
• Examine how to validate contract settlements for power purchase agreements (Wind, Solar, Batteries, Crypto) and bilateral transactions
• Assess the potential impacts of market power mitigation on settlement results
• Evaluate whether credits from FTR and ARR contracts are properly covering congestion costs
• Determine if plants are collecting enough revenues from the energy, capacity, and ancillary service markets to cover their operating and capital costs
• Evaluate the rules MISO uses to compute price-volatility make-whole payments for resources
• Examine the method used to estimate MISO settlement charges to support month-end closing
• Review how MISO allocates unaccounted-for-energy
• Discuss whether to submit meter data for resources in hourly or 5-minute granularity
• Analyze the rules MISO uses to compute DA and RT make-whole payments for generators
• Consider why it’s important to perform shadow settlement
• Specify the main data sources for shadow settlement and allocating charges to generators, loads, and transactions
• Discuss how best to train the back-office team to understand complex charge codes in MISO

Registration & Attendance Criteria

This course is open to utilities, power and energy industry operating companies (see above), software vendors, consumer groups, project developers and regulators only.  Registrations that do not meet this criteria – or that may be construed as a competitive conflict – will be evaluated on a case-by-case basis and may not qualify for attendance.  Any determination as to the fulfillment of a registration to attend this program shall reside solely with EUCI.  Questions re: the application of this restriction can be addressed to [email protected].

Tuesday, March 14, 2023 : Mountain Time

8:30 – 8:50 a.m. :: Overview and Introductions

8:50 – 10:30 a.m. :: Overview on MISO Market

• Key features of MISO market
• MISO’s role as reliability coordinator and balancing authority
• Understanding MISO tariff
• Understanding MISO full network model and commercial model
• MISO bids and offers
• Reviewing day-ahead and real-time bidding workflows for MISO
• Understanding SCUC objectives for DA market and SCED objectives for the RT market
• How does the two-step settlement work?
• Reviewing MISO market statistics
• Benefits of MISO market
• Bid-to-Bill timeline and challenges

10:30 – 10:45 a.m. :: Morning Break

10:45 a.m. – 12:15 p.m. :: Uses of Nodal Locational Marginal Prices in Bidding & Settlement

• Using full network model to compute nodal locational marginal prices
• How are LMPs computed?
• Understanding 3 components of LMP – energy, loss, congestion
• Understanding impacts of flow-gates on congestion
• Can LMPs be negative?
• Day-Ahead settlement calculations
• Why does MISO introduce ELMPs?
• Can you forecast DA LMPs?

12:15 – 1:15 p.m. :: Lunch Break

1:15 – 3:00 p.m. :: Understanding MISO Bid-to-Bill Workflow

• Understanding 3-part energy offers for generators
• Examples illustrating day-ahead and real-time settlement for generators
• Market principles behind RSG make-whole payments and charges
• Computing day-ahead RSG make-whole payments for generators
• Who will pay DA & RT make-whole charges?
• Validating Day-Ahead and Real-Time market operations
• Understanding P&L leakages
• Which RTOs pay make-whole payments to keep resources whole from a cost viewpoint and P&L viewpoint?

3:00 – 3:15 p.m. :: Afternoon Break

3:15 – 5:00 p.m. :: Validating MISO Market Settlements

• Business objectives for settlement group
• MISO settlement calendar
• Understanding settlement statements and charge codes for MISO Market
• Reviewing MISO settlement workflow
• Downloading settlement statements and invoices from MISO server
• Why perform shadow settlement?
• Key functions of shadow settlement software
• What data do we need to validate MISO settlement?
• What are the most common causes for settlement disputes?
• Computing 5-minute excessive-energy and non-excessive-energy volumes and charges
• What criteria does MISO use to activate failure-to-follow dispatch flags? What behavior is MISO incentivizing and why?
• When are resources exempt from penalties?
• Computing penalties for non-performance
• Computing net regulation adjustment payments and charges
• Understanding real-time price-volatility make-whole payment calculations – what behavior is MISO incentivizing and why?
• Market principles behind real-time make-whole payments and charges
• Understanding real-time penalties
• Understanding MISO resource-adequacy requirements
• Results of MISO 2022-23 capacity auction
• Understanding MISO settlement for resource adequacy

5:00 p.m. :: Program Adjourns for Day

Wednesday, March 15, 2023 : Mountain Time

8:30 – 10:15 a.m. :: Using Profit & Loss Metrics to Provide Feedback to Traders

• Using settlement and production-costing results to compute DA and DART Profits & Losses (P&L) for your portfolio
• Key factors influencing profits & losses
• Computing P&L gains and leakages
• Using profit & loss metrics to provide feedback to traders on effectiveness of day-ahead and real-time bidding strategies
• Using profit & loss metrics to provide feedback to plant managers on plant performance
• Using profit & loss metrics to build key performance indexes

Validating MISO Transmission Settlements

• Overview on MISO transmission settlements for transmission owners and transmission providers
• MISO calendar for transmission settlements
• Downloading transmission settlement statements and invoices
• Understanding key FERC schedules and key MISO transmission-settlement charge codes
• What shadow data do you need to validate MISO transmission settlement statements?
• How do you validate MISO transmission settlement invoices?
• Reviewing end-to-end workflow for validating transmission settlements

