General Scope of Price Corrections Prices may be corrected when (i) a market solution is determined to be invalid, or (ii) invalid prices are identified in an otherwise valid market solution. The following are some reasons that may be the causes of these conditions: Data Input failure. Missing or incorrect versions of one or more data elements input to the market applications may result in an invalid market solution and/or prices. State Estimator data, in particular, may be a cause of RT market validation problems, and will be a focus of the validation effort. Hardware/Software failure. While CAISO has designed a very high degree of reliability into the MRTU the market run may fail to yield a converged systems’ architecture, solution in all executions. This may be due to hardware or software failure, planned market systems outages, or simply a failure of the Security Constrained Unit Commitment (SCUC) optimization software to converge. In any case, such events result in an invalid or non-existent market solution, for which corrected prices will be determined after-the-fact, per Section 8.1.4 below. Inconsistency with Tariff. A third category of invalid market solution or incorrect price calculations is related to the correct application of market rules, per CAISO Tariff. Market results will be validated to be consistent with CAISO Tariff, and where applicable, prices may be corrected to meet this goal. This includes, but is not limited to ensuring that (i) price setting resources are eligible to do so, and (ii) binding constraints are applied (or relaxed) in the appropriate priority order. Following are some qualifications to the scope of Price Corrections: Price anomalies, or price spikes, due to scarcity of resource bids will not be a cause for price corrections. The extent to which bids are mitigated in the MPM process has a direct impact on the market clearing prices in the IFM or HASP/RTUC/RTED. Therefore, these SCUC solutions will be subject to Market Validation principles. However, it should be noted that prices resulting from the MPM/RRD SCUC passes are not themselves validated, as these prices are not used for settlement. Advisory HASP prices are not directly in scope for Price Correction. However, as part of the Price Correction process for binding HASP and RTUC prices, if a Price Correction action is taken that involves re-running the market or otherwise generates a new market
General Scope of Price Corrections Prices may be corrected when (i) a market solution is determined to be invalid, or (ii) invalid prices are identified in an otherwise valid market solution. The following are some reasons that may be the causes of these conditions: Data Input failure. Missing or incorrect versions of one or more data elements input to the market applications may result in an invalid market solution and/or prices. State Estimator data, in particular, may be a cause of RT market validation problems, and will be a focus of the validation effort. Hardware/Software failure. While CAISO has designed a very high degree of reliability into the MRTU systems’ architecture, the market run may fail to yield a converged solution in all executions. This may be due to hardware or software failure, planned market systems outages, or simply a failure of the Security Constrained Unit Commitment (SCUC) optimization software to converge. In any case, such events result in an invalid or non-existent market solution, for which corrected prices will be determined after-the-fact, per Section 8.1.4 below. Inconsistency with Tariff. A third category of invalid market solution or incorrect price calculations is related to the correct application of market rules, per CAISO Tariff. Market results will be validated to be consistent with CAISO Tariff, and where applicable, prices may be corrected to meet this goal. This includes, but is not limited to ensuring that (i) price setting resources are eligible to do so, and (ii) binding constraints are applied (or relaxed) in the appropriate priority order. Following are some qualifications to the scope of Price Corrections: Price anomalies, or price spikes, due to scarcity of resource bids will not be a cause for price corrections. The extent to which bids are mitigated in the MPM process has a direct impact on the market clearing prices in the IFM or HASP/RTUC/RTED. Therefore, these SCUC solutions will be subject to Market Validation principles. However, it should be noted that prices resulting from the MPM/RRD SCUC passes are not themselves validated, as these prices are not used for settlement. Advisory HASP prices are not directly in scope for Price Correction. However, as part of the Price Correction process for binding HASP and RTUC prices, if a Price Correction action is taken that involves re-running the market or otherwise generates a new market