10:15 – 10:30 a.m. :: Morning Break

10:30 a.m. – 12:15 p.m. :: Validating Contract Settlements

• Validating contract settlements for power purchase agreements (wind, solar, batteries, crypto) and bilateral transactions
• Reviewing E-Tag data
• Month-end closing
• Reviewing end-to-end workflow for validating contract settlements

Validating MISO Ancillary Service Credits and Charges

• Ancillary service (A/S) products supported by MISO
• Formulating A/S offers
• What is lost opportunity cost?
• How does MISO compute A/S marginal clearing prices (MCPs)?
• Are A/S MCPs influenced by congestion?
• Understanding key A/S charge codes in MISO
• Computing revenues and costs for providing ancillary services
• How does MISO pay resources for regulation-mileage?
• How does MISO penalize resources for not delivering regulation mileage?
• Validating A/S charges for loads

12:15 – 1:15 p.m. :: Lunch Break

1:15 – 2:30 p.m. :: Understanding MISO ARR & FTR Charge Codes

• Key factors causing congestion in MISO
• Use FTR and ARR contracts to hedge against congestion
• How do you procure ARR & FTR contracts in MISO?
• Understanding FTR annual and monthly auctions
• Understanding MISO settlement charges for ARR & FTR contracts
• Evaluating benefits of FTR & ARR contracts

Case Study to Illustrate Settlements and Profit & Loss Calculations

• Using settlement and production-costing results to compute DA settlements and profits & losses (P&L) for 3 portfolios
• Using profit & loss metrics to provide feedback on effectiveness of bidding strategies
• Settlement forensics – where front & back offices meet

2:30 – 2:45 p.m. :: Afternoon Break

2:45 – 4:00 p.m. :: Course Review & Round-Table Discussion

4:00 p.m. :: Course Adjournment

Khai Le, Senior Vice President, PCI

Over the past 45 years, Khai Le has conducted more than 750 seminars on market-based operations, trading and bidding strategies, portfolio optimization, and shadow settlement for utilities and ISOs worldwide. He is currently working with market participants in RTO and bilateral markets to deploy the PCI Suite to automate their bid-to-bill, portfolio-optimization, ETRM, and BA-operations workflows. He has authored some 100 technical papers on unit commitment, hydro-thermal coordination, emission dispatch, optimization of ancillary services, post analysis, and short-term planning. Five of his papers received prize awards.  Mr. Le received his BS from Harvey Mudd College and his MS from Carnegie Mellon University. He is a Fellow of the IEEE and a Registered Professional Engineer in Pennsylvania.

Justin Shearer, Senior Director, PCI

Justin Shearer is Vice President of Energy Solutions for PCI Energy Solutions, joining the firm in 2013.  Among the many important assignments he has filled over the years is the role of product ownership management for the company’s CAISO EIM solution. Before joining PCI, Mr. Shearer was a quality assurance team lead for a multi-billion dollar hedge fund and a security class actions analyst for a leading financial services firm. He earned his bachelor’s degree in English Literature and Language from University of Oklahoma. He then received his MBA with a focus in MIS and supply chain management from the Price School of Business at the University of Oklahoma.

Daric Moenter, Manager – Market Settlements, Midcontinent ISO (MISO)

Daric Moenter is Manager of Market Settlements at the Midcontinent ISO (MISO).  He has more than 18 years of energy industry experience across multiple utilities and ISO/RTO markets. His background includes power generation, US fleet asset management, utility-centered analytics, and market settlements. Mr. Moenter leads the Market Settlements team at MISO and is responsible for the accurate and timely settlement of more than $50B in annual gross market activity.  He received his BS in Mechanical Engineering Technology from Purdue University, his MBA from Oakland City University, and his Business Analytics Certification from the Wharton School.

Jeremy Pober, Sr. Manager, PCI Energy Solutions

Jeremy Pober manages the development of the PCI back-office software suite that can be used to validate MISO market and transmission settlements. He participates in MISO market meetings and works with MISO market participants on defining new software requirements to meet emerging settlement needs. Mr. Pober received both his BA and MBA from the University of Oklahoma.

Ken Lukowski, Director, PCI Energy Solutions

Ken has more than 17 years of settlements experience.  He chaired the MISO Market Settlements Working group from 2010 to 2013.  Mr. Lukowski received his BS in Accountancy & BS in Finance from Southern Illinois University and his MBA from Lindenwood University.

EUCI Conference Center

6400 S Fiddlers Green Cir.

Greenwood Village CO, 80111

The EUCI conference center is conveniently located adjacent to the Arapahoe at Village Center Light Rail Station, allowing easy access to and from DIA, Downtown, and Local Area Attractions.

REGISTER NOW FOR THIS EVENT:

MISO Market & Transmission Settlements Best Practices

March 14-15, 2023 | Denver, CO

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before February 10, 2023 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.3 CEUs for this event

Instructional Methods  

This program will use PowerPoint presentations, case studies and group discussions. 

Requirements for a Successful Completion of Program  

Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 15.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

Who Should Attend

This course is open to utilities, power and energy industry operating companies (see above), software vendors, consumer groups, project developers and regulators only.  Registrations that do not meet these criteria – or that may be construed as a competitive conflict – will be evaluated on a case-by-case basis and may not qualify for attendance.  Any determination as to the fulfillment of a registration to attend this program shall reside solely with EUCI.  Questions re: the application of this restriction can be addressed to [email protected].